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Taking Advantage of The Bearish market

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Written by   154
1 month ago

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 🖤🖤

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Written by   154
1 month ago
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Comments

The time we are in calls for patience. I understand not many people can be patient especially when they see their money reduce in value and they have urgent needs to meet. Fear of the unknown sets in and they panic.

With what happened to Luna, people are skeptical about the kind of project to believe in anymore. Same with those who invested in Pexa. I always tell people there is no right way or wrong way. Just do what you think is okay for you but be ready to live with the consequences...either good or bad...because we can't have it both ways. Crypto is for risk takers and for those who still have enough fiat to buy, this is the best time to buy especially into BCH because it would always bounce back. That's why I sold my Kensho NFT so I can get BCH value for it now when I know it would rise later.

$ 0.02
1 month ago

You are right, the crypto world is for risk takers. And we should always follow our gut too.

$ 0.02
1 month ago

Absolutely...that's the way to go.

$ 0.00
1 month ago

Na the rich go dey enjoy this thing pass. Someone that has a few thousand dollars to play around with can just buy like 10 BCH and keep it aside, the price will be doubled in a matter of months! (Or even tripled)

$ 0.02
1 month ago

LoL. No be lie sha. Na who get money go enjoy am well.

$ 0.00
1 month ago

This is indeed a journey for the strongest, if one have the mind to take the risk , one can always venture into it. Well that's crypto for you, I'm use to the system, it's bound to happen in awhile. So we just have to use the moment to hodl, and also to buy more..... There's no need to panic 😊

$ 0.00
1 month ago

On hearing the news about the fall of LUNA, i was really shocked such could happen. As the market is dip now, and red full everywhere in the crypto world, it's advisable everyone learn technically when to come into the market for purchase.

$ 0.02
1 month ago

The LUNA fall is surprising. And you are right, learning the time to come in is essential.

$ 0.00
1 month ago

We should know when to enter the market and what coin to buy. For those with idle fiat money to invest, I read from somewhere that it is good to apply DCA. It minimizes the risk.

$ 0.02
1 month ago

That's true, applying DCA can help too. Knowing when and what to buy is important.

$ 0.00
1 month ago

I am going to invest in a crypto market. Its bad time but good for new comer.

$ 0.02
1 month ago

Remember to do your own research before investing.

$ 0.00
1 month ago

This time in all honesty it is very scary to take the risks, as the market continues to fall. But some sources says that the market might recover next year. But However as you said the bloody market as has two sides, the advantage and disadvantages, as this dip can be the best time to buy more and let our portfolio increased but if the market continue to fall the possibility of lose is at high risk as well. That is why we need to be more attentive with the flow of the market to avoid lose if we are going to take the risk on buying. And as you said the basic principles are indeed important to keep track our investment and avoid it from losing.

$ 0.02
1 month ago

True, every investment is a risk. If one is willing to take the risk, one should.

$ 0.00
1 month ago