Opportunity in adversity comes rarely, but a true professional will be able to sniff out the opportunity and make a profit. Most crypto assets like Bitcoin are volatile, and it is possible to make a decent sum using the volatility to advantage with PrimeXBT.
For a starter, it is essential to understand the possibilities of making a profit when a bearish trend is sweeping the market or is expected shortly. A short sell position is defined as selling an asset at a higher price and then, when the value falls, re-buying it and making an excellent profit.
PrimeXBT is a perfect tool to carry out this process. A trader opens a 1 BTC short (Sell) position at the price of BTC= $10,000. As stated previously, 1:100 leverage allows the trader to open this position using just 0.01 BTC of his funds (or the equivalent value in another deposited currency). Later the price of 1 BTC fell to $9,800. The trader now closes the position and makes an excellent profit of $200, which he uses for other investments.
A short position is a good option, especially in a bearish market when the price of an asset is decreasing or is expected to decrease. Your profit is the difference between the prices at which you Opened the position (sold the assets) and the price at which you Closed the position (re-bought the assets).
PrimeXBT also gives another option which would be to follow the strategy of a model manager on Covesting.
How Does Copy Trading Work On Covesting?
Covesting on PrimeXBT gives the freedom for users to “Follow” any of the available “Strategies” listed on the global rating system. The ecosystem enables followers to follow several strategies at once to build a profit-generating portfolio of professional traders. Strategy managers trade with the power of their equity, combined with the added equity invested by followers, bolstering ROI synergistically.
How to choose a strategy?
Pick Consistent Performers:
Traders and losses are almost synonymous with one another. No matter how successful you are, losses in trade occur from time to time. PrimeXBT allows the investors to accomplish sustainable trading to manage those losses properly so they can protect their capital and stay in the game.
Massive Gains, Massive Risk:
Traders must be able to read between the lines. Trading is not about picking the entities which are making profits and investing. If that was the case, why not go for entities which give 100% profit in a day instead of settling for those offering 5–10% gains? It is a sure-shot recipe for a loss.
High Manager Equity:
In each strategy’s dedicated page of PrimeXBT, one can gauge the equity the strategy’s manager has in the account. In addition, it will reveal how many personal funds the manager is ready to risk.
High Historical Margin:
Another strategy is to evaluate the graph showing the margin used, going from 0% to 100%. It gives a bird’ eye view of how much risk the manager is taking with their trades. The higher the number, the less risky it is. Lower numbers indicate more margin being used and a higher risk of liquidation.
Secure Profits Regularly but Consider the Human Angle also
Trading is a risky business, and there is always an element of risk. Even seemingly fail-safe strategies can fail since humans also make them.
Re-Visit and Broaden Strategies:
Profits are accrued by people who re-evaluate the strategies they want to follow and reinvest their capital most optimally. Never get attached to a strategy or manager.
Is There Any Risk Associated With Covesting?
All trading carries risk. Therefore users should be careful never to invest more than they can afford to lose comfortably. Odds of losses decrease with higher-ranked traders or those with clear track records of success.
Sign up for PrimeXBT: https://go.primexbt.com/click?pid=6581&offer_id=12
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