In a bull market, where the trajectory of assets is largely upward, traders are presented with ample opportunities to profit.* The Wirex Multiply product offers a potent tool for those wanting to amplify these opportunities.** But first, it's crucial to grasp its mechanics.
Wirex Multiply: A Glimpse into Its Mechanics
Wirex Multiply is not just any trading product; it's a perpetual future that multiplies your trading prowess. Picture this: You deposit £100 in BTC, anticipating a price surge. By applying a 10x multiplier through Wirex Multiply, your market exposure increases to £1000 worth of BTC.
This multiplier effect means that your potential profits can surge tenfold compared to standard trading. But remember, with increased profit potential comes heightened risk. A mere 10% drop in the Bitcoin price can wipe out your initial £100 deposit. Without multiplied BTC exposure, BTC’s value would need to tumble to absolute zero for you to face a similar loss.
With the core idea of Wirex Multiply clarified, let's delve deep into the strategic realm of bull markets:
Trend Following: An Overview
Concept: Trend following is akin to riding a wave. In a bull market, this strategy capitalises on assets already ascending, banking on the assumption that this upward trajectory will persist.
Applying with Wirex Multiply:
1. Scour for Momentum: Pinpoint assets showcasing a consistent uptrend over a specific timeframe.
2. Recursivley borrow Intelligently: Depending on your risk appetite, deploy a multiplier – say 5x, 10x, or more.
3. Lock in Gains: Use the Take-Profit feature, to ensure you secure profits once your asset hits a target price.
4. Guard Against Reversals: A Stop-Loss is your safety net against unexpected trend reversals.
Breakout Trading: Unleashing Potential
Concept: Think of breakouts as assets breaking free from constraints. In bullish scenarios, an upward breakout signifies the potential continuation of the rally.
Applying with Wirex Multiply:
5. Spot the Consolidation: Zero in on assets fluctuating within a tight price band.
6. Act on the Break: If an asset price surges past its resistance, propelled by robust volume, it's a potential buy cue.***
7. Maximize with Recursive Borrowing: Fortify your position using Recursive borrowing. And as always, set Take-Profit and Stop-Loss markers to navigate risks.
Moving Average Crossovers: Simplifying Complexity
Concept: Moving averages iron out price fluctuations, offering a clearer picture of an asset's direction. When a short-term average surpasses a long-term one, bullish sentiments often prevail.
Applying with Wirex Multiply:
8. Harness Technical Indicators: The 50-day and 200-day moving averages are your guiding lights here.
9. Spot the Crossover: A bullish signal is on the horizon when the 50-day average strides over the 200-day line.
10. Position Safeguards: Set Take-Profit and Stop-Loss metrics to cater to your risk tolerance and ensure you exit efficiently.
Momentum Trading: Harnessing Velocity
Concept: Here, speed is the essence. The Momentum trading Strategy zeroes in on assets sprinting upwards and aims to capitalize before they lose steam.****
Applying with Wirex Multiply:
11. Identify Speedsters: Seek assets blazing the trail, often spurred by groundbreaking news e.g. the Ethereum Merge.
12. Leap with Recursive Borrowing: Dive in with a amplified exposure, aiming to ride the asset's wave.
13. Stay Vigilant: Be on the lookout for diminishing momentum. Exit strategies are crucial.
Mean Reversion: Banking on Balance
Concept: Everything seeks equilibrium. Mean reversion suggests that prices, after deviating, will revert to their moving average.
Applying with Wirex Multiply:
14. Spot the Deviants: Find assets straying too far from their mean but showcasing signs of a return.
15. Amplify the Return Journey: Hop onto the reverting trend, amplifying gains through a multiplier.
16. Tread with Caution: Given the bullish backdrop, set strict Stop-Loss and Take-Profit points.
In conclusion, trading the bull market via Wirex Multiply demands more than just strategies. It's about thorough research, continuous vigilance, and responsible use of the platform's features. With proper Stop-Loss and Take-Profit measures, combined with apt recursive borrowing, traders can systematically approach the bull market. But always bear in mind that the allure of higher returns with multiplied exposure to trading is paired with equally potent risks.
*The prices of Cryptoassets fluctuate, sometimes dramatically. The price of a Cryptoasset may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling Cryptoassets.
**Crypto products, including Wirex Multiply, can be risky for users. The value of your assets may decrease significantly lead to a total loss, and there may be no regulatory recourse for any loss from such transactions depending on your location. Please do your research thoroughly. Subject to location of the user, the Terms and Conditions and Privacy Policy.
*** The information provided in this blog post must not be considered investment advice. The information provided if for information purposes only and under no circumstances should be interpreted as investment advice.
****The value of cryptoassets may fluctuate significantly over a short period of time. The volatile and unprecedented fluctuations in price may result in significant losses over a short period of time. Any Cryptoassets may decrease in value or lose all its value due to various factors including discovery of wrongful conduct, market manipulation, change to the nature or properties of the Cryptoasset, governmental or regulatory activity, legislative changes, suspension or cessation of support for a Cryptoasset s or other exchanges or service providers, public opinion, or other factors outside of our control. Technical advancements, as well as broader economic and political factors, may cause the value of Cryptoasset s to change significantly over a short period of time.