Make profit on the dip? Yes you can with PrimeXBT!
Are you looking at the crypto market collapsing and wondering whether you could pull off the crypto equivalent of “The Big Short“? Good news, we’ve found the right exchange for you – PrimeXBT. With average daily volumes of $545 million (~£385 million), the exchange allows users to trade with leverage, helping them to take advantage of the rise and the fall of the markets. Read on to find out how it works.
PrimeXBT: a complete exchange
PrimeXBT offers several asset classes to its users. Whether it’s cryptocurrencies, FOREX, stocks or commodities, PrimeXBT’s major USP is that it offers leverage of up to 1000x on currencies and commodities, and up to 100x for crypto. This means you can open leveraged long or short positions on Bitcoin (BTC) and Ethereum (ETH), as well as Ripple (XRP) and EOS (EOS).
Leverage: an instrument in the trader’s toolkit
You’ve probably heard all about it before, but a little booster shot won’t hurt, will it? Leverage is a financial instrument that allows you to multiply your exposure to the market. Let’s use an example to demystify leverage for you:
You buy £100 of bitcoin without leverage, its price increases by 10% and you decide to sell, meaning your profit amounts to £10.
This time, let’s use 100x leverage. You start with the same capital of £100, but with leverage this £100 will allow you to open a position worth £10,000! So, if Bitcoin rises 10% and you resell, your earnings are also multiplied to £1000! That’s where the power of leveraged trading lies.
Long vs short: profits regardless of price action
Now you’ve understood the concept of leverage, which increases your exposure and therefore your gains, we also have to warn you that it also increases your potential losses. That’s why we always say that you have to be careful and not go running in headfirst when you start using these types of instruments.
With that out the way, we can now start talking about longs and shorts. Once again let’s make it simple: opening a long position means that you think the price will go up, you bet on an increase in the price. Opening a short position is the opposite of the long, you open this type of position when you think the price will go down. Do you see what I’m getting at? Yes, it means that there are traders who can win big (or VERY big) when the BTC price is in free fall. If you open a £100 short on bitcoin with 100x leverage, a 10% price drop also spells a profit of £1000 for the trader.
Trade no matter the market trend on PrimeXBT
Now that you see the very powerful potential of leverage, you can start looking into the new range of strategies available to you, such as ‘scalping’, where you use high leverage on very short-term positions, or ‘pyramiding’, when you accumulate several low-leverage positions to ride a well-identified trend as far as you can. In conclusion, both novice and experienced traders will find PrimeXBT a great exchange in terms of the number of markets and financial instruments available to trade. What’s more, by using leverage responsibly, you can be in profit even when the markets are red!
Hi, Привет & Salut! I’m interested in two things: crypto and languages. So I’m really excited to be part of the multinational CoinTribune team, where I can share my crypto knowledge with people from around the world, one article at a time.