Bitcoin volatility: how to make money on it now 📉
The cryptocurrency market is famous for its volatility. The fall of Bitcoin today is a confirmation of this.
After spending the weekend above an all-time high of $ 40,000, Bitcoin started a new week with a sharp decline. By the time of this writing, it has dropped to about $ 32,400.
What strategies to make money on Bitcoin volatility can be applied today?
🔹 Day trading
Day trading involves short and quick trades, which gives the opportunity for small and quick profits. The success of this strategy depends on careful market analysis and small profits.
🔹 Swing trading
If holding is a long-term strategy and day trading is short-term, then swing trading is in the middle. Like holders, swing traders buy Bitcoin cheap and wait for their assets to increase in value in order to sell higher.
🔹 Arbitration
However, instead of looking for opportunities to make money on the same exchange, crypto traders using arbitrage are looking for these opportunities on different platforms. Basically, they buy BTC on exchange A and then sell on exchange B at a higher price.
🔹 BTC Futures
You can make money on the fall using bitcoin futures. Such cases provide an excellent opportunity to increase funds with fluctuating exchange rates. Let's look at an example: Bitcoin is falling, and the trend for a further decline in the rate is clearly visible. Then we sell it in order to re-purchase it later at a lower price.
⠀
Always be profitable with Cryptology! 🔥
#Cryptology_trading
The cryptocurrency market is famous for its volatility. The fall of Bitcoin today is a confirmation of this.
After spending the weekend above an all-time high of $ 40,000, Bitcoin started a new week with a sharp decline. By the time of this writing, it has dropped to about $ 32,400.
What strategies to make money on Bitcoin volatility can be applied today?
🔹 Day trading
Day trading involves short and quick trades, which gives the opportunity for small and quick profits. The success of this strategy depends on careful market analysis and small profits.
🔹 Swing trading
If holding is a long-term strategy and day trading is short-term, then swing trading is in the middle. Like holders, swing traders buy Bitcoin cheap and wait for their assets to increase in value in order to sell higher.
🔹 Arbitration
However, instead of looking for opportunities to make money on the same exchange, crypto traders using arbitrage are looking for these opportunities on different platforms. Basically, they buy BTC on exchange A and then sell on exchange B at a higher price.
🔹 BTC Futures
You can make money on the fall using bitcoin futures. Such cases provide an excellent opportunity to increase funds with fluctuating exchange rates. Let's look at an example: Bitcoin is falling, and the trend for a further decline in the rate is clearly visible. Then we sell it in order to re-purchase it later at a lower price.
⠀
Always be profitable with Cryptology! 🔥
#Cryptology_trading