Low Volatility

Another benefit these traditional assets offer to cryptocurrency traders, is for those whose capital is not large enough to withstand the deep correction or drawdowns found across the cryptocurrency market. When Bitcoin’s parabolic advance broke, it fell a total of 85%.

As PrimeXBT provides cross-margin — which is applied to the whole account rather than to a single trade — traders could have avoided stop-outs, due to the decline in crypto prices by diversifying their portfolios into more stable markets, such as Forex.

By diversifying one’s portfolio, the risk associated with the volatile cryptocurrency market can be diminished significantly. Once a trader sees opportunity once again in the crypto market, PrimeXBT traders can exit their forex positions and re-enter the crypto market for significant gains. Best of all, with PrimeXBT there is no need to register on multiple platforms to access such a variety of asset types.

Variety of Asset Types

The wide variety of assets types we offer allow traders to profit at every opportunity across all markets, rather than traders being confided to just one market regardless of the market conditions. Time is the most valuable resource of a trader, and thus waiting patiently for a sideways trend to break out is also leaving potential profits behind.

With PrimeXBT, if the crypto market is stagnant or the trader doesn’t see any entry points that fit their trading strategy, traders can enter another market – for example Commodities, Forex, or Stock Indices — where there is more opportunity for profitable movements, and can return to the originally preferred market once price action picks up again and profitable market conditions improve.

By trading a variety of assets, it will help traders gain insights into the overall global economy and additional individual markets across the financial world. As Nathan Rothschild famously said: “Who owns the information, he owns the world.” The added understanding and knowledge about what is happening in the global economy can be an additional tool in a trader’s arsenal.

Assets As Indicators

Assets themselves can provide traders with a wealth of useful information, and can even be important indicators themselves, signaling economic growth or downturn, depending on which assets are growing or in decline. The best traders use this information on overall economic climate to help inform their trading positions and generate additional profits.

During times of global economic prosperity and calm, large-scale investments flow into riskier assets such as cryptocurrencies, stocks, and indices. As new capital flows in, these assets grow in value making them ideal for long positions. This was evident during the 2017 crypto bull run, when Bitcoin skyrocketed to $20,000.

The moment there is turmoil, crisis, or economic downturn, investors flee riskier assets like cryptocurrencies in favor of safe havens such as previous metals. Traders who take note of this outflow of capital from one market to another can help them decide what markets to take positions in. For example, a major crash in cryptocurrencies might be the best opportunity to take a position in Gold or Japanese Yen.

Conclusion

PrimeXBT arms traders with all the tools necessary to profit off both a growing or falling market using up to 100x leverage on crypto assets and up to 1000x on forex trading pairs. But for traders that try their hand at other markets, they will have access to even more helpful information to guide their trading strategy towards profitability, gain exposure to additional global markets and valuable insight into global economy, and lower overall risk by diversifying their investment portfolio across a variety of financial instruments for the greatest chance at success.

Start trading Forex, Commodities, and Stock Indices today!