Cryptocurrency trading undoubtedly presents an opportunity for sweeping in serious profits. However, periods of steady and prolonged declines might be more challenging to take advantage of and as such, below are a few important considerations to take into account.
If you want to be a successful trader, you need to learn how to make profits when the markets are up but also when they are down. The key part is not only to be profitable when the market is growing, but also to make successful trades when it’s declining.
What to do in a declining market?
Swing trading is one of the most relevant and efficient strategies that you can take advantage of. Even though trading cryptocurrencies in itself can be very profitable, it’s important to note that most of the altcoins in today’s market move correlated to Bitcoin. That’s to say that when Bitcoin moves, most of the medium and large market cap altcoins move with it.
In turn, this oftentimes leaves traders without a lot of options when the market declines. In fact, for a lot of traders, this means that they have to wait, holding their money in stablecoins or in fiat as the majority of exchanges don’t offer leveraged trading products or access to other markets.
Evolve Markets, on the other hand, is a platform which allows users to trade cryptocurrencies, forex, commodities and indices, with leverage up to 500:1, providing many options and alternatives to solely trading cryptocurrencies.
So, instead of passively waiting on the sidelines for the next convenient entry point, a lot of successful traders remain active during one market decline, but they switch to other markets.
Despite the fact that there are common points when it comes to trading on most markets, it’s also important to adapt your style and learn new valuable skills. New skills will help you get better at trading any market. These include learning advanced trading analysis (TA), as well as learning different ways to utilize trading with leverage on a trading platform such as Evolve Markets.
Different Markets to Take Advantage Of
If you want to diversify your cryptocurrency trading and experience the different markets, you’ve got a few options in front of you.
Forex is perhaps one of the most commonly traded markets out there. It refers to the foreign exchange market and it comes down to trading different currencies. It’s the largest and most liquid market in the world.
In economics, the term commodity is used to describe an economic good or service which has either full or at least substantial fungibility. Gold, for example, is a commodity.
Indices are a very important part of the financial market. That’s essentially a stock index which measures the performance of a group of shares from a particular exchange. One of the most popular indexes is the Dow Jones or the FTSE 100.
A lot of traders, however, fear that if they are active on other markets, they are potentially missing out on big cryptocurrency bull runs. That’s not necessarily true. When you learn new strategies and when you grow as a trader, you will also become more patient, get more experience, and, in general, develop a lot better timing. This is something that can help you be a lot more profitable when trading cryptocurrencies and become a lot more successful on all of your fronts of activity.
[Disclaimer: The contents of this article are for educational purposes only and should not be taken as financial advice. Always do your own research before investing in new projects and always keep your Bitcoin private keys secure.]