On September 25, the price of Bitcoin – the world’s leading cryptocurrency by market capitalization – dropped from just under $10,000 to slightly above $8,000 in a matter of minutes, wiping out as much as 18% of the cryptocurrency’s value.
Many crypto investors have been scorn after buying in during the height of the crypto hype bubble, only to suffer through a long bear market and watch the values of their cryptocurrencies collapse. Bitcoin eventually rebounded, but with that rally now in jeopardy, the crypto community is fearing the worst and wondering if Bitcoin’s bottom is really in.
But after having survived a bear market, crypto traders have learned that they do not have to watch the value of their portfolio plummet, even if Bitcoin or other cryptocurrencies are falling in price? The key to unlocking profiting during a downtrend requires just three simple steps.
Step 1 – Register for PrimeXBT: The Most Advanced Trading Platform
The first step in preparing successfully to profit from falling markets is to visit PrimeXBT and register for a free account. Registration is quick and easy, and because the platform requires no personal information or KYC process, users can be up and running and ready to trade in no time at all.
PrimeXBT features all of the tools and order types necessary for a crypto trader to take advance of both falling and rising markets, as well as tools designed to squeeze additional profits out of tight trading ranges. Without the tools offered by PrimeXBT, crypto traders may be stuck watching the price of their favorite crypto-assets fall and their portfolio values diminish right before their very eyes.
Step 2 – Make Your First Deposit to the Trading Platform
The minimum deposit needed to get started on PrimeXBT is 0.001 BTC. Even depositing the smallest possible amount will allow traders to take position sizes much larger than what their capital would normally allow for, thanks to the 100x leverage PrimeXBT offers on crypto assets.
Depositing to your PrimeXBT wallet account is quick and painless, and even offers a QR code to scan and make things even simpler. Bitcoin deposits are the only accepted asset type for account funding, however, PrimeXBT has implemented the third-party service Changelly that allows users to quickly exchange their fiat currencies or altcoins for Bitcoin, or even buy Bitcoin using a credit or debit card.
After the deposit has been received to the wallet, users will need to fund their trading account to begin trading and open up a short position.
Step 3 – Short Bitcoin to Profitability
PrimeXBT offers traders the tools to open both long and short positions, and even take both positions simultaneously to hedge against any unexpected market movements. When Bitcoin is in bull mode, long positions or even simply holding Bitcoin are recommended. But with Bitcoin prices falling once again, the best way to profit from a market in a downtrend is to open up a short position and to short each Bitcoin price bounce.
The trading platform features built-in charting software that will assist traders in picking an entry for their short positions, and then users can take advantage of the advanced order types to maximize profits while minimizing risk. Once the trader has identified a possible entry point, they can use one of PrimeXBT’s many widgets to place an order or place an order directly through the chart by clicking the price point they wish to open the position at.
Entries can be limit orders for timed entries, or market orders if a trader seeks to enter a short on the spot. Market orders are especially helpful if the market begins to move in the expected direction before a limit order was placed or a specified entry is reached.
Short orders will earn the trader profit the lower the price of Bitcoin falls – the exact opposite of what happens with spot investors of cryptocurrencies like Bitcoin. Investors are forced to watch their hard-earned gains disappear, while traders on PrimeXBT can grow their profit margins even further.
Maximizing Downtrend Profits With the Power of 100x Leverage
Tying all the tools offered by PrimeXBT together is the power of 100x leverage. 100x leverage on crypto-assets lets traders multiplies their initial trading capital by as much as 100 times. This means that even the minimum deposit of 0.001 BTC will provide the trader with the power of 0.1 BTC. A trader that deposits 0.1 BTC will be able to trade with 10 BTC and so on.
Successfully executed short orders on 100x leverage can be extremely profitable. PrimeXBT research shows that had a trader open a short order worth 1 BTC at the peak of Bitcoin’s all-time high at $20,000, then closed the short in profit at Bitcoin’s bottom, it would have resulted in a gain of 8400% or $1,690,000.
Considering how substantial the profit margins are, it’s easy to see why taking a short position on a falling crypto market can be extremely effective in growing one’s portfolio. Even better, is the fact that although the price and value of the underlying asset’s value may be falling, the total portfolio value can grow significantly.
Register for PrimeXBT today, and be ready to profit on the next massive Bitcoin crash.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.