I never been a crypto day trader as I am a HODLer by definition! I find day trading too stressful and it doesn't fit my gambling personality. However, I started doing a bit of Contract Trading on Bityard but not for financial gains. The whole purpose is to explore the platform and create some educational content.
I started with the two main players on the cryptoworld, Bitcoin and Ethereum, and played with price predictions.
The contract trading is the method of trading that aims to gain profit from market volatility. This method allows the user to forecast if the price of an asset will go up or down, involving leverage.
The traders are not buying or selling the asset, only speculating the price and forecasting if the value will go up or down. Contract trading can bring profit quicker than holding assets but the risk involved with this type of trading is higher. Bityard has two different types of Contract Trading: Cryptocurrencies and Derivatives.
The Contract trading is different from spot trading. The trading instrument called contract allows the investor to trade on the price movement of the cryptocurrency, at a future date or and at the desired price. It involves leverage and therefore the traders are not buying or selling the asset, only speculating on the price movement. With a trading fee set at 0.05%, Bityard has trading fees lower than the industry's average.
What is Bitcoin?
Bitcoin, created in 2008 by Satoshi Nakamoto, is the most important cryptocurrency in history. Bitcoin (BTC) is the largest cryptocurrency measured by market capitalization and amount of data stored on its blockchain, and is forecasted to continually expand.
Due to the market capitalization and global implementation, Bitcoin is the most traded cryptocurrency, in spot or contract trading. The Crypto Contract layout makes it easier for traders to select crypto contracts and gain profit depending on the market.
On Monday, 8th of February, Tesla announced they bought $1,500,000,000 worth of Bitcoin (BTC) as a method to diversify and maximize cash returns. As an instant result, the price of Bitcoin surged from $38,000 to $42,000 in matter of hours.
Bitcoin (BTC) Contract Trading
In the below scenario, I am forecasting that the Bitcoin price will go up. Selecting “Long” will open the contract, at the current value of $38689,88 and profit will be generated if the price goes upwards.
For this transaction I set the leverage at 25x, using 5 USDT for this contract. The 0.05% fee was added to the order. Once confirmed, the Bitcoin contract will appear in the bottom of the dashboard, under the “Positions” tab. The contract details will include the name of the cryptocurrency, the leverage, the chosen margin, opening price and opening time.
The contract will close automatically if the price will raise or drop at the set value, or it can be closed by the user at any time. Closing the contract manually is a method that can bring profit when the value is close to the set value and the price stops moving. Closing the contract will bring a smaller profit but will reduce time wasting and stress due to volatility. I closed the contract with a 5.38% profit.
What is Ethereum?
Ethereum is the most used platform for DeFi project and the most actively used blockchain. The decentralized, open-source blockchain has smart contract functionality and tokens, Dapps and protocols can be build on the Ethereum chain.
It was created by Vitalik Buterin in 2013 and went live in 2015. Ethereum 2.0 is currently being implemented, which will increase the transaction throughput by adding sharding and PoS (Proof of Stake)
Ethereum (ETH) Contract Trading
In the below scenario, I am forecasting that the Ethereum price will go up, therefore I am going with the tide. Going "Long” and creating a contract for $14 USD, at the current value of $1832.52.
I set the leverage at 20x, and paid 0.28 USDT as a fee. Once confirmed, the Ethereum contract will appear in the bottom of the dashboard, under the “Positions” tab. The contract details will include the name of the cryptocurrency, the leverage, the chosen margin, opening price and opening time.
The contract will close automatically if the price will raise or drop at the set value, or it can be closed by the user at any time. The Ethereum value started to drop after I set my first contract therefore I opened a new one, also going "Long"
The tide was moving against my contracts and again, I decided to play against the tide! I opened my third Long contract and waited for the price to surge!
The strategy paid off and with the price going upwards, my deficit started to minimize. I had to wait for the best time to close my contracts. Closing the contract manually is a method that can bring profit when the value is close to the set value and the price stops moving. Closing the contract will bring a smaller profit but will reduce time wasting and stress due to volatility.
And then the time was right .. I closed them all for profit! The Trade History will show all closed contracts, for further study and references.
* This is not financial advice, only my personal experience!
Why Bityard is different?
Bityard engine is the fastest on the market, processing up to 1 million transactions per second. The exchange is available for both mobile (Android & IOS) and web, and has the lowest transaction fees. The website interface is available in nine different languages with customer support 24/7 via email and live chat.
Bityard is the world leading cryptocurrency derivatives exchange, fully regulated and compliant with international laws, with the main activity in cryptocurrency contracts with leverage and derivatives exchange.
Bityard operates with licenses from four different countries: The USA, Australia, Singapore, and Estonia. The following licenses are regulating the exchange activity: the Singapore’s ACRA (Accounting and Corporate Regulatory Authority), The American Money Services Businesses (MSBs), Estonia’s MTR (Register of Economic Activity) for the European Union, and the Australian Transaction Reports and Analysis Centre (AUSTRAC)
This this article is also published on Techbullion:
How to trade Bitcoin on Bityard
How to trade Ethereum on Bityard
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