How to trade stocks with Crypto
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Being able to trade assets with crypto expands the usefulness of your crypto. Instead of only liquidating cryptocurrencies in fiat, you will have the freedom to diversify your portfolio. There are also times when the crypto market may not be as active. You may notice that at some point it is better to invest in certain stock indexes than in cryptocurrencies.
You would have a lot of flexibility if you could pivot your crypto assets into stock indexes. In this case, PrimeXBT adds this flexibility. The platform’s versatility, reliability in times of volatility, liquidity and instant order execution have earned it several awards.
What is PrimeXBT?
PrimeXBT is a multi-currency trading platform that allows you to put Bitcoin as collateral for trading. You can also use your crypto to buy over 50 assets, including stock indexes 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 risks. Holding both crypto and stocks is a form of risk management. The more diversified your portfolio, the more likely it is that an asset will not affect all of your investments.
And what happens when you see a good trade and want to be able to instantly trade your crypto against that trending stock index? PrimeXBT could be your answer.
Signing up for PrimeXBT is a straightforward process. There are hardly any KYC (Know-Your-Customer) loops that you have to go through to start trading. All you need to do is enter your email, password and phone number (optional) and your account is set up. You don’t need to enter any additional private information like your bank account or passport information, making the registration process private, quick and easy.
Deposit of funds
Once your account is set up, you can deposit Bitcoin from an external wallet by clicking on the main section at the top. Then click on the deposit button. You will be presented with different sections, including Bitcoin (BTC). You will be able to copy your PrimeXBT wallet address and paste it into the destination section of the website or wallet service you are sending funds from. You can also use the QR code provided by PrimeXBT. Deposit Bitcoin only at 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, as with the Bitcoin example, you also need to make sure that you are sending the correct currency to the correct address or you risk losing your funds.
Another way to deposit funds into your account is to tap Principal, tap Deposit at the top, click Buy Bitcoin, choose the platform you want, and then buy Bitcoin. If you choose this option, you will need to display more private information such as ID and Social Security number.
Trade stocks with Crypto
Once you have deposited the amount of funds you are ready to trade, navigate to the page where you will find the market charts and click on trade. Here you can trade a variety of assets like cryptos, forex markets, stock indices. What you can redeem is on the left side of your screen.
In order to trade stock indices with the crypto you have deposited, click on the index you have chosen. A graph will appear accordingly. Above the trading chart you will notice a Sell button and a Buy button.
The Sell button indicates that you are planning to sell short in the market, which means you are borrowing the asset at its current price and expecting the price to drop. Then you will sell the position later hoping the price will go down. You borrow at a higher price, buy back the assets at a lower price, return the assets you borrowed, and take the profits.
You can also click on Buy which means you are doing long trades. You predict the price will rise from the current price and rise later along the way.
After clicking Buy or Sell, you can choose the type of order you want for the action you have chosen. These commands are:
Marlet – Market order type means that the order is placed at the market price which is instantly available.
Limit – You set the price. This price is the limit of what you are willing to buy or sell. The market may or may not achieve this parameter.
Stop – This indicates when you want to buy or sell an asset once it hits the listed price. This listed price will be your market order.
OCO – This allows you to make two orders under certain conditions. Once one of the commands is triggered and completed, the other is instantly canceled.
For each of them, you can set up a stop loss and take profit. A stop loss protects long positions by selling at a price you choose.
The amount is the amount of the asset that you want to get. In the example above, you will purchase 1 order of SP500.
Assess your risk and don’t risk more money than you are prepared to lose. Putting a stop loss will help you in your risk management and give you clearer strategies on when to exit. In the example above, you can see that the stop loss has been set at a specific SP500 price. You can also see the projected losses in BTC above if you want to automatically close the position at that price. You will also notice that you can take profit once the index hits a specific price.
It 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 a minimum, you only need 0.001 BTC, so starting to trade on PrimeXBT is easy and profitable. You can start right away, even as a beginner.
PrimeXBT also has advanced tools for experienced traders like charting software that allows you to plot patterns, draw trend lines, assess support and resistance of an asset, use retracements. Fibonacci, write your own text on the graph, and more. There are also customizable widgets that allow you to customize the platform as you see fit, like changing the size and position of sections.
Once you have completed your transactions, your funds will be kept in PrimeXBT’s cold room, which you can withdraw once a day. This option may seem limited as it is only once a day, but is PrimeXBT more secure when it comes to the safety of your funds.
Another reason to use PrimeXBT is the low fees associated with trading stock indices. The usual charge you will find is 0.01% fee. You can find a table of fees on the PrimeXBT website.
All in all, if you are eager to use your crypto for stock market indices, PrimeXBT’s platform allows you to diversify your well-deserved crypto with other assets. Its award-winning platform is well deserved with its ease of use and diverse markets. And if you see potential in markets other than crypto, like stock indices and forex trading, you will be able to quickly pivot your crypto funds with PrimeXBT.
PrimeXBT has prepared a special offer for its new customers: they will receive 50% of their first deposit credited to their bonus account which 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!