How Do Traders Short Bitcoin?
3 Ways to gain profits on Bitcoin price falls Register on Bexplus via this link and get a permanent 10% trading fee discount. Bitcoin and cryptocurrency markets were suddenly sold off on December 17-18: the world’s largest crypto lost around $400 in price and dived deeply below the important psychological mark of $7,000. While Bitcoin is still largely up from the beginning of the year, it’s still slipping down, the community is debating when the next bullish run will come and whether it’ll happen at all. Bitcoin holders who have strong believe in crypto might just wait for another bullish run to start and maybe even plan to buy more of BTC’s during the current sellout. However, there are always traders who want to make profits in the short term and gain profits on falling Bitcoin prices (so-called shorting). Below we’ve covered the most popular ways to gain profits by shorting cryptos.   A futures contract is an obligation to buy or sell an asset in the future at a fixed price, no matter how actual price and contract price will differ by the expiration date of such contract. When trading futures investors can open not only long positions but also short: in case of long, the traders agree to buy the asset at a fixed price in the future, in case of short – to sell the asset on the contract expiration date. When shorting, to get the profits traders must correctly predict price decrease and make gains on the difference between the selling price and current price. Traditional Bitcoin futures are usually traded by big institutional investors and not so easily available for individuals. 2. Binary Options Trading Traders also can short Bitcoin and other cryptos by trading binary options: a very risky investment tool. You need to open a put order (selling order), this means that you would be able to sell the crypto at today’s price when the price will drop later. By trading binary options investors should only decide whether the price of the asset will rise or fall, thus this type of option is called binary. The result of such trades could bring significant profits or almost total loss of the asset. Use carefully. 3.Margin Trading (Leveraged Trading) Margin trading is a type of asset trading by using funds provided by a third party. Compared to regular trading accounts, marginal traders have access to more funds, which allows them to use these funds in their positions. Essentially, margin trading increases the performance of the trading, so traders can get more profit from successful tradings.  Margin trading begins after the trader fixes a percentage of the total value of his order. This initial investment is called margin and is closely related to the concept of leverage. In other words, margin trading accounts are used to create transactions using borrowed funds, and leverage describes the ratio of borrowed funds to margin. For example, to open a deal of 10 BTC with a leverage of 100: 1 (10x), the trader will need to fix 0.1 BTC of his capital.  Leveraged trading considered to be very profitable since doesn’t require large amounts of investments to open relatively big positions. With 100x leverage, traders can gain 100% of profits from a 1% price move. However, the losses are calculated the same way, but on Bexplus you can prevent these by using risk control instruments such as stop loss. Margin trading can be used to open both long (buying) and short (sell) positions. A long position suggests that the price of an asset will rise, while a short one reflects the opposite.
Christmas Gift Pack From Bexplus
Bexplus is a Hong Kong-based 100x leveraged exchange platform established in 2017. The exchange offers perpetual futures contracts on various crypto assets: Bitcoin, Ethereum, Litecoin, XRP, and EOS. Among the Bexplus features are no funding fees (amount of margin held by the system for paying the next funding), no spread (the difference between buying and selling price), and a built-in trading simulator with 10 BTC on board. Starting from December 20, all Bexplus users are enjoying the benefits of the Christmas presents pack! 1. $200 Crypto Pack Giveaway Bexplus is to give $200 in crypto ($50 BTC, $50 ETH, $50 LTC and $50 XRP) to 4 winners. All you need to participate is to follow Bexplus official Twitter @BexplusExchange. 2. 100% Deposit Bonus Users are able to claim 100% deposit bonus for deposit more than 0.01 BTC. Deposit bonuses can only be used as margin (not allowed to withdraw, but the profits made with the bonus can be withdrawn). 3. 50-100% Trading Fees Rebates December 20-24 and 26-31, all users who trade on Bexplus can enjoy 50% service fee rebates for all trading pairs. On Christmas Day & On New Year’s Day, all users who trade on Bexplus can enjoy 100% service fee rebates for all trading pairs. Join the Bexplus community:  Website: www.bexplus.com Facebook: https://www.facebook.com/Bexplusglobal/ Telegram: https://t.me/bexplusexchange
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Ashton Wolfe
From planting Bitcoin ATM's around North America to developing solutions for top-tier fintech businesses in all of the different regions around the world. Always on the hunt to find the next wave in the fintech & blockchain spaces to provide value & results across the board. Currently focusing on different developing payment businesses in Asia, digital banking and tackling different approaches in advising businesses suited to their best interest. Being the Managing Partner at...
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