Taking advantage of Crypto Volatility by Margin Trading on PrimeXBT
As of this writing, Bitcoin is trending below the $40K mark—a point it was roughly a year ago before posting an impressive run that saw the coin race to $69k in Q4 2021. The volatility of Bitcoin and crypto prices is enough demonstration and tells a story that it is possible to succeed in margin trading.
The mega correction of crypto prices in the first two months of 2022 continues to impact the global state of crypto affairs. Like crypto, other markets are also under intense selling pressure, unwinding gains posted at the end of 2021. Surprisingly, this development is on the back of good news: most economies are wriggling out of the depressing effects of the two-year healthcare crisis—some good news. However, increasing tensions in Europe appear to be pulling down crypto prices, an opportunity for traders to learn how to short crypto on PrimeXBT and other platforms.
Volatility is okay for traders with margin accounts in platforms like PrimeXBT. The recent bullish run in many markets correlates with the impending invasion of Ukraine and the expected FED rate hike scheduled for sometime in March 2022. These expectations are some events that margin traders are looking at keenly before making a move.
What we are going to learn?
Bitcoin Price Analysis
Pressure in the market squeezes investors into a risk-on mode, suggesting a lack of confidence, which can spark deep corrections until certainty returns. However, at the present and with war drums beating, it is likely that crypto prices will remain volatile. Significant price drops are imperative for short-selling.
In 2009, Bitcoin was worth a pittance, which hit four figures in 2017 as investors increased their confidence in the digital asset. One reason for the price surge in the decade is the underlying blockchain technology that validates the cryptocurrency.
The metaverse, notwithstanding, has sparked the interest in altcoins even more of late—seemingly they might be the primary currency in the future internet. These positives have pushed the price of crypto to reach new highs.
Recent actions by turmoil-hit countries such as Venezuela to adopt crypto in place of their inflation-hit currency, and El Salvador recognizing it as a legal tender remains massive for crypto and the sphere..
Overall, Bitcoin—like any other tradable commodity– rely on the laws of supply and demand, shaping price action. The more there are interested bidders, the higher the price would soar and vice versa.
However, it is the fixed nature of Bitcoin that gives it value, drawing attention of deep-pocketed investors and institutional holders, propping prices.
Margin account holders take advantage of these dynamic factors and always analyze the market to trade Bitcoin and profit from volatility.
How to Margin Trade in PrimeXBT
Margin trading uses borrowed funds to execute trades, cutting the upside and increasing returns. The PrimeXBT module allows traders to take advantage of significant dips in the crypto stock market to maximize returns when trading cryptocurrencies, including Bitcoin and altcoins.
For trading enthusiasts, PrimeXBT is a one-stop shop; it offers access to many markets in one account. The platform incorporates modern charting software and customizable tools to maximize returns when shorting Bitcoin. It takes about a minute to register a new margin account with PrimeXBT using a verified email. Afterward, a trader needs to fund their account, move funds to the margin account before trading.
The primary advantage of trading from a margin account is leverage. PrimeXBT allows trading with leverage–ranging from 1000X in Forex, up to 200X in BTC and ETH, and up to 100X in other supported altcoins. To begin trading, a trader must have the minimum margin, that is, the minimum amount of assets required to sustain a trade, in their account.
Margin trading is a welcomed addition in cryptocurrency trading. With smaller deposits, traders can place orders to profit from price movements through leverage.Emerging platforms like PrimeXBT supports leverage trading at different levels for cryptocurrencies depending on their liquidity. Through the multi-asset platform, traders can place long or short positions, clipping volatility and increasing profitability.
Warning: Margin trading is risky. Please learn more about it and proceed with limited capital only when you are comfortable with it.