Right from the start, we need to mention that investing in the cryptocurrency global market is not for the faint of heart. Even though the market has proven to be quite profitable in the past, it can still be very volatile. For example, the market recently took a nosedive and crashed last week when China decided to ban ICOs. However, clever investors are already looking for ways to make a profit out of this market crash. With that being said, here are the three best methods of profiting after a market crash.
Hold On For Dear Life
Yes, this market strategy is called Hold On For Dear Life and its acronym, HOFDL is a popular term in the cryptocurrency industry. Leaving the funny name aside, this strategy is being used by many investors and it has a good track record of generating profit. HOFDL means that digital coin investors should not sell their currency even though the value might fluctuate. Although, experts are advising to use this method only on the top popular cryptocurrencies such as Bitcoin and Ethereum.
Buying at a Low Price
Obviously, since the market has crashed, the price of cryptocurrency also went down. While most investors already started withdrawing their currency, others see this an opportunity to buy at a lower price than usual. While this method sounds solid in theory, investors are still taking a major risk since the currency’s value might never rise up once again.
Numerous traders are claiming that the best way to turn a profit from a market crash is to exit to fiat currencies. Although, this strategy is easier said than done. The problem with this strategy is that investors need to have a nearly perfect timing for when to exit and when to return.