After months of inactivity, Bitcoin has woken up and remained above $11,500. According to Glassnode, 75% of BTC’s portfolios are in a state of profitability. The FOMO mode, or fear of missing the wave, was seen in the market and, many people are wondering if it’s too late for the party.
Bexplus: How do you make a 30% profit with Bitcoin without taking risks?
Situation with Bitcoin
For Bitcoin to stay above $10,000 is not a common occurrence, as it has only operated above this level for over 27 weeks in history. So, the fact that Bitcoin is holding steady above this level, despite massive sales in the last two weeks, indicates that this could actually be the bullish run we’ve been waiting for.
However, currently, Bitcoin’s fear and greed index is 74, indicating a high level of greed in the market. Major corrections often occur when the market reaches high or extreme greed. Therefore, retailers are in FOMO mode in the market and want to have some currencies they should be cautious.
Fortunately, there are still ways to make a profit with Bitcoin no matter which direction the currency is headed.
Futures Trading: A Popular Instrument for Hedging Risk and Speculation
Bitcoin futures trading allows traders to invest in Bitcoin short or long, so even when the price of Bitcoin is falling, traders could still make a profit from it.
For example, if we have 1 BTC and we invest it in the spot market, we would only lose money if the BTC price drops. But if we open a short contract with that 1 BTC, when Bitcoin is trading at $12,000, and we sell the contract when it drops to $11,000, here is our profit:
Profit = ($ 12,000 – $ 11,000) * 1BTC / $ 11,000 = 0.09 BTC
The more the price of Bitcoin Era decreases, the more profit we could make by shortening BTC. This also applies to the scenario where Bitcoin continues to increase.
Another key feature of futures trading is leverage. With leverage we can invest a small amount of money to open a larger position, amplifying the gains if we bet in the right direction. So even if the market only moves a little, leverage could help us make substantial money.
For example, if we use 100x leverage on the above trade, our profit will increase 100x from 0.09 BTC to 9.09 BTC, and all we need to invest is 1 BTC.
Bexplus review in 2020
Where to trade BTC futures with 100x leverage?
Whenever there are price fluctuations, traders can profit from futures trading. If futures trading is your thing, the next thing you should consider is finding an easy-to-use encryption exchange.
Bexplus is a world-leading cryptomonal futures exchange, offering perpetual contracts for Bitcoin, Ethereum and Litecoin, XRP and EOS with 100x leverage. Bexplus is a platform for many beginners with its easy to use and well designed trading interface.