Despite many calls for caution, the use of leverage is booming in cryptocurrencies. While it carries some risk, sensible use can be part of a concerted and sensible strategy. Choosing an exchange where liquidity is high remains paramount so as not to add difficulty to an already arduous practice. Few platforms are able to offer such attributes, and PrimeXBT is a reference in the sector.
Between diversification and protection
For some, investing in crypto-currencies is a bet on the future, for others, a purely lucrative fad. Despite the prevailing volatility affecting digital assets, it is possible to protect oneself from it, by adopting strategies that allow to hedge some of its positions.
While many investors have significant exposure to certain assets, the more sophisticated among them use futures or other diversification methods to prepare for any eventuality. Using a short or a long with minimal leverage allows you to make money regardless of the direction of the market and to balance your investment strategy.
However, choosing a reputable platform should be a priority. Many investors suffer from the vagaries of a lack of liquidity, preventing them from closing positions or selling them at market value. With volumes approaching $600 million per day, PrimeXBT makes it easy to take positions in Bitcoin and Ethereum.
Taking advantage of volatility on the upside and the downside
Is taking advantage of volatility really possible? On both the upside and the downside, risk management is an absolutely fundamental concept. If you can afford to trade digital assets without a stop loss in an uptrend, it is unthinkable to do without in a volatile environment. To perform in such a context, it is therefore necessary to manage risk extremely rigorously and over more limited time units. In this type of market, there is no question of leaving a position open for several days or weeks.
Volatility offers a great opportunity for the most experienced traders. Short-term rises and falls follow each other very quickly, so taking advantage of a rebound and selling at the slightest sign of weakness is a common practice.
The multitude of investment tools available on the market can allow you to quickly diversify your trading approach. PrimeXBT is the author of a reliable and secure solution that makes this experimentation possible, thanks to the large amount of liquidity it offers.