In the past month or so, the price of BCH been up and down like it a rollercoaster. This week has been a red week in the Crypto market. Word on everyone's mouth is HODL HOLD HODL. Surely that's the best thing to do in times like this, or if you want, count you loss and move on. The choice is the yours really.
They say that every dark cloud has a silver lining. That is to say that there is ADVANTAGE in disADVANTAGE. This morning, I was going through WhatsApp and saw a message someone posted on one of the groups I am on. As a response to why Binance removed LUNA from futures, he said:
"People were using $200,000 with 50X to short it on futures
I even used $2 to do 70x short on it."
I am not a Crypto trader, so I don't really understand what he was saying but I do get what he meant was that people were making huge profits even as the price of LUNA was falling like domino.
Truth is that the bearish market does provide opportunities.
I believe to be successful in the Crypto market, you don't need patience only, but you also need to be smart and know when to take advantage of the market situation.
As holders, earners, adopter and users of BCH, it is always bring great joy seeing the price of BCH go up. But have we ever wondered if the price of BCH continue going up, what effect that will have?
Assuming as a man that works and earn salary in fiat currency, and at current price of say $200, I can afford to buy 1 BCH. Should a bearish run move the price of BCH to $100, that means I can afford to buy 2 BCH for the same $200. Which is greater? 2 BCH or 1 BCH? But should the price of BCH go up to $400, the $200 can only afford 0.5 BCH. I ask you: which would you rather have, 1 BCH or 0.5 BCH?
My point in all of this is that the bearish market serves as an entry point to buy crypto currency. It is time to convert fiat to crypto, and not the other way around. This is the time to get more value for the same money. Right now, it would cost you less to buy 1 BCH than it would some weeks ago. The person who bought weeks ago for more money has 1 BCH, while you who is buying now for less also has 1 BCH. Should the price of 1 BCH be $1000 next month, you and that same person will have $1000 worth of BCH.
Another way people take advantage of the bearish market is by converting BCH to a stable coin early and converting back to BCH after it dips. Although, this requires foresight and is somewhat risky, so it has to be done when you're sure of a dip in price.
To further explain this, if at the beginning of a bearish run the price of 1 BCH is $200 I convert my $200 worth of BCH to a stable coin, that gives me $200. If after a while the price of 1 BCH dips to $100, and I decide to convert my stable coin back to BCH, I would get $200 worth of BCH which will be 2 BCH at the price of $100/BCH. I have read articles on the platform about how some of users have used this method to gain more and increase the value of their portfolio.
The risk involved is that the price may not dip as expected, but instead go up an that would give you less BCH satoshi should you decide to change back to BCH.
Both ways actually works on the same principle of getting more value for your money and it only need you to take advantage of the dip by buying more for less. Like I said, these are basic principles, and it just requires you being smart and seeing the green in the red.
Disclaimer: The aim of this article is for education and by no means is it a financial advice or a push to invest in crypto. If you must, do your own research and invest what you can afford to lose.
Thank You For Reading 🖤🖤