Financial markets around the world have been rocked over the past few weeks, with the spread of a global pandemic threatening to unravel the financial stability of every country on Earth.
While this instability on the surface seems to be only negative, in truth such scenarios are full of opportunities for savvy traders to generate larger profits than would normally be available.
Much like the rest of the financial world, the cryptocurrency market is also reeling as it processes the fallout from the global coronavirus crisis.
We’re taking a look at the opportunities that exist within the cryptocurrency market, starting with a look at what exactly the coronavirus is, then looking at some of the ways to profit during periods of high volatility, and then finishing off with a few of the best places online to trade during volatility.
What Exactly is Coronavirus?
The coronavirus, or COVID-19 as it’s also known, is a global pandemic that began in Wuhan, China, and rapidly spread to every continent on Earth.
The coronavirus virus quickly superseded previous recent outbreaks such as SARS and MERS, as well as Ebola, for being the most widely effective contagious disease in modern history.
This is because of a combination of the high contagiousness of the coronavirus, as well as the fact that the incubation period for the coronavirus is substantially longer than for many other illnesses, sitting at roughly around five days to two weeks.
Because of this, infected people that do not realize that they’re infected have easily been able to continue on with their lives without showing symptoms and have spread the virus widely throughout the world.
How has Coronavirus Affected Global Markets?
The first instances of the coronavirus in China were reported in roughly November 2019, however, it took weeks before any kind of significant spread outside of China was reported.
Even just the fact that the Chinese economy had started to be shut down was enough to start to worry investors, and tremors could be seen in global financial markets almost immediately.
Once there was a significant spread of the virus from China to other major countries in the world such as Italy, Germany, the US, UK, and Spain, this was a precursor to a large flash crash in global markets.
Panic in the markets because of coronavirus saw the largest sell-offs in stocks and other traditional assets that have been seen since at least the 2008 global financial crisis, if not earlier than this in most cases.
How to Generate Profit During Market Turmoil
During the kinds of market turmoil that we’ve been seeing in relation to the worry about the impact of the coronavirus, the way that markets behave can be significantly more unpredictable than normal, and typically involve more risk.
An important tool to be able to use in these conditions is obviously going to be the ability to short different assets via margin trading.
Without the use of shorting, the only way to make a profit in the market is by buying an asset at a lower price and selling it for a higher price, however the converse situation of dropping prices is most likely during unpredictable markets and markets experiencing crashing, such as during the coronavirus pandemic.
The ability to be able to foresee worldwide concerns regarding the effect that coronavirus would have on economies and markets, and then entering a short position prior to a large crash is an essential way to be able to generate profit.
Best Places to Trade Bitcoin Online
PrimeXBT
PrimeXBT is one of the world’s leading Bitcoin-based margin trading platforms, and over the past two years has grown from being a solely-cryptocurrency trading platform, to expanding to include a wide range of the world’s leading traditional assets, that include forex pairs, stock indices, and commodities.
Today PrimeXBT is one of the largest trading platforms on Earth by trade volume, with up to $2 billion worth of global trade passing through the platform every day.
PrimeXBT has built a reputation for providing top-tier margin trading tools and services for both the cryptocurrency market, and global traditional market, with leverage of up to 100X provided for all crypto assets, and leverage of up to 1000X provided for all traditional asset.
Traders at the platform enjoy the lowest fee schedule of any major trading platform within either the cryptocurrency industry or within traditional financial training, with a low flat rate of 0.05% applied across all assets at all sizes.
Kraken
Kraken is an older legacy platform that has gone through a number of iterations and upgrades over the past half a decade to today being one of the more well-known cryptocurrency trading platforms available online.
As a part of these upgrades, Kraken today has an easy-to-use trading interface that has an attractive design and is relatively easy for new traders to be able to navigate successfully.
Kraken’s true focus, however, is on providing a secure trading environment for cryptocurrency traders, with the platform being founded by two security analysts, and to-date having never been hacked or breached by any malicious parties.
Kraken has battled with having a glitchy trading engine over the years, however, and this was one of the biggest complaints from traders that midway through high volatility and high volume trading that the interface would freeze and they would lose money, however, it appears that this issue has now largely been mitigated.
In Conclusion
Clearly we are in one of the most destabilized financial periods in recent memory, perhaps only being comparable to the events of the global financial crisis of 2008.
There is widespread panic in the markets, and with the prospect of the prolonged lockdown globally from coronavirus there may not be a return to normal trends for many weeks or months.
As we’ve seen, this scenario actually creates a wide range of opportunities that can be exploited by understand the importance of using margin trading.
For traders seeking platforms that perform well during heightened volatility, look no farther than the ones we’ve listed above, as they represent the best cryptocurrency trading platforms available during these kinds of periods.
