How to make money with bitcoin price dropping?

[k-a-r-l-0-2]

Well how does one short anything if they don't have anything to begin with?  Example you have 10000 dollars.  You think btc will drop in price pretty soon.  So how could you short if you have btc on you at the moment?  Because wouldn't shorting require you to either have btc already?  Because say you think btc will drop soon.  Well you certainly arent going to buy any btc anytime soon right?  Because i thought shorting means you can bet on it dropping in price from now?  

From what I understand, shorting requires you to lend from the broker/exchange/trading platform in order to sell high and buy back in low, the difference in your sell and buy price is your profit - once you've paid back the initial entry position or your margin.  
 
For example, say that back in Nov-2018, you'd predicted that the news of the imminent BCH hard fork would have a negative affect in the BTC market, and entered in a position with 0.005 BTC ($32 USD) and 100x leverage in order to short sell BTC at $6400 USD.  
 
As you expected the market crashed and you bought back in at the market low of $3900. The difference was $6400 - $3900 = $2500. With the $2500 decrease in market times your 0.005 BTC stake = $12.50 profit.  Then multiply your profit of $12.50 by 100x leverage, and you come away with = $1,250 profit.  Finally, minus your initial investment of $32 USD (0.005 BTC) + the platform's leverage fee.  
 
If the market turned upwards in the opposite direction than you predicted, you could very quickly lose your original investment (before leverage was added) ... which is why stop-loss and limit orders are crucial so that you can pre-dictate at what point you wish to liquidate and cut your losses.  For this reason bigger margins/smaller leverage is typically recommended for beginner traders as a stop loss could be triggered more easily with a smaller margin, thus losing your position prematurely.   Prime XBT (https://PrimeXBT.com) is a new crypto trading platform that offers all of these advanced strategies and risk management techniques simultaneously, so you can benefit from an increased profit potential with up to 100x leverage on long and short positions, and with the parachute of stop-loss order.  
 
 

[emmybd]

You can certainly make some profit in the current market situation, some time bitcoin price fluctuates 5 - 10 percent, you have to seize that opportunity and buy cheap and sell again later when the price increases. This strategy works, but there is not guarantee that it would work always.

[Savemore]

I heard in stocks, this is called shorting.  But i read if you short, you could lose a huge amount of money.  Could you do this with bitcoin?  Example my thoughts were hey its the holidays, so most likely ppl will withdraw money and thus btc drops.  So i figure around now, btc price would drop.

If you can handle the risks in the market, then definitely you can survive even the price of the bitcoin is dropping. There are also techniques and strategies that you can use for you to make money while the bear market is still occurring.

[ufaiz50]

I'm not sure about how to generate profits when the price drops, because at that time many holders panicked. Maybe the only way is to buy coins at lower prices when the market falls and the coin has the potential to recover, but here the problem is to find coins which have that potential.

[syamster]

Well how does one short anything if they don't have anything to begin with?  Example you have 10000 dollars.  You think btc will drop in price pretty soon.  So how could you short if you have btc on you at the moment?  Because wouldn't shorting require you to either have btc already?  Because say you think btc will drop soon.  Well you certainly arent going to buy any btc anytime soon right?  Because i thought shorting means you can bet on it dropping in price from now? 

From what I understand, shorting requires you to lend from the broker/exchange/trading platform in order to sell high and buy back in low, the difference in your sell and buy price is your profit - once you've paid back the initial entry position or your margin. 
 
For example, say that back in Nov-2018, you'd predicted that the news of the imminent BCH hard fork would have a negative affect in the BTC market, and entered in a position with 0.005 BTC ($32 USD) and 100x leverage in order to short sell BTC at $6400 USD. 
 
As you expected the market crashed and you bought back in at the market low of $3900. The difference was $6400 - $3900 = $2500. With the $2500 decrease in market times your 0.005 BTC stake = $12.50 profit.  Then multiply your profit of $12.50 by 100x leverage, and you come away with = $1,250 profit.  Finally, minus your initial investment of $32 USD (0.005 BTC) + the platform's leverage fee. 
 
Obviously if the market turned upwards in the opposite direction than you predicted, there is potentially no limit to how high this could go and with that your losses... which is why stop-loss and limit orders are crucial, so that you can pre-dictate at what point you wish to liquidate and cut your losses.  For this reason bigger margins/smaller leverage is typically recommended for beginner traders as a stop loss could be triggered more easily with a smaller margin, thus losing your position prematurely.   Prime XBT (https://PrimeXBT.com) is a new crypto trading platform that offers all of these advanced strategies and risk management techniques simultaneously, so you can benefit from an increased profit potential with up to 100x leverage on long and short positions, and with the parachute of stop-loss order. 
 
 

Mate after all your discussion first I must say you have good knowledge about crypto currency and the other thing I must say you not to compare price of two different years with because bitcoin is so anonymous and it can change anytime no body really know what will happen next. So  the whole thing is there is only one way to make money with dropping price is to buy more and more to store longer and let it grow.

[mrdeposit]

I'm not sure about how to generate profits when the price drops, because at that time many holders panicked. Maybe the only way is to buy coins at lower prices when the market falls and the coin has the potential to recover, but here the problem is to find coins which have that potential.

Being patient is required in trading but entering to trade too late is also dangerous. Professional traders wait for opportunity to show itself in markets and they wait for settled dust before grabbing right position. Lower prices are illusion and bottom line is how you see it depending on the time frame.

[r_uyab]

I think that during the decline in the price of bitcoin so far I have not benefited from anything, but I better endure in the long run to wait for a more normal price increase.

[kidoseagle0312]

I heard in stocks, this is called shorting.  But i read if you short, you could lose a huge amount of money.  Could you do this with bitcoin?  Example my thoughts were hey its the holidays, so most likely ppl will withdraw money and thus btc drops.  So i figure around now, btc price would drop.

If the price so far of bitcoin was still in declined value, well I guess it is still great to buy now because of its cheap price value.
Now if you can't wait for a long time, day trade is the good idea for us to earn bit of it, though it needs also a bit careful about it. We can earn or can also wreck too if we do the wrong moves.

[otundebis]

You could short bitcoin in a simple form, study the chart and decide whether bitcoin will move up or down,  then buy or sell  and when any of your prediction come true,  take profit and re-enter to buy your previous holding!

[boyz97]

we could using tic tac strategy.use one of our coins and trade it in limited range.but this strategy only work on stable market while price moves up and down in limited range.

[bagalkot]

In this bear market shorting works very good but you have to see the market condition and then short according to it, yesterday market fell more then 10% down 5% in morning and then next 5% in evening so who ever shorted would have earned a lot.

[Nahl]

For me if i want to get profit from the current situations then i will set my profit to minimize because difficult to get huge profit then i can accept small profit as long i'm not loss and usually there are small movement of price for each day that sometimes it was raise 2% - 3% and you can utilize it for small profit too and in the middle of downtrend i think 3% profit or less would be fine for me

[ongkok87]

It's much risky way to earn some bitcoin.

The risk is only encountered when you are going to convert btc to fiat or so. There is no harm in earning some coins as long as its not prohibited as per local rules and law enforcement is not interested in it.

because you dont know when market fall or when rise.

Thats called market risk. If you cannot handle that then its not worth getting into bitcoin or any altcoin. But you can always be sure that in future price will rise because bitcoin has certain properties which makes it unique and thus it generates demand.

if you want earn some money from trading then you have to know about how to trade. otherwise if you take those such a foolish step you may lose your money.

There are people who play the long term hodl game. It always less panic associated and safer to do.

That's right because by holding it back it's good to make a profit even though we must always wait until the market and bitcoin rise again

[TheUltraElite]

we could using tic tac strategy.use one of our coins and trade it in limited range.but this strategy only work on stable market while price moves up and down in limited range.

Generally when the price of any asset is moving between a support and a resistance level it is an indication of a breakout ready to happen.

Soon the support level will lose the ammunition to support any more or the resistance level will run out of its shields. Its important to analyse the older market charts to know how strong these support and resistance levels are so you can predict when exactly the breakout is going to happen. After that you may be able to take advantage of the situation once the price start moving in the correct way that you predicted. It may not do so as well in which case you just have to keep waiting.

[babarian]

how to get money when the bitcoin price drops?
the best way is to buy more, with that you will have more and more bitcoin to be your long-term investment.

[noxezzhd]

That's simple.

You can make money on Bitcoin crashing by shorting it.One way is to “borrow” someones bitcoin and sell it today. You get to keep the money and when the price drops you buy bitcoin at a lower price than you sold it. You then give the person you borrowed the bitcoin from the bitcoin back. You keep the difference the price.

[BlackPanda]

Even in the worst situations we can get a chance to make a profit. All we need to do is choose the right time. If there is a profit gap, take action immediately, never wait too long. We can get a little profit, but if we can increase the intensity in gaining profit then it will make us get many benefits. So in a situation like this we need a speed in making decisions.

[EdenHazard]

how to get money when the bitcoin price drops?
the best way is to buy more, with that you will have more and more bitcoin to be your long-term investment.

Maybe what is meant by OP is when prices decline can traders be able to get profits, even though I have never been sure profits can be obtained when prices decline. When the price really decline then I am sure there will not be traders who can benefit. They will only buy when the price is at the bottom, then they hold for a while and wait for the price to rise slowly.

[QuadsPoker]

Of course there can be money made while the market is going down. When a coin is in a downtrend it does not go straight down. There will be some small 0.5-2% bounces back up during the downtrend. Every single bounce can be used to make some profits. Myself I do this all the time. The only thing I learned is not to go all in but do 5% of your balance entries so you can buy more if after you entered it doesn't bounce but drops a little further.

[TheUltraElite]

how to get money when the bitcoin price drops?
the best way is to buy more, with that you will have more and more bitcoin to be your long-term investment.

I think thats not what the topic is about. It is true no doubt about it but I think the OP wants to know how they can trade even when the bear run is going on.

You can make money on Bitcoin crashing by shorting it.One way is to “borrow” someones bitcoin and sell it today. You get to keep the money and when the price drops you buy bitcoin at a lower price than you sold it. You then give the person you borrowed the bitcoin from the bitcoin back. You keep the difference the price.

LOL its not that simple as it seems to be. "Shorting" an asset does not practice and its risky as anything. You need to be an expert and have previous experience to successfully short coins to make profit and at the same time be in an overall profit. No wonder when you are shorting the market may keep on dipping and you may not be able to sell it at a good position. Its nerve racking and not something average traders should try.