Bitcoin buyers and sellers have been playing the game of push-and-pull for a week now, while the bears are deliberately trying to push bitcoin past its support of $8,800. With global tension brewing, the second wave of the pandemic wreaking havoc around the globe, bitcoin’s near-term performance seems grim.
But is the bear market necessarily a bad thing? Well, it certainly doesn’t bode well for holders, who make money out of the price appreciation of bitcoin. Although some may argue that they could buy the dip and even out the cost, it could still be risky and tiring when the bear is the powerful market trend. However, for day traders and speculators, the bear market is actually an opportunity to make profits.
How to Make Profits in the Bear Market with Futures Trading
Futures trading is a mature instrument to hedge loss in the spot market. Traders can speculate on the direction of an asset, either long or short, using leverage. In bitcoin futures trading, traders can borrow 2x, 25x, or even 100x leverage from exchanges, which enables them to enlarge their position and multiply profits.
For instance, when the bitcoin price is $10,000, you can open a contract with 1 BTC. If you use 100x leverage, your contract will worth 100 BTC.
- Trade bitcoin in the bull market when the price increase to $11,000, you will get:
- Spot trading: ($11,000 – $10,000) = $1000
- Long BTC in futures trading: 100 BTC * ($11,000 – $10,000)/$11,000*100% = 9.1 BTC
- Trade bitcoin in the bear market when the price drops to $9,000, you will get:
- Spot trading: ($9,000 – $10,000) = -$1,000
- Short BTC in futures trading: 100 BTC * ($10,000 – $9,000)/$9,000*100% = 11 BTC
The lower bitcoin goes, the more profits we can take. It is worth mentioning that traditional forms of futures usually have an expiry date and traders can’t end the contract in advance or after the set date. So even if your current position is generating profits, you may find yourself losing money when the market price by the time of expiry goes against your prediction. But with perpetual contracts that have no expiry, traders can take initiative to close their positions when they deemed it necessary.
Traders only benefit from the price appreciation in spot trading, but they can benefit from both the increase and decrease of prices in futures trading. Moreover, with leverage, even a small sum of initial investment can gain great returns. It is worth noticing that in trading, the profits or losses of traders are calculated in USDT and settled in BTC. When the price of bitcoin goes down certain points, traders actually earn more than when it goes up the same range.
Bexplus – Leading Crypto Exchange for Both the Beginners and Veterans
Headquartered in Hong Kong, Bexplus is a popular crypto derivatives trading platform offering 100x leverage futures trading on a variety of trading pairs – BTC, ETH, LTC, EOS, XRP, and etc. Using its intuitive interface and trading simulator, even beginners can learn to trade very quickly. When they become more skillful, they can use powerful tool-kit to analyze the market. Should traders encounter any problem, 24/7 customer support is always ready to help.
Features of Bexplus:
- Perpetual contracts with no expiry, take profit and stop loss as you please.
- No KYC, registration only requires email confirmation and takes 60 seconds.
- Trading simulator with 10 BTC.
- No deposit fee, easy withdrawal in as fast as 30 minutes.
- Powerful mobile support available on Apple App Store and Google Play
- Up to 30% annualized interest BTC wallet
- 24/7 customer support
Besides borrowing leverage from exchanges, is there any other way to increase profit? Bexplus will take care of that for you. In Bexplus’s 100% deposit bonus promotion, each user can get a 100% bonus reward and up to 10 BTC bonus is available each deposit. If you deposit 1 BTC, 2 BTC will be credited to you. With double funds, your profits will be doubled.
In the near-term, bitcoin is vulnerable to the negative influence of macro factors. The $9,200 support has been worn out and bitcoin lacks a strong support level in the $8,000 area. If you want to make the best of this opportunity, don’t hesitate to join Bexplus and claim your bonus!
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