A way how to earn money on BTC losing its value
For last few weeks cryptocurrency market is in correction phase (down trend). When everything’s goes down it is very hard to make money. Of course I can do quick day trading. The problem is that I find it very stressful when I know that everything can go a few % down in no time without any waring taking may whole day traded profit.
But there is a way to earn money even on down trend!
I can earn money on shorting (selling) BTC on CFD/Forex market.
"Short selling is the sale of a security that is not owned by the seller or that the seller has borrowed. Short selling is motivated by the belief that a security's price will decline, enabling it to be bought back at a lower price to make a profit."
I know how to earn on trading on crypto exchanges so switching to different way of trading should be easy. But it isn’t.
Some time ago when I first tried Forex I managed to lose all money on demo account in just few days. On the other side I managed to learn how to make profits using real cash and some risky transaction on cryptocurrency exchange without any problem, with losing just few % of my investments.
High spread, leverage and a simulation of the market (where are the spikes when someone does a big transactions?). All of this makes a huge difference. It is much harder to trade on Forex.
Assuming that I plan to do shorting only a few times a year when BTC is collapsing badly. Do you think it is a god idea to spend some time on learning how to do a profitable trades on CFD/Forex? Or maybe as everyone else I should wait until the correction phase ends and make much safer and more profitable trades on alts on crypto currency exchanges?