The crypto markets are nothing if not volatile. Every day offers new drama, whether it’s due to the shifting macro outlook, latest company implosion, or sudden altcoin pump. Even for those who’ve spent years in the trenches, it can be hard divining why the market is moving violently in a particular direction.
Profitable traders know better than to worry about why: rather, they’re intent on maximizing the gains to be derived from the directional moves. BingX, the popular derivatives and copy trading exchange, has launched a new feature designed to do just that.
Volatility Is Your Friend
Volatility is a feature, not a bug. It’s what makes crypto trading so exciting and, for those who’ve gotten good at it, so lucrative. Bitcoin, for example, might be down 65% from its November high, but it’s also up 23% in a week. Ethereum, meanwhile, is up 53% in a week. The market is many things, but it’s rarely boring. To help traders capitalize on pronounced market movements, a number of exchanges have developed products that are centered arounds volatility. FTX, for example, offers a MOVE contract that pays out the more the market moves in any direction.
And then there’s grid trading, the latest offering from BingX. This automated trading strategy executes scores of low buy orders and high sell orders during periods of price volatility. The advantage of such a system is that it kicks in automatically, preventing the need for traders to be alert to the first sign of movement. BingX actually introduced the feature in March for its spot market, but it’s now gone one better and rolled out futures grid trading.
Introducing Responsible Leverage
By using leverage, traders can maximize profits while still mitigating against losses through utilizing built-in security features. For traders seeking a passive strategy, futures grid trading can be tried with as little as 20 USDT on the line, providing a simple means of determining whether the system is profitable. From there, traders can up the position size and increase the leverage as they see fit.
As the exchange’s Communications Director, Elvisco Carrington, explains, “Part of BingX’s strategic focus is to provide users and traders with a better trading environment and new tools that facilitate profitability. We are also further simplifying the trading process so they can employ new trading tactics that allow them to gain, especially considering the current market situation.”
The “market situation” in question is the current bear market, although even that is now up for debate following the past seven days, during which assets have recovered much of the losses they accrued during a torrid June. While the debate over whether the crypto market has now bottomed rages on, astute traders will put such matters aside, focusing instead on how to make the trend their friend by harnessing the intraday moves to greater effect.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
