Prices Bitcoin falls? Don't waste money and don't keep it. Learn how to earn on falling Bitcoin price!
The easiest way to play dips
Yes Yes. You read it right. You can earn money given that cryptocurrency, share or currency is losing value. Seemingly it seems unreasonable, but in fact it is. We call the game of inheritance colloquially shortowaniem, i.e. establishing a short position.
If you have never met this term, first look at our article: Bitcoin shortening - what does it mean?
If you can predict the fall in the price of bitcoin, you can make money from it
All you have to do is play short on one of the many popular cryptocurrency exchanges, as many of them already offer such opportunities - both on increases and decreases in value.
The most popular stock market is Bitmex offering trading bitcoin contracts with leverage up to x100.
It should be noted that the game on such an advanced platform, with a large leverage and based on bitcoin deposit is not easy. It is certainly not fun for everyone.
How to earn on falling Bitcoin price on Binance?
A much simpler way to shorten bitcoin is to play downs on the Binance exchange we recommend.
We have two options. Either we play with a larger leverage more professionally (almost like on Bitmex) or quite simply, almost as if we were buying ordinary cryptocurrencies.
We will present the simplest and most intuitive way. This is just a steaming game BEAR / USDT.
The candles will be green, the course will go up, we will earn. There is practically no difference between such an easy bitcoin shortening and buying cryptocurrency and counting that its price will increase.
BEAR and BULL tokens on Binance
Of the pairs available on Binance, they can be seen BEAR and BULL tokens.
As the name suggests, these tokens will be useful for cryptocurrency bears (person predicting inheritance) and bulls (people forecasting price increases).
By default, the rate of these tokens mimics the price of bitcoin. However, not literally. Otherwise it would not make sense to buy a BULL token. It would be enough to buy bitcoin itself to make a profit from increasing its value.
These tokens have leverage, i.e. a multiplier of 3.
If the price of bitcoin increases by $ 100, the price of the BULL token will increase by $ 300. Thanks to this, you can earn or lose faster. Thanks to this, it's enough to invest three times less money to earn the same amount.
The BEAR rate behaves similarly. If the price of bitcoin drops by 1%, the price of the BEAR token ... will increase by 3%. Thanks to this solution, our mind does not have to fight the strange feeling that something is wrong here ... there are red candles on the chart and I make money.
The BEAR token always rises when bitcoin falls. So, if you anticipate a fall in bitcoin value, buy BEAR tokens, paired with the USDT tether on Binance.
How do you play on relegation on Binance?
- We must have in your account stable coiny USDT or BUSD (less recommended due to lower liquidity). We can get them by selling cryptocurrency in hand with USDT, e.g. BTC / USDT or ETH / USDT.
- We search for a BEAR token on Binance in tandem with USDT.
- We buy it like a regular cryptocurrency.
- When, as we predicted, the bitcoin rate drops, the BEAR token rate will increase three times more. If the bitcoin price increases, the BEAR token price will decrease.
- We make profits or stop loss by selling the BEAR token, exchanging it for USDT.