Gate Blog

Your Gateway to crypto news and insights

Gate.io Blog Guidance Of Surviving In Bear Market: Copy Trading Helps You Make Profits Easily, Without Fear Of Bulls And Bears!

Guidance Of Surviving In Bear Market: Copy Trading Helps You Make Profits Easily, Without Fear Of Bulls And Bears!

23 September 17:55

In 2022, almost the entire economic market will experience extremely difficult times. Under the circumstances of inflation and liquidity crunch in the overall economy, besides stocks and bonds, there is no more severely suppressed asset than the digital currencyled by BTC and ETH , Glassnode, the world's leading blockchain data and intelligence platform, directly pointed out that "2022 is the most destructive bear market in the history of BTC."

1.Multiple Risks

Since BTC fell below 30,000 US dollars on May 10, the entire digital currency market has completely entered a downturn stage, and the tokens under some emerging fields have fallen even more suffocating. The following data is a comparison of representative time periods in the bull market and bear market in the past two years. The first time period represents the bull market and the second time period represents the bear market. Return on investment=ln (closing price of the previous day/closing price of the day). The data shows that the variance of ROI>0 in the bull market is higher than that in the bear market, indicating that the user has more room and probability to benefit in the bull market; the variance of ROI<= 0 in the bull market is lower than that in the bear market, the smaller the value is, the smaller the risk is, and the greater the profit space is, indicating that the it is easier for investors to profit in the bull market. The ratio of positive/negative rate of reture in the bull market is higher than that in the bear market, indicating that the investment in the bull market has more positive returns; And the smaller the proportion of return on investment <= 0, the higher the probability of a positive return when investing in this time period, so bull markets have a higher probability of positive returns than bear markets.

The multi-dimensional data above all illustrate the fact that bull markets are more profitable than bear markets. Now, as the bear market continues to spread, it seems that there are only two voices left in the market at this moment, that is, either leaving the market, or obediently being trapped. Especially when several major events happen in September, such as the Federal Reserve's several interest rate raising meetings and ETH merger, it has become increasingly difficult for investors to make profits in the current environment. Does that mean that investors in a bear market can only sit back and wait for fate? of course not!

2.Futures Are The Best Choice

Since July 30, the market has continued to fall, with Spot, DeFi, and NFT all plummeting. The only high-yield project is derivative-futures. Investors who have been trapped in the historical bear market know that it takes a very long time for Spot to pay back. In contrast, contract trading is more flexible. As long as you are sure of the market judgment, you don't need to continue to be trapped, and there are opportunities to make profits for both ups and downs. The threshold of the future looks very low, but it requires professional trading skills. You need to know a lot of trading skills and strategies to become a long-term winner.

3.There is no better way out than copying

There are many platforms where users can trade futures, how to choose a reliable platform is worth pondering. In addition to good reputation, strong background, super technical operation strength, both beginners and pros need a powerful auxiliary tool, such as the king of trading in the bear market - copy trading. With the help of copy trading, some old hands and even beginners have begun to earn in the sluggish environment of 2022, turning losses into profits, who have a better earning than in a bull market.

Copy trading mainly serves two groups: traders and copiers. The copiers copy the traders' trading action, and the traders receive a profit share of 2%-30% from the copiers. This tool is best suited for beginners who lack relevant investment experience and investors who tend to be emotional in the volatile market. With copy trading, they don't have to operate manually or constantly monitor market trends; With just one click, they can directly follow the trader to automatically trade contracts, without the need to manually open and close positions, which enables them to profit in a breeze.

Copy trading can be used not only as an investment tool, but also as a strategy detection tool for traders, and as a return on income tool for trading skills. Novice and contract rookie can view the historical trading performance of each trader on the leaderboard, so as to quickly select a good trader to copy, and easily make a profit. Since the trader is more sensitive to market changes, he can adapt to changes to maximize gains and minimize losses, which is the trump card to help copiers successfully break through in a bear market.

There are two copy trading modes: auto-copy mode and customized copy mode. When in auto-copy mode, copiers can exactly duplicate the traders' trading behaviors so that they can make roughly the same profit as the traders did. Copy trading would also save you the time and effort of having to monitor the market. With customized copy mode, users can customize the trading parameters, stop profit and loss at any time. Copy trading is a highly user-friendly trading aid that combines personality and personality.

Besides, all Gate.io traders are evaluated and verified by the platform, with all of their past performances and historical orders traceable and available for review. You can even follow multiple traders simultaneously to increase your gains! Without having to comprehend the intricate market dynamics, copy trading enables you to make money effortlessly!

Overview of the copying performance (take the statistic data during 2022.09.18~2022.09.23 as an example

In a bear market, copy trading traders can still maintain stable returns and can help ordinary copyers achieve a significant increase in yields! Thus, a bear market is not a disaster, it is an opportunity for smart investors.

4.Challenges are also opportunities

The bull and bear market are like the yin and yang in tai chi. The end of bull is the beginning of the bear market, and vice versa. Warren Buffett, the famous investment guru, said: "Being afraid when others are greedy. Being greedy when others are afraid. Opportunities are always left to those who are prepared. When a rare bear market in life occurs, the price of coins generally falls. Please seize the opportunity to enter the market at an attractive price. There are risks in investment, so whether in the bull market or bear market, we must master certain knowledge and skills. If necessary, you can use trading aid tools such as copy trading, which enable you to get a longer and more stable income on the basis of no loss, without fear of bulls and bears!

Author: Quant Team. Gate.io Researcher
This article represents only the views of the researcher and does not constitute any investment suggestions.
Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.

BTC/USDT -3.18%

Unbox Your Luck and Get a $6666 Prize