Since the beginning of 2018, the cryptocurrency market has been spiraling downward with many cryptocurrencies losing value by as much as 50-75%. Bitcoin, for one, has touched the $6,000 level around 4 times already, and altcoins are following the downward trend.
Many investors who got in during the last quarter of 2017 and first quarter of 2018 have suffered huge losses on their portfolio. However, other smart crypto have been making money despite the market storm. If you are not a long-term investor, here are three tips on how you can make money in this bear market, too.
1. Learn the technicals.
Technical analysis is the trader’s best friend. If you are looking to lock in gains in the crypto market, you should familiarize yourself with technical and charts analysis. You do not have to be a professional to learn the basics of technical analysis. There are many free online resources that can help you learn charts. Do your research well and equip yourself with the right knowledge so that you can do your trades more effectively.
2. Don’t be greedy.
Gains are gains no matter how small or how big. Set your targets realistically and do not aim for “moon” targets. The cryptomarket is volatile, which means that when you are gaining 10%, it could easily tumble back down to negative 50%. Remember to lock in profits when you have reached your target. The greedier you become, the bigger the risk of losing. Track your trades and know your entry and exit points. If you do not plan before trading, you risk making bad decisions along the way simple because you do not have a reference you can stick to. Do not be greedy.
3. Cut your loss.
In trading, sometimes you win, sometimes you lose. Yes, we all want to be winning, but the cryptomarket is a nasty market place. It is okay to lose as long as you control your losses. Set your target price for your profits, but if the market is going the other way, do not be afraid to take the loss. It is better to lose tens than to lose hundreds. Learn the techniques of setting up stop losses. Some exchanges have stop-loss options built in their system, while others don’t. If your exchange does not have a stop-loss feature, you just have to take a close watch of the market swings.
Many people are losing in their crypto investments, but it does not mean that you should to. Take these tips to heart and apply them to your trades, and you can go a long way.