How to profit from altcoins collapses?

[teiviet]

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

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.

[Greg Tonoski]

Yes, you can do so by creating a short position. 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?

The easiest way would be to create a short position on BNB/USD perpetual market, which is available in many reputable exchanges like Bybit and OKX (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.

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

[Greg Tonoski]

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.

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?

[Greg Tonoski]

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

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?

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.

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?

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.

[Greg Tonoski]

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.

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.

[Greg Tonoski]

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

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.

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?

[Greg Tonoski]

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

That's the only way you profit if you bought it at low then sold it at high, what's impossible for that?

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

[Xal0lex]

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

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.

[Hamza2424]

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.

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.

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.

[KennyR]

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.

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.

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.

[RAppleby]

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.

[Greg Tonoski]

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

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.

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.

[KnightElite]

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.

[Greg Tonoski]

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).

[Yaunfitda]

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.

[Pamadar]

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.

[Greg Tonoski]

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.

[ethereumhunter]

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

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.

[dbshck]

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

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.

[sunsilk]

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

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.