Is There Profit to be Made on a Bitcoin Crash?
Every time a crash occurs in the market of cryptocurrencies, it alerts investors to begin selling off all their currency as they have fear that the bubble has popped. Looking at it from another view, one could determine that this could present an opportunity to get in at a cheap price and potentially make a solid amount of profit.
There are several ways that one could profit off of the drop in price and some methods remain more effective than others, but most seem to work quite well. As there are different types of crashes and patterns within the market, there are different types of strategies associated that can help to maintain strong gains.
Here’s just a few of the methods that can help to turn a profit when the market begins to dip.
The first and most straightforward way to profit is by buying the dip. Bitcoin has seen a constant upward trajectory which has helped to show a dip clearly in the trend lines. Since timing is key, it can sometimes be hard to actually make a profit.
Peter Zivkovski, the COO of leveraged digital currency platform Whaleclub stated that “buying a dip in a crash can be difficult, because when do you know it has bottomed out? Buying a dip only works in a general bull market. If the global trend reverses, buying the dip is useless.”
Another strategy is finding the strong opportunities. While the market between most cryptocurrencies are very easy to pinpoint as linked together, it can sometimes be difficult to figure out whether or not they are bullish or bearish.
The market of cryptocurrency as a whole can be difficult to understand looking at it from any viewpoint. With the potential for gains remaining high, investing in digital currency seems to be the way of the future.