There’s no sugarcoating it:
The crypto market has been dropping like a rock.
And as Matt explained yesterday, even though the fundamentals behind cryptos are actually getting stronger, this bear market could linger for quite some time.
But here’s the thing:
You can still make money in a bear market!
In fact, today, I’ll show you three proven strategies to earn serious profits — even if cryptos continue to plummet.
Profit Strategy #1 — Pick Those Cherries
Even though the overall market is down, many individual cryptos are performing well.
For example, since its ~$20,000 all-time high in late 2017, the price of Bitcoin has dropped about 50%.
But during that same period, a crypto called Binance Coin (BNB) has gone from about $1.50 to more than $20. That’s a gain of more than 1,333%.
So even in a bear market, you could still “cherry pick” profitable cryptos.
Unfortunately, this is easier said than done. You see, if you analyze the cryptos that have outperformed the market, you’ll discover that they have virtually nothing in common:
They’re from different sectors, their prices increased for different reasons, etc. — in other words, there’s no pattern you can use here to find the next winning trade.
To be successful with this strategy, you’d have to familiarize yourself with hundreds of cryptos so you could identify the right ones to invest in.
Bottom line: sure, theoretically, cherry-picking could lead to profits…
But unless you’re an expert analyst, executing this strategy is highly challenging.
Profit Strategy #2 — Ride the Wave
Now let’s look at another way to make money during this “crypto bear market” — and this one doesn’t require you to analyze hundreds of different cryptos.
You see, one of the most important things to remember, regardless of whether it’s a bull market or bear market, is that crypto prices don’t just go up or down…
Prices often go up and down.
To see what I mean, take a look at the Bitcoin chart from late 2017 / early 2018:
As you can see, even though the overall trend is down, along the way, Bitcoin’s price has fluctuated greatly. And each of those fluctuations created a profit opportunity.
For example, as you can see in the chart below, in December 2017, Bitcoin shot up from less than $12,000 to more than $16,000 in just five days — a gain of more than 33%.
Given how volatile bitcoin is, there’ve been dozens of similar opportunities recently to make quick profits of 20%, 30%, or even far more.
But this strategy has drawbacks, too:
Not only does your timing on these trades need to be perfect…
But you also need to spend hours sitting in front of your computer, waiting for opportunities to present themselves. As you’ve seen, these are short-term trades…
If you miss the right entry or exit point, all your profits could be erased.
Profit Strategy #3 — Profit from the Dips
But in falling markets like this, there’s also a simpler way to make money:
You can simply “short” cryptos. “Shorting” means betting against an asset.
For example, if you short Bitcoin at $4,000, and then “cover your short” at $3,000, you’d make a $1,000 profit.
You can’t use this strategy with every crypto, but it’s easy to do with Bitcoin. Just short the Bitcoin Investment Trust (NASDAQ: GBTC).
This publicly-traded fund mirrors the price of Bitcoin. And since it’s tradeable, you can buy it (or short it) in a typical brokerage account.
This strategy will lead to profits if Bitcoin continues to fall, but there’s a big drawback here:
Because Bitcoin’s price can only go so low, your profits from this trade are capped — in other words, even if Bitcoin drops to $0.00, your profits get “maxed out” at 100%…
But since Bitcoin’s price could theoretically rise infinitely, your risk is unlimited!
From our perspective, the potential reward just isn’t worth the risk.
Breakthrough Profit Discovery
Thankfully, we recently discovered a better way to profit from the crypto market — regardless of whether it’s going up, or whether it’s going straight down.
With this strategy, there’s no need to:
- Track hundreds of individual cryptos.
- Sit in front of your computer all day trying to time the market.
- And the best part is, your upside potential is unlimited.
And in next Wednesday’s article, Matt will show you exactly how to take advantage of this unique — and highly lucrative — crypto investment strategy.