The shorts market in the crypto world, although a difficult period for most investors (Bear Market), still has some benefits and opportunities, including:
1. More reasonable market valuation
During a Bull Market, the prices of many cryptocurrencies are hyped to excessively high levels, lacking actual value support. Short positions market can bring prices back to a reasonable level, eliminate bubble projects, and allow truly valuable projects to survive.
2. High-quality projects are more likely to stand out
Bear Market will eliminate fraudulent projects or tokens without actual utility value, making it easier for projects with genuine technology and development potential to attract market attention and provide better opportunities for long-term investors.
3. Buy on dips, profit in the long run
When the Bear Market, prices are lower, which is a good time for long-term investors to enter. Many high-quality currencies hit their lows in the Bear Market, providing opportunities for long-term holding, waiting to profit when the bull market arrives in the future.
4. Profit can be made by shorting
Some trading platforms offer leverage, futures, and other trading tools, allowing investors to profit from short positions when prices fall, rather than just waiting for the bull market to return to make money.
5. A better market environment
When the market is frenzied, many newcomers and speculators enter, causing the market to overheat. Shorts market allows these speculative funds to exit, making the market healthier and avoiding excessive bubble formation.
6. The development team can focus more on technology and development
During the bull market, many project teams will be busy dealing with market speculation, while the Bear Market gives developers time to focus on technology, products, and applications, preparing for the next bull market.
7. Reduce market fraud and bad projects
During a Bear Market, liquidity decreases, investors become more cautious, fraudulent projects find it harder to raise funds, which helps reduce scams and stop-loss hunting in the market.
In conclusion, although the Bear Market may be a challenge for most investors, it is actually an opportunity for long-term investors, short sellers, and truly capable project teams. If you can prepare well during the Bear Market, you will be able to achieve greater returns when the market rebounds.
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The shorts market in the crypto world, although a difficult period for most investors (Bear Market), still has some benefits and opportunities, including:
1. More reasonable market valuation
During a Bull Market, the prices of many cryptocurrencies are hyped to excessively high levels, lacking actual value support. Short positions market can bring prices back to a reasonable level, eliminate bubble projects, and allow truly valuable projects to survive.
2. High-quality projects are more likely to stand out
Bear Market will eliminate fraudulent projects or tokens without actual utility value, making it easier for projects with genuine technology and development potential to attract market attention and provide better opportunities for long-term investors.
3. Buy on dips, profit in the long run
When the Bear Market, prices are lower, which is a good time for long-term investors to enter. Many high-quality currencies hit their lows in the Bear Market, providing opportunities for long-term holding, waiting to profit when the bull market arrives in the future.
4. Profit can be made by shorting
Some trading platforms offer leverage, futures, and other trading tools, allowing investors to profit from short positions when prices fall, rather than just waiting for the bull market to return to make money.
5. A better market environment
When the market is frenzied, many newcomers and speculators enter, causing the market to overheat. Shorts market allows these speculative funds to exit, making the market healthier and avoiding excessive bubble formation.
6. The development team can focus more on technology and development
During the bull market, many project teams will be busy dealing with market speculation, while the Bear Market gives developers time to focus on technology, products, and applications, preparing for the next bull market.
7. Reduce market fraud and bad projects
During a Bear Market, liquidity decreases, investors become more cautious, fraudulent projects find it harder to raise funds, which helps reduce scams and stop-loss hunting in the market.
In conclusion, although the Bear Market may be a challenge for most investors, it is actually an opportunity for long-term investors, short sellers, and truly capable project teams. If you can prepare well during the Bear Market, you will be able to achieve greater returns when the market rebounds.