3 Best Trading Opportunities on Bybit During the Crypto Winter

The cryptocurrency market has spent the entire 2022 trending downwards. Despite the recent stabilization, which has simply halted the market’s fall but has not led to any notable reversal, we need to make the long overdue admission – we are right in the midst of a crypto winter.

The crypto winter we are going through requires traders to adopt trading strategies that might not be obvious when the market is booming. Derivatives, copy trading, and automated futures grid trading are the trifecta of products you must have in your arsenal to keep yourself warm during this crypto winter. These products are optimal for any trader who wants to maximize their profits when markets turn bearish.

Derivatives

Derivatives, financial products that simply track some underlying asset without you having to buy the target asset, have always been a great option for bear markets. Derivatives allow you to hedge against market risks, use significant leverage to amplify your returns in a sluggish or bear market, efficiently access low-liquidity assets (read many of the altcoins on the market), and speculate on the future price of your target asset.

Derivatives are also a better option than simply shorting an asset. When you short sell, you actually have to borrow the underlying asset. On the other hand, trading derivatives frees you from the need to do so. This distinction often becomes critical during volatile or bear markets.

Crypto derivatives are best traded at established providers such as Bybit, which offer a range of derivative products from perpetuals, options, and inverse contracts that protect and grow your crypto assets during the crypto winter. As a special campaign for derivative traders, Bybit has launched a 15-day tournament to celebrate our 4th anniversary! The campaign is active until Dec 30, 2022, and features a prize pool worth 200,000 USDT.

Copy Trading

Copy trading is another great way to protect and grow your investments in uncertain and bear markets. Copy trading involves following and copying the market moves of an established trader, known in copy trading as a Master Trader. By following the Master Trader, you can maximize your profits, as Master Traders are typically individuals who have proven the ability to turn profits consistently.

Copy trading is particularly useful for beginners. By following an experienced Master Trader, beginners can learn the best ways and strategies to apply in a particular market situation. Naturally, besides the learning experience, beginners get the benefit of maximizing their profits when using copy trading. Copy trading also lets you carry out your trading activities without the element of emotion. Since this type of trading is nearly completely automated, emotion stops being a risk factor in your trading, which plays to your advantage during a bear market.

Copy trading is a largely automated trading strategy. You would hardly ever apply it manually given the speed at which modern markets, particularly the crypto market, change. The best way to get involved in copy trading is by using Bybit’s Copy Trading Bot which lets you use the benefits of trading automation and gives you flexible options for adjusting your copy trading strategy. At Bybit, you can expect regular reward campaigns for copy trading enthusiasts, like the Weekly Buzz and People-Powered Trading. Copy trading on Bybit is your chance to both benefit from these campaigns and to let an established Master Trader guide your strategy during the freezing times of the cryptocurrency market.

Futures Grid Bot

Derivatives trading comes in all shapes and forms. One of the popular products in the stack of derivative products is futures. Trading futures is often one of the most effective ways to navigate through a bear market. Another great strategy for a stagnant or bear market is grid trading, a trading strategy that allows you to place several buy and sell order triggers around a reference price for an asset. Depending on the asset’s price movements, the pre-determined buy and sell orders are executed.

Grid trading is a method from the algorithmic trading family. It lends itself well to automation. Bybit’s Futures Grid Bot combines the popular futures trading with the grid trading strategy to give you a fully automated product that allows you to apply grid trading to futures. By using the bot, you can benefit from the combination of two tools that are very useful in bear markets – futures and grid trading.

Conclusion

The products outlined above – derivatives, copy trading, and the futures trading bot – are all indispensable in your trading toolbox to maximize your returns during the current crypto winter. Bybit, being the world’s premier platform for crypto derivatives, is well positioned to help you in this task and protect your trading position even while the snow of the crypto winter is falling.