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Record-breaking volatility is one of the reasons why investors are afraid of the crypto market. Not only Bitcoin, but also many altcoins can rise or fall by 15-20% for a few hours, or 80-90% in a matter of weeks. On the other hand, this type of extreme volatility is a great opportunity to earn money using intraday trading strategies.
The ability to use any direction the market moves gives margin traders a distinct advantage over regular investors. The most important thing is to have all the necessary tools to get the job done. ETFs or indices are used to combat volatility. Margin short positions and other derivatives are used to work in a falling market and hedging risks. Diversification is used to spread risks across all assets. The PrimeXBT margin platform, which is in the top tier of trading volume across the industry, offers traders the widest range of tools that could help them become profitable and protect capital.
Be Bullish And Bearish At The Same Time The main advantage of CFD trading is the ability to open both long and short positions with leverage. If you are a long-term holder of BTC and other cryptocurrencies, you can strengthen your position or hedge assets that are held in cold storage during a period of high volatility. During the period of growth, you can open a long position and earn extra on several cryptocurrency pairs. PrimeXBT has over 40 crypto pairs. During a market meltdown, you can open a short position and compensate for the drawdown in assets that are held in cold storage.
Observations show that ETH is growing in relation to BTC during the fall of Bitcoin. You can buy on the crypto market even when it is down and sell when it is up with the ETH/BTC trading pair featured on PrimeXBT. This may seem like a paradox at first glance but remember that between March 2020 and November 2021 BTC rose 18x and ETH rose 55x.
Thus, you can be both a bull and a bear in the crypto market without fear of volatility, using it as an opportunity to increase capital.
Diversification And Copy Trading The traditional strategy for avoiding volatility is to transfer the capital into other assets or diversify the portfolio. For example, the S&P500 or gold are less volatile than cryptocurrencies. PrimeXBT features over 100 trading instruments, including the world's leading indices, precious metals, commodities, currencies, and cryptocurrencies. If you are not ready to take the risk of a volatile crypto market, you can allocate capital across different assets.
It is possible to manage capital in the crypto market during a difficult situation using talent with vast experience. With PrimeXBT's Covesting copy trading module, you can choose a trader whose investment strategy and returns seem right for you. Connecting to a trader, you will automatically copy all their positions. There are cases when traders made a profit of several thousand percent for themselves and investors who copied transactions. Anyone can find similar success in just a few clicks with the Covesting copy trading module.
What Else Is PrimeXBT Capable Of? The Covesting Yield Account integrated on PrimeXBT makes it possible to stake idle crypto assets and receive passive income. You can use this tool as an addition to diversification or at the time of exit from the market in order to wait for some time. Variable APY rates reach as high as 14%.
Moreover, you can take part in trading contests or update your knowledge with the PrimeXBT Trading Academy, where trading expert Dirk Hartig shares his knowledge. With this education in mind, traders can then head to the Contests area of PrimeXBT to practice these newly learned skills, backtest strategies, or compete for prizes.
Users can also share a referral link with friends on social networks and participate in a unique 4-level referral program. The program offers daily payouts in crypto, and top users have made a fortune this way.
Conclusion: Markets Never Sleep At PrimeXBT Investments are always connected with risk, regardless of the current market situation. Without risk, there wouldn’t be reward. Volatility creates the opportunities that need to be exploited wisely and by using the right tools.
PrimeXBT provides traders with a wide range of innovative trading tools that are suitable for even extreme market conditions. It doesn't matter where you are in the world – in the office or on vacation – the platform products are available in applications for iOS and Android. Join PrimeXBT and catch the next major wave in the market!
This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.
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