5 Ways To Make Money During A Bearish Or Sideways Trend In Crypto Markets
Despite a good Q2 for crypto in 2019, it would seem that crypto is experiencing a sideways momentum. This is not at all surprising as the gains from April and May are quite huge. However, it is still possible to make money in this sideways and at times bearish trend. Here are some tips on how to do it.
Learn How To Short The Market At The Perfect Time
Those crypto traders who see the bearish market going on for a while may look into shorting crypto. Many platforms give you the tools to do it. As the sideways trend continues, it is becoming obvious that the price of BTC is bouncing around in different price ranges almost daily. This is promising and a cause for worry as well depending on what one does. While you can make cash from shorting the market, current conditions may not make it too easy. Since most crypto prices are hovering at the same price points, short-term shorts are the best option. However, a long-term short may not yield much since a major price crash is not expected.
Master Swing Trading
If you have a basic grasp of technical analysis, it might be time to try swing trading. Whether in a bull or bear market, swing trading is a great way to make money if done right. It simply means you buy low and sell high. With some basic analysis, you can predict when the market will dip and rise. If you have no experience, a few YouTube videos should help you master the art of Swing Trading.
Become a Scalper
If you have been in the financial world for a while, you must have heard of scalping. This market occurs even outside crypto markets. However, beware that there is no guarantee for profits if you do not do some research. Scalping is a tedious process, which can be best done using a trading bot. Despite this, the crypto markets are quite volatile and one bad hourly candle could erode a whole week of earnings.
Loo into Coin with Small Caps
The crypto world has spawned thousands of projects that can be traded. There is a lot of money that can be made from the small coins. These small-cap coins can see some huge swings, in terms of percentage value due to development in their projects. While you should not invest too much in these small coins, there is a good chance to make a lot of money. However, you should never invest money in these coins that you cannot afford to lose.
Look into Airdrops, Giveaways, and IEOs
While you might not make a lot of money in airdrops these days, it is still free money. Most airdrops will require you to share something on social media. Thus, consider creating a dummy account for this purpose. Some airdrops will give you as much as ten dollars in one airdrop. With time, this can build up into hundreds of dollars. IEOs are also lucrative if you get in early. When listed, they usually experience a pump on which you can cash in.