When Bitcoin rose to $12,100, the crypto world cheered up for the great news and a test to $15,000 seemed almost achievable. However, the joyous moment was short-lived – a few hours later, Bitcoin plummeted to as low as $10,508, easing the last three days’ gain within just a few minutes.
Nearly $1.4 billion worth of positions across major exchanges were liquidated and a majority of them were long positions. Influenced by the crash of Bitcoin, other major coins experienced sharp dumps on various degrees. The Bitcoin price has now recovered slightly and is consolidating at $11,200.
Not all hope was crushed in the bloodbath, many traders managed to earn profits by shorting Bitcoin with leverage. Leveraged trading allows traders to earn profits by speculating the ups and downs of crypto, and with the leverage borrowed from brokers, they could open positions far greater than their initial funds.
Let’s see how we can benefit from the price drop of Bitcoin:
Assume we use 1 BTC to open a short contract when Bitcoin is trading at $12,000. Please note that with 100x leverage, 1 BTC can open a contract worth 100 BTC.
If BTC price drops to $11,500.The profit will be ($12,000 – $11,500) * 100 BTC/$11,500 *100% = 4.34 BTC, making the ROI 434%.
What if BTC price continues to drop and ends up at $11,000? If such a crash does happen like the one that happened on Sunday morning, the profit will be ($12,000 – $11,000) * 100 BTC/$11,000 *100% = 9.09 BTC, making the ROI 909%.
Leveraged trading is a mature and highly profitable instrument in crypto trading. While it can generate handsome money, the loss we will bear if we make the wrong guess will hurt a lot. So if you are interested in leveraged trading, make sure you choose a user-friendly platform and use tools such as stop-loss to manage risks.
Bexplus – Go-to Crypto Exchange for Beginners and Veterans
Bexplus is a leading crypto derivatives platform offering 100x leverage in BTC, ETH, EOS, LTC, and XRP futures contracts. Headquartered in Hong Kong, Bexplus is trusted by over 100K traders around the world, including the USA, Japan, Korea, and Iran. No KYC, no deposit fee, traders can receive the most attentive services, including 24/7 customer support.
- Demo account with 10 BTC
Trading simulator is a must-have tool for beginners. They can learn to trade in the stimulator and try out different strategies. There are 10 replenishable BTC in the demo account for traders to practice as much as they like, without taking any risks. You can also learn to analyze the market and use the tool-kit with the demo account.
- 24/7 withdrawal and 24/7 customer support
You can submit a withdrawal request anytime you want and have your deposits back in as fast as 30 minutes during work hours. If you encounter any problems when using Bexplus, the team is always ready to help you via different channels, including email and live chat.
- BTC wallet: up to 30% annualized interest without any risks
If you want to take a short break from trading, the Bexplus BTC wallet can help you generate juicy profit without taking any 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.
- Top ranking mobile apps to help you trade smartly
The top-ranking Bexplus mobile app has one of the most intuitive interfaces that could help you better manage your account. Even when taking the subway or waiting for your food to arrive, you can check the market, open positions, or make a deposit on the interest-bearing wallet with just a few swipes.
- 100% bonus to help you maximize profit
Doubled margin helps you double your profits! Deposit 1 BTC and you will get 2 BTC. Up to 10 BTC is available in each deposit and you can withdraw all the profits generated by the bonus. Furthermore, bigger margin means that your positions are less likely to get liquidated. Your positions will be better secured in the highly volatile market.
A long-waited bull run may be on the way, and there will certainly be many ups and downs in the future. If you hope to take advantage of these opportunities, don’t hesitate to join Bexplus now!
Follow Bexplus on:
Apple App Store: https://itunes.apple.com/app/id1442189260?mt=8
Google Play: https://play.google.com/store/apps/details?id=com.lingxi.bexplus