8 Strategies to Make Money When Bitcoin is Falling!

While the volatility of cryptocurrencies causes many to lose, many others continue to make money even on dips. But how? Is it possible to make money when bitcoin is falling? Of course, as with other commodities, you can make money when bitcoin is falling. However, you need to follow the market very well.

You can use Binance to track Bitcoin and hundreds of other coins, easily buy and sell them, or browse charts. As one of the world's largest and most trusted cryptocurrency exchanges, Binance offers many advantages for every user. How to Make Money When Bitcoin is Falling? There are different methods you can choose to make money while Bitcoin is falling. However, each method provides different rates of gain and loss depending on people's budget, experience and other factors. Moreover, it is important to consider the market conditions. The most guaranteed and risk-free way to make money with Bitcoin is to wait after the purchase. It is also possible to earn with bitcoin during downturns and in the short term. However, it is important to note that none of the methods below are investment advice.

Here are the methods to make money while bitcoin is falling!

Short Selling!

Among the methods of making money while Bitcoin is falling, the most notable technique is short selling. If you've ever been interested in cryptocurrencies or exchanges, you've probably heard of shorting or shorting. This method allows you to win, especially during a bear market in bitcoin and other cryptocurrencies. To briefly explain short selling, it is when a person borrows and sells shares or units that he or she does not own and expects to fall, and repurchases the relevant unit when the decline occurs. In this way, people have the opportunity to sell high and buy low, and the difference represents your earnings.

Buying from the Bottom!

When bitcoin is falling, you can buy at the bottom to make money. We now see that bitcoin is recognized as a valid and future currency. Therefore, even if the downward trend in bitcoin continues for a long time, it will definitely rise one day. For this reason, any investor who wants to be on the safe side and strives to stay away from risk buys bitcoin at the bottom. The best way to profit from Bitcoin is to wait for the right time. Dips are always the best opportunity to buy bitcoin. It's also a great opportunity to balance your investment portfolio.

Lend it!

When Bitcoin is falling, it's natural not to want to buy or sell more. So, how can you profit in this situation? By lending your bitcoin, of course. Nowadays, many cryptocurrency exchanges will borrow your bitcoin, use it and pay you interest periodically. The more bitcoins you lend, the higher your earnings will be. The first thing you should pay attention to when lending your bitcoin is the choice of platform. An individual or a company can also borrow it. The most important advantage of this method is that you are less affected by declines. You will also continue to receive interest income.

Buy Bitcoin ETF!

Bitcoin EFT has a price line that is inversely proportional to bitcoin. To elaborate further, when bitcoin rises, the bitcoin ETF price falls; when bitcoin starts to fall, bitcoin EFT rises. It trades -1X, so for example, if bitcoin falls by 10%, bitcoin ETF goes up by 10%.

Benefit from Swing Trading!

If you day trade Bitcoin and other cryptocurrencies, you might turn to swing trading. Swing trading allows you to be less affected by daily volatility and hold your investment for longer. This gives you more time to wait for the right time to take profits. Swing trading is a good choice, especially for those who want to avoid day trading. In the process, you can learn fundamental and technical analysis for bitcoin, examine trading opportunities and, most importantly, build a strong trading strategy.

Futures!

Bitcoin futures refers to contracts to buy or sell Bitcoin at a set price on a set date. You can trade futures through platforms such as Binance, Kraken, Coinbase Pro, etc. Trading Bitcoin futures allows you to place a kind of 'bet'. It allows speculators and investors to make high gains, but there's always a risk of loss. When you want to trade Bitcoin futures, you set a specific amount and date.

Use Limit Orders!

If you want to make money when Bitcoin is falling, you should always use limit orders. Bitcoin and cryptocurrency exchanges are open for trading 24/7, and sudden rises and falls can happen even while you sleep. You can use limit orders to buy or sell at these points. The sell order you create at points that can negatively affect your earnings ensures that you experience less loss. In addition, the points you identify when bitcoin is falling are important for you to take the action of buying at a low price. Most importantly, if you are investing in the stock market, limit orders are always a savior option.

Invest in Altcoins!

Cryptocurrencies, and altcoins in particular, are affected by bitcoin declines. In many cases, some altcoins have seen an uptrend while bitcoin has been falling. If you want to make money while bitcoin is falling, you need to improve your investment portfolio. For example, altcoins such as Ethereum, Chainlink, Cardano, Litecoin, etc. have a high trading volume. In this way, they are less affected by bitcoin declines and can even start an uptrend while bitcoin is falling.