Bitcoin Plunged 20%: Why and How to Make Profits Off the Downside
Disclaimer: The text below is an advertorial article that was not written by Cryptonews.com journalists.
The whole cryptocurrency market experienced a free fall on Tuesday and Wednesday, with bitcoin falling more than 20% to 39,000 USD and ETH to 3,000 USD.
The sell-off came the day El Salvador adopted the token as its official currency. The news was previously seen as positive to the price and adoption of bitcoin by investors, but it soon proved to be poorly-received by the locals, who are afraid that they may be forced to exchange their money into bitcoin.
Their reluctance to hold bitcoin is understandable: bitcoin is a highly volatile asset and huge price swings are very normal. One day it reaches a new all time high, the next few days it plunges over 10% - that’s what happened with bitcoin after it hit 64,800 USD and declined to 50,800 USD within one week.
Is high level of volatility necessarily a bad thing? The answer is, when used right, bitcoin’s crazy price swings could be golden opportunities to make money. Futures trading is the tool created to hedge loss and make profits out of bitcoin’s price swings. Traders can either long or short bitcoin, if the price goes as they predicted, traders can make money out of the price differences. In addition, they can borrow money from exchanges to increase their funds.
To illustrate, when you have 0.1 BTC and want to short bitcoin at the price of 55,000 USD, you can open a short contract at an exchange where leverage is available. In Bexplus exchange, you can use 100x leverage and make your investment worth 10 BTC. When the price declines to 50,000 USD, your profit will be 10 BTC * (55,000 USD - 50,000 USD)/50,000 USD = 1 BTC. Without leverage, your profit will only be 0.01 BTC.
Bexplus offers 100x leverage and perpetual contracts on BTC, ETH, ADA, DOGE, XRP, etc. No matter whether the market is rising or falling, you can earn money.All orders on Bexplus are executed immediately with low latency, so traders will not miss out on the next blast of volatility.
Bexplus was registered in Saint Vincent and the Grenadines in late 2017. Over 800k traders from 0ver 200 countries/regions choose Bexplus for its no-KYC police, free demo account, 100% bonuses and super-fast mobile apps.. Bexplus is accredited by MSB (Money Services Business).
How to start?
Bexplus requires no KYC so you only need to open an account with an Email address, in just 1 minute. Once registration is complete, a trading account and a demo account with 10 BTC will be opened automatically.
Practice Your Skills: A Demo Account
Successful traders are those who learn to analyze the market and could always keep a clear head. The best way to improve your skills and mindset is by practicing in the free demo account.
Every user is given 10 BTC at the beginning and they are replenishable, so you can try out different strategies as much as you like.
Make A Deposit And Claim Bonuses
No deposit fee is needed. You can start your deposit at 0.001 BTC. Bexplus supports BTC, USDT, ETH, XRP, LTC, EOS etc, as well as USD, EUR, and GBP deposits.
To help traders earn more profits, Bexplus offers a 100% deposit bonus to every trader. Deposit 1 BTC and you will get 2 BTC, and up to 10 BTC is available for each deposit. The bonus is not withdrawable but could be used as margin.
Earn Passive Income With Bexplus
When you are not trading, you can transfer your BTC to the interest-bearing wallet and enjoy up to 21% annualized interest.
The interest is calculated daily and the revenue of the deposit will be settled monthly. The monthly interest is calculated as (S*I/365*30)=MI. S represents the sum of the deposit, I stands for interest, and MI is the monthly interest.
Sign up to get a 100% bonus and use a simulated account to test your strategy.