There are two main ways to earn on the cryptocurrency: mining and trading on the stock exchange. Not everybody can make their farms for extraction of cryptocurrencies. But anyone can open an account with AMarkets Forex broker and get profit from price changes with only 100 dollars.
That’s what a lot of traders did when the real cryptocurrency boom started in 2017. Everybody started to buy new digital currency in the hope of its further growth and fabulous profits. But nothing can last forever. One of the most popular Bitcoin cryptocurrencies (see Bitcoin’s chart) collapsed, causing many to regret that they bought it. While experienced traders began to shorten and earned very well on its fall.
What do you mean, “Shorty”?
Regardless of the fact that in the “trend”, cryptocurrencies, gold or real estate, people immediately run to buy and then wait for the asset to go up in price and sell it at a higher price, thus making a good profit. These deals are called long “Long” deals.
At the same time, against the background of popularity, few people think that the asset may fall in price, as it happened with Bitcoin, and therefore almost no one considers the possibility of earning on the fall in price. Despite the fact that the fall, as a rule, occurs much faster, so such deals are called short (Short).
So shortening the crypovalue means selling it. That is, to earn on cryptocurrency, even when the market is falling.
Principle of selling cryptocurrency
With purchases no one has any questions – put their blood money in the purchase and wait for prices to rise. Sold it and got his money back plus his profit. But how do you sell the cryptocurrency if you don’t have it?
It turns out you need to buy first. But buying it at a time when it will fall in price makes no sense, because it is a guaranteed loss. Then how to earn on the market decline and make profit from cryptocurrencies.
In fact, the solution is very simple – you need to turn to someone who can borrow the cryptocurrency, such as an AMarkets broker. Then you can sell it at a high price, then buy it again at a lower price and put the difference in your pocket.
Let’s consider an example of selling cryptocurrency on a Bitcoin chart
Considering the daily chart (D1) of the Bitcoin/Dollar pair, the investor assumed that the price will begin to decline and decided to open a deal to lower it:
- On December 17, he takes 1 Bitcoin from a broker and sells it at 18960. I mean, after the sale, he gets $1,8960.
- By December 24, the Bitcoin price had fallen to 134777. The investor decides to buy 1 bitcoin at this price and returns it to the broker.
- At the same time, the investor still has the difference between the selling price and the purchase price – $5483.
Thus, having decided to shorten the cryptocurrency, the investor has earned more than five thousand dollars in just one week.
Where is the best place to sell cryptocurrency?
Regardless of what digital currency a trader is going to sell, it is important to choose the brokerage company that provides the best trading conditions. Since cryptocurrency is one of the most volatile goods on the world market and, accordingly, one of the most risky, not everyone is in a hurry to provide democratic conditions.
However, there are pioneers and innovators who give traders the opportunity to trade on better terms than others. One of these brokers is AMarkets.
While others are increasing leverage, ripping off huge commissions from traders in the form of spreads and swaps, AMarkets has made the lowest spreads on the market for the most popular cryptocurrencies:
- $150-200 for BTCUSD.
- $30 for ETHUSD.
- $20-25 for LTCUSD.
- 0.03$ for XRPUSD
It means that a trader here loses less and gets more profit by buying and selling digital currencies of 5 types in the company: Bitcoin, Ethereum, Bitcoin Cash, Litecoin and Ripple. It’s even more profitable to sell here than to buy. Swaps for buying cryptocurrencies account for 60%, and for selling 30%.
In addition, the company has introduced a fractional lot for cryptocurrencies, so that traders can take less risk and start trading with less money. In AMarkets, which reviews are sure to read here you can start earning on the falling market cryptocurrency having only 100 dollars.
In addition, the company regularly organizes webinars and live chat with experienced cryptocurrency traders. This allows newcomers to quickly learn how to analyze correctly, understand what is going on in the market of cryptocurrencies and, accordingly, make more profit.
It is also worth noting that most traders choose among Bitcoin Forex brokers – AMarkets is not only because it is the most favorable conditions for trading. But also because the company has been operating for more than 10 years and is a member of the Financial Commission. Thanks to what interests of each trader are insured on 20 thousand dollars, and all possible disputes are solved as quickly as possible.
How to earn on lowering of cryptocurrencies at broker
After opening an account and depositing in a brokerage company, you need to download the MetaTrader 4 or MT5 trading terminal. The terminal is considered to be one of the best for technical analysis, so you can conduct a full analysis of cryptocurrencies and get maximum profit.
The open, working trading terminal in AMarkets looks as follows
After selecting the necessary cryptocurrency, you can open a deal in it in two ways: by pressing the single-click on the position or by pressing the F9 key, and then the window for opening a deal will open:
Buy deals in the terminal are displayed as Buy, and sell deals of Sell. To shorten the cryptocurrency, it is necessary to select them (indicated by arrows on the screenshot).
On the screenshot below, we decided that the Bitcoin price will go down and opened a Sell deal, which can be seen in the open trade line below the chart.
At first, the price was a little bit upward, downward, but later began a more serious decline, as can be seen in the chart. Don’t be afraid of the minus in the deal. It’s a spread that’s already in the deal. As the price goes down, the profit will override it and then go plus.
Please note that there are quite a few places on the charts where the price goes down. Many of them could be determined in advance by technical analysis. Why open deals only for buying, when it is possible to earn money on sales.