BTCDOWN is an extraordinary cryptocurrency that differs from most assets. The feature is the leverage built into the coin, which boosts profits. You'll learn what cryptocurrency BTCDOWN is and where to buy it in this article.
What is leverage
Leverage is a tool for traders, that is, people who trade professionally in the financial market. It allows you to borrow money to increase your profits. Let us have a look at an example:
- a trader has $100 in his account;
- he expects BTC to rise by 1% and wants to make some profit;
- the trader will earn $1 by simply buying $100 worth of BTC and selling it when the price rises 1 percent;
- this profitability doesn't suit the user, so he uses a leverage of x10;
- using $100 as a deposit, the trader buys $1000 worth of BTC (10 times the current amount; if the leverage was x5, for example, the trader could use only $500);
- after BTC grows by 1%, the trader fixes his profit and earns $10 instead of $1 (i.e. 10% instead of 1%).
In this way, leverage gives an opportunity to increase the profitability of profit-making trades. However, there is an opposite side. If price moves to the opposite side than expected using x10 leverage, the user will lose his money 10 times faster. In the above example, if the price of BTC fell by 1%, the trader would lose $10, not $1, as in trading without leverage.
That's why experts recommend using this tool only for experienced participants of the crypto market who are well aware of the risks.
More about BTCDOWN
BTCDOWN is a digital asset with a set of features. It already has built-in trading leverage that varies from x1.5 to x4. But another interesting point is that the price of BTCDOWN cryptocurrency rises when Bitcoin falls.
Trading platforms have the ability to open short positions when it' s necessary to play the digital asset down. Buying BTCDOWN is a simplified form of entering such a trade. The coin is designed for users who want to short without too much difficulty, and even with leverage.
To help you understand what to expect, let's look at an example:
- let's say the price of Bitcoin is $50,000;
- you expect the price to go down and want to make some profit;
- to achieve your goal, you buy the BTCDOWN asset;
- if the prediction is correct and the value of Bitcoin falls, the price of the cryptocurrency BTCDOWN will rise;
- let's say you bought $100 worth of BTCDOWN, and Bitcoin's value dropped 1% to $49,500;
- the coin has x1.5 to x4 built-in leverage (it varies) - most commonly around x2, and suppose that is the leverage the asset had at the time of purchase;
- In this case, you would earn 2% of the purchase price, so in the case of $100, it would be $2.
The opposite is also possible. If Bitcoin rose, say, by 2% to $51,000, then the BTCDOWN cryptocurrency would fall by 4%, and you would sell it for $96, losing $4.
Is it worth buying BTCDOWN
This asset is considered to be a complex tool, not appropriate for beginners. However, if you are sure that Bitcoin will fall in the near future, then buying BTCDOWN will be the right decision. If you turn out to be right, you'll be able to make good money.
If you don't understand the cryptocurrency market well enough to predict it, it's better to pay attention to other assets. For example, just start by buying the most common Bitcoin, which is considered the main cryptocurrency because it came into existence before other coins.
Where to buy cryptocurrency BTCDOWN and other cryptocurrencies
Investments in digital assets are gaining popularity, and with it there are many fraudulent platforms that deceive users and are not suitable for trouble-free purchase of coins. Therefore, it's important to choose a reliable exchanger so that you don't have to worry about the risk of losing money when using it.
We suggest you pay attention to Broex. The exchanger stands out by having an official license. It has passed the checks of Estonian state regulators, so it provides services 100% legally. You can buy cryptocurrency BTCDOWN and more than 2,000 other coins through Broex.
Other advantages of Broex exchanger:
- commissions from 0.1%;
- mobile app to make exchanges from your smartphone;
- the minimum deposit is 1,500 rubles;
- it's possible to store cryptocurrencies without withdrawing them to third-party wallets;
- 24-hour technical support in Russian;;
- simple interface, easily mastered by beginners.
This makes the platform a good choice for users who are just starting to learn the cryptocurrency market, as trading via Broex exchanger is safe and convenient. All you need to do to get acquainted with the service and try to master it is to go through the registration procedure, which takes 1-2 minutes.
