After falling below the $3,500 support level yet again, the value of BTC has dropped dramatically. The price is testing the $3,400 support level, but it might extend the decline to $3,200 or $3,000.
Meanwhile, altcoins have had it much worse. Investors continue to await the end of the protracted bear market. No one knows when and where the bottom will arrive. It may take months for BTC to find a longer-term bottom. This is where futures trading can come in.
Step-by-step guide to trading BTC futures contracts with 100x Leverage
Unlike the BTC spot trade, BTC futures trading/margin trading gives you the chance to benefit from the price fluctuations of BTC regardless of the direction in which it’s moving.
Leverage too is another attractive thing in the futures market. For example, with 100x leverage, if you invest 1 BTC in a contract, it’s equivalent to 100 BTC contracts, which amplifies the profit - as well as the potential loss - 100x.
Among several kinds of futures contracts on the market, perpetual contracts are the most popular - and are more similar to the spot trade - without expiration, which means you can open or close the order at any time. You can also set stop-profit and stop-loss orders to maximize the profit and save up to 70% of your capital in case the market suddenly switches direction.
Now, let’s see how to trade BTC futures in the real-time market. Bexplus is a Hong Kong-based cryptocurrency futures exchange founded in 2017, offering BTC, ETH and LTC perpetual contracts with up to 100x leverage. It also provides a trading simulator with 10 BTC preset, which is helpful for beginners.
Open a short position at the price of $3,620 if you think the BTC price will plunge soon.
Set the trading volume within the range of 0.1 - 100. Add 100x leverage, you can type in any volume you want and the actual amount of BTC you invest in will display as the margin used.
For instance set 100 as volume which will use 1 BTC as margin. Click the Sell/Down button to execute the short order. Close the position at the price of $3,400, you can get:
100 BTC * ($3,620-$3,400) / $3,620 = 6 BTC
Note: In the Hold Order column, set stop-profit and stop-loss to lower the risks.
You can also open a long order when it hits lower than $3,400 and make profit from its bounce back.
As you can see, BTC futures trading can be profitable especially during the bear market (you also stand to lose money). It can also hedge against spot trades. You can try it on the Bexplus exchange, and register an account with PCDfB invitation code to enjoy 10% off the transaction fee.
The 100% deposit bonus activity has been available since February 1, 2019. Deposit BTC, and you can get a 100% free BTC bonus, which can be used to trade futures contracts.
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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.