In the recent times, various analysts have began to comment on whether or not they think the cryptocurrency market is a bubble.
The main cause for concern is the volatility of the market as a whole. The total market capitalization or market cap went from $18 billion to over $180 billion in the course of this year.
This may seem like good news and an equally good time to get in, but weaknesses in the market recently have shown that the prices may be fluctuating for some time to come.
So as the prices drop for now, how can one benefit and hopefully make some money? There are several ways to turn a profit from the current state of cryptocurrency and here are just a few.
One of the main ideas behind making a profit from bitcoin is making sure you understand the market and the risks associated with the extreme volatility.
Buying at the dip of the market can help to ensure that you get a cheap price as well as decent returns. Although, this is easier said than done because it requires a knowledge of trend spotting and accurate predictions.
Yazan Barghuthi, project leader at blockchain company Jibrel Networks stated that “buying a dip in a crash can be difficult because when do you know it has bottomed out? Buying the dip only works in a general bull market. If the global trend reverses, buying the dip is useless.”
The most important strategy is pinpointing strong opportunities. Sometimes there can be a bubble, but the broader cryptocurrency market can often hold up decently.
Marshall Swatt, the founder and CTO of Coinsetter stated that “just like the NASDAW bubble, there will be companies and tokens that go on to be very successful, perhaps a future Amazon.
The idea of benefitting from the current digital asset and currency market is enticing to many, but the profits only come from being well versed in the market as a whole.