Crypto: ¡Aquí se explica cómo sobrevivir a un mercado bajista!

Use the dollar cost averaging (DCA) strategy

Dollar Cost Averaging or in English Dollar Cost Averaging is one of the simplest yet most powerful investment methods! It is even more effective when markets are down.

Dollar cost averaging involves dividing your investment into small pieces to be placed long-term over several months or years .

For example, you have 10,000 euros that you want to invest in Bitcoin. Instead of taking the risk of buying 10,000 euros in BTC at the worst time (in November 2021 for example), you divide your 10,000 into 20 shares of 500 euros. Each part will be used to buy Bitcoin every month, for example.

Thus, you spread your investment over 20 months and you will have different purchase prices for each month.

DCA’s goal is to reduce the impact of volatility and sudden declines in the markets.

The other benefit is that you buy more BTC when markets go down and reduce your exposure when the price of Bitcoin gets too high.

For example, your 500 euros will allow you to buy more BTC when its price is $25,000 than when the price is $50,000.

sell short

Crypto exchanges do not allow you to sell tokens without owning them first. The possibilities are thus limited to taking advantage of the fall of the crypto markets.

However, derivatives are a solution. Most crypto brokers (among the big ones) offer crypto futures. These futures allow you to have downside exposure. You can sell the Bitcoin without having previously bought coins.

CFDs are even simpler. are offered by traditional online brokers . CFDs allow you to sell cryptocurrencies and take advantage of their decline.