All across global markets, important things are breaking. The bond market is imploding, currencies are more volatile than ever, and the stock market has lost more than 25% of its value already — and it may have only just begun.
Many countries are already experiencing recession-like conditions. Even in the United States, several key recession indicators have fired. A global recession is essentially inevitable at this point and is a matter of when not if.
With a potential economic collapse on the horizon, here is how to hedge a portfolio with PrimeXBT risk management tools.
A Global Financial Meltdown And What That Means
Global recessions happen for a variety of reasons and are so severe due to the sudden reduction in liquidity, a lack of buyers, panic, and contagion spreading rapidly from one financial market to another.
The housing market caused a massive collapse in the stock market and the Great Recession of 2008. Today, nearly every financial market is under enormous strain. The global economy has become reliant on quantitative easing, and when central banks try to reel it back in, the system starts to break.
That is exactly what is happening currently. The most important central bank in the world, the United States Federal Reserve, has been reducing its balance sheet and raising interest rates to curb inflation which is the highest in more than 40 years. The combination of economic strain, consumer prices soaring, and more all at once is bringing the global economy to the brink of a recession.
Does Any Safe Haven Remain? How To Survive A Recession
Very few assets will be a safe haven for investors if the world enters a global recession. Markets would struggle to move up, except in rare cases like metals which rise in recessionary environments. Of course, there would be bear market rallies along the way, and like all bear markets, it is a time to slowly accumulate assets ahead of the eventual bull market when it returns.
What, then, is an investor or trader to do? The responsible move is to hedge any spot positions immediately using strategically placed shorts. This will keep any capital allocated to longer-term positions carefully protected. In order to stay profitable and agile enough to react to further sudden drops in price or bear market rallies, long and short positions are required.
PrimeXBT provides access to such powerful risk management tools, combined with leverage, to get the most out of price action, even when prices are trending sideways. Utilizing long and short positions across cryptocurrencies, stock indices, commodities, and forex currencies allows savvy investors and traders to craft a complex portfolio that reduces risk and improves the potential for profits.
How To Get Positioned For The Impending Crisis
The well-known cryptocurrency-based margin trading platform lets anyone register for a free account and use BTC, ETH, USDC, USDT, and other popular cryptocurrencies as collateral to access more than 100 different trading instruments. The list includes the most heavily traded markets, including the S&P 500, gold, oil, Bitcoin, etc.
Crypto assets can also be used to access a variety of products and services, such as the Covesting copy trading module and yield accounts. Covesting is a peer-to-peer copy trading community only found at PrimeXBT that allows followers to automatically copy the trades of top-ranked traders who show success through a public leaderboard system. Top traders currently have as much as 4,000% in all-time profits, according to the Covesting monthly trader report, beating benchmark earnings in all global markets by a large sum.
Yield accounts let crypto holders stake idle crypto assets to earn a variable interest rate paid in daily crypto rewards called an APY. Covesting yield account APYs have reached as high as 13% in peak market conditions and is a passive approach to cryptocurrency-based earnings. COV token memberships, when activated, can improve APYs by up to 2x while also enabling various benefits for copy traders, such as trading fee discounts and an improved profit share.
Build A Foundation Designed For Survival
PrimeXBT also provides an entire educational website devoted to helping traders improve their skills and survive the global recession. Investors and traders can learn how to hedge or go short when the time is right directly from Dirk Hartig –– an expert with more than 20 years in the field. The PrimeXBT Trading Academy is packed with tips and videos teaching trading skills for free.
Skilled traders can take their best efforts to the PrimeXBT Contests module, which is a section of the platform where traders can compete in weekly trading competitions for a chance to win prizes. All competitions utilize risk-free virtual funds, so there is no chance of capital loss –– only a chance to gain. The no-risk trading environment is also a great place to practice the strategies instructed by the PrimeXBT Trading Academy or backtest the performance of technical indicators.
Before making their next move, built-in technical analysis tools let investors and traders consider the trend and important factors, such as overbought or oversold conditions. Between drawing tools, Fibonacci retracement, and dozens of technical indicators, PrimeXBT users are well-armed to fight back against any recession that hits.
Get Hedged With Powerful PrimeXBT Risk Management Tools
Is a global recession inevitable? Most financial analysts believe it is already here. The United States might not be ready to submit and admit defeat, and a few recession indicators might not have yet turned in the country. But elsewhere across the globe, it is hard to argue that a recession isn’t already well underway. When the US finally succumbs to the bearish pressure, the recession could turn into the most significant depression in nearly 100 years.
Don’t let the stress of what’s at stake shake you. Take control of your portfolio and positions with PrimeXBT. When used strategically, the power of long and short positions can reduce risk, protect capital, and keep profits pumping. Copy trading and other alternatives are another way to stay profitable and have a chance at outperforming the market.
An always-on, ultra-reliable trading platform and a free, award-winning mobile application for Android and iOS devices mean you can always keep your finger on the trigger, ready to cut losses and take new positions at a click or a tap. Registration is free and is the best way to get positioned with a possible global recession here or on the way soon enough. Get protected with PrimeXBT risk management tools.