To do so, one need to know how to long/short the coins. If one only know how to long, you can’t trade to earn in the crypto winter. Most people are long only investor, be it stocks, reits, etf, unit trusts etc.
However, to survive and thrive in rough market, one should equip themselves with more financial tools and knowledge. I won’t cover shorting using things like options like TradiFi (of course some DeFI site in Crypto offer options too, but I won’t cover this for now).
How to trade profitably using Perps in FTX
Back to Crypto, many people only know how to buy the coin and long the coin. But how do we short to earn? One of easiest method would be using using Perps in FTX.
What are Perps? I won’t explain this in details but you can spend sometime to the details via FTX for more information. In a brief summary, you can leverage long or leverage short OR simple long or short coins via perpetual future derivatives.
One very important key point to note is FTX supports up to 20x leverage. You can adjust your maximum leverage on the settings page. Note that the maximum allowable leverage on FTX is lower for large positions.
Hence if you leverage, please manage your risk carefully Recently I have completed a fast scalping trade using BTC perps in order to demonstrate how to use FTX. I have leverage 20 times and trade with 50 points drop in BTC to earn 4% within 2 days.
Sharing the steps to short using FTX
Step 1: Login to your FTX and find BTC Perps to trade.
Step 2: If I want to short BTC at 21300 and take profit at 20000 (stop loss at 23000) using $100, you can key in the following.
You can view CareYourPresent website here for more details and other crypto forecast here. We were spot on again when we said BTC will bottom out on 13 July. Did you buy on that day?