Dreaming about profiting from day trading Bitcoin, many people rushed into the cryptocurrency world with the expectation that the price of Bitcoin as well as other altcoins would climb higher and higher. The idea of “Bitcoin Billionaire” was embedded deep into investors’ minds during the bullish run in late 2017. At that time, 90% of cryptocurrency exchanges only provided spot trades.
2018 generally saw panic set in for investors as a year-long bear market take hold.
More experienced cryptocurrency traders however gradually turned to Bitcoin futures contracts. In a similar way to traditional financial markets, futures contracts for crypto are the best way to hedge the spot trade and lower the risks. During the crypto winter, bitcoin futures trading can be a good way to make money. (Futures trading also carries risks of losing money).
Can Investing in BTC Futures Contracts be Profitable?
With spot BTC investment, you can only make money if the bitcoin price rises. BTC futures in contrast, gives investors the chance to profit even when the price drops.
Recently, the price of BTC keeps moving up and down without a major breakout. But as long as there is price fluctuation, you can choose to long (bet on the price going up) or short (bet on the price going down) BTC. If you predict the right direction, you can profit. (If you predict the wrong direction, you will incur losses).
In spot trading, if BTC goes up 1%, you will only make 1% profit. But in the futures market, you can add leverage to enlarge your position size.
For example, if you want to invest in 1 BTC and bet on BTC falling, and leverage 100 times, when BTC goes down 1%, you will earn 100% profit. (Similarly, if BTC falls 1% you will lose your capital). In other words, you can open a larger position with the small amount of capital you possess.
Guide to Trading Bitcoin Futures Contracts and Making Money on Bexplus
Bexplus is a Hong Kong-based cryptocurrency futures exchange, offering BTC, ETH and LTC perpetual contracts with 100x leverage. Founded in late 2017, it has expanded to the USA, Russia, Australia, India, and other regions – supporting 21 languages. Bexplus exchange app for Android and iOS is also available for 36 countries, enabling investors worldwide to profit from Bitcoin futures trading.
Note: With 100x leverage added, 1 BTC=100 BTC.
Open a short position with 1 BTC
With the prediction of bitcoin going down in price, you can choose to short BTC at the price of $3,583 at the ① position with 100x leverage. When it drops to the ② position pricing $3,554, you can close the order.
Profit: 100 BTC* ($3,583 – $3,554)/$3,583 = 0.8 BTC
Open a long position with 1 BTC
If you assume that BTC will bounce back from the ③ point pricing $3,548, you can execute a long order. When BTC surges to the ④ position pricing $3,575, close the order and get profit.
Profit: 100 BTC*($3,575-$3,548)/$3,575 = 0.75 BTC
Invest in BTC futures trading, even if the BTC price fluctuates without a big break, you can earn money with 100x leverage. (You also stand to lose money if the price moves in the opposite direction). In 24h, you can earn at least 1 BTC as long as you make accurate predictions and analysis on the price trend.
Latest Bexplus Offers
Deposit Activity to Earn 100% BTC Free Bonus
To deposit BTC in the Bexplus account, you can earn a 100% BTC bonus, which can also be used to trade futures contracts and can be withdrawn. 10 BTC is the maximum!
For more info: https://www.bexplus.com/en/cash_back
Invite Friends to Join and Earn 30% Commission
Invite friends to register and trade in Bexplus, you can share 30% transaction fee of your invitees as commission. Also both you and our invitees can enjoy 10% OFF the service charge.
For more info: https://www.bexplus.com/en/account/activity_show
Register with invitation code: PCDfB and enjoy 10% off transaction fee.
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Important information – please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.