How to protect capital and profits with PrimeXBT?
The Nasdaq is down more than 25% from its highs, demonstrating the carnage across the board in tech stocks. The S&P 500 also began to reverse, falling nearly 20% from record highs. The Dow Jones Industrial Average held up better but is still down 15%. The sky seems to be falling on the stock market, so what should an investor or trader do?
Fortunately, there are more options and alternatives beyond the traditional buy-and-hold method of making money in the stock market. Many such tools can be used to protect capital during downtrends and turn crashes into profits. Here’s how you can protect your capital and profit from the stock market madness by using PrimeXBT.
Rising risk in global markets increases volatility
To combat the outbreak of COVID and the impact of the shutdowns on the economy, the United States Federal Reserve began to increase the money supply in cooperation with central banks and lowered interest rates, which which contributed to flooding the capital market. This capital made its way to the stock market, cryptocurrencies like Bitcoin, and other risky assets.
These assets have exploded, bringing some of the best gains investors have seen in years. A sharp V-shaped correction was all that was left after COVID, then a parabolic rally that late last year came to an abrupt end. The very reasons that pumped the markets are now the cause of its collapse. The Fed has begun to tighten monetary policy and raise interest rates for the first time in years. The result was an immediate sale in anticipation of it all.
Worse still, the supply chain is still severely disrupted due to the pandemic, China remains in lockdown, war is raging across Europe, and US inflation is the worst it’s seen in more 40 years old. Oil prices and other essentials are also soaring. Investors fear the end of the equity growth cycle for the next few years or potentially longer.
Stock market crash and cryptocurrency correction explained
In response to growing global turmoil and runaway inflation in the United States, the US stock market and its most popular stock indices have taken an extreme beating. No index has suffered more than the Nasdaqwhich represents a basket of industry-leading technology stocks.
The stock market was also lowered further by the bearish sentiment surrounding the cryptocurrency industry, which was the target of a strategic attack by a stablecoin algorithm in an attempt to drag the market down. The attack was successful and cryptocurrencies, especially altcoins, were wiped out.
No cryptocurrency has suffered worse than Terra LUNA, which fell from prices close to $100 per token to less than a penny in less than a month. The attack also damaged the peg of the UST stablecoin and caused the price of Bitcoin to plummet to a low of $25,000 per coin.
How PrimeXBT helps traders protect capital and profits
How is it possible to protect capital and even ride the storm when such extraordinary volatility occurs? With the award-winning margin trading tools offered by PrimeXBT, anything is possible. The stop-loss protection would have triggered and prevented any unwanted large drawdown. A short position could have made the sale profitable. PrimeXBT offers full flexibility of long and short positions using leverage, even simultaneously for hedging positions.
The platform has over 100 different trading instruments, ranging from crypto to stock indices, commodities to forex, and more. All of the major US stock indices mentioned above, such as the Nasdaq, S&P 500, and Dow Jones Industrial Average, can be traded on the same platform as Bitcoin, Ethereum, and other altcoins. Gold, oil and all other major assets are included.
Even PrimeXBT traders could have profited from the LUNA disaster. As one of many newer altcoins the platform has recently added, traders who were short on LUNA were given the option to sell it down to zero. Investors in LUNA lose everythingwhile PrimeXBT traders reaped all the benefits.
Prepare for anything and everything with PrimeXBT
PrimeXBT also provides other ways to help investors and traders survive in the markets when the going gets tough. Covesting copy trading allows subscribers to copy the trades of other, more qualified strategy managers who prove their worth via a transparent ranking system. Covid strategy managers have over 5000% return on investment following the recent stock market and crypto crash, showing that it is entirely possible to protect capital and even make substantial profits during downtrends.
The coveted yield accounts allow crypto holders to earn passive income through a variable APY on all inactive crypto assets. APY rates reach up to 14% during peak market conditions. This stress-free solution makes connecting to major DeFi platforms as easy as a click, right from the PrimeXBT account dashboard.
Although the damage has been done, it need not be so in the future. The next time volatility hits, make sure you’re signed up to a platform that provides you with the above tools. PrimeXBT helps protect capital and remain profitable, even in the worst situations the markets have seen. Be ready for anything and everything with PrimeXBT.