(Bexplus) The cryptocurrency market had a repeat of Black Thursday on Wednesday, with numerous coins devaluing more than 30% in the past 24 hours.
The bloodbath wiped out $350 billion from the crypto market. Ether plummeted as much as 50% while Bitcoin lost 30%. Bitcoin had been trading lower after the announcement from Tesla CEO Elon Musk that Tesla would stop accepting Bitcoin as a payment method due to its high-level consumption of fossil fuels.
However, the latest blow came from China’s latest crypto crackdown, which banned financial institutions and payment companies from accepting cryptocurrency or providing relevant services.
“Prices of cryptocurrency have skyrocketed and plummeted recently, and speculative trading has bounced back. This seriously harms the safety of people’s property and disturbs normal economic and financial orders,” said the statement from official regulators.
Amid the panic sell-offs, professional traders and institutional investors remain unfazed. On May 18, MicroStrategy’s co-founder Michael Saylor announced that the company had purchased an additional 229 bitcoins for $10 million. Now the company owns 92,079 bitcoin at an average price of $24,450 per bitcoin. During the flash crash, Michael Saylor emphasized that he was not selling and that the entities he controlled owned 111,000 BTC. Wells Fargo Investment Institute also joins the crypto space, announcing that it will soon offer crypto services to its clients.
The crypto markets are extremely sensitive to any negative news, and corrections are common after bitcoin hitting new highs. In the past ten years, bitcoin had almost 300 instances when it saw a daily price change of 10% or greater. It is hard to tell whether the storm has passed, but bitcoin shows a strong recovery of 10% to $40,796. Now could be a good time to dip your toes in the bitcoin market.
The Best Strategy
In times of FUD, perhaps we could turn to Chinese wisdom. In Chinese, the word for crisis is made up of two characters. The former character bears the meaning of danger while the latter represents opportunity. While spot traders are hurt by the sell-off, traders who engaged in futures trading saw good opportunities to short bitcoin. In futures trading, traders can short or long cryptos and make money from the price differences. In addition, they can use the leverage offered by brokers to increase their exposure. In futures trading, every fluctuation is an opportunity to generate profit.
Let’s see how:
Step 1: The current price of BTC is $31,000. If you believe the price is going to drop, you can open a short position with 0.01 BTC. Now, 0.01 BTC may not seem much, but with 100x leverage, you can open a contract worth 1 BTC.
Step 2: When the price of BTC drops to $30,000, you close the position.
Profit: ($31,000-$30,000)*1 BTC/$30,000=0.033 BTC.
Bexplus is a leading crypto derivatives trading platform offering 100x leverage futures trading on a variety of trading pairs – BTC, ETH, LTC, EOS, XRP, etc. No spread, no KYC requirements, no deposit fee, Bexplus is trusted by clients worldwide, including the USA, Japan, Iran, and Sudan.
Aside from futures trading, Bexplus offers an interest wallet with up to 21% annualized interest. If you want to stop trading for a while and wait for the storm to pass, the Bexplus wallet will be a good way to grow your wealth.
Demo Account with 10 BTC
What better way to improve your skills than practicing in the simulator. 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 toolkit with the demo account.
Top Ranking Mobile Apps to Help you Trade Smartly
Bexplus mobile app ranks in the Top 5 of keyword search results related to bitcoin trading in 56 countries in App Annie. This full-featured app provides you with the same experience when using a computer, only far more convenient. Bexplus mobile app has a 24/7 market notification to keep you updated with any huge market movement. All data and assets can be accessed through all kinds of devices including Windows, Macbook, Android phones, iPhones, and tablets.
100% Bonus to Help You Maximize Profit
Double deposits, double profits. Users can get a 100% deposit bonus for every deposit on Bexplus. If you deposit 1 BTC, 2 BTC will be credited to your account, and the profits gained with the bonus are withdrawable.
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