The first major economic bubble is related to the very idea of public trading. The moment East India Company started selling stock, it had dozens of copycats. Most of them ended up disappointing their investors, being unable to keep up with the first corporate world power. Other people made a smart choice and invested in shipyards and ports — the infrastructure that the Company used. Not all of them succeeded, but the success rate was still much higher.
Since then, we’ve had California Gold Rush, Florida Real Estate Bubble, Stock Market Bubble of 1929, Stock Market Bubble of 1987, Dotcom Bubble and many smaller ones. The only people that made money off each of them were shop owners, realtors, brokers and domain providers.
The current bubble is built around cryptocurrency, and some say that it has already popped. However, there still are ways to make money off it without actually investing in crypto itself.
Why Investments Aren’t Working In Crypto
Investments need to grow in value with time. And cryptocurrency doesn’t do it anymore. Since January 2018, the price has been in a sharp decline. Occasionally it attempts a bullrush, but one has yet to stick.
Overall, unless you picked up crypto before December 2017, you are probably in the red right now.
Even those that invested in the cryptocurrency industry aren’t feeling too good. Thousands of ICOs turned out to be scams; others simply failed and quietly closed down. A small amount produced what they intended to do but still couldn’t survive in the bearish economy. The investors are now wary of crypto, and there is no way to attract more money to the market at the moment.
There still are people that invest in crypto and hope for it to grow, but they are not entirely reasonable. While the next bullrush may be right around the corner, there is very little evidence to that. However, there is another way to profit from cryptocurrency.
Trading Crypto As a Way to Make Money
Cryptocurrency market still has 130 billion USD of total capitalization — and all this money is actively moving around. Unlike the precious metals market, there is a lot of trading going on constantly — and you can make money on that trading.
There are even ways to trade on descending markets — so-called short-trading. The only problem with it is that you need a partner that holds a large amount of Bitcoin. In other words, you need a broker.
How To Trade Bitcoin Effectively
Cryptocurrency trading is not as developed as other types of trading. Most exchanges still use custom software which doesn’t have features like delayed orders or trailing stop loss. Those that have that features, like Coinbase Pro, come with their own limitations — i.e., you need to be a US citizen to open an account.
Right now, the best way to trade cryptocurrency is via the Forex channels — the brokers solved all those issues a long time ago. Most brokers use MetaTrader 4 and other advanced software that makes trading a lot easier and less risky. On the downside, you don’t own cryptocurrency you trade with them — which might be an issue if you suddenly decide to invest.
If you have no qualms about it — check out JustForex cryptocurrency accounts. Their system is remarkably stable and fast, which minimizes slippage. But, most importantly, they allow Bitcoin shorting and make trading on descending markets a breeze.
Open an account with JustForex right now, and they will double your deposit. Alternatively, you can open a demo account and test your understanding of trading before jumping into the fray.