How to Profitably Margin Trade Cryptocurrency [2020]
While cryptocurrency trading is growing in popularity in 2020 with millions of new traders entering the market each year, developing strategies that are reliably profitable can be tough.
Many traders make less profit than they would like to, and often this largely comes down to not having the right information at hand, and not knowing the right places to trade.
We’re breaking down profitable crypto margin trading, and looking at some of the best platforms on the market today.
Leverage Trade Sideways Trends
Traders that don’t use margin trading at all are restricted to only making profit during upwards price movements — buying low and selling high. Those that also employ shorting can profit from downwards trends.
But the prospect of profiting during flat trends is largely unfulfilled by many traders because of the imbalance between the higher risk of regular trend changed and the reduced potential profits from relatively small moves.
By using leverage, these small moves can become as profitable as any normal larger move upwards or downwards would be.
Shorting the Pump
Through the concept of mean reversion many traders target breaks from the historic trend to go long or short in the direction back towards the mean.
When pumps occur they represent a major diversion from the existing trend, and in many cases traders take the short term profits that are available by shorting the pump when it is near to the top or at the top.
There is the chance that the price will move further upwards, but there is also typically a much larger chance that a correction will occur and mass shorting will lead the price to return back towards the point it was at prior to the pump.
PrimeXBT
PrimeXBT is the leading multi-asset margin trading platform in the world, and has grown to overtake many older platforms in just a relatively short period of 2 years.
Today there are many cryptoassets listed on PrimeXBT including BTC, ETH, XRP, LTC and EOS, and a wide range of traditional assets that include stock indices, forex pairs, and commodities.
PrimeXBT has world class security systems in place including mandatory Bitcoin address whitelisting, the cryptographic hashing of all passwords, and hardware security modules with rating of FIPS PUB 140–2 Level 3 or higher.
PrimeXBT’s user interface is highly quality and intuitive to use, and traders pay a low flat rate of 0.05% — one of the lowest in the industry.
Kraken
Kraken has been around for a long time and earned their reputation for being a safe trading platform to use.
Kraken was originally launched by two of the security experts called in to assess the Mt. Gox collapse, and following that they built Kraken together.
Kraken lists a wide range of different cryptoassets, and has an attractive design as well as powerful features.
The platform has recently upgraded their systems following years of complaints regarding their trading engine freezing under heavy loads.
PrimeXBT and Kraken are two of the most well known and widely used margin trading platforms on the market.
Both platforms provide professional features and services and excellent environments for profitable trading, and today many of the older crypto trading platforms simply cannot compete with newer and more advanced platforms.
Published at Mon, 03 Feb 2020 09:04:56 +0000
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