Bitcoin has overcome its month-long stagnation and gained over 35% in the last two weeks. With the increase of bitcoin prices comes the revival of trading activity. According to data from Skew, the outstanding BTC futures contracts on the Chicago Mercantile Exchange have hit USD 830 million.
Bitcoin futures is one of the most popular ways for investors to generate big returns from market fluctuations. Regardless of whether the market is bullish or bearish, as long as there are price swings, there are good opportunities to earn profits.
While it can bring us big returns, the risks it bears is equally high. So if you want to engage in futures trading, here are 3 tips for you.
Tip 1: Start with small capitals
Starting small enables you to go a long way. It is advised that you divide your capitals for multiple positions. So if the market goes against you, you can allocate a position in the opposite direction to hedge loss.
Remember, in futures trading, the buying power will significantly enlarge with the help of leverage. For example, if you open a position using 0.01 BTC and 100x leverage, the position will worth 1 BTC.
Tip 2: Practice and improve your skills and strategies
Earning money by speculating on the price movements seems like gambling, but it's not. Successful traders are those who learn to analyze the market, keep themselves abreast of market news, and keep trying out different strategies. Choose a platform that offers a built-in trading simulator for you to practice. A good demo account serves as a sandbox for you to improve your skills and get familiar with the fast-changing market. Besides, some platforms even offer consulting services or personal account managers to users.
Tip 3: Trade on support and resistance
Support is a place where the price tends to find support as it falls. This means that the price is more likely to recover from this level instead of falling below it. As for resistance, it is the place where the price has the biggest difficulty breaking. If the price is close to the support at an uptrend, you could put a long order.
For instance, the USD 25,100 level is considered as the new support level of bitcoin, while the USD 25,500 is the resistance. If we open a long position with 1 BTC at USD 25,100 and close it when the price reaches USD 25,500, we will earn (USD 25,500 - USD 25,100) * 100 BTC/USD 25,100 = 3.6 BTC.
Bexplus - Beginner-friendly crypto exchange with 100x leverage
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.
Easy Registration with No KYC
Traders can register an account with only email and this process only takes a minute. No KYC protocol is carried out throughout trading so you don't need to worry about information leakage.
10 BTC for Demo Account
Bexplus is known to be a beginner-friendly exchange: every user will get a demo account with 10 BTC upon registration. Users can explore futures trading with the demo account and learn to analyze the market.
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.
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.
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 margins means that your positions are less likely to get liquidated. Your positions will be better secured in the highly volatile market.
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
The views, the opinions and the positions expressed in this press release are those of the author alone and do not necessarily represent those of https://www.cryptowisser.com/ or any company or individual affiliated with https://www.cryptowisser.com/. We do not guarantee the accuracy, completeness or validity of any statements made within this press release. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author. Any liability with regards to infringement of intellectual property rights also remains with them.