After its introduction in the year 2009, Bitcoin has taken the world of cryptocurrency trading and finance by storm.
As a result, a growing number of investors are investing in Bitcoin, which has led to significant increase in the value of the virtual currency. However, of late many institutional traders are shorting Bitcoin and have become bearish in comparison to the small-scale investors.
Trading Crypto Currencies with confidence, not fear was a focus of our previous blog, I wanted to thank all for the positive comments received. Hence, if you too are interested in trading Bitcoin and would want to profit from the Cryptocurrency fall, then read on to find out more.
PLATINUM ANALYSTS VIEW ON SHORTING THE CRYPTO MARKETS:
While I write this article the price of Bitcoin is sitting around $6000.00. Now the biggest point I am going to make here is when Bitcoin was sitting at $20,000 did you not say to yourself I wish I would have bought in at $15,000 or $10,000. Well, today the price is sitting at $6000 If you ask me that is a massive discount. We have to trade smart to be able to profit from this move and not place all our trades in one basket. Short term the market is bearish agreed and so what if you ask me it does not matter learn to Trade the market both ways. Today we have given you some tips on how to short sell Bitcoin in both the conventional and traditional ways.
However, what approach or method would be ideal for them is a matter of choice. In fact, their choice would be largely influenced by their risk tolerating capacity and their prediction with regards to the market’s next move or direction. Below are some of the ways that investors can use to profit from the fall in Cryptocurrencies.
CFD or Contracts for Difference:
Investors can turn to CFDs for shorting Bitcoin, which is essentially a unique contract established between a broker and his client, where the CFD seller, as well as the buyer, agree upon settling any drop or rise in the prices with cash.
According to financial experts and planners, CFDs are excellent for short selling Bitcoin, especially in the wake of the fact that the Cryptocurrency will witness short selling retracements sooner rather than later.
Traders who’re considering shorting Bitcoin can also resort to margin trading. This would enable them in borrowing the virtual currency via a reputed broker for placing their trades. In fact, cryptocurrencies traders can conveniently use leverage for increasing their short or long position. A good number of brokers who permit margin trading will easily allow clients to borrow bitcoin for shorting minus leverage.
Purchasing When Prices Have Dipped:
Traders who purchase the virtual currency when prices are low can expect attractive returns eventually. However, this may not be as simple and easy as it seems. In order to achieve success through this particular strategy, investors need to enter the market at the right time, which can be extremely challenging for them.
According to cryptocurrency trading experts at Platinum Academy, purchasing when the prices have bottomed works well only when the market is bullish. In case of a trend reversal, this strategy may fail completely and in turn, result in massive losses.
Trade Futures Contract
Although the Cryptocurrency futures market is yet to develop like other trading options, it can very well be used to profit from the falling Cryptocurrency prices. However, cryptocurrencies traders need to understand that this market hasn’t opened too many investors.
Apart from this what If I told you that you could short Bitcoin without the risk of investing in it ….?
Did you know that you can get Bitcoin exposure by short selling here are some core fundamental stocks you can look at shorting to take advantage of both the Crypto and Stock Market Crash!
- Bitcoin Investment Trust(GBTC),
- MGT Capital Investments INC (MGTI),
- Marathon Patent Group Inc.(Mara)
- Hive Blockchain Technologies Ltd (PRELF)
E-COMMERCE SECTORS AND SERVICES:
- International Business Machines Corp. (IBM)
- Overstock Inc. (OSTK)
- Riot Blockchain Inc. (RIOT)
- Shopify Inc. (SHOP)
- Square Inc. (SQ)
FINANCIAL INFRASTRUCTURE AND BITCOIN- TRANSACTION LEVERAGED:
- CME Group Inc. (CME)
- Cboe Global Markets Inc. (CBOE)
CHIP SECTOR AND BITCOIN-GPU-SUPPLIERS:
- Advanced Micro Devices Inc.(AMD)
- Nvidia Corp. (NVDA)
LAST BUT NOT LEAST THE FINANCIAL SECTOR AND BITCOIN:
- Goldman Sachs Group Inc. (GS)
- Morgan Stanley (MS)
Platinum Analysts have been talking about both this market crash and they came out with the “UNSUSTAINABLE PROJECT“ Just literally on January the 16th of 2018 and our goal is to ensure that as investors, speculators, or traders we guide you through this period to enhance your Profitability with clarity and consistency.
Our Predictions longer term is 25k + for the year of 2018. Platinum Analysts believe as an investor Bitcoin is an excellent diversification tool, while more seasoned traders out there will be looking at the market and making moves to strengthen their portfolio. We are personally getting a lot of emails filled with questions from all levels of traders asking what to do next!
If you are asking yourself questions, like:-
Hopefully, you have enjoyed today’s article. Thanks for reading!
Have a fantastic day!
Live from the Platinum Crypto Trading Floor.
The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.