A common mistake that almost every trader would make is to underestimate the importance of market timing. More often than not, traders enter the market driven by ?fear of missing out? and end up buying an asset when it is trading at a relatively high price.
In late July, Bitcoin started a rally and climbed as high as to $12,000 within a month. The strong rally has many traders believing the bull run analysts kept talking about has finally arrived. But what awaited the traders was a free fall ? bitcoin plunged to as low as $9,852, while the whole cryptocurrency market saw red.
Those who bought bitcoin at high prices may be suffering from anxiety and doubt for the past few days. While huge price swings are typical for the crypto market, holding a losing position certainly doesn?t feel good. If you don?t want to sell low, there are ways to earn profits even in the bear market.
Hedge loss and earn profits with futures trading
BTC futures trading enables traders to long or short BTC, so traders can earn money as long as their predictions are right. While spot traders only earn profits when the price of bitcoin goes up. Furthermore, traders can borrow leverage from exchanges to increase their buying power, thus multiplying their profits.
Let?s see how we can benefit from the price drop of bitcoin:
Assume we use 1 BTC to open a short contract when bitcoin was trading at $1,1000. Please note that with 100x leverage, 1 BTC can open a contract worth 100 BTC.
One day later, the price of bitcoin dropped to $10,500.The profit will be ($11,000 ? $10,500) * 100 BTC/$10,500 *100% = 4.76 BTC, making the ROI 476%.
Then the price of bitcoin got another hit and dropped to $10,000. The profit will be ($11,000 ? $10,000) * 100 BTC/$10,000 *100% = 10 BTC, making the ROI 1000%.
Registered in Saint Vincent and the Grenadines, Bexplus is a leading crypto derivatives trading platform offering 100x leverage futures trading on BTC, ETH, LTC, EOS, XRP and etc.
Unrivaled Privacy, Safety, and Security
Bexplus sticks to the ethos of anonymity and strives to provide traders with convenient and secure trading experience. No KYC required, traders only need to register with emails and they don?t have to worry about getting their personal information leaked.
2FA(provided by Google Auth) is adopted to ensure account security. Bexplus offers protection against DDoS attacks and is encrypted with SSL, multi-signature technology. Most of the bitcoin are stored in the offline storage system (?Cold Wallet?).
Earn Passive Income Without Taking Risks
While it?s never a bad idea to take profits and cash them out, you could transfer your money to the Bexplus wallet to earn juicy interest, without taking any risks! The Bexplus wallet offers up to 30% annualized interest to traders and traders can make a minimum deposit of 0.05 BTC.
Trade While on the Go With Bexplus App
How to take a break from trading when bitcoin trades around the clock? The top-ranking Bexplus app helps you better manage your account. With the 24/7 notification, you can stay updated with the market and never miss a moment of trading.
Deposit Activity to Earn 100% BTC Cashback
Deposit BTC in the Bexplus account and you can earn a 100% BTC bonus, which can also be used to trade futures contracts. Plus, more margins reduce the likelihood of forced liquidation. The more deposit, the more bonus you will get. Up to 10 BTC is available for each deposit.
Upon registration, users are given a demo account with 10 BTC. You are always welcome to use the demo account to test the waters and see whether it?s fit for you.