Investments in digital assets are taking a new level, for more people to learn about crypto and begin to understand that this is a really profitable field. Buy and selling cryptocurrency at different prices is called trading. It works similarly to traditional markets trading when people gain a profit from assets’ price fluctuations. With the crypto market, trading was taken to a brand new level, for this market is much more complex and bears higher risks compared with conventional stocks.
Live crypto price is always changing, allowing crypto traders to generate income from even the smallest fluctuations. For example, using tiny price changes, you may take little portions of profit many times a day and collect them into one big gain. It is called “scalping”. There are many other trading styles that take a longer period of time between buy and selling cryptocurrency – intraday and swing methods. Position trading is long-term buying coins and holding them.
What are the Market Trends?
Traders pick a strategy depending on the situation in the market and possible earning options. There are tools allowing people to make money even on the dropping market – shorting and many other instruments.
The market is constantly living through tendencies:
- bear;
- bull.
A bear trend is what the market is suffering lately. From spring 2022, the markey started to drop and reached its collapse. Some characteristics of the bear trend:
- Panic mood among investors
- Massive funds withdrawal from exchanges
- Demand is decreasing
- Prices drop.
Every bear trend is replaced by a bull tendency sooner or later. So smart investors use the downtrend to select worthy crypto projects for investments to capitalize during the bull run in the future.
What to Look For When Buying Cryptocurrency?
Here are some important facts for you to check before investing:
- The project’s website and developers’ reputation
- Whitepaper
- Social networks
- Investors and backers
- Supply of coins
- Market cap
- Trade volume
- Real use cases.
If you study the project according to these factors, you will understand whether it is worth investing in.
Read the WhiteBIT blog to keep abreast of up-and-coming crypto projects to invest in during this bear market.