Trading in Downside Market: Why Bitcoin’s Plummet Is An Opportunity For Profit
Last week’s massive sell-off that took bitcoin from $12,050 to as low as $9,875 had many traders turn cautious. Before the sell-off, the market was singing bullish. The new high of 2020 has lured many on-lookers into the market, only to see their recently purchased bitcoin depreciate.
Spot traders would have lost 17% in less than a week during the massive drop. But for those engaged in futures trading and opened up a short position at $12,000 and closed it at $11,100 using 100x leverage, they would surely benefit handsomely and found their pocket full of money.
Futures trading is specially designed for traders to hedge loss and to profit from market volatility rather than be stuck simply stashing their coins. Traders can borrow leverage from exchanges to greatly enhance their buying power. Futures trading with leverage is extremely profitable during market sell-off, where large quantities of bitcoin are dumped into the market.
For instance, if you use 1 BTC and 100x leverage to short bitcoin at $12,000, when bitcoin drops to $11,000, you will earn ($12,000 – $11,000) * 100 BTC/$11,000 = 9.09 BTC.
However, make sure you use stop losses to protect your positions from great volatility. Take profit is also a useful tool when you can’t monitor your positions as often as you like.
If you are a novice trader, you could begin by trading with a demo account. A demo account allows you to know how the platform works and practice strategies. You can also learn to use technical indicators with the demo account.
Volatility and bear markets are hated by many traders, but with the right tools, you can generate handsome profit from them. Select a professional platform and treat trading seriously, you can become a successful trader no matter which way the market is trending.
Bexplus – go-to exchange for beginners and veterans
Bexplus is a leading crypto derivatives platform offering 100x leverage in BTC, ETH, EOS, LTC, and XRP futures contracts. No KYC, no deposit fee, traders can receive the most attentive services, including 24/7 customer support.
Highlighted Features of Bexplus Exchange
No KYC: Traders can easily register an account with email without the risks of leaking out personal information.
Trading simulator: When you successfully sign up, you can get the 10 free BTC in the trading simulator which enables you to practice trading futures contracts without losing money.
BTC wallet with up to 30% annualized interest: Even if you take a break from trading, you could still earn passive income with the Bexplus wallet. The interest is calculated daily and the revenue of the deposit will be settled monthly.
High liquidity: By utilizing an end-to-end optimized stack running on customer dedicated nodes, orders can be executed with low latency even during the huge market volatility.
Mobile support: Bexplus App is available on Google Play and App Store. The 24/7 notification helps you keep updated with the market.
100% deposit bonus: All users in Bexplus are eligible to apply for up to 10 BTC deposit bonuses at a one-time deposit. For example, if you deposit 1 BTC in your account, you will get 2 BTC credited in your account.