Stop losing all your gains

It doesn’t take a genius to make money during an uptrend.

Gains required to recover losses
Gains required to recover losses

4 ways to minimize your losses

1. Market neutral investments

2. Short the market

  • Trading Futures offers you a great way to gain from a negative trend. You can read up on it in another article I wrote on trading perpetual futures, it’s aimed at Binance users, but the logic applies to any exchange that offers perpetual futures such as Bybit, Kucoin or others.
  • Another way to short crypto would be through margin trading, essentially borrowing crypto to sell it and buy it back cheaper, netting the difference as profit.
  • Some exchanges also offer option trading, Binance offers a simplified version that can be used to make profits by predicting a price drop.
  • Price prediction (called battle on Binance) where you battle against another “player” based on price prediction.
  • Using an inverse ETF (exchange traded fund). On Binance there’s BTCDOWN/USDT, it tracks the inverse of BTC. On Pionex you’ll find BTCS/USDT and BTC3S/USDT, where the first one tracks the inverse of BTC while the latter tracks it with 3x the leverage. An advantage of using an inverse ETF over some of the other methods is that can be traded without having to worry about the complexity of using margin or futures. However keep in mind it is not wise to stay long in leveraged ETFs.
For example, if the BTC goes down by 5%, a 2x leveraged BTC2L/USDT should move down 10%. Assume for simplicity's sake price of the BTC price is $10K, BTC2L/USDT should be down to $9K after the first day. On the second day, BTC moves up 5%.BTC
---
$10K - $0.5K (-5%) = $9.5K (day 1)
$9.5K + $0.475K (+5%) = $9.975K (day 2)
Net loss: $9.975K-$10K = -$0.025K or -0.25% after 2 daysBTC2L/USDT
----------
$10K - $1K (-10%) = $9K (day 1)
$9K + $0.9K (+10%) = $9.9K (day 2)
Net loss: $9.9K-$10K = -$0.1K or -1% after 2 days

3. Become a liquidity provider for stable coins

Liquid Swap Binance
Liquid Swap Binance

4. Use a STOP-LOSS!

Social trading with Shrimpy
Social trading with Shrimpy
stoploss Shrimpy
stoploss Shrimpy
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Cryptohopper
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Pionex

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