6 Trading Strategies To Profit From Turbulent Crypto Market
Strange as it may sound, a market downturn can be a profitable investment opportunity for you. Negative news about falling crypto prices and extreme volatility of the crypto market is likely to make your nervous and reluctant to go ahead with trades but experienced traders find these to be excellent opportunities for making profits. Using the finest cryptocurrency exchanges will help you overcome this negative perception and make successful trades. There are hundreds of platforms to choose from, making it difficult to pick the best one. If you’re looking for the best cryptocurrency exchange UK, check out this article, which includes a comprehensive overview of the top options. Here are some ways to take advantage of the turbulence in the crypto market:

- Dips and hold: This may appear counterintuitive for newcomers but the truth is when an asset’s price falls substantially, it is a good time to buy it. If the asset is strong, the prices will bounce back. Crypto trading is done mostly by regular people and not professionals; so the market sentiment is greatly impacted by news stories and media hype. If the news is good, you will find people making a beeline for an overvalued asset; when something goes wrong, people start to sell in panic. This gives the best opportunity to investors who have the money to purchase undervalued assets.
- Scalping: This trading strategy involves exploiting smaller market movements. So, as a scalp trader, you enter and exit trades within a day or even an hour; the idea is to make many successful but small trades and minimize losses. It is not important to fetch high returns through every trade but to continue to maintain a high win-loss ratio. Such traders will try and avoid extreme volatility as this is unpredictable; so, the best type of market for a scalp trader is one which is thin, having less volume. Scalping is safe because it involves smaller time frames; you are free to exit at any time you suspect things are going south.
- Trend trading: This is another successful strategy for the turbulent crypto market. Here, you follow a trend for some time when you cannot predict which way the prices will go. So, you basically trade alongside a trend instead of following the swings. When the market is up, you must enter into long trades and if the market is down, you should opt for short trades. Trend trading is popularly called position trading because trend followers will start trading once a trend is set and exit it when the trend reverses. Alternatively you can get the assistance from an automated trading bot. You can select a trading robot that use algorithms to analyse historic price trends in order to forecast future Bitcoin prices. In terms of precision and speed, the robot’s artificial intelligence outperforms that of any human. Visit this page https://coincierge.de/bitcoin-up/ for details about an excellent trading robot.
- Crypto lending: If you are not confident of your crypto trading skills, you can take advantage of the volatility and turbulence in the market by lending your cryptos to those looking to borrow these. You have to create a crypto portfolio but you do not need to monitor trade patterns or sit glued to the screen. It is similar to a bank deposit whereby you earn interest in cryptos. This strategy is advantageous because you do not require financial expertise or investment experience to get started.
- Investments in staking coins: This demands some research because people are now keen to invest in alternative avenues like cryptos, real estate, gold, etc. Individuals now want investment options that are strongly aligned with their own values. For instance, staking coins are perfect for a diversified portfolio because they will return profits over time. It is like mining but rather than buying costly hardware, you buy assets that you can cash out when needed. Coins like Neo, Dash and Qtum are making news as staking coins.
- Tokenized crypto fund: If you wish to get returns from each of these above-mentioned ways without actively managing a portfolio you can opt for investing in tokenized crypto funds. Like regular investment funds where investors are collectively managed by teams of professionals, these are now available in the crypto world.