How to Take Advantage In Bear Market

Currently the crypto market is undergoing a correction which, although still relatively small, seems to cause concern among investors. However, it should be remembered that correction will always occur in financial markets so that appreciation occurs normally.

Therefore, in this article i will provide some suggestions and insights to take advantage of the current correction for future gains.

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How to Take advantage In Bear Market

There are several ways you can take advantage of the correction movement that is happening on a large scale.

• Buy
  It is best to buy during a market correction, but using several methods.

When the market is corrected, the majority of investors, especially new investors, generally new ones, tend to experience fear and worry. This is due to worries about buying when it goes down and worrying it will continue to fall deeper. But what you need to know is that the higher the price, the higher the risk of loss.

However, these terms need to be known so that when you believe in the fundamentals and future of an asset, corrections can be used as an opportunity to buy. On the other hand, high asset prices, are also not an obstacle to buying, but it should be understood that buying must be done after a personal analysis.

• Open Short Position On Derivatives Market
  If your intention to make a purchase is for the short term or as a day trader, one of the things you can do in looking for profit is to open a short position.

Short position is a short position that is generally carried out in the derivatives market, one of which is the futures market. So to do a short position you have to use the futures market by selling futures contracts.

What's interesting in the futures market is that you don't have to own the asset before selling, so you can get profits when the market corrects. When short, the mechanism is that you borrow crypto assets from a broker or exchange and sell immediately. When the price of the asset drops, you buy the asset again to return it to the broker when the price is lower, so there is a profit from the buying and selling price.

However, the risk in the derivatives market is also very high, Keep in mind that this article is only educational and not an invitation or suggestion to open short positions on Bear market

• Hold
  The last way is HODL or holding and letting your investment and not selling, if you believe in these assets.

If your invesment is long-term investment, this's good decision. You can stay away from apps or digital wallets that contain your investment and divert attention from the crypto market. By doing that you will avoid psychological worries about selling, even if you believe in the fundamentals. However, keep in mind again, selling is also not a bad thing if you think selling is the right step and according to your original plan.

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