6 Important Rules To Profit From A Market Fall

Profiting during market corrections might seem impossible to some, but there are actually many ways to make money while prices are rapidly falling.

6 Important Rules To Profit From A Market Fall

The recent Bitcoin dip has given investors the jitters but understanding March’s seasonal patterns, investors are appearing to be buying Bitcoins on the price dip and showing faith in its future value. 

While every trade move you make in cryptocurrency is a psychological war against yourself, a trader’s discipline is important in determining your skills in handling a market crisis. 

Is it possible to react with calm and composure when the market crashes and undergo a bear market? And should there be a market crash, what should you do to profit from it?  That being said, here are a few tips on the do and don’ts when the market goes down. 

DO: Buy the dip 

Buying the dip refers to investing in cryptocurrency when the market price is dropped down. If done correctly, traders can generate robust returns by waiting for the market to rebound and price to rise in value. 

However, the market does not always guarantee an uptrend after a drop. Many are afraid of missing out on a sharp rebound and think it’s time to invest whenever the price falls but you should always be careful when you are relying on assumptions that the cryptocurrency will rise in value. Therefore, such methods will only work better in a bullish market. 

DON’T: Catch a falling knife 

When a market is undergoing market corrections and prices fall, don’t wait for the price to bottom out before buying it.

It’s difficult to catch the exact bottom. If the timing is right, you can gain tremendously from it but if not, you’ll miss out on gaining opportunities and lose out on big wins. Instead of getting obsessed with catching the exact bottom when the market takes a nosedive, it’s better to just get in near the bottom.  

DO: HOLD on for dear life

Regardless of how your crypto prices fluctuate, even when the market is heading into a major correction, HODL-ing is a good strategy that many in the industry use. 

When the price falls and you watch all your cryptocurrency holdings lose their value, it’s hard to not panic and cut your losses short by selling them in the heat of the moment. But don’t let your emotions get the better of you and think long term. Try to stay on course because it’s likely that your losses will recover if prices rebound. 

DONT: sell your coins for ones that are going up

Imagine this scenario. You have been investing time and did research about a cryptocurrency’s long-term potential. You invested in it and patiently waited for its price to increase in value, even though it made a few dips and recovered. 

While you’re waiting for your coin to go up, you noticed other coins that are doing better than yours, so good in fact, that you wondered if you made the wrong strategy. You then sell it at the bottom of a downtrend only to see it quickly reverse and shoot upwards.

FOMO is real and everyone has been through it, there’s nothing to be ashamed of. It’s scary to see a drop but you should always maintain your strategy regardless of the variation in the market fluctuates in order to gain in the long run. 

DO: Short selling Bitcoin

Shorting Bitcoin may be a good option if the market crashes. Traders can take advantage of the price drop by selling high and buying low in exchange platforms like Bitfinex and Kraken that offer such functionality. 

Do bear in mind that this risky strategy is more for experienced traders as short selling can be a complex process and there is a leveraged factor that could either make you gain or lose your profit.  

DONT:  Watch the charts all day

Trust me, those ridiculous hours you spent staring at your computer screen is not worth it. Even professionals don’t spend their whole day monitoring charts. 

You can really harm your trading result if you are too focused on short time frames, which may lead to you being emotional and overtrade. Instead, spend time productively by doing research and applying your knowledge to your trading for a more rewarding trading experience. 

You can set a limit order to protect yourself from price dips. Better yet, you can avoid any losses by copying experts’ trading pattern and strategy. Altimates offers copy trade feature that is great for beginners who are inexperienced in trading or traders who could not make time to trade.   

Platform for All

If you are looking to maximise profit while maintaining risk at a minimum, Altimates offers a platform that facilitates arbitrage trading powered by secured Blockchain and AI-integrated tools to boost trade efficiency.

Altimates provides personalised plans that best suit different types of users, allowing them to trade anytime, anywhere.

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.

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