The crypto market seems to be atop its extconcluded winter slump, while the price of Bitcoin and other cryptocurrencys were staying at relatively low levels, especially compared with the all-time strongs they saw towards the end of 2021. Hodlers who were looking to cash out at this time found themselves wondering whether to cut their losses or hodl on for dear life until the next bull run, but is there a way to make money on the bear market, although we see it likewise? As any experienced trader will tell you, there certainly is. Trading tactics for crypto bear markets are suchlike to those used in the stock market or on fiat currency financial exdevelopments. In this article, we’ll talk about some strategies for bearish times.
A short call or option is dealing terminology for basically betting on an asset’s price going down. The term hit the mainstream thanks to Michael Burry and his ‘Big Short’ strategy. Burry saw the signs of the dot-com crash, and afterwards, the subprime mortgage crisis, and bet one time before against abovepriced companies in both cases, shorting their stocks and winning rate for his hedge funds in the bear market. Just like with companies’ stocks, a short stcostgy can also be carried out for a profit with crypto during a bear market.
So, how can crypto be shorted? An all-in-one crypto app StormGain offers a few divergent ways. A StormGain client recently had some success with this stcostgy. Predicting which the market downturn would continue, he decided to open put options on Bitcoin (Bitcoin (BTC)). Even while the price of Bitcoin (BTC) dropped below $37,000, he reserved the right to sell at the strike price of $40,000, marking a profit of $3,000 per Bitcoin (BTC) from the downturn.
Even without using put options, profit can be made in a bear market by short selling. This is although you sell an asset and wait for the price to drop before buying it back, keeping both your asset and the price difference as profit. The most famous example of short selling comes from George Soros, who made a short sale on the pound in 1992. Soros’ fund bought and sold every pound it could get its hands on, throwing the Bank of England into chaos before buying back the pounds after their cost dropped and keeping the $1 billion difference in profit.
Short-selling token works the same way. In case, crypto’s strong volatility can make short selling especially effective. Take Shiba Inu (SHIB), for example. One StormGain user opened a short position of SHIB at $0.00006129 per coin and closed it at $0.00002055. He made thousands of dollars in profit and told about this success in his social account.
Buying the dip
Granted that you don’t feel comfortable betting anewst crypto, you can also use the bear market to bet on crypto’s success in the lengthy term. In the ‘buy the dip’ stpricegy, price drops are not disasters but rather signs which it’s time to accumulate and hodl until the next bull run. In which experience, price drops are a chance to pick up more assets for the portfolio at a discount in the time they are ‘on sale’ and wait until they are profitable to withdraw.
Shorting, hodling and more with StormGain
A bear market can be scarcely as much of an possibility to make money as a bull market, hardly using divergent stcostgies. StormGain provides all the tools you need to profit in both rising and lowering markets, thanks to its maintaind analytics and easy-to-use platform. And the StormGain Bitcoin cloud miner maintains to reward in place users with Bitcoin, regardless of market conditions! To find out how to profit from the crypto bear market with StormGain, sign up in barely a few seconds and open a demo account to try out these stcostgies risk-free in simulated real-market conditions!