{"id":3750,"date":"2021-05-25T00:37:45","date_gmt":"2021-05-24T23:37:45","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=3750"},"modified":"2021-05-25T00:37:47","modified_gmt":"2021-05-24T23:37:47","slug":"can-you-ever-gain-profit-off-a-red-market","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/can-you-ever-gain-profit-off-a-red-market\/","title":{"rendered":"Can You Ever Gain Profit Off a Red Market?"},"content":{"rendered":"\n
Seeing the market going bad is totally frustrating for any crypto trader\u2014or anyone with any crypto asset holdings. However, those who are passionate about trading don\u2019t have to despair. It is still possible to turn your fortune around\u2014but you have to be bold enough to take advantage of the red market<\/a>.\u00a0<\/h5>\n\n\n\n
\"Can<\/figure>\n\n\n\n

What Are Long and Short Positions?<\/h2>\n\n\n\n

Firstly, understanding the market goes a long way towards making the right and valid choices. Although it\u2019s often used to refer to complex trading procedures, it does not have to be too complicated itself. The terms we\u2019re referring to are\u00a0long<\/strong>\u00a0and\u00a0short positions<\/strong>, of course.<\/p>\n\n\n\n

A\u00a0long position<\/strong>\u00a0means you have bought certain assets that you now own. A\u00a0short position<\/strong>\u00a0means you owe the assets to someone but don\u2019t own them yet. You probably already know about long positions being inherently bullish in nature\u2014this is because you already own those assets, they\u2019re fully paid for, so to profit off them, you\u2019re hoping the price will rise.<\/p>\n\n\n\n

On the other hand, if you\u2019re selling assets but you don\u2019t own them (ie. shorting), the situation is slightly more complicated than that. You will first have to buy those assets: one of the most common ways is by using a margin account, where you\u2019re basically borrowing. Then, when you have to pay it back, you hope that the price will fall so the difference between the two purchases is your profit. This is why a short position is considered bearish.<\/p>\n\n\n\n

We\u2019ve mentioned another term that we haven\u2019t explained here: a margin account<\/strong>. By definition, \u201ca margin account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products,\u201d Investopedia explains. There is usually a collateral that depends on the brokerage, as well as an interest rate.<\/p>\n\n\n\n

As you\u2019re investing with more funds than you otherwise would,\u00a0margin trading\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a><\/strong>\u00a0can earn you much higher profits, even when you pay back the borrowed funds. However, the same is true if you lose: you will lose both your own funds and the borrowed ones, plus you will owe a certain amount of interest on top of that.<\/p>\n\n\n\n

This is why margin trading is extremely risky and should be approached with the utmost caution. Add to that the inherent volatility of the cryptocurrency market, and the situation gets quite complicated. But also, as we mentioned, this is an opportunity for a savvy investor to profit even when the markets are turning red.<\/p>\n\n\n\n

How Can I Get Started?<\/h2>\n\n\n\n

So you have done your research and decided that you can take the risk of margin trading. The first step is choosing a reputable trading platform: PrimeXBT offers access to more than just cryptocurrencies with leverage of up to 100x, making it an excellent place to trade. You will need to open an account\u2014which is easy, as long as you have a valid email address, as you will not need to provide any other personal data.<\/p>\n\n\n\n

After that, fund your account with either crypto or fiat of choice and read up on the long and short examples on their website! As for trading itself, PrimeXBT is very straightforward. There are several places from which you can place your order (each of which is marked with Trade), and all you need to do is fill in the details in the New Order window. You can modify your order later if needed.<\/p>\n\n\n\n

Ready to seize your opportunity? Then follow this link to sign up with PrimeXBT!<\/p>\n","protected":false},"excerpt":{"rendered":"

Seeing the market going bad is totally frustrating for any crypto trader\u2014or anyone with any crypto asset holdings. However, those who are passionate about trading don\u2019t have to despair. It is still possible to turn your fortune around\u2014but you have to be bold enough to take advantage of the red market.\u00a0 What Are Long and […]<\/p>\n","protected":false},"author":63,"featured_media":3751,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[238],"tags":[231,374],"class_list":["post-3750","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion","tag-market","tag-red"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/05\/b988674c01.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/3750","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/63"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=3750"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/3750\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/3751"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=3750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=3750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=3750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}