In the moment the market is flooded with bad news being pumped out. Most investors are worried and bewildered when their invested capital is not profitable or even suffers a loss. So is there a way for investors not to lose money but make a profit this time? Let's find out with Holdstation in this article!
Ways to make money Downtrend season.
First, let's decentralize the levels of profit making in the downtrend season from safe to risky.
Nguyễn Cao Trung
For safety, the easiest way to profit in the downtrend season is staking. Holdstation has a guide to choosing a suitable stake pool with reasonable apy and still safe in the article above.
Châu Thùy Minh
Besides sending staking, hunting for airdrops is an option well worth the effort. However, the hunt for airdrops is never simple. Investors have to spend a lot of effort to do tasks to interact with the project, as well as find news about upcoming projects. In the near future, such as Arbitrum, Zksync, ... Holdstation also has a series of articles on how to hunt for airdrop projects investors can learn at the link above.
However, investors must also keep in mind that safety will go hand in hand with low returns and high returns will come with risk. So in the next section, the individual writer will guide players on how to earn above-average profits but still ensure safe capital management.
How to catch fud and "surf" coins according to the news
General
In the crypto market, in addition to technical factors, news is one of the ways to rationalize the price line of coins or tokens.
Any investor knows the saying "Buy rumors, sell news" is an investment method that has long been confirmed to be extremely effective. However, applying it is a completely different story. At this point, when the market is constantly pumping out bad news, the "greed when the mayor panics" also needs to be timely. At the moment, the macro news does not tend to support, even the private news about the crypto market is the same. So bottom-fishing at the present time is not necessarily the time. For investors with large capital who don't care too much about small price ranges, this can be the area of capital settlement. But for investors with little experience or small capital, preserving capital and earning moderate profits will be the first priority to avoid capital loss.
How to surf at the current moment?
At the present time, the way to check money even when the market is down, derivatives are one of the options worth paying attention to.
One of the first opportunities investors may be interested in is the football trend. It can be said that when the World Cup has begun (when the news is out), it is time for investors to "sell the news". But choosing the right entry point to "sell the news" also requires careful observation.
In addition to the football news that has been pumped, the ETH FUDs will also affect the price of ETH and layer2 tokens next time investors should be concerned.
CHZ and Football index
When the news supporting fantoken and football-related tokens has gradually been pumped out, the time to take profits for football tokens is also the time when investors can use derivatives to make profits. from spot investors taking profits.
CHZ goes up because of football news, it will also go down because of football news. The ideal entry point to "Short" CHZ would be to watch the recovery spans of CHZ and then enter. The rule to play will be to use the amount of capital that can be lost and small (x2-x3) because the volatility of crypto is extremely large. The use of financial leverage can be a double-edged sword for every investor.
The ideal entry for CHZ would be around the $0.2 price zone and the target is $0.1 - $0.15. Using leverage (x2-x3) will keep the point of liquidation far away and preserve capital.
Similar to CHZ which is Binance's Football index, a reasonable entry point would be around 820 points with a target of 500 points.
FUD ETH
The fact that $ETH is being flooded with fud about hackers releasing ETH or bigger news like Genesis's bankruptcy case will put more pressure on this second largest coin by market capitalization. ETH is one of the coins with a clear deflationary mechanism, and the technology of the project led by Vitalik will be the factors that will make ETH pump strongly again next season. However, this will happen when ETH has retests of the bottom deep enough and sure to have a solid premise for a waterfall break in the next uptrend season.
A giant whale "0xd275" withdrew 117,870 $ETH($132M) from #Bitfinex and deposited into #Aave.
— Lookonchain (@lookonchain) November 21, 2022
Then he borrowed 80M $USDC from #Aave and transferred 55M $USDC to #Binance, 5M $USDC to #Coinbase, 20M $USDC to #Circle.
Now his health rate on #Aave is 1.35.https://t.co/L9jEBi0itX pic.twitter.com/kWBMFrg0qC
So watching "Short" ETH or some layer 2 coins like $OP and $MATIC is also a good choice. The entry point for the entry of $ETH, $OP or $MATIC is currently quite risky, but if investors use capital sensibly with small leverage, it is possible to make a profit from surfing the coins. this. Entry for $ETH could be around $1100, $OP around $0.83 and $MATIC around $0.81. Leverage used for these coins should just stop maximum at x3 to be able to guarantee the position.
Conclusion
Compliance with the rules, reasonable capital allocation is the secret to winning the market, investors should only use no more than 10% of the capital to trade derivatives of these coins. Great profit opportunities always come with risks. Be careful and take responsibility for all your decisions