While many investors fear the crypto market crashes, traders see unique profit opportunities that hodlers simply cannot take advantage of.
Here's the secret:
The Hodler: Holds his asset and only profits when the price goes up. When the market goes down, he not only loses his previous gains, but often sees his wealth decrease significantly.
The Trader: Not only avoids losses from falls, but can profit directly from them through short trades.
Example of Market Opportunity
Hodler's Scenario
But when the price drops from $200 to $100, he sees all his profits evaporate.
2. Trader Scenario
The trader sells at the top ($200), protecting his profits.
Then he opens a short trade and profits from the drop from $200 to $100. Result? He wins twice in the same cycle!
The Essential Difference
Hodlers rely on prolonged uptrends. When the market goes down, all they can do is wait (or hope).
Traders maximize the market as a whole, profiting from both highs and lows, and protecting their capital against fluctuations.
Moral of the story:
The disciplined trader turns market volatility into an advantage, while the hodler suffers the consequences of the declines. Want to learn how to do this and never fear a bear market again?
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