How To Make A Profit When Cryptocurrency Markets Crash
Within a year, the total market capitalization of digital assets has soared from $18 billion to $180billion. The recent surge in cryptocurrency markets have got market pundits worried, many of whom believe that the bubble is heading for a burst. Given the volatile nature of markets, experts have every reason to be worried. Should their prediction come true, you must have a plan B ready to steer clear of the bloodbath. To help, we, in this post, impart a few tips to make profits when markets slump. Take a look.
1.Become a miner
Rather than remaining at the mercy of the markets, why not pursue opportunities proactively? Mining involves generating coins with the help of mining equipment traded on the market. Once you have enough coins, you can stock or sell them in the market. One of the major roadblocks that individual miners face when taking this route is the high costs involved.
You can address this problem by opting for cloud mining, a method that allows several miners to share resources and returns. Cloud mining helps keep a tab on energy costs. Look for a cloud based-pool mining platform that allows users to stake their tokens and later provides a proportionate share in the profits generated by the mining pool.
2.Invest in digital assets that are doing well
Just because the market is falling apart, does not mean every digital asset will nosedive. Experts believe that even in a tumultuous market, investors can find a few assets that hold well. These assets can do very well in the future. When deciding whether to invest in a particular coin, gather info regarding the promoters. Study the company’s business models and make sure the currency has a solid foundation.
3. Avoid rushing into decisions
When cryptocurrency markets crash, many investors try to exit the market by selling at whatever price they can get. To weather the storm, many experts recommend adopting what they call a HODL, or Hold on For Dear Life strategy. Simply put, the strategy involves buying and holding digital assets for a predetermined period no matter by how much or how frequently the market fluctuates. Many experts suggest that investors hold top five assets in their portfolio and sell them only when the market improves.
4. Migrate to fiat currencies
Many experts suggest that investors turn to fiat currencies when markets take a turn for the worse. That said, this strategy is not for everyone. The entrance and exit timing should be perfect. When adopting this strategy, use funds that you can risk.
Gustavo Fonseca loves anything digital and crypto-related which makes him sit up and pay attention. He got into the world of digital marketing and business digital transformation career in 2010. Some time later he got into Crypto, a dynamically developing segment at the intersection of the financial services and technology. Gustavo joined TheDailyCoins in September 2018.