Have made losses and are HODLing ? There can be an alternative way out.
Quite a few users have bought digital assets at higher prices and have been HODLing since then waiting for the bearish market change gears. We learn a lot from our users and yesterday was again such an occasion. One of our users showed us with example how margin trading can be powerfully used. And there is no need to just keep HODLing. You can minimise your losses and participate in an upside and downside market more effectively with margin.
Let’s take an example scenario. A user performed this action on 11th April
So user basically was able to cut down all his loss and also earn a profit within a day.
Just HODLing was not giving any results as the price of XRP was steadily dropping for a few weeks.
(The example has been simplified a bit for easier understanding. We would urge users to try out and share how has been their experience using margin)
So margin trading can effectively help you multiply the outcome. In the above example, we saw the case where a HODLer whose value was reduced can reduce losses or make profits by identifying markets or coins there are more fluctuations happening.
So to summarise:
- Identify which of your assets are showing a negative return and are not showing any significant change for a few days.
- Identify a coin where there is a large fluctuation happening.
- Margin borrow on that coin. Sell it off.
- Buy the coin where there is high fluctuation at a lower price point.
- Sell it at a higher price point.
- Now from the INR buy back the original currency. Return back the loan.
- Yippee! You now have a much lesser loss or rather a profit.
- Margin trading empowered you to generate the outcome.
You can understand margin trading in detail here and start trading on margin here.
Explain how margin trading works with examples and you can win upto 12K INR worth of prizes in Waves. Contest rules are here
Articles to Read
- How to make profit with margin trading and bracket orders
2. Avoid these mistakes while trading
