- Wirex Multiply is our new feature allowing users to loan a portion of their assets to predict the future price of a currency
- You can then choose to multiply that loan to increase the potential rewards
- This feature will help users to grow a small portion of their assets using the Barbell Strategy
Wirex Multiply - our newest feature lets you multiply your funds, capitalising on crypto market volatility. If you’re looking to grow a certain portion of your portfolio, Multiply gives you ultimate flexibility and control over your risk level.
Depending on your financial strategy, Multiply helps you to buy or sell more crypto with the help of a loan. From there, you can use that loan to get more loans, giving the potential for huge returns.
What is the Barbell Strategy?
There are many financial growth strategies out there; The Barbell Strategy from Nassim Taleb is one of them. Wirex Multiply is one of Wirex’s high-yield wealth products, which allows you to utilise the barbell strategy for trading.
The Barbell Strategy is a trading method involving users investing the majority of their portfolio in safer, long-term investments, whilst a small amount is used to invest in short-term, higher-risk investments.
Risk level should always be a personal decision, and a good rule of thumb is to maintain 80% of your assets in Wirex’s passive earning X-Accounts, whilst allocating 20% in higher risk investments such as DUO and Wirex Multiply. This strategy allows an optimal risk balance with the potential for greater rewards. Using this strategy within the Wirex app may lead to greater growth in your overall portfolio.
Nassim Taleb summarises it this way: “Antifragility is the combination of aggressiveness plus paranoia… protect yourself from extreme harm, and let the upside… take care of itself.”
What is Wirex Multiply?
Wirex Multiply lets you loan a portion of your assets to predict the future price of a currency, whether that’s higher or lower. By predicting the difference in the buy and sell price, you can choose parameters to increase the value of the loan, and thus potential returns and risk.
To start, you’ll need to deposit funds as collateral, although this doesn’t have to be in the same as the currency that you’re trading. The largest amount you will ever risk losing is the amount you initially deposit. Similarly, any profits (minus fees) made will be paid out in the same currency which you deposited it in.
Once you’ve selected a currency to take out a loan, this will form part of a trading pair, whose price it is pegged and compared to. If you believe the price of that asset will go up over time, you’ll buy the trading asset at a low price and then sell it a higher price, or if you believe the price will go down, you will sell the asset at a higher price and buy it at a lower one.
You’ll then choose how much you want to multiply this by, which increases the number of loans in it and makes it more responsive to price changes. This multiplier sees Wirex initiating a chain of loans to multiply the initial amount you’ve deposited in the trading currency, which is used to buy more crypto to use as collateral for another loan, and so on. This can be repeated as many times as you wish. The more you multiply it, the higher potential returns, but also the higher level of risk.
You can close your Wirex Multiply at any time unless it reaches the lowest level (margin call) where it will close automatically.
Can you give me an example of this?
We asked Yves Renno, our Head of Trading, to explain this in layman’s terms:
“If you deposited £100 worth of BTC and you’re predicting the price will go up, and you’ve got a loan of 10x the multiplier, you’re essentially trading £1000 worth of BTC. This allows you to earn 10x the amount as if you bought and traded BTC on an exchange over that period of time.
However, by using the multiplier of 10x, you have much higher risk of hitting the margin call (the lowest amount until your Wirex Multiply closes). In this case, you only need the coin to drop 10% until you lose your £100 of BTC that you initially deposited. But if you didn’t use the multiplier of 10x, you’d need the price of BTC to drop 100% for you to lose that same £100 that you deposited.”
Why use Wirex Multiply?
- User-friendly – utilising our innovative UI and automated technology, it’s a straightforward-way to earn high rewards
- Low minimum amounts - the minimum deposit needed as collateral to open a Wirex Multiply is $30-$100, depending on market conditions
- Ultimate control – you choose the level of risk and potential return
- Manage your losses and profits – put in place Stop Losses and Take Profits to lock your profit and end the trade when it hits a certain level, or end the trade when you hit a minimum price to limit losses
- Best-in-class technology – use state-of-the-art technology to work with many providers and use real market execution to place the trades and assess real-time prices
Exclusive Offer: Get started with Wirex Multiply and get Cryptoback™rewards!
Yes, you read that correctly – our popular Cryptoback™ rewards programme is expanding and you can now increase your WXT balance with Multiply as well!
How does it work? It’s simple. From the 26th January, as detailed in the T&Cs, open your first Multiply with a minimum of $100 and get 2000 WXT as a reward!
Want more? Open 5 Multiply's with a minimum of $100 each and get 20,000 WXT! How great is that? We didn’t joke around when we said Cryptoback™ rewards are better than ever!
If you’re tired of just earning passive income on your assets, why not try the Barbell Strategy and allocate a portion of them to Wirex Multiply today to start earning high returns.
The content of this publication should not be construed as an express or implied promise, guarantee or implication by Wirex that clients will profit or that losses in connection can be limited from reliance on any information. The content is purely educational and informative, not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice and should not be relied on for those purposes. The author and Wirex are not responsible for any loss arising from any investment based on any perceived recommendation, forecast, or other information contained here.
None of the information in this article constitutes an offer (or solicitation of an offer) to buy or sell any currency (whether cryptocurrency or fiat) or product, make any investment or participate in any trading strategy.
Crypto products, including Wirex Multiply, can be risky for users. The value of your assets may significantly and 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.