Yesterday, Matt showed you three ways to profit from the “bitcoin bear market”…
But he also explained why, for many investors, these strategies may not work.
So today, I’ll you show you a bear market strategy that anyone can use to earn big returns.
Bargain-Basement Prices… What Should You Do?
During a bear market, investors generally take one of two paths:
Either they sell out of their investments and put everything in cash…
Or, because prices are so low, they make more investments.
The first path will keep you from losing money, but it’ll also keep you from making money.
To put yourself in position to make a fortune when the market turns, you need to take the second path. The thing is, this is far riskier…
If you don’t know what you’re doing — if you don’t know how to tell a good investment from a bad one — you could lose a bundle.
You see, just because the price of something is down, that doesn’t mean it’s a good investment… some investments deserve to be on the skids.
How Did You Play the 2008 Crash?
For example, think back to the 2008 crash...
Thanks to the big banks playing fast and loose with our money, the global financial system nearly went into a meltdown.
And because of this, there was a massive sell-off in banking stocks. For example, shares of Citigroup (C), Lehman Brothers, Bear Stearns and Goldman Sachs (GS) dropped by 90% or more.
To be clear, some of these banks deserved to have their shares decimated. But many others were on stable footing. This was a classic case of “throw the baby out with the bathwater.”
But by avoiding the bad companies, and investing in the good ones while they were cheap, you could have made a fortune…
For example, as the market began to stabilize, Citigroup and Goldman Sachs quickly recovered — rising by an average of 463% in less than a year.
In other words, if you’d avoided companies like Lehman and Bear Stearns, but had invested in companies like Citi and Goldman, you’d quickly have made nearly 5x your money.
But now we still need to answer one critical question:
In this “bitcoin bear market,” how do we know which companies and cryptos are worth investing in?
Three Keys to Bear Market Profits
After studying hundreds of different cryptos over the past few years, Matt and I found that the coins with the biggest profit potential — and the lowest risk — share three characteristics.
These are your “three keys to bear market profits.”
Key #1 - Downside Protection
First of all, a coin needs to have downside protection.
That means it’s already hit such a low level, it has just about nowhere to go but up.
We call this its “minimum price point.”
And keep in mind: just because a certain crypto is trading at a penny doesn’t give it downside protection… perhaps its real minimum price point is a tenth of a penny.
After determining what a crypto’s minimum price point should be, we can determine its current level of downside protection — and that enables us to minimize our risk.
Key #2 - Rapid Recovery Potential
Secondly, a coin needs to have what we call rapid recovery potential.
This means, after a coin hits its minimum price point, it has a strong probability of quickly bouncing back to its former level.
In particular, we focus on coins that have a strong likelihood of bouncing back within 90 days.
In fact, in just a moment, we’ll show you a few coins that have demonstrated this ability over and over again.
Key #3 - Big Upside Potential
And lastly, we look for coins that have the ability not just to recover quickly, but to exceed their previous highs by a significant margin.
More specifically, we seek out coins that can shoot up at least 400% from their lows.
Let me show you what I mean…
Three Examples of Our “Three Keys”
In this first example, you’ll see a crypto that crashed by 50%, quickly recovered, and then went on to more than double in price…
In other words, by buying at the bottom, you could have made a quick 400% profit!
Ethereum Classic (ETC)
As you can see in the blue circles, on September 2, 2017, ETC hit about $20.
On November 2, it dropped to about $10.
Then, less than 90 days later, it hit $45.98.
Total gain? More than 400%.
As another example, look at Monero…
On August 28th, XMR hit about $150.
On September 15th, it dropped about 50% to less than $75.
But then, less than 90 days later, it reached $328 — up more than 4x…
And it soon surpassed $450, for a potential 6x gain.
And as one last example, look at Tron…
On December 21st, TRX traded at about 6 cents.
On December 30th, it dropped to about 3 cents.
And then, not only did it skyrocket to 12 cents for a quick 4x gain…
But it soon hit 28 cents, for nearly a 1,000% gain!
Bear Markets: The Best Time to Invest
As you can see, bear markets can be one of the greatest times to make an investment…
By getting in at beaten-down prices, you can buy low… and put yourself in position to sell high as soon as the market rebounds.
But again, to succeed, you need a system to identify the right cryptos to invest in.
Today, we showed you our “three keys to bear market profits” system…
And next week, we’ll reveal more details about this system — so you can start to find bear market profits for yourself.