HOW TO NAVIGATE THE BEAR MARKET Bear markets are usually challenging period for investors as…
HOW TO NAVIGATE THE BEAR MARKET
Bear markets are usually challenging period for investors as assets invested in keep loosing value .
From an all time high of $69020 which BTC made in November 2021 , Bitcoin has lost more than 40% of its value. As I write , Bitcoin is currently trading at $29200 a fifty seven percent loss 😱. Such a significant drop in price which is usually termed bear market is often challenging to investors as their assets lost more than fifty percent of its value .
With the likely continuation of the ongoing market trend , it behoves the investor to seek alternative means of earning interest on investment as capital is tied down and no reward coming forth . Hence the question : Which way forward ?
As Savvyinvestor1, it is my responsibility and expertise to expose you to numerous alternatives to overcoming bear markets . Ensure to make the best of this 👍.
TRADING BINANCE FUTURES WITH MULTI-ASSET MODE .
Futures trading is a type of investment activity where investors trade contracts or agreements that are to be settled on a later date — in the future. In the Binance platform , there exist the perpetual and quarterly futures contracts.
It gives me the flexibility of earning profits by shorting weak assets in bear markets.
To learn more about futures trading, kindly see this detailed video tutorial.
Binance Futures Multi- Asset Mode
Just as the name implies the Binance futures multi-asset mode is a new trading and investment feature on the Binance futures platform . As explained in the above video tutorial, investors use futures to circumvent price volatility and uncertainty ; hence trading futures with the multi-asset mode is an added advantage as we will shortly see .
The Binance Futures Multi-Asset Mode : This is a trading and investment feature on the Binance futures platform that allows users to trade various asset using either USDT or BUSD or both as collateral.
Unlike the popular single-asset mode , the multi-asset mode allows users the convenience of sharing their margin which can be either USDT, BUSD or both . This is a great improvement as the challenge of low or insufficient margin which usually turn profitable investments to losses are won .
ADVANTAGES OF TRADING BINANCE FUTURES MULTI-ASSET MODE
In addition to the numerous advantages of trading and investing with futures contracts, here are the advantages of using the Binance Futures Multi-Asset Mode :
- Enable you share your PNL ( Profit and Loss ) across the BUSD — USDT margined accounts . Through the Binance futures multi-asset mode, investors profit and loss are a net result of all positions and not individual positions as in single asset mode . This can help offset and buffer account in cases where an investment is yet to be in profit and save from liquidation.
- Low Transaction Fees : By trading BUSD — multi-asset margined contracts , traders tend to pay less in transaction fees for their investment on the Binance futures platform. Though transaction fees can be negligible when processing low volume transactions but in the long run, these add up and can be a means of loss in business. Hence a savvy investor and business should consider reducing his overall cost .
- Hedging : The Binance futures multi-asset mode is in hedge mode hence traders have the flexibility to be on a long term investment ( swing trades ) and still profit from short term price fluctuations. E.g A trader who shorted or sold BTCUSDT from its all time high can still be buying the short term rallies and make more profit contrary to what is obtainable in the single asset mode where and investor must trade only a direction.
- Margin : In the Binance futures multi-asset mode, profits from either USDT-margined or BUSD-margined accounts can both be used as margin or investment capital. This is in sharp contrast to the single asset mode where investors have to only hold a given margin for each account and trade .
Too numerous are the benefits of the Binance futures multi-asset mode.
BUSD-margined accounts are accounts traded and settled in BUSD. Example : BTCBUSD, ETHBUSD , BNBBUSD .
Advantages of Trading BUSD Margined Contracts With Multi-Asset Mode.
- Eliminates Volatility : Unlike spot trading and the Coin margined futures trading, BUSD futures being the best stable coin eliminates the problem of asset price changes on settlement dates .
- Lower Fees : The almost negligible fee associated with BUSD multi-asset futures trading is an added advantage to investors as they pay less when compared to other contracts and exchanges.
- Support For The Ecosystem: By trading BUSD-margined multi-asset mode on the Binance exchange, you show your continued support for the ecosystem and changes it is bringing.
HOW TO SELECT MULTI-ASSET MODE
ON MOBILE APP
1. Load Your Binance Application
2. Ensure You are In Pro-mode : To change from lite mode to pro 👇.
a. Navigate to profile :
b. Turn — Off Lite mode :
c. Your home screen changes to this , do not be surprised:
3. Select Futures from your home screen:
4. From the futures trading homepage, select the three dots at your top right corner of your screen .
5. Select Preferences :
6. Select Asset Mode , then Multi-Asset Mode:
b .Then Multi-Asset , you will be prompted to change single asset mode to Multi-asset mode , confirm.
Do well to read the guide to learn more about risk management in multi-asset mode.
c. Change from default isolated margin to Cross Margin mode and click confirm.
You are now ready to enjoy the Binance futures multi-asset mode.
TO SELECT MULTI-ASSET MODE ON YOUR DESKTOP :
- Download the Binance Application desktop version ;
- Load the application ;
- Select Futures from the top left corner of your screen 👇:
4. Navigate to the top right hand corner and select trade preference :
5. Select preference :
6. Select Asset Mode on the next pop up screen , then Multi-Asset Mode :
NOTE :. If you were in single asset mode and isolated margin , you will be required to change to cross margin as in mobile version above .
You are now ready to trade Binance futures multi-asset mode. Start practicing and trading here today .
FUTURES TRADING IS A GOOD WAY TO BEAT THE BEAR MARKET, NEVERTHELESS A LEVEL OF EXPERTISE IS REQUIRED ; DO CONSULT WITH YOUR INVESTMENT ADVISOR PRIOR TO TAKING PART IN FUTURES TRADING
Sign up for your free Binance account and enjoy 10% fees deduction with this link
For more information kindly reference here