
Opportunities in the crypto market will present themselves in the form of a crash. Bear markets are the best time to invest in crypto. The crypto market is inherently volatile, meaning it’s prone to fluctuations in price, especially in the short term. These fluctuations can make it difficult to know whether to buy or sell. It’s better to buy when the price is low, and hold it until the price is high. It’s a long-term investment. You should buy and hold crypto, it’s a good long-term investment; don’t short-term trade it.
Watch the full episode of How to Make Money in Crypto Crashes Bear Markets? | Family Investment | James Altucher
How to make Money in Crypto Crashes Bear Markets? | Family Investment | James Altucher
Three ways to make money during a crypto crash:
- Buy the dip—and time it right.
Investing can be a scary thing, especially when you don’t know what you’re doing. You always need to be careful that you’re not “buying a turd mid-flush,” as a friend once put it. Winston Churchill once said, “There are two things that are more difficult than making an after-dinner speech: climbing a wall which is leaning toward you and kissing a girl who is leaning away from you.” That’s still true. And as yet another friend also added: “There are two other things more difficult than an after-dinner speech: buying an investment you love when it’s going down and taking profits when it’s screaming higher.” Investing can be tricky, but if you’re careful and do your research, it can pay off in the end. - Short Bitcoin—with safety rails.
Look, I’m a buy-and-hold guy said James Altucher. But there’s a way to make money when Bitcoin is going down, and there’s also a way to hedge your bets— with “safety rails”—to make sure you don’t lose your shirt. - Easy arbitrage—with a couple of clicks.
At 29 years old, Sam Bankman-Fried is a crypto billionaire who made his initial fortune by taking advantage of the “Kimchi premium.” In other words, he seized a large arbitrage opportunity on South Korean exchanges. (He has since gone on to create one of the biggest and fastest-growing digital asset exchanges in the world, called FTX.) Crypto arbitrage is a great way for savvy traders to make consistent income in the markets, regardless of whether Bitcoin is high or low. - (Bonus) HODL—and relax.
Although these methods can be helpful, it’s important to remember the sage advice from Warren Buffett: “The stock market is a device for transferring money from the impatient to the patient.” Many early adopters made the mistake of trying to trade in the crypto markets, and not only did they put their Bitcoin at risk on shoddy exchanges, but 99% of them would be much further ahead if they had just held Bitcoin and Ethereum and focused on other things in their lives.
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