Crypto-Upvotes experts tell about variants of making money in unstable market
Now cryptocurrency market, like the global market, is in a bearish trend and many investors are losing their money. High inflation in developed countries, logistical problems because of COVID19, China, which has not recovered from a pandemic – all this has a very strong impact on markets.
For stock market, everything is quite clear: shares of high-tech sector will obviously continue to fall. But things are not so simple for cryptocurrencies.
Correlation of crypto market with stock indices has been high for the last two years. Consequently, BTC should fall in price. But cryptocurrency market is more open to manipulation by big investors. This means that now the “whales” will try their best to remove small traders from market. Who are trying to make money on the expected fall of BTC.
One of the options to make money in a volatile market is to open short positions on Bitcoin. Which is likely to renew its many-month lows. Although it’s showing growth right now. It is worth placing short orders considering that the cryptocurrency is a highly volatile asset. It can fall as well as jump in price by many percent in a day.
That’s what we’re seeing now: even though everyone was expecting bitcoin to fall. BTC suddenly began to rise and passed $21,000. So stops should be set higher. Although this involves some risk, if predictions do not come true.
In general, it is very risky to make short-term bets on an unstable market. It is better to choose a couple of assets that can be held for 2-3 years. In addition to bitcoin, we would add Ethereum to our investment portfolio. Which is preparing to switch to Proof-of-Stake. Solana is also worth adding to your portfolio. Because decentralized financial applications will clearly show an increase in liquidity and user base. And consequently, many projects will choose this blockchain for their projects.
Crypto-Upvotes experts do not give investment advice. This material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
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