Investment Tricks When Bitcoin Drops, Keep Earning!

Since 2021, the market capitalization of crypto assets has quadrupled. However, there are times when the Bitcoin price drops, driven by many factors. In this situation, of course, the question arises, what is the investment strategy when Bitcoin goes down?

Bitcoin price could skyrocket this year. However, the sky is not always clear. There are times the market Bitcoins down and down, as it did in 2018, when the cryptocurrency king fell 65 percent in price in just one month.

Therefore, the current price rally should return at some point. However, many investors don't know when this will happen. They may think that when a downturn occurs, it is best to back off and wait.

However, this is an incorrect assumption. Situation bearish is actually a good time to start saving BTC before getting back into the uptrend.

In this article, we will cover some of the best ways to profit when the Bitcoin price drops.

Cuan Tricks When Bitcoin Drops

Let's go over some ways and strategies to keep a portfolio green. On the other hand, it will also make you lose more money due to the increasing market momentum. 

Swing Trading

In a down market, the best investment strategy is to buy crypto assets and hold onto the ones you think will make you the most money.

But if the price goes down, you have to take advantage of the trend. Experienced investors usually increase their Bitcoin portfolio during this time. The trick is to buy lots of coins when the prices are low and sell them when they are at the top of the trend.

While this approach can provide consistent results, it is proof that entrepreneurship is not for everyone. In order to be successful in swing trading, you need to start understanding the basics of technical analysis. This will give you the best entry and exit points in the market.

Shorting Strategy

A discount or short sale can be thought of as the opposite of buying cryptocurrency and expecting the price to increase. This Bitcoin investment strategy is one of the most common ways to profit in a slow market.

If you are short, you will borrow funds from a crypto exchange and sell the asset at the current market price. For example, if the Bitcoin price drops, you can close the position later. You then buy back at a lower price and use the difference as profit.

However, if the assumptions are wrong and the price goes up, you should buy back the currency at a higher market price. This is not a profit, but it can lead to a net loss.

Since cryptocurrencies are very fast-moving assets, this method can bring big profits, but it can also lead to big losses.

Do the "Against the Current" Trick

Sometimes, BTC doesn't live up to expectations. On the other hand, when things get better, this crypto asset seems to be trending. So for now, you can stay away from Bitcoin and make money from this asset.

But how can you identify cryptocurrency as an investment? In this case, you need to monitor the market closely and compare price patterns. There are two known examples of crypto assets and they have gained immense popularity due to unexpected patterns.

The first is Binance Coins (BNB), which was the only currency that actually turned a profit in the bearish scenario of 2019. At a time when the entire market was struggling, he made over 1000 percent gains.

Another currency is called Chainlink (LINK), which is leading the gains at the moment. Crypto assets outperform popular currencies like bitcoin and ethereum by 300 percent. You can later re-enter the market with a more confident mind as the Bitcoin price recovers.

Also read: Tips to Become a Bitcoin Miner and Make Money

HODL

If you are not comfortable investing or selling short, there are other options. For example, you can invest in a currency that generates passive income and recover losses from falling Bitcoin prices. Therefore, crypto assets usually carry out activities crypto lending.

You can borrow crypto assets on popular exchanges or through decentralized finance applications. You can then lend the crypto assets to other users and earn regular interest.

Also read: BNB and BTC analysis Friday June 24, 2022

Many think you should stay away from cryptocurrency trading when the market is down. This is not true because a bearish situation is often the best time to increase your portfolio and earn more bitcoins for the next market cycle.

Like equity investment, asset diversification is a strategy that must be implemented to minimize the risk of loss.

If the market is bearish, altcoins may be a more profitable choice than Bitcoin. Therefore, collect and trade altcoins likely to be more profitable when the market is trending down.

Also read: BNB and BTC analysis Wednesday 20 July 2022

The above are just a few of the methods you can use to get started with slow markets. When the inevitable downtrend comes, you have to be prepared. A good understanding of technical analysis can help you create money-making opportunities when Bitcoin goes down.