How to make money during a bear market?
Most of us know stories about people who invested in Bitcoin and became millionaires. That's why the HODL strategy became so popular. We are used to the fact that Bitcoin or other cryptocurrencies are earned by increasing their value over time.
While this strategy can deliver a satisfactory return in the long term, there are hundreds of opportunities along the way that can multiply our capital through exchange rate fluctuations. In addition to the sharp rises in Bitcoin's price, a great opportunity is also to take advantage of the downturn or short-term collapse of the trend.
Earning on declines, short, short position - regardless of what we call this investment strategy - this method allows you to benefit from the falling price of a given cryptocurrency. In the case of long positions, we count on a long-term increase in the value of our investment. In the case of shorts, we focus instead on the short term.
The Geco.one exchange is the perfect place to start your adventure with trading crypto derivatives. By observing the currency's downward trend, you can easily set the "short" position and earn on the decline instead of panicking that the cryptocurrency is dropping. The profit is additionally increased thanks to the use of leverage - in the case of Geco.one, it can be leverage of up to 1: 100.
But why is shorting an option so attractive, especially now? We have seen high volatility in most investment markets over the past months. It applies to the capital, bullion, commodities and real estate markets. LUNA's rapid collapse also started a wave of massive declines in cryptocurrencies.
In conditions of increased uncertainty, earning on drops is a strategy that is gaining importance. Therefore, it is crucial to understand the fundamental principles of the market - a well-informed and educated investor can find a chance even in challenging economic conditions.
If you want to start your adventure with cryptocurrency trading, we recommend visiting our education page. You will learn more about Geco.one, our GEC token, our security features, and the trading itself - you can read about order types and watch helpful tutorials on trading and staking cryptocurrencies.