Bexplus Investment Advice – Profit from Bitcoin Bear Market

Most professionals predict that after one-year depreciation of the Bitcoin market in 2018, the Bitcoin price probable keep decline in 2019. If you buy 1 Bitcoin in the spot trade market with 10000 dollars at the beginning of 2018, your Bitcoin may only value 3600 dollars at present. In Bitcoin Bear Market, the only way to earn your value back is to trade your Bitcoins to other Altcoins and when the Altcoin price rises, you can trade back to Bitcoins to expand the number of your Bitcoins. However, same as Bitcoin, all the Cryptocurrencies are devalued. It has a higher risk to invest Altcoins which the price of Altcoins falls even further.

Data from CoinMarketCap

You may have questions How can you earn bitcoins in this bear market? Wed like to introduce you a new type trading product called future trading contract.

Different from the spot trade, Bitcoin futures trading gives you chance to make profits on both Bull (uptrend) or Bear (downtrend) market. You can choose to buy long (predicting Bitcoin price up) or put short (predicting Bitcoin price down). In addition, Bitcoin futures always have leverage added, which means that with a limited amount of Bitcoin, you can profit much more by leveraging your Bitcoin futures position. For example, suppose you buy 100 bitcoins by 4000 dollars for each, your total investment is 400000 dollars. if Bitcoin price fell to 3000 dollars, you will lose 100000 dollars. However, you can easily earn by using future trading contract with 100x leverage. Let us follow the previous example, you decide to use your 100 Bitcoins to put short in the price of 4000 by future contract. When the price falls to 3000 dollars, you can earn 33 bitcoins. Now you have totally 133 bitcoins, which values 400000 dollars, your real value remains the same because of the rise by the Bitcoin you owned.

Magically, you can limit your investment with a small amount of Bitcoin to earn the same about profit, followed by the previous case, you possibly hardly to invest all your 100 Bitcoins because of the high risk. You can use 1-unit of Bitcoin to put short in the price of 4000 by future contract. With 100 times leverage, your 1 Bitcoin investment expands to 100 bitcoins. When the Bitcoin price falls to 3000 dollars, you can also earn 33 bitcoins which are the same profit compared to the previous case without leverage. However, as you see, you only need to invest 1 Bitcoin. What is magic!!! Lets do some calculation to make the profits more understandable.

First Example: Spot Trading

Your total investment: 100 Bitcoins (400000 dollar) in the price of 4000 dollars. When the Bitcoin price falls to 3000 dollar, your total investment value: 100 Bitcoins*4000 dollar-100 Bitcoins*(4000-3000) dollar=300000 dollar. Although the units of bitcoins are same, the total value of your bitcoins is a loss for 100000 dollars.

Second Example: Future Trading with 100x Leverage

Your total investment: 1 Bitcoin (4000 dollars) in the price of 4000 dollars. When the price falls to 3000, your total investment value: 1 bitcoins * 100x leverage=100 bitcoins. 100 bitcoins*(4000-3000)/3000=33 bitcoins (100+33 ...

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Tags: Bitcoin, Investment, Profit (economics), Bear, Market (economics), Spot Trading