However, is the situation that bad?
The answer is No. All hope is not lost during bear markets for investors and it is very much possible to make profits by finding their way around the market trends and explore potential business opportunities during such periods when many others won’t dare to stake their money.
This article focuses on some practical tips that every investor must know to turn things around during bear markets and make profits.
Crypto Bear Markets
Bear market is a market condition where securities depreciate drastically by 20% or more. This may trigger negative feelings and pessimism from investors. The depreciation is not limited to stocks only, Cryptocurrency may also experience a sharp depreciation that may cost investors a fifth or more of their investment.
It is usual that many investors lose money during bear markets. Let’s analyze why!
Trade gains and losses are usually affected by several factors that include poor information, emotions, and human imperfection. Thus, our interest in selling soars before the price goes down more than purchasing before it appreciates.
It is clear from the above that the majority of investors who lose money during the period work with poor information and improper due diligence. Without the right information, they are bound to make poor investment decisions that may cost them a part of their investment.
However, you can turn the situation around if you have the right information you can take advantage of to make informed investment decisions.
To increase your chances of making a good Return on Investment (ROI) during bear markets, especially as a Cryptocurrency investor, consider the following investment tips:
Your journey to a successful Cryptocurrency investment during the troublesome bear markets begins with finding the best digital currency(ies) to invest in. Investing in digital currencies that are doing creditably well increases your chances of making profits regardless of what the market says, especially, if you study the market well before committing your hard-earned money into a coin.
Shrewd investors don’t miss such great investment opportunities because promising coins can be profitable in the future.
The icing on the cake is the opportunity to get such a great cryptocurrency at an impressive bargain price. That’s one of the numerous opportunities bear markets offer investors. Sadly, only a handful of investors understand the strategy, hence, others lose money to the market.
Leverage Dollar-Costing Average
The dollar-costing average is another investment technique that deserves your attention. It works a little differently from the other techniques discussed so far but has a unique way of helping investors to benefit from bear markets.
To leverage the benefits this investment method offers, don’t make a bulk investment once, you rather spread your investment over a period.
For instance, while digital currencies are depreciating in value, you may be tempted to stake your capital in a single purchase. That may be a wrong decision because the coin may continue to depreciate for a time and never recover. Make your purchase at different times and seize the opportunity to spread your investment as much as you can. Don’t put all your eggs in one basket, as the saying goes.
A better and more rewarding approach involves investing in the stock gradually. Diversify your investments.
Sometimes, though, many investors have lost great investment opportunities during bear markets due to lack of funds, they are not scared of investing and are willing to take advantage of the market but are restricted by financial constraints.
Rather than fold your arms and allow such opportunities pass by you, take advantage of some decentralized exchanges that are offering investors with a platform where they can easily have access to funds for their projects. One of such platforms is NUO Network.
NUO Network is a platform that offers investors a golden chance to borrow and short investments. The decentralized exchange explains its mission on its website: “Nuo.Network is a decentralized debt marketplace that connects lenders and borrowers across the world using smart contracts. Our goal is to create global decentralized debt products using the Nuo Protocol.”
Investors can leverage the NUO platform to take a loan to fund their investment dreams. As a cryptocurrency lender, NUO supports a wide range of digital currencies that include DAI, ETH, MKR, among some other ERC20 tokens. Thus, depending on your choice, rest assured you will get the needed financial assistance to support your cryptocurrency investment.
You can borrow ERC20 tokens and ETH from the platform by taking collateral in NUO’s smart contract. Don’t be scared of hidden charges, as the NUO platform allows investors to borrow any crypto assets with zero platform fees. That’s a great way to raise the capital for digital investment with the potential for great returns.
NUO is also a platform where you can short digital currencies. Take advantage of the platform’s loan feature to ‘rent’ some depreciating currencies and sell them for a profit when they depreciate further. You stand a great chance to magnify your RoI if you act swiftly.
Don’t worry about your transaction security on the platform. NUO is a fully decentralized exchange that offers all the benefits synonymous to such exchanges. More so, since it is powered by smart contracts, you have nothing to worry about.
If you have had a bitter experience while dealing with intermediaries, you may likely be hesitant about dealing with exchanges that are controlled by a third party. As a decentralized exchange, NUO doesn’t represent any third party and is not controlled by an external body. Hence, you are guaranteed direct transactions without going through an intermediary. This ensures smooth transactions.
Transparency is this exchange’s watchword. In addition to its transactions that are verifiable on-chain, users are also spared the stress of paying unnecessary and usually exorbitant hidden fees that some exchanges are known for.
While bear markets instill fear into the minds of many investors, wise ones can leverage the fear to make a living. Explore the investment ideas that are discussed in this article to have an upper hand during bear markets, that’s a surefire way not to lose your money, but to receive the deserved rewards for your efforts.
Long and Short Investment Options on Nuo Network
A long/short investment strategy is an investment approach that Cryptocurrency investors are currently using to diversify their investment and have a shot at increased profits.
With the investment strategy, you are in good stead to make profit from your cryptocurrency assets when the prices appreciate or depreciate.
When you take the Long investment option, you are purchasing the digital currency outright with borrowed funds from a decentralized exchange such as NUO Network.
On the other hand, the Short approach involves borrowing the cryptocurrency from the exchange. You can then sell the coins when it appreciates and deposit the proceeds in your account.
You then wait until the digital currency drops in value. Once it does, you purchase the exact amount you borrowed and payback your loan. In the process, you make a significant profit. Thankfully, NUO Network supports both strategies.
How does it work?
Whether you want long or short digital currency on Nuo Network, follow this step-by-step approach:
The first step is to sign up on the platform through the Signup menu. Once you complete your registration and have the necessary login details, NUO will give you a smart contract-based trading account. Add collateral to your account to initialize the entire process. The available collateral options are ERC20 or ETH tokens.
Create an Order
Once you are done with the account funding, enter the collateral amount and have a chance to leverage up to 5x of your collateral.
After entering the collateral amount, select leverage, either Short or Long. Then, select Margin Trade, for instance, Short ETH 2x /DAI.
Finally, select Tenure, Stop Loss and Take Profit before you Sign with either a Metamask (a connected wallet) or your account password to place a margin trade. Boom! You have succeeded in placing a margin trade with a predefined stop loss %, trade duration, and take profit %.
Your loan application will subsequently be matched to an ERC20 or ETH reserve. This sets the stage for instant funding.
Are you running out of funds and the future seems bleak? NUO Network is will help you out. Take a loan for long investments or use the platform for short stock, the choice is yours.
Follow Nuo.Network on: