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Being able to trade assets with crypto widens how useful your crypto is. Instead of solely liquidating cryptocurrencies into fiat, you will have the freedom to diversify your portfolio. There are also times when the crypto market might not be as active. You might notice that, at a particular moment, it is better to invest in certain stock indices than cryptocurrencies.
You would have a lot of flexibility if you were able to pivot your crypto assets into stock indices. In this case, PrimeXBT adds that flexibility. The platform’s versatility, reliability during volatility, liquidity, and instant order execution has earned the platform several awards.
What is PrimeXBT?
PrimeXBT is a multi-currency trading platform that allows you to put Bitcoin up as collateral to trade. You can also use your crypto in order to buy over 50 assets, including stock indices like NASDAQ, SP500, DOWJ, GER30, UK100, HK-HSI, and the list goes on. PrimeXBT allows you to use cryptocurrencies to diversify your portfolio and hedge against risk. Holding both crypto and stocks is a form of risk management. The more diverse your portfolio, the likelier it is that one asset will not affect your overall investments.
And what happens when you see a good trade and wish you could instantly trade your crypto for that hot stock index? PrimeXBT could be your answer.
Signing Up to PrimeXBT
Signing up to PrimeXBT is a simple process. There are hardly any KYC (Know-Your-Customer) loops that you have to go through in order to start trading. You just have to enter your email, password, and phone number (optional) and your account is set up. You do not have to enter extra private information like your bank account or passport information, making the sign-up process private, quick and easy.
After your account is set up, you can deposit Bitcoin from an external wallet by clicking the main section at the top. Next, click on the deposit button. You will be shown different sections, one of them Bitcoin (BTC). You will be able to copy your PrimeXBT wallet address and paste it to the destination section on the website or wallet service you are sending funds from. You can also use the QR code provided by PrimeXBT. Only deposit Bitcoin to this address. If you deposit anything else, you could lose your funds.
You will also be able to deposit Ethereum (ETH), Tether (USDT) and USD Coin (USDC) with the same instructions above. Note that, like with the Bitcoin example, you must also be sure that you are sending the right currency to the right address or you may lose your funds.
Another way to deposit funds into your account is to press Main, hit Deposit at the top, click Buy Bitcoin, choose the platform you want, and then buy Bitcoin. If you choose this option, you will have to show more private information like ID and Social Security Number.
Trading Stocks with Crypto
After you’ve deposited the amount of funds that you are willing to trade, go to the page where you find the market charts and hit trade. Here, you can trade a variety of assets like cryptos, foreign exchange markets, stock indices. What you can trade can be found to the left of your screen.
In order to trade stock indices with the crypto you deposited, click your chosen index. A chart will pop up accordingly. Above the trading chart, you will notice a Sell and a Buy button.
The Sell button indicates that you are planning to short sell on the market, meaning that you are borrowing the asset at its current price and predicting that the price will go down. Then, you will sell the position later hoping that the price will drop. You borrow at a higher price, buy the assets back at a lower price, give back the assets you borrowed and take the profits.
You can also click Buy, which means you are doing long trades. You’re predicting that the price will go up from the current price and be higher value later along the road.
After clicking Buy or Sell, you can choose what type of order you want for your chosen stock. These orders are as follows:
Market – Market order type means that the order is made at the market price that is instantly available.
Limit – You’re the one who sets the price. This price is the limit of what you are willing to buy or sell. The market may or may not reach this setting.
Stop – This indicates when you want to buy or sell an asset once it reaches your indicated price. That indicated price will be your market order.
OCO – This allows you to make two orders under certain conditions. Once one of the orders is triggered and completed, the other one is instantly canceled.
For each one of these, you can put up a stop loss and take profits. A stop loss protects the long positions by selling at a price that you choose.
The Amount is how much of the asset that you want to obtain. In the above example, you will be buying 1 order of SP500.
Assess your risk and do not risk more money than you are willing to lose. Putting a stop loss will help you in your risk management and give clearer strategies on when to exit. In the above example, you can see that the stop loss was set at a specific SP500 price. You can also see the projected losses in BTC above as well if you want to automatically close the position at that price. You will also notice that you can take profit once the index reaches a specific price.
This also allows you to mitigate losses and take profits without being glued to your computer screen all day.
To manually close your position, find the plus sign at the top, create the positions tab, right click on the position you have and then close it. You will have completed the trade and consolidated the gains and losses.
At minimum, you only need 0.001 BTC, so getting started trading on PrimeXBT is simple and cost-effective. You could begin right away, even as a beginner.
PrimeXBT also has advanced tools for experienced traders, like charting software that allows you to draw patterns, plot trend lines, gauge the support and resistance of an asset, use fibonacci retracements, jot down your own text on the chart and more. There are also customizable widgets that let you tailor the platform as you see fit like changing the size and position of sections.
Once you’ve made your trades, your funds will be held in PrimeXBT’s cold storage, which you can withdraw once a day. This option may seem limited since it’s only once a day, but PrimeXBT’s does this be extra safe when it comes to the security of your funds.
Another reason to use PrimeXBT are the low fees associated with trading stock indices. The usual fee that you will find is 0.01% fees. You can find a chart of the fees on the PrimeXBT website.
Overall, if you are itching to use your crypto for stock indices, PrimeXBT’s platform gives you a way to diversify your well-earned crypto with other assets. Its award-winning platform is well-deserved with its ease-of-use and varied markets. And if you see potential in markets other than crypto, like stock indices and forex trading, you will be able to swiftly pivot your crypto funds with PrimeXBT.
PrimeXBT has prepared a special offer for their new customers: they will get 50% of their first deposit credited to their account as a bonus that can be used as additional collateral to open positions!
Don’t forget to join PrimeXBT / Covesting telegram community to find more information about the Trading terminal, Copy trading module and how to save up to 25% of your commission with COV token and other token utilities!