A Bitcoin market crash is nothing new, and we’ve seen plenty of them during the currency’s time in existence. But sometimes, you’ll get one that makes everyone pay attention – and that’s what has happened in recent months.
Having reached an all-time high in November, the price of 1 BTC has plummeted significantly. But does this mean that investing in the coin is a waste of time? No – not quite.
Keep reading to learn how you can profit from the Bitcoin market crash.
How big was the Bitcoin market crash?
In November 2021, the price of 1 BTC to USD stood at over $68,000. Since then, however, the picture has changed drastically. On 24th January, Bitcoin’s value dipped below $35,000.
At the time of writing on the morning of 27th January, BTC has increased slightly since then; you can get one full token for $36,587.84.
How to still profit on Bitcoin despite the market crash
It might appear to be doom and gloom at the moment, but the Bitcoin market crash provides opportunities for profiting. Below, you’ll find our top tips for doing that.
Buy your coins while the price is low
Regardless of whether you’ve already got Bitcoin in your portfolio or not, you might want to consider buying more while its price is low.
There’s every chance that BTC’s crash might not yet be over, but it’s unlikely to last forever. If you get a foot in now and hold onto your coins, you could make a profit in the long run.
Shorting
Another common way to invest in cryptocurrencies during a market crash is by shorting. In simple terms, you expect the price to drop and use this to try and make a profit.
When you short, you’ll borrow and sell Bitcoin before purchasing it again when the price decreases.
Shorting is a pretty complex strategy, and it’s worth having a little trading experience behind you before you give it a go. The risks are potentially higher than ordinary investing, so it’s worth taking the time to do some extra research beforehand.
Where can you short Bitcoin?
Before we continue, remember that cryptocurrency markets are volatile and buying any coin carries risks; the Bitcoin market crash is further proof of that.
Bitcoin is available in several places online, but we recommend shorting with eToro. The platform is available in several languages, and it allows for quick and easy trading. Moreover, you can copy successful traders’ strategies if you’ve got little experience.
Trade with a cryptocurrency robot
Cryptocurrency robots are software tools that trade top cryptocurrencies using algorithms on your behalf. These robots usually partner with the best cryptocurrency brokers to provide the best trading experience. Below are some of the best cryptocurrency robots in the industry:
Quantum AI: Quantum AI is a cryptocurrency robot allowing you to trade BTC, USDT, LTE, XRP with a minimum deposit of $250. It offers automated trading features that do not require any trading knowledge.
Immediate Edge: Immediate Edge is one of the top crypto bots, allowing you to trade BTC, ETH, XRP, LTC and more, along with GBP, EUR, USD fiat currencies. Immediate Edge takes 2% commission on profits and claims 99% win rate. Immediate Edge gives beginners an excellent opportunity to explore contract-for-difference trading with some of the best Bitcoin brokers in their country.
Bitcoin Era: Bitcoin Era allows you to trade BTC, BCH, ETH, LTC, BTG, ZEC and 8 more top cryptocurrencies. Bitcoin Era claims to have a powerful AI algorithm developed to carry out profitable trading strategies. It comes with a minimum $250 deposit and no trading fees.
