How PrimeXBT's instruments help smart traders reduce risk
The variety of assets under one roof has already attracted some of the world's best traders. Still, it may not be immediately apparent why having so many assets listed on one platform alone can greatly benefit returns and reduce overall risk for those with less overall market experience.
Here's how smart traders are using PrimeXBT's ever-expanding list of trading instruments to their advantage to bolster their bottom line.
Reputable Trading Platforms Like PrimeXBT Immediately Lower Risk
There's always going to be some level of risk associated with trading, starting from the moment you begin looking at which platforms to choose.
Right off the bat, smart traders choose PrimeXBT due to the platform's glowing reputation across the financial industry. Not only does it have a thriving community of loyal, happy clients, but it is highly respected, earning a number of prestigious industry awards and partnering with top finance companies.
For example, PrimeXBT recently partnered with crypto industry pioneer CEX.IO to offer instant Bitcoin purchases through debit or credit cards through their CEX Direct fiat gateway module. There is also an ongoing partnership between PrimeXBT and Europe-based fintech firm, Covesting, to introduce a unique strategy following concept.
Covesting allows traders on PrimeXBT to follow strategies of other top traders and invest capital into them. Rather than new traders being forced to learn the ropes themselves, possibly losing money through hard lessons, the tool lets newer traders reduce their initial risk and piggyback onto more experienced pros.
But this is only scratching the surface of ways that PrimeXBT can help traders reduce overall risk, and why it remains a top choice for traders looking to lower risk through portfolio diversification.
Diversify Your Trading Portfolio With PrimeXBT’s Variety of Assets Under One Roof
According to Investopedia, diversification is a "risk management strategy that mixes a wide variety of investments within a portfolio."
Few platforms expose traders to as many trading instruments and unique markets as PrimeXBT, allowing for significant choice when building a perfect portfolio that suits each trader's individual risk appetite, preferences, and needs.
PrimeXBT offers all major forex currency pairs, top crosses, and a host of new exotics recently listed, such as HKD, ZAR, MXN, and more. The platform also features all of the hottest stock indices, such as the S&P 500, the DAX, FTSE, and several others. Hot commodities like natural gas, Brent, and WTI Crude oil are also included, next to gold and silver, in various trading pairs.
Last but not least, the Bitcoin margin trading platform, of course, offers trading of cryptocurrencies like Ethereum, Litecoin, Ripple, and EOS, all trading against both USD and Bitcoin.
How Building a Diverse Portfolio Lowers Overall Risk And Increases Opportunity
Across the full breadth of assets, traders can build a diverse portfolio of correlated, anti-correlated, and uncorrelated assets. Hedging a stock market position with an opposite trade in gold markets, for example, is one sound strategy many traders are taking with stimulus money being printed left and right.
Others are building portfolios designed to prevent any risk associated with a collapse in USD, by focusing primarily on cryptocurrencies, gold, silver, and opposing forex currencies.
Both fundamental and technical analysis reveals several key attributes that put some assets in opposition to one another, while others perform similarly at times. Even altcoins, for example. They sometimes thrive alongside Bitcoin and other markets, while other times, they crash when Bitcoin rallies.
By diversifying a trading portfolio and spreading wealth across several assets, investors are less tied to just one asset's overall performance and will access more overall opportunity as a result.
Why The Smartest Traders Rely on PrimeXBT To Reduce Risk And Bolster ROI
Traders that rely solely on cryptocurrencies as their asset of choice are shackled to whatever Bitcoin and the rest of the broader market decides for a direction. But when diversifying a trading portfolio across several unique and lucrative opportunities, risk is reduced, and there is a less overall impact from just one asset like Bitcoin.
Only PrimeXBT offers over 50+ individual trading instruments on just one platform across both digital and traditional assets. And with traditional markets currently more volatile than ever and cryptocurrencies catching fire once again alongside gold and silver, the most significant risk that remains is missing out on the opportunity to diversify your portfolio and gear it for the best performance possible.