Crypto trading: How I earned my first Bitcoin through futures contracts

It seems that Bitcoin has entered a consolidation phase recently with the price fluctuating between $28,000 and $41,000 in the last two months. The price variations tend to get smaller and smaller. For many people, the volatility of Bitcoin is lower, which has reduced their gain. But for other investors it’s the opposite! In fact, this lower volatility has even made it easier for them to make profits. Lower volatility in futures trading is more profitable for grid trading.

The futures contract is a mature tool that allows investors to open short, long, buy or sell positions at any time. With leverage, you may have heard investors talk about 10x profits in a month, a week or even a day. If someone tells you this, don’t immediately think it’s not true! However, it is true that many people have lost money in futures contracts, as large gains often come with high risks.

Tim Leung, a recent graduate, noticed the potential of Bitcoin back in January 2020 and converted immediately.

“People around me have been talking about cryptocurrencies for a long time, some since 2017 but I never got hooked and thought at the time it was a joke,” Leung said. “Then the boom happened, propelling Bitcoin to around $20,000. Most of my friends made money on it and of course I regretted not investing in Bitcoin earlier. But as we all know, the crypto boom didn’t last long and not all investors had the presence of mind to sell at the right time. As a result, small holders suffered a crash and many of my friends vowed to never touch Bitcoin again.”

Where many lost their faith in Bitcoin during the plunge, others discovered ways to make money. Leung is one of those smart guys.

“A lot of people are afraid of the volatility but I was thinking more like “how do I make money from it?”, so I searched the internet and found a place to buy Bitcoin. I managed to turn my $2,000 into 1 Bitcoin thanks to the 100% bonus paid by the exchange.”

The exchange Leung used was Bexplus. Bexplus is a licensed crypto exchange that offers 100% leverage on various trading pairs. It is available in over 200 countries including France, the US, the UK and Japan.

“What I liked the most was the demo account and Mobile APP which allows me to trade anywhere and anytime. I started from scratch to learn CFD (Contract For Difference) trading and try different strategies. By practicing on the demo accounto, I have gained confidence and I am now calmer when I place real trading orders. The team accompanied me and provided me with documentation and trading tips.”

Compared to spot trading, Leung prefers the futures contract because it is more flexible.

“You can make money no matter what the Bitcoin price is doing. Conversely, if you store your Bitcoins, you’ll have to pray for the Bitcoin price to rise to make money and that can take months.”

“Sometimes I win, sometimes I lose. I trade Bitcoin less often now but I still make money by depositing funds on my Bexplus portfolio with up to 21% interest,” Leung shared. “I’m very confident about the future of Bitcoin, especially in these times when governments are still printing money. If you want to diversify your portfolio and hedge against inflation , Bitcoin is definitely the asset for you.”

Leung warns, however, that using leverage can increase your gains but it also increases the risk of losing money. That’s why it’s very important to use stop-losses and choose an exchange that has a built-in app that allows you to have a comprehensive view of the market and positions.