Making money by investing in bitcoin is getting harder. The rapid growth of top-30 cryptocurrencies has nearly ceased. There is a more likely pattern when an investor cannot get back even a part of his investments when selling the assets.
However, traders are in no hurry to leave the cryptocurrency market, trying to find new ways of capitalizing on virtual coins. And the Olymp Trade Forex platform, where users can trade the difference in the cryptocurrency prices without ever taking ownership, is here to help them.
How Does It Work?
The essence of trading the difference in prices is the possibility of opening a position in anticipation of both further growth of the asset and its decline.
For example, a user opened a $ 1,000 short position in litecoin. The lower the asset price, the more the trader gains.
However, the possibility of indirect profiting from cryptocurrencies is not the only advantage of Olymp Trade Forex. We are going to tell you about other crypto trading features of the platform.
Fact 1: Volatility
Even in the face of reduced interest, the daily range of bitcoin fluctuations can vary from $ 100 to $ 600. Altcoins (the rest top cryptocurrencies) most often replicate the rate of change in the "digital gold" price.
The probability of gaining profit increases if the asset can rise or fall in price by 2-5 or even 10% within one day. In comparison, daily volatility of the EUR/USD pair rarely exceeds even 1%.
And while volatility is an enemy for banks and pension funds, for simple traders sharp price fluctuations mean the possibility of high profits. The Olymp Trade Forex platform users can trade ten crypto assets and two crypto pairs: ETH/BTC and LTC/BTC.
Fact 2: A Multiplier
Suppose you have $ 100 and you want to make a trade in Ethereum. Thanks to the multiplier, the total amount of the trade can be $ 500 or even $ 1000, as the trader will be offered to set the x5 or x10 factor.
A multiplier helps a trader control a position that is greater than the amount of funds at his disposal.
The financial result of a deal with a multiplier will be calculated based on the total size of the trade, and not the trader’s investment. Thus, the higher the multiplier factor, the greater the profit.
Fact 3: Short Trades
A year and a half ago, a crypto trader could not even think of special trading tools for shorting digital coins. The market made the investors happy by super profitability, and the industry gurus talked about the bitcoin price of $ 1 million.
But December 2017 and January 2018 turned out to be turning-points. No matter how hard traders were trying to prolong the trend, the market capitalization began to lose, and it is still losing billions of dollars.
That raised the need for short positions, which means traders initiated by selling with the intent to buy the stock back at a lower price. Olymp Trade Forex users can open both short and long positions. In doing so, the commission per trade does not depend on their type.
Fact 4: Stop Loss, Take Profit
Stop Loss and Take Profit orders help traders limit the drawdown or automatically fix the potential profit.
Let’s say that a user is longing Ethereum. The investment amount is $ 500. In order not to waste time waiting, he can set the Take Profit order at + $ 250, and Stop loss order at - $ 150. As soon as the price reaches one of these levels, the position will be closed automatically.
Take Profit and Stop Loss orders help traders save time, systematize money management and automate the application of the trading rules.
Olymp Trade Forex has everything one needs for active cryptocurrency trading. A convenient and user-friendly terminal interface, more than 20 indicators and the quality of carrying out transactions make the platform a catch for both a beginner and a professional crypto trader.