How to maximally profit from Bitcoin as the market rallies again

[cheekwit]

Bitcoin is looking strong and bullish yet again. We have already witnessed what can happen once its momentum gets a roll on and the hype draws in new crowds who want a piece of the action. Particularly now that facebook is launching their ‘Libra’ cryptocurrency, the once doubters will likely be positively influenced and think if that "FB thinks crypto is ground-breaking, then it's got to be legit seeing as they are one of the most prominent tech-giants.

With the sudden interest and awareness of cryptocurrency the Libra token will bring, it will likely act as catalyst and people will start to wonder about the other 2,000+ cryptocurrencies.  What’s clear, is there is much opportunity to capitalize on the crypto markets imminent growth.

To maximize short term price actions, bold individuals might dare to trade with leverage to magnify their position’s exposure and profit potential, while putting less of their capital on the line.  The downside to this is that by using leverage you are significantly more likely to lose that capital if the trade goes south (or in the opposing direction if shorting). For this reason, if you decide to enjoy the fruits of a high leveraged trade then you need to be completely comfortable with the amount of funds you place at risk. Hence, never invest more than you can afford to lose. 

For example, using a margin trading platform like PrimeXBT [nofollow], one could deposit a modest $500 into a margin trade with 100x leverage, which would increase a position size up to $50,000. In the last week, bitcoin’s price has increased by more than 15%, so let’s a trader caught just 5% of this upwards price action, they would 5x their initial investment with a profit of $2,500. If the trade went badly, the most they stand to lose is the initial $500 invested before the leverage was applied.

It’s a risky trade, undoubtedly, but the pay off is unparalleled with any other strategy in such a short period of time.