How PrimeXBT Can Help Traders Survive a Recession

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The main­stream and finan­cial media head­lines are inescapable: a reces­sion is com­ing, and it could arrive at any time.

Even worse, it could already be here, giv­en infla­tion num­bers are at record lev­els and oil and gas prices are soaring.

The stock mar­ket and cryp­tocur­ren­cies have been crushed in the recent mar­ket down­turn, as cheap debt becomes unavail­able and inter­est rates increase. Com­bined, a glob­al unwind­ing of debt has begun to unfold, and the impact is already tragic. 

Pan­ic and fear are every­where, but don’t fear the ongo­ing macro may­hem – PrimeXBT can help traders sur­vive a reces­sion. Here’s how.

Building the perfect portfolio to withstand a recession

All of the fac­tors nec­es­sary for a reces­sion are just about here. There is wide­spread con­sumer infla­tion and ris­ing ener­gy costs. 

Increas­es in the cost of liv­ing have caused con­sumer demand to dry up. Cop­per prices – a strong reces­sion indi­ca­tor – have plum­met­ed. Unem­ploy­ment is also low, and the GDP is shrinking.

Google search activ­i­ty for the term “reces­sion” in the US is reach­ing highs not seen since 2004 – about four years ahead of The Great Reces­sion. This data could sug­gest that the gen­er­al pub­lic is once again ear­ly to pan­ic but that a reces­sion is still like­ly on the way.

Investors are in a pan­ic as a result and aren’t sure where to put their mon­ey but cash. But flee­ing to the dol­lar isn’t real­ly safe anymore. 

With infla­tion rates as high as they are, the pur­chas­ing pow­er of the dol­lar is drop­ping while its val­ue is climb­ing rel­a­tive to the rest of the assets on the planet.

Build­ing a port­fo­lio with cur­ren­cy posi­tions long USD, long oil, and short stocks or cryp­to can pre­vent pre-reces­sion jit­ters and panic. 

With PrimeXBT, lever­aged long and short posi­tions are avail­able on more than 100 dif­fer­ent trad­ing instru­ments. The plat­form includes both tra­di­tion­al and dig­i­tal assets, from cryp­to to forex and stock indices to commodities.

Don’t cash out, stay exposed to the right opportunities

Cash is still king. USD is the glob­al reserve cur­ren­cy and the pri­ma­ry safe haven asset dur­ing eco­nom­ic tur­moil. Investors’ first instincts are often to go to cash, but with infla­tion run­ning so hot, even the dol­lar isn’t going as far as it used to. 

Mov­ing all cap­i­tal to USD is a one-sided trade. If mar­kets sud­den­ly and sharply reverse, being exposed to noth­ing but the dol­lar is a great way to miss out on poten­tial profits. 

Mar­kets are cycli­cal, and the dol­lar ral­ly – while strong – can’t last for­ev­er. When risk appetite even­tu­al­ly returns, it isn’t wise to ignore risk assets like stocks or crypto.

In the past, Bit­coin and cryp­tocur­ren­cies have proven to be some of the most prof­itable invest­ments ever. But due to their pow­er­ful price volatil­i­ty, cryp­to prices can crash by 80% or more abrupt­ly with­out warn­ing and make for an extra risky trade with the econ­o­my on shaky ground.

Bit­coin has failed as an infla­tion hedge, but there is still an oppor­tu­ni­ty for gold and sil­ver to retain their titles as some of the best safe haven assets dur­ing reces­sions and eco­nom­ic struggles. 

Gold and sil­ver haven’t done well with the dol­lar surg­ing but could be the next asset class to ral­ly as the macro envi­ron­ment changes.

Investing in yourself is the best investment you can make

War­ren Buf­fett famous­ly said, “the best invest­ment you can make is an invest­ment in your­self.” “The more you learn, the more you’ll earn,” he con­tin­ued. The state­ment today rings true for all traders with tal­ent who are com­mit­ted to their craft and go the extra mile to learn.

PrimeXBT pro­vides the incred­i­ble oppor­tu­ni­ty to use the bear mar­ket in cryp­to and stocks to build one’s skillset with a trans­for­ma­tive edu­ca­tion. The PrimeXBT Trad­ing Acad­e­my edu­ca­tion­al web­site fea­tures a robust library of videos with tips and trad­ing strate­gies cre­at­ed by expert trad­er Dirk Hartig.

PrimeXBT Con­tests pro­vides the are­na for week­ly trad­ing com­pe­ti­tions to take place. These week­ly com­pe­ti­tions allow users to com­pete using risk-free vir­tu­al funds for a chance to win cryp­to prize rewards. 

There is also ample oppor­tu­ni­ty to use the no-risk demo funds to prac­tice trad­ing, learn new skills, back­test trad­ing strate­gies, and more.

Com­bin­ing the free edu­ca­tion of PrimeXBT Trad­ing Acad­e­my and the oppor­tu­ni­ty to prac­tice with­out the risk of loss is an offer that shouldn’t be refused, and it could mean the dif­fer­ence between sur­viv­ing a reces­sion or the bear mar­ket eat­ing you alive.

PrimeXBT packs so much under just one roof, com­plete with a copy trad­ing com­mu­ni­ty, free mobile app, yield accounts, and sev­er­al oth­er inno­v­a­tive prod­ucts and services. 

There is no need to fear a reces­sion when PrimeXBT pro­fes­sion­al trad­ing tools can pro­vide relief and a way to keep prof­its flowing.

While oth­er plat­forms force traders to sit on the side­lines in cash only, PrimeXBT lets traders stay active and exposed to an end­less amount of the right opportunities. 

If you are sick of the macro may­hem and want to bet­ter pre­pare – be sure to check out the award-win­ning PrimeXBT trad­ing plat­form.

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.

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