Cryptocurrency is still relatively new. Nevertheless, it already cemented itself as a fascinating alternative asset to venture into.
The Bitcoin fever spread with lightning speed as it made headlines during its historic spike last 2017. It produced instant millionaires when its price rocketed from $800 to almost $20,000 in the span of one year, welcoming more investors and traders to join in.
Today, crypto exchange platforms are giving traders more opportunities to profit. Trading cryptocurrencies entered the mainstream as more people are asking how to profit more from Bitcoin, Ethereum, and other major coins.
Multiply Earnings with Leveraged Trading
If you want to maximize your profit potential with cryptocurrencies, then you need to know more about leveraged trading. Trading with leverage means that you can trade with borrowed funds on top of your initial capital.
With more funds at your disposal, you can enter bigger positions or diversify your trading portfolio, thereby making more promising returns.
Cryptocurrency derivatives offer greater profit opportunities by leveraged trading because it takes advantage of the volatile crypto market.
When you trade BTCUSD, you capitalize on whether the price of Bitcoin vs USD is going up or going down. In other words, you can generate profit not only in a rising market but also amid a market decline.
How does leveraged trading work? Different exchanges offer different leverage options.
Let’s say you have $50 deposited to your account. You want to open a long position on BTCUSD hoping that the price will go up. If you have $50 at 50x leverage, you can trade contracts worth $2500. With 100x leverage, you have $5,000 worth of funds with only your $50 deposit.
PrimeBit, a leading crypto margin broker, offers a generous 200x to traders. So with PrimeBit, a $50 deposit can give a trader up to $10,000 worth of funds.
Leveraged trading options on PrimeBit WebTrade
The best thing about leveraged trading is that you only lose what you invested.
So if a trade didn’t go your way, you only lose the $50 that you initially put in.
However, you had the chance to profit 50, 100, 200 or more times in trading with leverage.
Use Efficient Risk Management Tools
Trading crypto with is of course not without risks. However, crypto exchanges see to it that traders are protected against losses while building up gains.
That is why trading platforms must possess the necessary risk-mitigating tools to help them maximize and protect their earnings.
When buying or selling crypto contracts, a trader can use a market order or a limit order (pending order). A market order enables the trader to buy or sell at the best available price on the order book. A limit order, on the other hand, lets the trader choose at what price to buy or sell.
Traders usually prefer to limit orders because they can buy or sell at better prices that they chose. Limit orders also reward traders with a maker fee bonus because they add liquidity to the market.
A buy limit order means that you are buying below the market price. A sell limit order means that you are selling above the market price.
To protect and make the most of your pending orders, associate them with stop loss or take profit levels.
If you are a novice trader, a demo account is a great tool to get your trading strategies right. Even seasoned traders use it. You don’t want to start trading without experiencing the real trading environment.
With a demo account on your trading platform, you can use mock coins and start simulated trading using real market data.
This way, you will get a real feel of how the market works before you even cash in your deposits.
Thus, you get the chance to limit errors and mitigate risks before you even start live trading.
Want to learn more? PrimeBit is known for its unbeatable 200x leverage offer, effective risk limit capabilities, and fair price marking. Its fully featured demo account will surely help you polish your trading game.
Register now and earn more with a lucrative 30% revenue share until May 31!
Just sign-up, share your referral links, and contact firstname.lastname@example.org to pimp up your affiliate revenue. Visit PrimeBit and start earning!
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