Bitcoin is a virtual money in which privacy methods are used to manage the creation of currency and authenticate the fund’s transfer, working independently of a central bank. Two individuals can use it for an online transaction to each other. Bitcoin is one of the famous methods of investment with good returns. But one needs to take a risk with his money to earn more. It is not like that Price Of Bitcoin go up always. Sometimes it falls badly.
Yeah, that is the reason most people shy away to invest in Bitcoin or they invest few bucks. What if I tell you that You can earn money even when the price of Bitcoin Falls. In this article, I am going to tell you some methods to earn when the Price of Bitcoin down.
Exchange Trade Fund
This is a gamble where you can lose money waiting for profit or may lose profit waiting for losses to happen.
Exchange Trade fund has a track of Bitcoin like any other goods, where you can study the price fluctuation in the online market. Once you determine the stability of the Bitcoin, You can take your return before the Bitcoin price falls. You can also examine when the market growth will be back and go on with the Bitcoin investment till the point even if the Bitcoin nosedive in between.
It is a type of trade in which one can trade more cryptocurrency (Bitcoin or any other) than he has in his wallet. Fees and other leverages depend upon exchange.
Let’s take an example: You have one Bitcoin. Depending upon exchange, You will get more than one Bitcoins in your exchange wallet. In Margin trading, there can be two positions; Long and short position. You will go for short position when Bitcoin Price falls. To make money from this, you must understand Bitcoin’s price graph properly. This is a risky thing, You may lose all your money.
Let’s say you Invested one Bitcoin and Exchange will give you 1.5 Bitcoins. As I said earlier, you have a short position. Which implies, You will make money when Bitcoin fall and vice versa. Example:
- E.g. Price Of Bitcoin: $4000
- Bitcoin in your wallet: 1
- So Bitcoins in your exchange wallet: 1.5 (Position- short)
- Total money invested: $ 4000+ $2000
- Let us say Bitcoin price falls to: 3500
In short position, you will sell your Bitcoin at $4000. It means you will sell your 1.5 Bitcoin at $6000. But now the price of Bitcoin is $3500. So the price of 1.5 Bitcoin would be $5250. So the direct benefit is $750. But again, you have to pay exchange fee and other leverages.
Bitcoin Future Trade
Some websites such as OrderBook trade on future bitcoin. This is a system where people can negotiate the purchase for future. In this person who contracts for a cheaper price in the future would make a profit. Someone make a contract for a greater amount in the future & once they get at that amount in future, the amount goes back to the trader.
Let us say Bitcoin Price right now is $3000 and I make a contract for selling one bitcoin for some date in next month saying the price of Bitcoin would be $2000. If the price goes down to my quoted amount, I would gain a marginal profit of the contract.
Binary Contract Trade
Do you know how to gamble and earn profits?? If yes, this thing is for you to make money. The binary contract is very risky yet high profit making scheme. The Binary contract is done for very short period i.e. few hours or One day. You would guess an amount of gain/loss of the Bitcoin scale. Such as predicting lesser price which Bitcoin may go in given hours. If the Bitcoin reaches your predicted amount in said time, then you would gain Bitcoin at your predicted rate, You can sell it later when the price of Bitcoin goes down.
But remember one thing. If the price of Bitcoin does not reach your predicted amount in time, you will lose all your money.