“RISK EVERYTHING IN BNB: Understanding Binance Coin (BNB) and short positions in the encryption market”
As the cryptocurrency world continues to evolve, traders and investors are increasingly fascinated by the potential of digital assets such as Bitcoin (BTC), Ethereum (ETH) and others. A popular strategy that has gained traction is the uncovered sale -a way to bet on the price of an asset buying it at a low point and selling it at a higher point, hoping to make a profit with the difference.
A cryptocurrency that has been particularly popular among traders with a short position in mind is Binance Coin (BNB). As a native cryptocurrency of Binance, one of the largest and most popular cryptocurrency exchanges on the market, BNB has become a basic item for many discovered salespeople. But before starting to take a big blow to the world of encryption negotiations, it is essential to understand how to use a currency tracker and make informed decisions.
What is a currency tracker?
A coin tracker is an online tool that allows users to monitor the price and performance of multiple real-time cryptocurrencies. These platforms usually provide detailed statistics, including high and low diaries, market capitalization and negotiation volume. When using a coin tracker, traders can get a quick instantaneous encryption market and make adjustments based on their strategy.
Coin Binance (BNB) explained
Binance’s currency is Binance’s native cryptocurrency, one of the world’s largest cryptocurrency exchanges. Launched in 2017, BNB quickly became a popular choice among traders due to its low transaction rates, high negotiation volume and wide range of use cases.
As the second largest market capitalization cryptocurrency after Bitcoin, BNB is often used as a value store and a hedge against inflation. It is also used for various binance ecosystem transactions, including the purchase and sale of other cryptocurrencies, paying gas rates to transactions on the platform and more.
Short position: a high -risk strategy
Discovered sale is a way to bet on the price of an asset buying it at a low point and selling it at a higher point. When executed correctly, the discovered sale may be a profitable strategy, but it comes with significant risks. If the market moves in the opposite direction of the trader’s expectations, they will suffer losses in their short position.
How to make an effective short position
To make an effective short position, you will need:
- Choose a cryptocurrency
: Select a cryptocurrency that showed strong volatility and probably move against your negotiation.
- Define a stop level : Determine how much you are willing to lose in the negotiation, setting a stop level at a predetermined price. This will help limit potential losses if the market moves in the wrong direction.
- Use a respectable exchange
: Use a well -established cryptocurrency exchange like Binance, which offers robust trading tools and low rates.
- Monitor the market closely : Keep an eye on the market and adjust your trade as needed to stay within your stop level.
Example of using the coin tracker for short position
Let’s say you have chosen Ethereum (ETH) as your cryptocurrency for a short position. You use a coin tracker to monitor the price of ETH and find that it has fallen significantly in recent days.
* INITIAL PRICE : 4000,00 USD
* LOSS PARADE LEVEL : 3500.00 USD
When waiting for new developments, you make your first negotiation by buying the ETH at 4500,00 USD (your entry price) and selling it at 3750,00 USD (your stop level). Its profit is approximately 300.00 USD per ETH, which translates into a total of $ 12,000.
However, if the market moves against you and the Ethi prices rise above your stop level, you will suffer losses in your short position. If you stay within your stop level, you will make a USD 300.00 profit per eth.