Within a few months of 2021, the market value of digital assets renewed its all-time high, reaching $ 2 trillion. However, despite such crushing victories, one should not hope for the cryptocurrency market to reach new records.
In the chart below, you can see that Bitcoin has traded relatively stable over long periods of time this year. For investors, this dynamic means only one thing – a delay in profits. Moreover, after a long period of growth of the first cryptocurrency and its renewal of the historical maximum at the level of $ 61,711, a sharp decline in its value followed.
Fortunately, there are many ways to make money in a bear market. So, this article will look at the tools of successful traders such as margin and affiliate programs, which are designed to generate profits in a highly competitive cryptocurrency trading environment – even in the midst of an ongoing bear market.
Fundamentals of margin trading
Margin trading allows investors to enter trades that significantly exceed their existing capital. Such trading is usually carried out by a trusted institution – the exchange, which is responsible for more than just the transaction.
Margin trading has functioned successfully even before the advent of the Forex market, when price fluctuations over long periods of time were very small. By opening profitable leveraged positions, traders can make huge profits from even the smallest price fluctuations.
If you dive into the cryptocurrency market, you will notice that altcoin price fluctuations over the course of one day, or even one hour, can be much stronger than that of any other asset class – even fiat currencies. For example, while the stock markets experience intraday changes equal to 1%, the digital token experiences double-digit fluctuations over the same period of time.
All of the above only confirms that cryptocurrency margin trading is unmatched in terms of potential profitability, even when compared to stocks and currency pair trading.
Now that we are familiar with the concept of margin trading, let’s take a look at how traders use leverage to profit from falling markets.
Earning in a bear market: short and long margin trading.
Consider a scenario in which you, a trader, are convinced that the value of a particular token will fall in the near future. Profiting from the impending fall in prices is quite simple – all you have to do is sell the assets and buy them later for less. At first glance, the algorithm for earning is clear and simple, but one small problem arises – it is very unlikely that you, as a retail investor, have enough cryptocurrency to sell and buy at a later time.
It is in such cases that trading platforms such as Overbit come to the rescue. With the leverage provided by the exchange, novice traders can go short at the level of a large institutional investor. In other words, by opening short positions and using leveraged assets, you have every chance of making a profit even with negative price movements.
Another important tool for making money for an investor is the opening of long positions, which allows you to make a profit in the markets moving up. In the case of this strategy, the exchange allows the trader to borrow capital instead of shares or currency units. After that, you can use the assigned leverage to receive a large amount of the asset. Depending on the direction of the market after your trade, even a small jump in price can lead to significant profits. In this case, the growth potential is limitless.
Investors can increase their initial capital both by opening short and long trades. This can only mean one thing – trading can continue regardless of whether the market is going up or down.
On the other hand, one cannot but mention the risk factor, which has its own significance on each exchange. For example, on the Overbit trading platform, you can be sure that your account balance will never fall below 0. The main function of this exchange is protection against negative balance, which ensures that you never lose more than was originally deposited into the account.
How to start margin trading
While margin trading can be very rewarding for experienced traders, for investors who are accustomed to traditional spot markets, it may seem overwhelming. In order to dispel all doubts, Overbit offers a safe and reliable platform where users can make demo trades completely free of charge.
After users have tried their hand at margin trading and gained sufficient experience, they can easily “transfer” their knowledge to a real trading environment. Currently, Overbit’s margin trading platform boasts of providing multiple markets to trade – Cryptocurrencies, Forex and Metals.
When choosing a trading platform, experienced margin traders pay attention to one of the most important factors – the size of the leverage. Overbit offers 100X leverage on cryptocurrencies and 500X on Forex pairs. Most competing exchanges only offer small margins, which naturally translates into significantly lower profits.
Earnings on passive commissions: affiliate programs
In the event that you are aiming at passive income in a bear market, then it is worth considering such a tool as a subscription to an exchange affiliate program. For example, Overbit offers a two-tier reward program that you can join completely free of charge.
The most generous affiliate program from Overbit works as follows – for each user you invite to the trading platform, you will receive a percentage of the commission paid by other referrals up to level 2. At Overbit, you can count on a commission of 30% on the first level and 15% on the second level referrals. Referral payments will continue as long as users trade on the Overbit platform.
You attract your friends to attract theirs and so on. As a result, you have an amazing opportunity to create your own community! This commission structure generates significant returns – all without any trading or risk on your part. To estimate how much you can earn with this strategy, use the commission calculator on the official Overbit website.
While many exchanges use their own tokens to pay affiliate profits, Overbit charges rewards in BTC or Tether (USDT).
How to get started with Overbit affiliate program
In order to become a partner of the program, you just need to register. After it becomes known that you meet all the criteria for participation, your personal manager will contact you, who will tell you in detail about the next steps.
Once the onboarding process is complete, you will be given full access to the affiliate partner’s dashboard. Here you can track the users who have joined your campaign, as well as the amount of the commission they have already generated for you.
From now on, all that remains is to simply share the provided links with your existing community and with everyone you want to bring to your team. If you need additional support, do not hesitate to contact your manager. Any rewards you earn will be deposited into your account and can be withdrawn at any time.
With only 60 active referred traders and 10 BTC in notional trading volume per month, you can earn over 1 BTC every month through the Overbit affiliate program. This figure is more than double that offered by competing exchanges – Bitmex and OKEX.
Overbit shares a higher percentage of its profits with affiliates, which guarantees superiority over almost any other platform. For a more detailed and visual comparison, take a look at Overbit’s commission calculator and take a look at the table below.
Overbit official website
Overbit commission calculator
Trade BTC / USD, ETH / USD, BCH / USD, XRP / USD and other currencies on Overbit…
Neironix is not engaged in forecasting the bitcoin rate. If you need the latest forecasts of the bitcoin rate against the ruble, contact the relevant specialists.