“Risk everything in BNB: Understand the Binance Currency (BNB) and short positions in the cryptography market”
As the world of cryptocurrency continues to evolve, merchants and investors are increasingly fascinated with the potential of digital assets such as Bitcoin (BTC), Ethereum (ETH) and others. A popular strategy that has gained traction is short sale, a way of betting against the price of an asset buying it at a low point and selling it at a higher point, hoping to obtain gains of the difference.
A cryptocurrency that has been particularly popular among merchants with a brief position in mind is Binance Coin (BNB). As Binance’s native cryptocurrency, one of the largest and most popular cryptocurrency exchanges in the market, BNB has become a basic element for many short vendors. But before starting to give a great change to the world of cryptography trade, it is essential to understand how to use a currency tracker and make informed decisions.
What is a coin tracker?
A currency tracker is an online tool that allows users to monitor the price and performance of several real -time cryptocurrencies. These platforms often provide detailed statistics, including daily ups and downs, market capitalization and negotiation volume. When using a coin tracker, merchants can obtain a rapid snapshot from the encryption market and make settings based on their strategy.
Binance Coin (BNB) explained
Binance Coin is Binance’s native cryptocurrency, one of the world’s largest cryptocurrency exchanges. Run in 2017, BNB has quickly become a popular option among merchants due to its low transaction rates, high negotiation volume and a wide range of use cases.
As the second largest cryptocurrency due to market capitalization after Bitcoin, BNB is often used as a value reserve and inflation coverage. It is also used for several transactions in the Binance ecosystem, including the purchase and sale of other cryptocurrencies, paying gas rates when performing transactions on the platform and more.
Short position: a high -risk strategy
Short sale is a way of betting against the price of an asset buying it at a low point and selling it at a higher point. When running correctly, short sale can be a lucrative strategy, but comes with significant risks. If the market moves in the opposite direction of the merchant’s expectations, they will incur losses in its short position.
How to make an effective short position
To make an effective short position, you must:
- Choose a cryptocurrency: Select a cryptocurrency that has shown strong volatility and is likely to move against your trade.
- Set a suspension level: Determine how much you are willing to lose in trade establishing a detention detention level at a predetermined price. This will help limit potential losses if the market moves in the wrong direction.
- Use an exchange of good reputation: Use an exchange of cryptocurrencies well established as Binance, which offers robust commercial tools and low rates.
- Monitor the market closely: be attentive to the market and adjust your trade as necessary to stay within its detention level.
Example of the use of tracker coins for a short position
Let’s say that Ethereum (ETH) has chosen as its cryptocurrency for a short position. Use a coin tracker to monitor the ETH price and discover that it has decreased significantly in recent days.
* INITIAL PRICE: 4000.00 USD
* Fall detention level
: 3500.00 USD
While waiting for more developments, perform your first operation by buying ETH at 4500.00 USD (your entry price) and selling it to 3750.00 USD (your level of suspension-folded). Its gain is approximately 300.00 USD per ETH, which translates into a total of $ 12,000.
However, if the market moves against you and ETH prices rise above your level of loss of problems, it will incur losses in your short position. If it is maintained within its detention level, you will get a gain of 300.00 USD by ETH.