The current economic climate may bring traders into what is known as the wild season. Bitcoin has broken free of all market constraints and has managed to fall drastically in value of the period of lesst than 1 week. Whilst many traders will stare in despair as their holdings dwindle in value some will go out and take advantage of the current panic. As weak hands flail in wake of the price plummet those stronger and wiser traders will barely feel the blow of the market. If you are not in the know yet then carry on reading for some helpful tips to keep you going through these tough times.
Firstly, margin/arbitrage trading. We wrote a article not long ago explaining the basics of margin trading and how this may help boost profits done in the right volumes. With increased levels of volatility being experienced in these rough periods margin trading is a tool used by many traders to maintain profits or manage losses. Whilst converting your Bitcoins to Fiat on any exchange such as Bitfinex, OKCoin will also help you avoid losses trading may help make profits, though it may be riskier. With prices dropping fast buying and selling bitcoins in a matter of minutes will help you skim the profits as prices rise or fall among the exchanges.
Secondly, altcoins may feel like scams, PayCoin almost certainly was, but they also provide valuable opportunities to hedge funds. Investing your Bitcoin holdings into something that will perform whilst assuring safety and reliability. Altcoins may not be everyone’s piece of cake and the worry of them turning rogue may unsettle even the hardest among you, but established and old cryptocoins such as litcoin, DarkCoin both have reasonably stable prices and dedicated communities. Pushing your Bitcoins into say DarkCoin may even yield a profit whilst had you left your coin untouched it may have performed worse. The most low risk way to preserve your bitcoins is to sell them directly on an exchange. Not withdrawing the the fiat but keeping it on the exchange. That way when the Bitcoin market’s trend reverses you can quickly buy back into bitcoins.
Thirdly using your analytic skills before firing off trades will help time trades squeezing profits out. As documented in a previous article the Elliot wave theory is just one theory that can be used to predict bitcoin prices. Whilst the overall trend may be downwards, there are breif hikes of relief and predicting these can be the difference between snagging some profit or missing out on an amazing opportunity. Relying on tried and tested methods and theories has helped many a trader keep afloat during dangerous times. Using online tools to predict bitcoin movement may not be a wise move as many are inaccurate or untrustworthy.
To conclude there are various methods and strategies that can be used to soften the blow of the current bitcoin market. ‘Hodling’ may not be a option for many who may have brought during the peak in price, as every dollar down dictates a dollar lost. Trading may be a option available to many but definitely for the light heated who will sell at the first sight of a drop. Whatever you do good luck and all advice administered carries its own risk so trade carefully.