How to Make Money in the Bitcoin Halving and Bull Run [2020/21]

The cryptocurrency industry is buzzing with excitement about the fact that the 3rd Bitcoin halving is now only a short amount of time away from occurring, and as with the previous 2 bull runs, the significance of this event cannot be understated.

The huge profits that the cryptocurrency industry are renowned for delivering are largely available during the bull runs that follow halving events, and so it is fair to say that the reputation that Bitcoin and other cryptocurrencies has for being highly profitable is really true mainly within the confines of these periods.

Because of the importance of this event, and because of the variety of ways to maximize profit that are not common knowledge, we are breaking down how to make money, and how to maximize profit, during a Bitcoin bull run.

What is the Bitcoin Halving?

When Bitcoin was created back in 2008, the anonymous group or individual responsible for this known as “Satoshi Nakamoto” designed a mechanism into the way that Bitcoin worked which would ensure that it remained a deflationary currency throughout its lifetime.

This mechanism is known as the Bitcoin halving, which is a process of constricting the supply of Bitcoin by 50% once every 4 years.

The first Bitcoin halving occured 4 years after the launch of the Bitcoin genesis block, with the halvening happening at block 210,000 on November 28, 2012.

The second Bitcoin halving took place at block 420,000 which occurred on July 9, 2016, which was the most recent Bitcoin halving that subsequently heralded the beginnings of the now widely-famous Bitcoin bull run of 2017, that saw Bitcoin reach its current all time high of almost $20,000 each.

The Bitcoin halving works by miners having the reward they receive for mining a block cut by 50%, and this is an automatic process that is completed autonomously by the Bitcoin system.

Because of the reduction in supply of Bitcoin, this has an upward effect on the price of Bitcoin, and with each Bitcoin halving we have seen a gradual climb in price over the next 12-18 months following the halving.

How to Make Money from the Bitcoin Halving

While it is true that because of the nature of a halving, profit can be generated just by buying and holding cryptocurrencies for the duration of the run before selling, there are methods and strategies of enhancing the profit that is generated throughout the bull run that are worth considering for all traders.

Although over the long term, the price of cryptocurrencies increase gradually during a bull run, there are distinct periods of sell offs on the way up and traders can monopolize upon these with the effective use of shorting.

By calculating when an asset is overbought on the way up, which is likely to occur frequently, traders can short before the inevitable corrections and increase their holdings of Bitcoin on the way up by doing so.

This allows for any gains that have been made on the way up to be kept, and then once enough traders have taken their profits and sold off, the trend is free to revert and the climb can continue.

As well as shorting, traders can also generate profit that is far above what is available normally by leveraging long positions and securing profit over a prolonged period of time.

What is important for both of these strategies is to have access to a trading platform that provides advanced margin trading features with high leverage and shorting.

PrimeXBT: The Best Crypto Trading Platform to Generate High Profits During the Bull Run

PrimeXBT is the world's leading multi-asset margin trading platform, listing a wide range of cryptocurrencies and other traditional assets, offering up to 100X leverage on all cryptocurrencies, and handling more than $2 billion of global trade each and every day.

PrimeXBT provides a smorgasbord of advanced features and tools that work to maximize the profit that traders can make by using the platform, and provide professional charting and trading technologies to allow investors to understand the market accurately, and to develop effective strategies for profit generation.

PrimeXBT provides margin trading across all cryptocurrencies, and has high liquidity across the platform in all markets, which ensures optimal entry and exit points during a bull run.

PrimeXBT is also 100% KYC-free which allows traders to quickly and easily set up an account on the platform with just an email address, taking only 2 minutes, and requiring absolutely no invasive personal information.

As well as this, PrimeXBT’s traders during the upcoming bull run will be enjoying 0.05% fees on all trades, which is the lowest of any major cryptocurrency trading platform in the industry, and up to 10 times cheaper than trading with platforms such as Binance and Coinbase.

In Summary: How to Make Money in the Bitcoin Halving and Bull Run

We can expect that this bull run may play out exactly the way the previous two have, by delivering ROI’s of thousands of percent in profit over a 12-18 month period between the low and the peak of the ballroom.

If the charts and metrics are to be believed, we are currently at a point that is potentially likely to deliver substantial profit over the coming months.

For those seeking a cryptocurrency trading platform that has tools such as advanced margin trading and other features that lend themselves to the maximization of profit during bull runs, look no further than PrimeXBT.

PrimeXBT is a leading cryptocurrency trading platform that provides high liquidity and enhanced security features, as well as the lowest fees of any major trading platform.