During the crypto bull run, hot new categories of digital assets appeared in droves, bringing early investors enormous returns. Bitcoin was quickly pushed aside or exchanged for shiny new altcoins with nothing but potential upside in their future. FOMO drove valuations into the stratosphere, but what goes up that fast comes down even faster.
Much like Bitcoin became a household name following the last crypto winter, DeFi, Metaverse, and more are now common terms alongside other digital asset technology like NFTs. And precisely like Bitcoin eventually rose to new all-time highs after a prolonged bear market, these altcoins will recover and then some. But for now, the endless crypto winter in altcoins means margin trading is more effective than investing.
Here is why you should margin trade popular cryptocurrencies, DeFi, and Metaverse tokens on PrimeXBT.
A Reminder About Crypto Market Cycles
Half a decade ago, after Bitcoin made it to $20,000 for the first time — the mainstream quickly wrote the once-trending asset off as a one-trick pony that would never rise again. A year after the high was set, Bitcoin and the rest of cryptocurrencies had corrected by more than 80 to 90%.
But that’s what happens when speculative assets with untold potential go into price discovery mode and rally hundreds to thousands of percent. When it comes to crypto bull markets, the bigger they are, the harder they fall. And after some of the largest rallies in crypto history, Metaverse and DeFi tokens fell hard.
The most recent bull market added another 2,000% to BTC’s unprecedented more than 1,000,000% ROI. However, during that same timeframe, the Metaverse token Decentraland grew by 50,000%. Metaverse competitor The Sandbox saw 100,000% ROI in the same period. DeFi tokens produced similarly dramatic results.
Metaverse And DeFi Are Here To Stay
The Metaverse exploded as users sought to stake their claim to virtual land and digital goods before it was all bought up like it is in the real world. Around the same time, Mark Zuckerberg rebranded Facebook’s parent company to Meta and revealed his company’s focus on the emerging technology.
DeFi tokens made it possible to access permissionless lending and borrowing services or to generate yields substantially higher than found anywhere in traditional finance. DeFi protocols eventually became too ambitious, resulting in some rug pulls that put a damper on the decentralized finance sector of crypto.
Demand for these technologies has temporarily fallen off, but it isn’t gone. A visionary like Zuck wouldn’t put the entire Facebook and Instagram brands behind a name like Meta if there weren’t significant potential ahead. DeFi needs a light touch of some regulatory scrutiny to provide safety rails for crypto holders, but mostly innovation simply needs time to flourish again.
Why Margin Trading Altcoins Makes Sense
Investing in these emerging altcoin assets is incredibly risky. Although SAND beat Bitcoin hands down in ROI during the bull run, SAND sank by more than 90%, while Bitcoin only dropped 74% by comparison. Staying flexible with also having exposure to Metaverse and DeFi tokens instead via margin trading is a safer strategy.
Even if you already own cryptocurrencies and were caught in the downtrend. There is no need to sell now, even if asset prices keep falling. If crypto winter continues, PrimeXBT traders can short altcoins with leverage and make money on the way down. Instead, if Metaverse and DeFi, as well as other cryptocurrencies, begin to climb once again, a long position can take advantage of the uptrend.
Built-in technical analysis and stop loss protection ensure that if any bear market rallies turn out to be a dead cat bounce instead, you can hedge short and protect capital from further loss.
Get More Mileage Out Of Each Crypto Trade
Another important factor when margin trading is leverage. PrimeXBT long and short positions come with up to 200x leverage on cryptocurrencies, which lets traders profit even during sideways trends.
More powerful trading positions mean much greater profitability. For example, $1,000 invested in DeFi tokens like Algorand, Avalanche, Near Protocol, or others would result in a $1,000 profit if the money doubled. $1,000 in growth with 200x leverage would instead be $200,000. Your money goes a lot further with PrimeXBT trading tools.
The award-winning trading platform also provides exposure to more than 30 different cryptocurrencies, and over 100 trading instruments total ranging from stock indices, commodities, crypto, and forex. Emerging digital asset categories, like Metaverse and DeFi, trade on the same platform as assets with longevity, like gold and oil.
Stay Flexible With PrimeXBT Margin Trading Tools
Margin trading at PrimeXBT lets traders of all skill levels take on various levels of risk and balance that risk with the appropriate amount of capital protection tools. The platform also offers an educational website where users can learn exactly how to trade with the best.
The Covesting copy trading module is also available, allowing followers to automatically copy the trades of top-ranked strategy managers and earn a portion of up to 4,000% in proven profits.
All PrimeXBT trading tools and the complete list of trading instruments, including Bitcoin, Ethereum, DeFi, and Metaverse tokens, and a wide range of traditional assets are available through a single account. Register now and make a no-minimum deposit in BTC, ETH, USDT, USDC, or other popular cryptocurrencies to get started margin trading today.