Why crypto margin trading?

1. Preserve bitcoin value even when the price is going down

Bitcoin is the new gold in most countries, and is more reliable than fiat currency.

You can hedge against bitcoin depreciation with margin trading, which means you can preserve value even in a bear market.

For example, you have 1 btc (at 8,000 USDT), but believe the market will decline, you can short sell bitcoin with 0.01 btc as margin. When the market goes down, you can benefit (since you predicted the right price movement), and your profits can cover or even exceed the loss in bitcoin value. 

In conclusion, bitcoin depreciation has been hedged using profits from margin trading.

2. Amplify your profits by up to 100 times

Margin trading can also be used to gain profits.

On other exchanges, when Bitcoin rises from USDT 8,000 to 9,000, you can only get a profit of 1,000 with a 1-btc investment.

With margin trading, with a 1-btc investment, your benefits can be levered to 100,000 (amplified by 100x)!

3. Buy Long & Sell Short, profitable in bitcoin bull & bear market

When bitcoin goes down, you can “short sell” BTC and benefit from a downward market. For example, if you expect bitcoin depreciates from 9,000 to 8,000, you can “SHORT” BTC in our exchange, and the profits can be 1,000x!

If you expect bitcoin to go up, you can also “buy long” BTC.

4. Better use of the capital, 1 usdt = 100 usdt

Bex500 offers you 100:1 leverage for bitcoin margin trading, which means, your $1 investment can get you $100 worth of assets.

For example, to purchase 1btc (at 8,000 USDT), you only need to put down 80 USDT as initial margin, and you can “buy long” if you expect the price to rise.

When btc hits 9,000, your profits can be $1,000.

How does it work in Bex500?

Bex500 offers 100:1 leverage on bitcoin trading, where the trader is required to commit 1% of the total contract value as initial margin.

For example: when current btc is USDT 7184.24, and you expect it to rise. Here is what you may do:

1.You will “buy a long” bitcoin perpetual contract (contract volume =1 btc).

2.Margin required=74.84 USDT (1% of btc current price); in other words, only 74.84 USDT needed in your account for 1 btc.

3.When bitcoin rises to 8,000, you can “close” your position, then your profit = 815.76 (8,000-7,184.26).

4.To sum up, by successfully predicting the market going up and with 100x leverage, you manage to get a profit of $815.76 with $74.84 as initial margin.

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