The Bitcoin market sees red and shed over 6% of its value overnight. At the same time, major altcoins also suffered. The major reason behind the decline of cryptocurrency could be the same for gold: the dollar making an upward move gives hope to investors and the “risk-off” sentiment is less intense. Besides, with gold and bitcoin gaining double-digit year to date, many investors chose to lock in gains, thus bringing down the prices of gold and bitcoin.
Analysts continue to bet on the bullish side of bitcoin, while they agree that the market will face some corrections. Andrew Tu, an executive at crypto quant training firm Efficient Frontier, shared that “With all the positive news surrounding bitcoin, as well as the recent altcoin pumps, it is clear that the market sentiment is highly positive.”
Corrections are almost inevitable if bitcoin wants to go higher. It is advised that investors keep a close watch on the dollar index and seek different techniques to earn profits. With futures trading, you can sell/short bitcoin and earn profits with the downtrend.
How To Earn Profits in the Downtrend
While spot trading only enables you to earn money in the uptrend, futures trading helps you make profits from the ups and downs of bitcoin. With the leverage offered by platforms, we can increase the purchasing power of our margin multi-fold.
Let’s see how we can benefit from the price drop of bitcoin:
Assume we used 1 BTC to open a short contract on August 10 when it was trading at $11,900. Please note that with 100x leverage, 1 BTC can open a contract worth 100 BTC.
On August 11, the price of bitcoin dropped to $11,500.The profit will be ($11,900 – $11,500) * 100 BTC/$11,500 *100% = 3.48 BTC, making the ROI 348%.
If we didn’t close the contract, we can earn more profits, because, on August 12, the price of bitcoin got another hit and drop to $11,200. The profit will be ($11,900 – $11,200) * 100 BTC/$11,200 *100% = 6.25 BTC, making the ROI 625%.
Bexplus, a leading crypto derivatives platform, which offers 100x leverage futures trading to investors from 30+ countries, including USA, Japan, Iran, and Korea, is the best choice for both beginners and veterans.
On Bexplus, you can enjoy:
- 10 Free BTC for Simulated Trading
Bexplus users can get a demo account to simulate the real trading environment and strategy with 10 BTC. You can practice trading skills and learn about how to analyze the market trend with the trading simulator. Even if you make wrong predictions and analysis, you will not lose a penny.
- BTC Wallet: up to 30% Annualized Interest Without Any Risks
Bexplus users can gain profits not only from trading. Join the Bexplus wallet, you can earn up to 30% annualized interest without taking risks. With up to 30% annualized interests, it is no doubt one of the most profitable rates in the industry. While most lending platforms require traders to deposit at least 1 BTC, traders can make a deposit starting from 0.05 BTC on Bexplus.
Find out more about interest-bearing wallet on Gateway To Earning Bitcoin: An Interest-Bearing Wallet
- P/L Calculator
Before opening a contract, traders can calculate the estimated profit/loss and fee on the P/L calculator. So they can enter the trade with a clearer head.
- Trade Freely on Android & iOS
The top-ranking Bexplus app integrates all the necessary functions and tools (real-time charts, a variety of indicators, news alerts and etc.) while keeping a minimalist and intuitive interface. With the Bexplus app, you can manage your account anywhere and anytime you want. Furthermore, the 24/7 notification could keep you updated with big price movements, making it easier to secure your positions.
- Deposit Activity to Earn 100% BTC Cashback
Deposit BTC in the Bexplus account and you can earn a 100% BTC bonus, which can also be used to trade futures contracts. The more deposit, the more bonus you will get. Up to 10 BTC is available for each deposit.