Bear markets are inevitable, but they needn’t be feared, so long as your chosen crypto exchange allows you to ‘short-sell’. While the advanced trading strategy has been illustriously utilized in traditional forex and equity markets for generations, it is yet to be widely offered by crypto trading platforms.
However, with what feels like a never-ending bear market that's lasted more than a year now, crypto traders are increasingly eager to get a handle of more trend-focused strategies and advanced order types beyond meagerly buying low and selling high. This can be seen with the huge amount of trading volume that’s already taking place on the very recently launched PrimeXBT 100x leverage trading platform.
PrimeXBT is making waves by offering the crypto community unparalleled trading opportunities with industry-leading leverage on the crypto market’s top 5 performing assets - BTC, ETH, LTC, EOS, and XRP.
On PrimeXBT, it’s possible to open a short position whilst simultaneously utilizing leverage of up to 100x on several assets. This means that not only can traders earn in falling markets, but they can magnify their earnings by up to 100 times.
The benefits of trading with leverage include:
Deposit Less but Trade with More.
You only have to put down a fraction of the total position to receive the same profit as you would have if you deposited the entire amount on a typical exchange.Eg. On PrimeXBT a $100 investment with 100x leverage = $10,000 position; on standard exchange a $10,000 investment = $10,000 position.
Gearing Opportunities
Using leverage can free up capital that could be committed to other investments. The ability to increase the amount available for investment is known as gearing.Furthermore, multiple positions can be held concurrently on multiple assets. This enables traders to diversify their portfolio and further manage risk.
Proceed with Caution
Entering a trade with leverage is riskier than a conventional trade. The higher the leverage - the higher the risk. The reason for this has to do with the margin because if you trade with 100x the margin will be only 1% (1:100), which leaves less room for movement in the market’s price if it were to go against you.
In aid of managing risk and minimizing loss potential, PrimeXBT features 5 advanced order types that enable clear entry and exit strategies, these include stop-loss, OCO, protection, market, and limit orders.
High leverage is typically used by highly proficient and experienced traders with a solid understanding of market trends and technical analysis. It should go without saying that beginner or inexperienced traders are not advised to use such high leverage. The standard recommendation is to start with between 2 - 10x at most while developing the skills, experience, and knowledge required before proceeding to higher stakes.
On a final note, never invest more than you can afford to lose. Weigh up the potential reward vs. the potential risk.
Enjoy the bear market! https://PrimeXBT.com