Could Leverage and Shorting be the Answer to Surviving the Bitcoin Bear Market?
Traditional forex and equity investors have been persistently day trading throughout all types of market conditions for centuries, irrespective of whether it is rising or falling by utilizing a variety of trading strategies that allows them to trade with the trend. While this is basic trading 101, it is yet to become a common practise in the emerging cryptocurrency markets, while it’s still in its infancy. This is largely due to the relatively volatile nature of crypto markets in comparison to that of fiat.
As we enter a new year in 2019; having witnessed the speculative hype of Bitcoin as it reached an all time high in December 2017, followed by the market crash/correction in 2018, there is an accumulating history which is becoming evermore sufficient to effectively use traditional trading methods to take advantage of predictable price movements.
With this development in the cryptocurrency markets, a small number of crypto trading platforms are now stepping up to accommodate this industry shift to provide traders with more advanced and profitable strategies, such as utilizing high leverage and shorting on the most popular and predictable crypto-assets.
One such platform that is drawing much hype in the lead up to its launch, is PrimeXBT - which offers up to 100x leverage. Already over 125,000 traders have joined the wait list to access the new-era crypto platform and its advanced trading features.
The PrimeXBT platform was developed to combine the best of both the fiat and crypto worlds, by providing the opportunity to benefit from high leverage positions, while simultaneously taking advantage of crypto’s volatility on small but near certain price movements. A positive movement of just 1%, instantly doubles if 100x leverage was utilized. In less-volatile traditional forex markets, a position may takes significantly longer to close in order to make the same kind of returns that can be seen in cryptocurrency markets.
Profit in Any Market Condition
PrimeXBT provides a means to turn bear markets into a profitable trading opportunity. Trading short (or ‘shorting’) is the best way to profit from declining prices. To short a crypto-asset, means borrowing a certain amount of that asset in order to it sell high, with the intention of buying back in at a lower price, and profit by keeping the difference. If leverage was applied you would then times that profit by amount of leverage taken.
Manage Risk
Traders can further manage risk on PrimeXBT with the use several advanced order types, such as a stop-loss, limit, OCO, market and protection orders which allow you to pre-determine entry and exit points before you enter a position. Thus minimising a traders loss potential.
When trading with leverage on PrimeXBT, the most you can lose is your margin, which is the amount of your funds placed in to enter the trade in comparison to the total size of the position once leverage is applied. For example, a $100 position with 100x leverage becomes a $10,000 position, and your margin is only 1%. This means that if you trade unsuccessfully your trade will not be multiplied by 100X also.
However, the smaller the margin: the greater the likelihood that you will be liquidated and lose your entire position (forcing a margin call), as there’s a smaller window for error in the price movement. For this reason it is generally recommended that less experienced traders start with a smaller amount of leverage (up to around 10X max), and as always - never trade with more than you can afford to lose. Professional traders will likely be more than confident trading with 50-100x leverage, having a thorough understanding of risk management and technical analysis.
These advanced trading capabilities offered by PrimeXBT open up a world of opportunities that make it possible to not only survive, but thrive in the bear market.
Furthermore, the PrimeXBT trading terminal is fitted with the most sophisticated charting technology, drawing tools and bank-grade security, on a highly customizable and user-friendly interface.
One of the most exciting of the platform’s many features however, is that it aggregates liquidity from 12 of the top crypto exchanges, to provide lightning fast order execution and the best possible price — for Bitcoin, Ethereum, Ripple, EOS and Litecoin.
The highly anticipated platform goes live February 4th 2019.
More info at https://PrimeXBT.com