For last few weeks cryptocurrency market is in correction phase (down trend). When everything’s goes down it is very hard to make money. Of course I can do quick day trading. The problem is that I find it very stressful when I know that everything can go a few % down in no time without any waring taking may whole day traded profit.
But there is a way to earn money even on down trend!
I can earn money on shorting (selling) BTC on CFD/Forex market.
"Short selling is the sale of a security that is not owned by the seller or that the seller has borrowed. Short selling is motivated by the belief that a security's price will decline, enabling it to be bought back at a lower price to make a profit."
I know how to earn on trading on crypto exchanges so switching to different way of trading should be easy. But it isn’t.
Some time ago when I first tried Forex I managed to lose all money on demo account in just few days. On the other side I managed to learn how to make profits using real cash and some risky transaction on cryptocurrency exchange without any problem, with losing just few % of my investments.
High spread, leverage and a simulation of the market (where are the spikes when someone does a big transactions?). All of this makes a huge difference. It is much harder to trade on Forex.
Assuming that I plan to do shorting only a few times a year when BTC is collapsing badly. Do you think it is a god idea to spend some time on learning how to do a profitable trades on CFD/Forex? Or maybe as everyone else I should wait until the correction phase ends and make much safer and more profitable trades on alts on crypto currency exchanges?