Yesterday we witnessed one of the largest crashes in the cryptocurrency market since January. With profits from projects soaring last year more than 1,000%, it is no wonder we have been seeing some major correction this year. Many people have given up on trading after seeing their cryptocurrency portfolios plummet, but there is one thing that your average trader does not realize: it can still be very profitable to trade during a bear market. Take a look at one of the trades made before 9AM this morning:

 

Meet Christian

Christian, known to many as “Pineapple”, is an analyst at Pure Investments and has been trading for the past three years. Throughout the Summer of this year, Christian began a “zero to hero” challenge in which he started with $15 (0.002 BTC) and a goal of turning it into 1 BTC. As of right now that portfolio has 0.1050 BTC, a 5,200% return on investment.

One of Christian’s most profitable methods of trading is known as Leverage Trading. He has spent time learning how to use the Bitmex Exchange platform and creating strategies that have yielded great market predictions. It doesn’t need to be a particularly good day to make money in the cryptocurrency market; Christian has made over 100% profit on days that the market has tanked.

 

How is it possible that his return on investment is so high during a year-long bear market? Christian trades smart by scaling his orders, minimizing losses, and sticking to the strategies he has developed that have led to his success. This, however, is easier said than done. I ask that you take precaution when making risky trades.

Advice for New Traders

Christian follows these rules in order to minimize his losses and maximize profits.

 

1. Always hedge your positions
   To be a successful trader you should always hedge your positions so you are safe no matter what the market is doing. If you have a long position open on bitcoin, you should open up a short on something else. If the whole market is tanking as it did yesterday, you can then close your bitcoin long (or let it hit stop loss), and let your shorts take you to the moon.
2. Always scale in and out
   If you scale into your trades you could always make for a better entry and prevent yourself from being stopped out or liquidated. I like to initially scale in with chunks of 25% of my intended position. This way I can stack my orders in the order book and if one of them didn’t hit, I still managed to get a 75% fill on my position. I like to approach scale outs in the same way, but with chunks of 30–50%.
3. Understand institutional market mentality
   Unless you are trading with several million USD, you are considered a retail trader. The big traders, often referred to as whales, control the market. They use different techniques to stop out or liquidate the retail trades before they pump or dump the market. Understanding the psychology of the market is one of the most important keys to successful trading. Once you understand how the institutional traders think, you have a GREAT advantage over your average trader when it comes to trading cryptocurrency, as well as regular markets.

Learn With Cryptocurrency Enthusiasts

Pure Investments is a cryptocurrency community and discord server consisting of more than 10,000 users. Christian is now a mentor and analyst within the community after having learned much of what he knows today from his own mentors within Pure Investments. Members in the group are constantly sharing ideas, discussing the market, and chatting about activity in the cryptosphere. If you enjoy trading or interested in blockchain technology, this is the community for you.

If you would like to get in contact with Christian or any of the other analysts at Pure Investments, they will be more than happy to have a conversation in our discord server. We encourage education in our discord and hope to increase our amount of active traders and their knowledge.

Follow Our Expert

Christian is the lead editor of Pure Investment’s Leverage Trader publication which focuses on teaching users how to trade using Bitmex’s platform and how to utilize strategies on spotting good trades and minimizing losses. The weekly publication also provides speculation on potential trades for the week. This comprehensive publication will teach you everything you need to know about Bitmex,how to leverage trade, and how to profit during a bear market.

 

For more information, you can visit our site here.