4 Ways Experienced Traders Earn Profits In A Bear Market

4 Ways Experienced Traders Earn Profits In A Bear Market

Last week, JPMorgan’s analyst has predicted that the Bitcoin bear market may be over as soon as the cryptocurrency market rises back above 50%, noting that:

“The flow into Ethereum funds has slowed over the past two to three weeks, at the same time as the flow into bitcoin funds … has improved. That means there is perhaps a relative value opportunity that some institutional investors are seeing to buy bitcoin and sell other cryptocurrencies.”

Experts Still Earn While Bitcoin Plunges?

While analysts may have pointed out that the current quarter is posted to be the worst-performing quarter since the 2018 bear trend, yet many experienced traders manage to turn the adversity into excellent money-making opportunities, simply by using a few common techniques.

If you ever wonder whether you can make money during a recession, the answer is yes and this is how you can do it, according to experts.

1) Limit Your Losses

One of the strategies experienced traders do is rebalancing their portfolio. By restoring their asset allocation, investors have better risk control and are able to limit their losses.

The first step to rebalance your portfolio is to review your entire portfolio and decide which particular asset is expected to decrease in value or remain stagnant for a long time. If there is no growth potential, you should sell it. In effect, rebalancing your portfolio means buy low and sell high.

Many experts follow a set of schedules as they reallocate their assets, such as quarterly or annually, changing asset classes or percentage points; gradually diversifying their assets to include better performing investments.

Adjusting your balance can smooth out volatility, even though that means sacrificing some investment returns. Anyhow, keeping losses small is a proven rule of winning speculators.

2) The DCA Strategy

During a bear market, experts don’t just shop for bargains, they also dollar-cost average to build long-term profits. The strategy involves investing a consistent and small amount in the cryptocurrency market, regardless of how bleak the situation seems.

In 2020, Coin Metrics indicated that investors whose dollar-cost averaged into BTC starting from the December 2017 peak were still in profit three years later. This reinforces the theory that one can increase portfolio value as long as one has consistent investments spread over the long term.

BTC is currently down more than 47% from its all-time high of $64,863 and with the cryptocurrency market continuing to be unpredictable, it may be a good time to take advantage of the Dollar-Cost Average strategy.

3) Shorting

Short selling basically means that you are betting for the value to drop to earn a profit from it. Call and put options are also another alternative that allows investors to short cryptocurrency. This is a more advanced strategy as it comes with high downside risk and requires you to prepare capital in advance.

Be aware that the risk associated with shorting may be losing an unlimited amount of money if the trade goes against you. In addition, since the long-term market trend is to move upward, shorting is best suited as a short-term profit strategy.

4) Exploiting Market Inefficiencies

It’s not just through shorting where traders are finding earning opportunities. Arbitrage is considered a risk-free strategy by finding inefficiencies across different markets. The benefit of arbitrage is that it allows investors to gain exposure to a variety of asset prices, in the meantime causing an upward trend in the market as arbitrageurs often trade between exchanges to capture profit.

Due to cryptocurrencies’ volatility and trading volume, arbitrage opportunities are always endless. However, one has to ensure that crypto trades can be done quickly without manual calculation to fully profit from it.

Trade With Ease

This is when the assistance of crypto trading bot becomes crucial for investors to gain maximum earnings with minimal effort. Altimates is an example of a crypto arbitrage trading platform that provides secured and instantaneous automated trading through various exchanges.

Altimates offers real-time listings and one of the lowest trading fees, allowing traders to secure the best arbitrage opportunities by placing fast buy and sell orders across several exchanges.

Another issue most traders deal with is the lack of time to monitor the market and execute their trades. Thankfully, Altimates has a simple-to-use feature that allows users to duplicate experienced trader’s strategies and patterns to earn as much as they do.

Make Money With Altimates

With helpful AI-integrated tools, arbitrage trading can be zero-risk with Altimates leading you through the way. In your perilous journey to reap a fortune, let Altimates be the one to guide you forward.

To find out more about arbitrage and Altimates, check out the links below:

Facebook: https://www.facebook.com/OfficialAltimates/

Telegram: https://t.me/Altimates_Group

Website: http://altimates.com/

Disclaimer: Opinions expressed in Altimates are not intended to be a forecast of future events, a guarantee of future results, and investment advice. All investing is subject to risk, including the possible loss of the money you invest. Please do not invest in cryptocurrency without understanding its fundamentals.