The four trading ways, which can help you to create benefits when the market is in a downward trend
Often everyone believe that they merely create benefits while the market is in an upward trend. However, probably you are still able to earn money even when the market is downing. Let together find out some trading methods for which can help you not only be alive but also earning benefits while the market is in bad fluctuation.
1 Earning money even if the market are having a drop.
Although the overall market is on downward trend, there still have some measures so that you can get benefits. It’s up to your risk acceptance level, you may make a bet on general market, anticipating micro trends, or just holding coin and earning income passively. You need to balance risks and rewards as well in each methods. Particularly these depend on your capability of balancing risk.
2. Shorting
Shorting means that you are the one, who will buy coin with a high price and with a hope that the price may go down for getting a cash cow. In every one shorting, you borrow coin from exchange platform and selling at its right price. When you located this position, you accuse of buying an amount of coin which is resemblance with price that you have role for paying for exchange( attaching interest rate). Therefore, in one shorting, you will own interests when starting with high price and evidently keeping a role at low price. This technique is used regularly to protect interest catalog and reduce risks, but to probably help investors earn benefit when facing with long-lasting degradation of market. Shorting, however, is still in risk when the price have a significant rise and you are also on the verge of losing.
3. Swing Trading
Swing Trading is taking the use of short-term fluctuation market. When wave has a rise or a drop, it will show the peaks and the bottoms are shaped when the price keeps up and down currently. Some professional traders may earn money from this sort of micro trend, buying at the bottom and afterwards selling at the top in market. With Swing Trading, the market fluctuation is an ideal situation because it performs so many different kind of peaks and bottoms as well . To use this method professionally, you must be familiar with analysis form of various techniques such as price models and some index like RSI. It’s necessary for you to have stable spirit and ability of accepting high risk as well as experiences of using analysis technique to analyze the short-term fluctuations.
4. Passive income
If you have ability for accepting lower risk and absolutely don’t want to use those trading methods above, You should invest in some coins which help you create passive income in market is one of the most useful way. There are many type of coins, that can help you get passive income, but only two main types including: Staking coin and Exchange coin (coin of exchange platform). Staking coin means that you will hold coin in your wallet to take a change about ability of network administration and you can receive a reward in staking process- fluctuation is between 5%-10% as usual. Exchange coin bring you lots of benefits in exchange such as falling fee and that sort of thing. Kucoin is a case in point, providing some forming of sharing benefits, and 1% exchange fee will be inevitably sent for owner. The rate of reward division is proportional with , thus it’s pretty hard to seize this figure exactly. Staking coin is the same with dividend , you must lay take a bet to the successful capabilities of exchange platform while taking an investment in exchange coin.
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Good post.