Bitcoin Forum

Is it possible to profit from collapses of altcoins? Do you have any ideas how to?

Of course you can, you can short it on exchanges. But, obviously, you have to do that before it collapses. After that, I don't see any way to get profits from it.

Not sure what you want to invest in an altcoin that is obviously collapsing but want to put some money into it. It's the same as you throwing money into the grave of the dead. After all if you want to invest or trade there are plenty of other altcoin options to choose from, instead of dropping money into an altcoin with no clear future why are you still interested?

My question is on what basis do you believe in a crypto project that collapsed as if expecting big investors to come and pump it overnight?

Obviously, when the price of the coin reaches the lowest value, you can buy it. This is exactly what investors are doing in a bear market. So if you have the necessary capital, you can form your portfolio for long-term investments and if you have selected good coins for this, they will bring you a decent profit in the future.

Yes, you can do so by creating a short position (https://www.investopedia.com/terms/s/shortselling.asp). Depending on the market availability of the altcoin, you can create a short position via perpetual contract, futures contract, or selling spot using margin, available in many centralized exchanges and DeFi platforms.

Could you give an example of a way to profit from $BNB collapse (assuming it follows $FTT fate), perhaps?

It's not guaranteed.  but many alt coins often pumped well even collapses.  So if you understand that and invest in one of the potential altcoins, you will be able to profit from it. When investing you must keep a cool head and do a good analysis before investing in an altcoin.  Then you will be able to profit in any situation of market. But if you don't invest with good understanding and analysis, you will face losses even in good situations.

The easiest way would be to create a short position on BNB/USD perpetual market, which is available in many reputable exchanges like Bybit (https://www.bybit.com/trade/usdt/BNBUSDT) and OKX (https://www.okx.com/trade-spot/bnb-usdt) (just avoid Binance if you're expecting it to collapse). To get started, create an account on the exchange, complete the KYC, and deposit some collateral, usually in the form of USDC or USDT.

Once your account is set up, go to the BNB perps market and start trading. Determine your desired selling price and position size, and then click on the short/sell button. Shorting is essentially borrowing the token, selling it, and later buying it back at a lower price. The profit will come from the difference between the selling and buying price. For example, shorting 1 BNB at $300 and closing it at $290 will give you a $10 profit, minus trading fees.

It's worth noting that trading derivative contracts and margins can be complicated, so I would encourage you to familiarize yourself with the concept and risks before jumping in with real money. I think Binance actually has some of the best learning materials for this https://www.binance.com/en/support/faq/a-beginner-s-guide-to-futures-trading-website-360039304272

Sell short at Binance or other trading platform which would allow you to do so. Problem would be your 'timing' of when to sell and which coin to sell ofcourse 'coz if it happen that you sell short and the market price suddenly recover, you'd be in loss. The market itself is unpredictable which makes Trading difficult. If you are simply asking for a way to earn profit even if the market is down, easily, then there's no such thing as a shortcut to win. You'll need to have the skills to do so. Much better if you'll just wait for recovery to take place in this industry if you ain't ready to risk that much. That is the only way to survive the bearish market trend.

Haha, I am not sure what OP is asking about. As for collapse how do you know that this particular Altcoin is going to collapse? As in LUNA's case nobody was sure until LUNA dumped to the 1$. So dear you can't make a profit as you can't see the future. You can profit in one case if some coin is already dumping and it is available to be tarded in future option.

No, and yes!

If the token is not available in futures trading then you can not make a profit from a token's collapse.

If the token has futures trading pairs on any centralized exchange then you can short it and make some profits. On one hand, people lost money in FTT and LUNA, on the other hand, some people made huge profits by shorting so you can do the same if something like this happens in the future.

Another way to profit from an altcoin collapse is to buy put options. However, note that the availability of put options for altcoins is currently limited and offered by not many exchanges . As for the BNB that i see you are interested you can buy options from Binance exchange . I'd suggest you to educate first on how options work and then proceed to any trade. Best of luck in what you decide to do .

That's the only way you profit if you bought it at low then sold it at high, what's impossible for that? The idea is to have proper risk management on every investment you venture to since you don't know when is the time the coin/token may up or down in price. Risk management should always come at hand first.

The dumping market isn't the end of crypto but rather consider this as an opportunity to start. Many people are buying during the bear season because they believe in the market recovery which is actually what they have seen in the past. You can make similar to this if you want to make money from here. Stop thinking that the market will die as it won't for sure. Take a picture of what it happened in the past so you can also have an idea of what you gonna do next. But this only happen when you have the courage and trust in crypto.  

if it's spot, you should seek chance of making profit through the small pumps that usually occurs along the way, but of course that way you're also have the risk of catching the knives that is if you try to make entry meanwhile after that the market is still going down you're quite literally losing, I think the realistic choice is simply having short position then that way if market dumps you gonna still make profits that is if you could manage.

You can either short-sell the cryptocurrency or if it is available, you can invest in an inverse ETF that increases in value when the underlying asset decrease in value.  Though pls. be reminded that it is a very risky investment so you should be well aware of the potential risk and possible losses if your assumption of an altcoin collapsing did not materialize.

Profiting out of altcoins collapse is possible. This needs to be done with the amount that one can afford to loss, because it is something like a gamble and gives assured return when invested on the leading altcoins on the top 100. I have seen more number of altcoins like Mina, Casper which reached the market with big hype reaching its bottom value. Investing on such coins for long term investment might get us good profit. This is just a suggestion, which I experienced based on the difference in price with which it reached the market to the present value.

Buy the dip and hold until the next bull run. However, make sure you are choosing a legit and solid altcoin, and not dead altcoins which collapsed and have no recovery chances. Do your research, check who are the developers, what the concept of their altcoins is, if there is any important investor or sponsor behind, the practical usefulness of the altcoin. I would start checking what are the best alternatives available from the top 100 cryptocurrencies.

On the other hand, if you are still in doubt after doing this and don't know which altcoins to invest, forget about them and go for Bitcoin. That is the safest crypto investment which is less likely to disappoint you on long run.

Yes, when you are trading, you can earn huge profits and loss huge also because of volatility. This is likely gambling also because I believe behind these pumps and dumps are manipulation from whales or other traders also.
For, I will not touch anymore these altcoins, it's not active anymore, and some of the trading volumes could be manipulated.

When the price spiked up to 70% in a short period of time like in a week, it's gotta go down sometime either next week or the next which is an opportunity for you to sell now and buy back if you have plans to make money again and again.

The idea is to buy low sell high as they always said.
Waiting for its fall by the next days is the opportunity. There is the need for waiting time though and this is where people get impatient.

In fact, I have many friends who invest in altcoins, and some of them only invest in altcoins, because altcoins have greater volatility and more profit margins. Such as EYH, DOT, ADA, BNB. I think these altcoins are relatively credible, and the future is full of imagination, so now is indeed a good time to start, and fixed investment in altcoins is a good investment method. After the bull market comes, as long as you are not greedy and do not make contracts, I think it is no problem and you can get ideal returns.

Are the exchanges more reputable than FTX was? Can they stop withdrawals, quotation, rig price etc.?

Is there an example of profitable (and closed and cashed out after FTX bankruptcy filing) trade (short-sold) of FTT token? Can you indicate relevant data, please?

I am researching ways to profit from collapse of an altcoin. I haven't found a viable one. Maybe "it's the same as you throwing money into the grave of the dead", indeed.

I am not believing in a crypto project that collapsed. As a matter of fact, I believe in project to collapse in the future. Maybe I hadn't expressed myself clearly in the first post and had caused misunderstanding.

Isn't there anybody profiting from collapse of an altcoin like e.g. FTT or LUNA? Collapse means critical failure, fatal design flaw, default on intended goals/promise, rug pull, brokek foundation like unpredictable inflation of token supply etc.

Did they allow traders to withdraw profits from short-selling FTT or LUNA? How did they settle the futures? At what price? Didn't they halt trading the futures at the collapse of the tokens?

I wonder if it is possible to profit from collapse of a token like FTT and not from a token price increase.

There are several ways to do this. For example, you can use margin trading to take a short position and profit from price collapse, or you can wait until the collapse stops, buy out the bottom and quickly make a profit. For example, Aptos, Solana, etc. had such situation. The market gave an opportunity to buy coins at low price and then get good profit in 10 days. When the price falls, you have to wait to successfully redeem the bottom.

I know what are you are trying to explain but dear fellow, i am trying to explain some condition on the profit which are trying to make. So an imaginary situation where you want to make money from the Collapse of some Altcoins but you dont know which coin is going to collapse + what if the coin which is collapsing is not available for the future trade then what you cant make money in this particular situation.

In the above mentioned situation it is hard to make profit. This is why it is said, altcoins trading is high risk involved. Trying to make profit out of collapse means, going on projects like Luna or FTX at its downfall is very risky. Maybe one can take position for long term in such situation. Apart from such conditions, there are market down points which is same as that of the launch price. Certain altcoins used to reach such levels and making a buy at that position will surely help in profiting.

The premise is how do you know that this altcoin will crash, if this altcoin crashes no one will continue to buy it, you can only choose to short. If this altcoin does not crash, but has an upward trend, then it will be very dangerous for you to short, and the risk of investment definitely exists. This will test your insight into the market.

Selling high, buying low is price speculation and making use of volatility. It's not the same as profiting from collapse/demise of a token (like FTT).

An exchange could change margin requirements, manipulate price, halt trading etc. at any moment making it impossible to realize profit.

Basically, by shorting it; you can make profit from the collapses if you do shorting it. But there are only few shitcoins that are been listed on futures market so it is really hard to pick altcoins that are been collapsing. Before I catch up the huge dump in FTX because of its scandal where I shorted it with low margin and I earn bucks from it. Try to research coins that are been listed on futures market with bad team and with bad services because usually those coins are good for shorting.

But don't always do shorting because your psychology can be destroyed it is better also if you will do long market but make sure that you have a good trading plan and strategies that you could use to make profit in the market. Finding the right altcoin for long market is also hard to find so better you have knowledge and set of unique skills that you can use in order to pick the right coin that you will short or long.

In summary: I haven't found any viable strategy to profit from altcoins collapses except avoiding them. Not sure how about the strategy of competing with an own altcoin which attracts suckers from other ones (for example BNB currently, FTT in the past).

The only thing that you can do right now with the altcoin collapse is to buy them while they are cheap? We are not talking about meme and shitcoin, but solid coins like BNB that you mentioned.

I mean our strategy should also satisfy another condition, that is to buy them right now and then hold or at least wait for the next bull run.

20224-2025 is the most likely year that we will see another explosive growth, so you need to have a lot of patience to be a long term holder, at least a year or two.

Going to depend on your better understanding of certain assets to hold, the way to earn is when you fully equip yourself with good knowledge about the project.

The temporary collapse gives you that opportunity to buy and hold, as most of those solid supporters
will continue to buy during the dip and will going to wait for another good momentum before selling
it with their target value.

I meant permanent collapses like FTT (FTX's made token) and not regular, temporary price swings to profit from.

BTW I think that BNB will collapse permanently like nearly all altcoins.

Yes, you can profit from the altcoin collapse by buying the altcoin at a low price and holding it for a while until the price increases again. But it's not easy because you have to find what altcoins have the potential to increase again. And even though the altcoin is in the top 10 or 20 list, it does not guarantee you will be able to benefit and only by analyzing can you find these promising altcoins. But maybe buying altcoins that are in the top 10 or 20 list can be more promising than choosing new altcoins or new tokens because in analyzing these altcoins, we can find more information that can help us in making a decision.

These exchanges are within the top 5 in terms of daily derivative volume and have operated longer than FTX did. Being a centralized exchange means they have full control of your coins and have the ability to stop withdrawals. Saying these exchanges would manipulate the order book is a bit of a stretch, highly unlikely but it's something a centralized exchange could do.

Yes, any situation in the market can be profitable depending on your approach. Even if the market for a certain altcoin is collapsing, you can still make money out of it.

There goes the spot and the margin trading.

But most likely, those that are earning more and is following the trend and the news, they go margin and leverage their trades because they see the opportunity on it and there's only one way for such collapsing altcoins to go and that's to be on downtrend.

There are two fundamental positions you can take when it comes to an asset, you can take a long position in which you basically predict the price of such an asset will go up, or you can go short in which you predict the price will go down instead, however I will advise that you do not try this strategy as not only it is a very risky one but its upside is also limited, but other than shorting the market there are not many ways to profit from altcoins which are crashing.

On the opposite my strategy is to cash out when it's on the rising phase under temporary bull period because once these altcoins start collapsing the recovery chances are very low and loss chance is high as they have nothing to offer.But there are people who will say short it or invest in huge margins to have more them at dips so when price rise little you take out profits but for me I don't risk in them too much.

There are ways to know this. The main one would be if this was a poorly built altcoin and then it looks suspicious. It's crazy but when some shady alts crash, there are still people who invest on them especially if they are famous because they still expect that it will recover. If the altcoin continues to rise then isn't that great?

It means we can sell for a juicy profit but it's not only advisable to buy during those moments, only to be safe from the bull traps. Wealth are created during the bear seasons or whenever the coin collapses but it must be accompanied with a proper research so that we are sure that the alts that we will pick can still be able to recover.

It's possible and the answer is shorting. This is a very risky trade to be honest but since you are looking for profit and you shall agree with the risk. The only way to be profitable from collapsed token.

Then use your internet to browse about shorting trade. You shall be careful caused by sometime you were also gambling with your money. I think that you can also try to gamble small amounts of money to buy tokens that already collapsed

It's very tough, and the risk is high if you will short while it is still in bear season, though like what you mentioned there are people who can
take some profits while doing this strategy.

They are those who have that big nerve to take the risk. They observe and monitor how
the market is behaving and in a timely manner they will place position to buy and quickly sell.

Yes, it is still possible to make money with altcoins as long as you predict when they will crash. Similar to what other members have said, shorting a trade is a risky but profitable strategy. But given that we both understand how dangerous this is, why are you interested in it?

I want to ask you again, do you know the meaning of "collapsed"?

If you already know you at least understand and don't have to think about taking advantage of a collapsing altcoin and hoping for a miracle the price will skyrocket, it's highly unlikely.
There are so many good altcoin choices on the market to make a profit, but you are more troublesome for yourself, like wanting to save your money in the sea and hope that your money will fill the sea. realistic thinking is necessary in investing and don't waste time on altcoins that have collapsed.

Yes, I think you can make profit from altcoin collapse, however, you have to check/research the altcoin in question and possibly find out if the collapse is the type that will recover in a few days, years, or never. A known collapse like FTX collapse is obviously out of question. If it is possible, find out the cause of the collapse prior to trading or investing. Just like swing traders, you can take advantage of buying low and selling after a couple of days or even weeks when the altcoin appreciates in value - so you can take CALCULATED risk like swing traders. Ensure that the collapse is such that the altcoin can recover. You need to research the altcoin to ensure the team behind the coin have some level of trust. As with all investments, don't put all your eggs in one basket and always trade/invest what you can afford to loose.

just bag holding and accumulate when the value decrease that's like literally the only way honestly, because that way you could always gain profit once the value bounce back but it's certainly could cause you to lose money.
the thing is,there's nothing much you can do in the middle of collapses, you just lose your money and that's it.

This seems like gambling. So, you can buy altcoins that collapse but have big teams in very low prices. Then, wait for it for the time the coin is pumped. Commonly, there will be an area where you can meet the pump price one day before it will drop again. And at that time, never be late to sell and take profits, once you miss it, you will really lose the chance.

However, like I said, this is like gambling because you may be lucky or not lucky. For, you may not know if altcoins will rise up again or not after collapsing, whether there will be a short chance to take profits or not. This will also lead you to loss, which is why this is very risky. If I personally, I will prefer to stay away from this coin. Better to invest in Bitcoin which is very valuable for the long term especially.

Yes and no, yes to accumulate when the value keep on plummeting but you won't get profit from it.  You have to wait for the token manipulator to pump the market of the collapsed altcoins and sell before the manipulator is dumped.  I think that is the only way to profit in a collapsing market since the majority of altcoins that collapse never recover unless being pumped by a group of people who make profits from pumping dead projects.

You would make out profits if you do make out some short position
whether on futures or perpetual but of course it would really be depending on how much leverage you had put up into.
We know that dumping or decreasing situation isnt something that we could be able to predict.

This would be the main question that you should need to answer on how you would be able to find out on when a certain altcoin would drop because there's no man on this
world would be able to know on whats ahead.

Like others in this thread have already mentioned, there is only one way to make money with a project that is losing value and that is to short it on exchanges. That being said, this onl  works, if the project is not completely collapsing and going bankrupt. Only the price needs to go down. I haver never shorted a project before, but as far as i know, you can only short pretty big altcoins because exchanges are simply not offering that options for small and new altcoin projects.

Besides that, of course they are experienced so they have the courage to make decisions by taking these risks,
it's not easy and a little mistake will make us lose,
so think and consider carefully before making that decision.

Sell and make a profit in a short-term period because collapsing coins aren't worth holding. You might not make huge profits from it but you will still be able to take advantage of it. We can't expect too much from collapsing coins so sell if you still have a chance to sell while it still has a value. If you are still doubtful, do research and double-check if it still has the potential to recover.

I remember some people who shorted Luna when it was going down, and that was probably the best money making most people made during that time. It didn't just go down a bit, some projects go down 10-20% and make you money, these were going down 99%+ and that Is why the amount of money you would make out of it was insane.

I remember a friend of mine turned 700 dollars into nearly 25 thousand dollars in a single day when it happened, he got in just as it started and got out after first day, he regrets not staying even longer to be fair. So, if you want to short a project that collapses, you better be early, and you better make sure it won't recover from that drop.

Without a doubt a lot of money can be made while shorting altcoins but it is difficult to guess when one coin is going to collapse like that and to keep shorting until the very end, so while your friend may have some regrets about it he obtained 35x his initial investment and this is not small at all, if anything instead of trying to keep their position open for a period of time which was even longer he should have used more money to open his position and multiply his profits this way.

At least we can still make a little profit or minimize losses because it will only be a waste of time if we continue to hold it while the value of the coin goes down,
before making that decision, do your research first and that's important,
selling it seems to be a realistic decision.

Firstly you need to be sure if whatever altcoin you’re interested in has any utility. If it’s collapsed then why has it collapsed. If it’s just following bitcoin’s usual four year halving cycle & entering a bear market then that’s fine, it’s safe & probably a great time to invest. If it’s because of something more sinister like a dev rugging the community or & problem with the code or a big hack then you need to know.

As always do your own research but obviously during natural bear markets it’s a good time to buy, providing there isn’t a sinister reason for a collapse in any said coun.

NFA & DYOR.

As long as it crashes when the market is bearish it doesn't matter let alone the project they keep going, I think smart people would have bought it last year and are probably enjoying the benefits now as the market has returned to showing its bullish trend earlier this year

Practically "short selling" can profit from the drop in price, sell now and buy it later at the lower price. But in real markets, this is difficult to execute neatly.

If you dont have the guts to do that, then you should just hold and wait for it to go back up again, which might take years or worse decades. The damage that you see on buying altcoins cannot be corrected but needs to be prevented by taking a vow to never divulge your hard earned money into altcoins but be loyal to bitcoin only.

The more you fill your bag with shitcoins, well, the more it will smell like shit. ;D

It is hard make profit from a collapsing coin, because collapse often happens suddenly and without any warning. By the time information is available about the collapse, its too late to take decision to short it. The other option is to take buying position when it is bottomed out & you think it worth it, as this can be risky as it is like "catching a falling knife". In other words very hard to predict when a coin will hit the bottom, so timing is difficult.

No, you can't especially if you are investing shitcoins but if you are only investing ETH and BNB, even if it drops yet still believe that it will recover. Profit will come to you if we're able to hold and wait for the recovery but you can't manage yourself to do that, it is certainly impossible even though you are investing potential altcoins.

Not too hard to deal with the declining situation of the market. What we need is to choose good projects and trust them, earning is not impossible if you did it right and only sell them when the price increases.

What I wonder about you is why would you board a ship that you know is going to sink, I can't get the logic you want to know. You can't right a sinking ship. Collapsed thinking when you can still make money here, this kind of thing is no longer possible in reality.

And there are many investable coins, even top altcoins, such as Bitcoin, Ethereum, Bnb, Matic, Ada, Shib, Shibarium, Dogecoin, and others that collapsed.

you have to do research first to invest in altcoins, of course, look for old altcoins that have lasted until now, not look for altcoins that are only 1 or 2 years old, chances are they can crash without recovering, then if you have done your research, buy all altcoins when the market crashes and save it for the next few years at least till 2025 as long term investment and 4 year cycle  ;)

We are not in the early days, most of the new altcoins now are not profitable to invest in. Personally, I would instead choose the stability of altcoins, which means they have already been listed in a big exchange and people are already familiar with them. If we were in 2017, then investing in new altcoins is the right choice as it could generate a lot of money for us, but those golden times were gone, investors are more mature now, so they'll only hold coins that have already proven with good potential.

This is an extremely controversial statement. So you are suggesting to look for altcoins that have already grown a long time ago and can bring only a few hundred percent and refuse from projects that have not yet grown and can carry a potential 1000%? Don't forget, projects like Polygon or TrustWallet Token also used to be young and worth very little, and then they brought their early investors big profits. In general, you should not ignore young projects.

This is the common and right way to make profit in bear market and I personally doing this when I'm ready to make a profit in a falling market. I rarely do shorting since I don't trade much these past few months that's why I don't know where the a dump is potentially heading, It's hard to guess where will the price fall. A TA is a necessary in doing shorting. Buying at lower prices is my always go to when big dumps happens, Most of the time you can get the best prices in dumps as long as you know what is the project or altcoin you are buying and know if it is underpriced and worthy to keep for a long time.

If altcoins have collapsed, we only are waiting for the end of the altcoins themselves. If we have been late to take profits or even set a stop loss, this means that we have lost our chance. Commonly, an altcoin collapse will happen very quick in a short time. After that, we have no chance anymore to secure our assets and moreover to take profits. But sometimes, some certain parties use certain periods to likely pump up the price again but only very few times so that they can take profits in the pump price. But once more, if we are late to sell, we will have no chance anymore. In this case, we can see that the risks are very high for the altcoin collapses.

I don't really understand what you mean by altcoin collapse because any coin that had collapse may not be able to go bullish again. The market is going to be going bullish soon and I am very sure that most altcoins that had lost there liquidity may now start going bullish again since the market is still very positive with more better movement that will lead to a big momentum.

Basic initiative, collapse is another term for dip, correction, or anything bearish. Collapsed is different from "dead", those are the coins who will not gonna rise up again.
Also, the market isn't bullish yet, but it's good to buy top alts in the market today while the price is still affordable. Bullish market may most likely not gonna happen sooner, but most likely before or after the Bitcoin halving next year.

I never touch or playing for something with will fall.
Take more sense buying other coins in good potential. Short-Long? too risky.

Whenever the market of altcoins is found to be at the bottom make some investment. The altcoins invested should be chosen perfectly, if not we will be in a situation to hold for much longer time period. With altcoins we also need luck, at times what we've chosen to invest won't pump and the rest spikes.

deciding which altcoins to buy and invest for any given time is the tough one. sometimes we just buy altcoins based on marketcap ratings and altcoin popularity.
we might forget about altcoins with roadmaps that are already close to a big event. back during the ICO season, we could see tokens that had renewal often get a good pump in the market. but maybe the current situation is different. focus on investing in altcoins with good popularity and reputation.

- Short selling if you believe that it will go down even lower.
- Placing a long position in exchanges like Binance etc. This is you expect that the altcoin will recover.
- Buying it and then wait for it to recover.

I'm assuming that what you are saying is "all altcoins" collapsed including those large market cap coins. There are many ways to profit from these altcoins depending on which altcoin you will choose to buy. I'm always a fan of buying on the large market cap coins as they are way less risky than those with low market cap altcoins, but gives lower reward. On the other hand, maybe you should consider researching and buying those young and new projects as long as you are ready with the worst case scenario. Young and new altcoins can give you huge profits.

You can take advantage the collapse but this depends on why it's happening. If it's because of the normal bearish season due to Bitcoin is plunging and alts are following, then you can buy alts that you like to invest in for cheaper price. Choose the one with potential and worthy to hold.

But if you're pertaining to alts plunging because of the dump of many investors because it is a pump and dump coin, then think carefully. Ask yourself if it is good to buy while others are dumping. Reseach if it has a utility and sustainable. If the answer is no, then stay away if you don't want to lose your money.

On the other hand it is also not easy to determine which altcoins are really worth it,
it requires research which definitely takes a lot of time to do,
which is clearly not easy to make decisions wisely.

Just like the known quote, "don't catch falling knives".
That's a good action when you understand that if you're interested in buying during a fall, it's not the actual dip but it's more of those knives falling and will just bear damage to your portfolio. It's a different situation when we're telling people to buy in the dip for bitcoin because we know how entirely different it is from the altcoins that are being seen on its collapse.

Another way around for those investors that still want to buy when it's falling should have a stop-loss position and this is to avoid a huge loss when the market keeps going down we all know that even if you speculate and analyze the market we don't know what's gonna happen even on a split second. Also, altcoins really go much dipper when the bitcoin dominance is going up which maybe some of the altcoins will surely get affected on it.

From the many similar answers I realized that there is another way to indirectly profit from altcoin collapses: charge fees for trades in them, i.e. run exchange business (sort of casino in case of altcoins). That's not exactly what I asked about. I am interested in a direct way to profit from collapses of altcoins and not taking advantage of suckers who chase get-rich-quick schemes.

I think short selling will depend on what kind of coins you hold. If you are a holding a new coin and you don't know it's future then much better if sell it before more collapse are going to be recorded but if what you have is a top coin then it will be better if just hold them than selling and incur a loss as they can still recover.

For the second one that you suggest which is placing a long position, the coins will fit better here are those top coins because again like I said earlier, we already know that they can recover. Same goes to the last one in your list. There are many ways or activities that we can do to earn but I think most of them only work when the market is in good condition.

Yes, it is possible to profit from the collapse of altcoins, but it requires a high level of risk tolerance and a thorough understanding of the market. One strategy is to short-sell the altcoin, which means borrowing shares of the coin and selling them with the hope that the price will decrease, allowing you to buy the shares back at a lower price and return them to the lender while keeping the difference as profit. However, the downside of this strategy is that if the price of the coin increases, you will incur a loss.
Another strategy is to hold Bitcoin instead of altcoins, as it is known as a haven asset in crypto market during market downturns and market crisis, where people tend to move their assets to Bitcoin instead of other altcoins.

The opportunity to make a profit when the market drops sharply has a very low success rate.  I am also experiencing huge losses with my altcoin portfolio but I am not selling them all.  I recreate the altcoin portfolio with projects I think have potential and stack them.  Instead of my portfolio of 6 altcoins, I'll be selling those that don't have much upside based on my analysis.  Use the proceeds to buy more altcoins that I hold.  I expect one of them to thrive in the long run.

Recreating a portfolio needs a lot of work from your side. Finding projects that have potential is an easy thing to say but lack depth because most projects that are recently launched will collapse in the long run maybe even faster like the next two years. Instead focus on bitcoin and possibly the top five altcoins and not more than that.

Because the market is showing an uptrend, you might see movements in altcoins but dont let that fool you, these coins are lacking in development and they would never be as big as bitcoin is.

In the long run from my view, altcoins suck and bitcoin rocks.

The most common strategy to profit from a falling market is for margin traders, but margin trading itself is risky. The best strategy for profiting from a falling market is to buy back cheap coins at a deep discount, then hold them for the medium or long term and then sell them. This is much safer than playing with shoulders and putting yourself at risk of liquidation.

is the altcoin you are referring to an altcoin that has good potential?.
maybe we can profit from every altcoin collapse, but we need to see that the altcoin has good Fundamentals and there is potential to continue to grow after the collapse. if so we can take advantage of it

The possibility of getting profits when altcoins are falling is very huge. for example, in the fall of Terra Luna Classic, even though Terra's fall was very bad news for the holders, many people took advantage of the moment to gain huge profits. This proves that we can benefit from the collapse of an altcoin. However, it all also depends on the strategy you have. You can benefit by taking advantage of the volatility that occurs, or short, and you can also buy these altcoins in large quantities, and hold them for a long time.

Are you sure you want to take part of the collapsing altcoin? if you are sure then there you have taken advantage of the altcoin if the price returns to normal. however, what you have to pay attention to for each altcoin that collapses is the potential it has, if it has good potential then you are not wrong to keep it in your wallet for a long time until you can get profits and you can release it when the market is normal

There is always a way to make money even with collapsed altcoins like Luna or FTT, but is it worth the risk to invest in them to get the returns that many other potential projects can also bring? The profit is the same, but the risk is different, I don't think it's worth our try.

All profitable investments need volatility, easy said, but do you know when it will happen? What sign do you guarantee it will recover when we hold it long term? It's all just gambling and in this case, more risk than luck.

An altcoin that has potential, so when it collapses, it is likely to get back up and it is not easy to find an altcoin like that,
easy examples such as Ethereum and BNB coins are both potential and quality coins that need not be doubted.

Major altcoins usually earn success in the crypto world as they have already built their reputation and they have lots of supporters that have invested a lot of money ot the project. So if ever we are taking chances investing in new projects, then we have to understand that we are taking a high risk as we could lose our money but the good news is if it will pump, that will result in a massive profit.

As an investor, we need to be knowledgeable as that's our main weapon to be successful, whether it's on altcoins or bitcoin investing.

Absolutely! Those are some great examples of altcoins with real potential. Ethereum and Binance Coin have proven themselves time and time again, with a solid track record and a strong community behind them. It's not often you come across an altcoin with that kind of staying power, so when you do, it's definitely worth taking notice.

But of course, as with any investment, there's always some level of risk involved. That's why it's so important to do your own research and make informed decisions. It's all about finding that balance between potential rewards and manageable risks. Keep your eyes peeled and don't be afraid to take chances on promising projects - that's how you'll find the next big thing in the crypto world!

to be honest I have no idea about this. I didn't even think about it all this time. because I think nothing can be expected from an altcoin that has completely collapsed. An altcoin that doesn't have an ongoing project means that it has no potential in it. but there is an altcoin that collapsed but did not completely collapse, namely Terra Luna Classic (LUNC). but LUNC didn't collapse completely as some people are even speculating on it. because basically they are still active in burning fees. that's what i heard. but still there is no promising potential in it other than a speculation.

do you think only Bnb, and ethereum altcoin have potential? I don't think so, friends, of course there are lots of altcoins that have potential right now. and even some time ago there was a collapse like Matic and cardano, and that in my opinion is an altcoin that also has potential.

You might have a different opinion but the top ten or the top five have always been the closest to being safe assets as to bitcoin. Going by that ETH and BNB can be given a try if you are having funds to invest in. A load of altcoins are available on the market and you are free to choose from them but since the ETH project has been here for sometime and BNB has been a successful exchange their tokens are in the top, I would add LTC to the list if I could too, because that has also been a resilient project.

Every month does not specifically mean the month of a new altcoin, the same old ones will profit like they did, you have to get into them.

There are many different opinions and speculations about the coin that traders and investors are choosing to be part of their investment, it will be depending on how you deal with your research and how you trust your instinct when choosing a project.

I also see that goo dpotential with Matic and Cardano, if you have good spare to invest you can
add these two in your list and wait for the market to pump up and bring your some decent amout
of benfits.

indeed some altcoins experienced a deep decline but they were able to survive again increasing according to the trend that occurred in bitcoin. therefore it is better to research according to our personal analysis to invest in projects that are based on eth or bnb. but for bnb, eth, and ltc, I think we have great hope for long-term investment, until we get the profit according to the target, I personally will add matic as a decent altcoin reference for investing

I think it depends to the altcoins status many altcoins collapses and never rise back and if you invest on that rug pull altcoins you will not get profit in it and you will loss, however if you invest in the altcoins that collaps and that particular altcoin rise back because of the active and professional team behind it i am sure that you will get profit or big earnings into it, that is why i beleive that it depends on the altcoins concept and the team that build the altcoin that you buy.

So everything you say is more about the team doing good development or making new ideas that make investors believe in all the programs that are made going forward. But sometimes I also get investors who really make the project good and end up running away.

By way of short-term trading. Even though altcoin prices continued to drop, but these altcoins experienced price increases even though it was in small amounts. So we must be able to take advantage of these opportunities. Another way is to sell the altcoin, and switch to another altcoin, so that there are no significant losses.

If you are talking about the invested altcoins which had been dropped severely then definitely it is going to be only one option and that's to hodl your assets until they get back to the normal prices or you hit the BEP and cash out your money out of altcoins if you are not able to hodl further or doubt the project itself.

However, if you are talking about the coins which are in blood bath right now and have some good prices in the past then possibility of that altcoin getting hiked to those prices and above increase a lot more. However, this would be in comparison with the coins for whom there is no historical movement at all. Apart from this, you can be sure about the altcoins which are on the correct roadmap but they have fallen due to the current market situation and bitcoin downfall as well. Considering most of them are paired with bitcoin thus whenever bitcoin falls they will fall as well.

That would be temporary and one can easily make profits out of it.

The altcoin invested will determine that, though. Not all altcoins can recover from a price crash. Just a small number of altcoins that have seen price crashes result in profits for their investors because the project's investors bought at a reduced rate and sell at it high rate when the price of the altcoin increased.

You can decide to use risk management strategies to invest in an altcoin that has potential since the bear market is currently in effect. You could consider investing in some of the top 50 altcoins on CMC. Don't forget to invest with spare cash and diversify your investment

If you think you can't then would prefer to cut the losses and move to Bitcoin for your own sake.
Or with the big risk you can hold it when collapsed but it depends on how big the collapse is, it might take quite a while to reach the price back depending on how low it becomes when the event occurs.

I'd prefer to do stop loss and wait for a bit to buy if possible or do it in Bitcoin so I can recover it overtime. The strategy varies depends on every user in here.

Investing when the market is at its downturn. Very few does it. Altcoin investment is very risky we can experience hard manipulation. With the leading altcoins it is quite low, but while we go for new projects we can experience hard manipulation which at times make our investment grow high or turn to nothing in no time.

So, we need to have the best decision while going with trusted altcoins in the market and have two plans while going for new projects. Only then it is possible to stay out of loss if our prediction goes wrong.

Trusting projects needs deeper understanding with how the developers are aiming for success, with the nature of this industry we always
need to have a good back up or alternative plan.

It's not easy but very possible to earn during the dump season if you know how to balance both your emotions
and your trust with your supported project, take time to learn and master how to play with both bear and bull
market.

Well now is a nice time to stack up on some Ethereum. I think it is so cheap right now and we will see very large gains for profit when we get out of this 'bear market'.

When Bitcoin begins to pump so will ETH. ETH all time high is $4891 in November 2021. I think we will see this price again and now its $1678 so good time to enter if do not hodl any currently.