Disclaimer: The following article is part of the Cryptonews Deals series and has been written as a promotional article in conjunction with the sponsor of this offer. If your business has an exclusive promotion that you would like to share with our readers, we invite you to contact us. Let’s build together.
Watching the market plunge is extremely stressful for any crypto trader – or anyone with crypto assets. However, those seriously interested in commerce need not despair. It is always possible to transform your fortune, but you must be insensitive enough to profit from the red market. You will need trading know-how, a little forethought, and a platform that supports both long and short positions (psst—PrimeXBT is a great choice).
What are long and short positions?
First, the terminology; understanding jargon goes a long way in making valid and informed choices. Although it is often used to refer to complex trading procedures, it does not have to be too complicated in itself. The terms we are referring to are long and short positions, of course.
A a long position means you bought some assets that you now own. A short position means you owe someone the assets, but you don’t own them yet. You probably already know that long positions are inherently bullish in nature – this is because you already own these assets, they are fully paid, so to profit from them, you hope the price will rise.
On the other hand, if you are selling assets but don’t own them (i.e. short) the situation is a little more complicated than that. You’ll need to buy these assets first: one of the most common ways is to use a margin account, where you basically borrow. Then when you have to pay it back, you hope the price will drop so the difference between the two purchases will be your profit. This is why a short position is considered bearish.
We mentioned another term that we haven’t explained here: a margin account. By definition, “a margin account is a brokerage account in which the broker lends money to the client to buy stocks or other financial products,” says Investopedia. There is usually a guarantee that depends on the brokerage, as well as an interest rate.
As you invest with more funds than you would otherwise, Margin of negociation can earn you much higher profits even when you pay back the borrowed funds. However, the same is true if you lose: you will lose both your own and borrowed funds, plus you will owe a certain amount of interest.
This is why trading on margin is extremely risky and should be approached with the utmost caution. Add to that the inherent volatility of the cryptocurrency market, and things get complicated enough. But also, as we have mentioned, this is an opportunity for a savvy investor to profit even when the markets turn red.
How can I get started?
So you’ve done your research and decided that you can take the risk of margin trading. The first step is to choose a reputable trading platform: PrimeXBT offers access to more than just cryptocurrencies with up to 100x leverage, making it a great place to trade. You will need to open an account which is easy as long as you have a valid email address as you will not need to provide any other personal details.
After that, fund your account with the crypto or fiat of your choice and read along and short. examples on their website! When it comes to trading itself, PrimeXBT is very straightforward. There are several places you can place your order from (each one marked with Trade), and all you need to do is fill in the details in the New Order window. You can change your order later, if necessary.
Ready to seize your opportunity? Then follow this link to register with PrimeXBT!
PrimeXBT has prepared a special offer for its new customers: they will benefit 50% of their first deposit credited to their bonus account which can be used as additional collateral to open positions!
Don’t forget to join PrimeXBT / Covesting Telegram Community to find more information about the trading terminal, copy trading module and how to save up to 25% of your commission with COV token and other token utilities!