The bearish run of the crypto market is becoming intense and we have suddenly reached a stage where only experienced traders thrive. It is easy to get a piece of the pie in a bull market, but when it comes to a bear market like the one we are presently enduring, there is a need for more effective strategies.
As such, this guide will take you through some trading tips that will help you stay ahead of the pack in the current market slump.
Bearish Crypto Market Is Favorable To Experienced Traders
Understand that the current run of the crypto market is not all bad; there are still opportunities to make profitable moves. Realizing that the elimination of hype in the market will help you have a clearer view of the nitty-gritty of things is the first step of cultivating a winning mentality. It is only when your positivity is restored that you are ready to take on the bear and the best strategies to employ are listed below.
Try Margin Trading
Margin trading crypto is one of the riskiest yet most rewarding trading strategies in the market. The major difference between the traditional trading style and margin trading is that in traditional trades you get to own the coin even when you are losing, while losses in margin trades take you a step closer to liquidation. Nonetheless, margin trading offers traders the opportunity to take the crank up the stakes while making huge profits. In this bear market, margin trading is the way to go as it is the best way to take advantage of short burst in prices by leveraging on price movements. However, this sort of trading strategy takes a lot of mastering before you can pull it off or better yet, you can take advantage of quality Bitmex signals from reliable signal providers. Note that margin trading requires quality price pattern analysis as there is no room for errors.
Scalp For Profits
As you might have noticed in the current market run, the prices of cryptos occasional experience short-lived uptrends. Therefore, you can make sizeable profits by capitalizing on these short price movements. This strategy requires that you dedicate a large chunk of your time to analyzing and capitalizing patterns. If successful, scalping the short-lived rallies should accumulate to significant profits. Nonetheless, the mistiming or the total failure of trades could terminate your winning streak.
Learn The Fundamentals Of Technical Analysis
The above-mentioned strategies hinge on your ability to correctly analyze the market and predict price movements. Therefore, it is very important that you brush up your TA skills. And there is no better time to do this than in a bear market when the trading volumes are low and market activities are generally declining. Learn the basics and gradually move up the ladder will help you figure out the best time to exit or enter a trade. Chances that you will find a better time to improve your TA skills and experiment are slim.
Pick Out The Promising Coins
It is common knowledge that the foundations of the most profitable trades in the bull market are laid in the bear market. As a result, experienced traders are known to discover and gather viable coins when the market is low. The bear market is the right market season to discover promising coins and purchase them for cheap. However, note that the relative price decline of assets will likely spur you to accumulate coins that are never going to survive the bear run. So the trick to identifying viable coins involves the in-depth analysis of the use case of the coin, the industry it is targeting and its progress thus far on its development roadmap.
Become An ICO Analyst
You can take advantage of the recent collaborative efforts of crypto firms to push out mouth-watering initiatives and projects. You see, the nascent status of the crypto space opens the door for more ingenious innovations in the space. Therefore, as a trader, you should capitalize on this by identifying and investing in promising cryptocurrencies and tokens at their early ICO stage. Although the bear market is the best breeding ground for legitimate crypto startups, you still have to do your homework and pick out the gems among the cluster of okay-projects.
Get A Crypto Side Gig
The slow nature of the market is particularly unfavorable for day traders who are used to making trades round the clock. Now, opportunities are few and far between an the more you stay glued to your screens, the more you are prone to making bad trading decisions inspired by frustration or overconfidence. I will suggest that you take up some of the numerous crypto-related freelance jobs made available by the growing and competitive crypto space. In this way, you get distracted from the current chaos of the market while receiving crypto as payment for your services. And when the market recovers, your earnings will become your ticket to the front row seats.