The Crypto Winter is Over: Is Getting Rich Quick with Bitcoin Possible Again?

Breaking - Bitcoin Nearing $8000, All Set To Hit New Record of 9-Month High
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The Crypto Winter is Over: Is Getting Rich Quick with Bitcoin Possible Again?

It’s no secret that the last 12 months was a train wreck for a great number of cryptocurrency traders, mainly for those that relied solely on profiting from long positions.

The downward trend was incredibly lucrative, however, for anyone that understood the opportunity to short major crypto-assets during the bear market. Margin traders that shorted against crypto-assets saw profits as high, if not higher, than during normal positive trends.

But now with the surging Bitcoin price pulling the entire cryptocurrency market upwards in recent weeks, the long crypto winter now seems to finally have come to an end, and the question that many are daring to ask…

Is fast money possible once more?

The renewed upwards price action in bitcoin’s market trend signals the beginnings of the next bull run, and indeed, certainly presents the opportunity for anyone equipped with the right tools at the right time, to profit tremendously. So much so, that it wouldn’t unreasonable to believe the prospect of becoming a millionaire is legitimately achievable.

It’s been done before under similar circumstance, so why not again?

In 2017, profiting from one of the hundreds of altcoins that were experiencing growth of up to 100,000% was like shooting fish in a barrel. While large numbers of traders lost heavily in the early months of 2018 and vowed to abandon crypto trading, a smaller number of traders cashed out at the right time and converted their overnight fortunes into real-world assets, such as real estate and lambos.

Crypto’s market environment and crypto traders have matured a great deal since then. With this shift, some newer and more sophisticated trading platforms have emerged in order to meet the demand of advanced traders, seeking more profitable trading strategies – beyond basic ‘buy low and sell high’, or having to invest into risky, unheard of tokens in hope of seeing the same astronomical returns.

Consequently, margin trading platforms like Bitmex and PrimeXBT have hit record highs in trade volumes since the beginning of 2019’s bull run, and for good reason. Both of the popular platforms offer leverage trading of up to 100x on BTC trades; PrimeXBT additionally offers this leverage to other crypto assets including ETH, LTC, XRP, and EOS.

Margin trading is a technique used to open positions that are much larger than the amount being invested. For instance, to enter a $100,000 long position on BTC/USD with 100x leverage, a trader is only required to invest 1% of this as the margin requirement, so just $1,000. As it did on the 13th of May, say the price of BTC increased by 8.2% from $7,000 up to $7,850 (approximately.). Therefore the opening position of $100,000 would profit by $8,200 if the position was closed at this higher price.

If no leverage was utilized, the same investment of $1,000 would have only profited by $82. As you can see, this allows traders to place significantly less of their funds in the line, for the opportunity to earn a hell of a lot more – up to 100x more.

A few other traditional crypto exchanges (like Kraken, Bitfinex, and OkEX for example) have started to feature some margin trading options, however, in much smaller amounts (maximum 5x). For this reason, the majority of the leveraged market share is held by PrimeXBT and Bitmex.

While PrimeXBT and Bitmex share the same possibility for traders to access the crypto industry’s highest leverage and ability to open long and short positions, there are distinct differences between the two.

PrimeXBT is a newer trading platform than Bitmex, the benefit of which can be seen in the enhanced quality of the platform’s technological infrastructure and smooth user interface. Comparatively, PrimeXBT offers a more user-friendly, reliable, and intuitive workspace. Furthermore, extends the possibility to utilize 100x leverage on all available assets.

Also Read: Will Bitcoin [BTC] Smash $10K Before the End of May? Analysts Predict So

$1 Million USD in 48 Hours with 100x on BTC

During the huge upwards price movement of the last few days, generating a $1 million profit from a single trade would have been possible with an investment of $56,700, if 100x leverage was utilized.

The BTC/USD price on PrimeXBT opened on Monday morning at $6,966.30 with the high price less than 48 hours on Tuesday at $8,196. The price increase during that period was 17.6%, which would typically yield a return of $10,000 profit, or $66,742 including the $56,742 position without any leverage.

But, if the application of 1:100 leverage was used on the same investment during the same period, that $10,000 profit could have multiplied by 100x, generating a jaw-dropping $1million from a single trade. Not bad for a couple of days work!

Obviously, such an augmented reward comes at an equally increased risk and traders entering into leveraged trades should only invest what they can afford to lose in case the market turned against you.

When used wisely, margin trading is undoubtedly one of the most valuable tools a trader can leverage to significantly increase their profit potential. And, with the current state of the crypto market, said to be in the early stages of a bull run – the opportunity to significantly increase one’s capital is ripe!

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The Crypto Winter is Over: Is Getting Rich Quick with Bitcoin Possible Again?
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The Crypto Winter is Over: Is Getting Rich Quick with Bitcoin Possible Again?
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It’s no secret that the last 12 months was a train wreck for a great number of cryptocurrency traders, mainly for those that relied solely on profiting from long positions.
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