The price of Bitcoin has fallen 40% since the start of 2015. But with huge volatility comes the potential to make huge profits. Traders have been using platforms, such as
BTC.sx, to profit from large price swings.
We have put together the top ten most profitable trades during the price crash. Some of them may surprise you.
10. Riding the CorrectionOpen: 181.66 USD
Direction: Buy
Close: 204.10 USD
Profit: 1.18 BTC / 88.02%
At number ten we have a trader riding the bounce after Bitstamp recorded a 152.4 USD low. This trader turned a 1.3 BTC deposit into a 1.18 BTC profit in just 21 minutes thanks to our 10x leverage.
What was particularly clever about this trade was the large deposit size. This meant that, if bitcoin followed a double bottom pattern, the trader could ride out any further declines and still profit from an upwards correction.
9. Following the Sell-OffOpen: 236.07 USD
Direction: Sell
Close: 202.79 USD
Profit: 1.27 BTC / 137.12%
Our trader at number nine opted to trade on Bitfinex — at BTC.sx, traders can switch exchanges with a single click. Spotting fear in the market, this trader entered a short position, with 10x leverage, while the price was falling at 236.07 USD.
After recording substantial gains, the trader closed the short at 202.79 USD. While more profits could have been made by closing sooner, the trader exited the short before a large correction.
8. The Lunch Time TradeOpen: 191.20 USD
Direction: Buy
Close: 206 USD
Profit: 1.40 BTC / 56.41%
Our lunch time trader was able to make a tasty 1.40 BTC profit in just 45 minutes. While the trader did not catch the main market movement, a 2.47 BTC deposit and 10x leverage increased his potential exposure.
This lead to a 56.41% return by perfectly timing their entry and exit points. Not being too greedy helped this trader exit his long position well before the market continued to decline.
7. The Denied Double BottomOpen: 175.99 USD
Direction: Buy
Close: 201.24 USD
Profit: 1.58 BTC / 100.10%
Back at Bitstamp another trader doubled his deposit by catching the major correction. This trader made a great call when they decided that the price would not retrace lower than 175 USD.
With a 1.58 deposit and 10x leverage, this trader made a 100% return as the market moved upwards. Like most successful traders, they did not get greedy — rather the position was closed to realize their gains before the market changed direction once again.
6. The Quick Buck
Open: 191.65 USD
Direction: Buy
Close: 205.78 USD
Profit: 1.77 BTC / 53.32%
Just a few minutes slower than the previous trader, another user profited from the bounce. When it appeared that the correction still had more momentum, this trader went long with 3.33 BTC leveraged at 10x.
The importance of not getting too greedy when trading is very clear in this trade. They could have made twice as much profit in half the time if their position was closed sooner. However, making a 53.32% return in only ten minutes remains a great result.
5. Calling the BottomOpen: 199.44 USD
Direction: Sell
Close: 175.87 USD
Profit: 1.82 BTC / 107.31%
Our trader at number 5 managed to close a short at a lower price than any other trader. Closing the position at 175.87 USD was just 9.42 USD above the Bitfinex low of 166.45 USD.
This brave trader anticipated a retrace before a major correction and timed their entry and exit points accordingly. Consequently, their 1.69 BTC deposit generated a profit of 1.82 BTC.
4. Playing the Long GameOpen: 225.21 USD
Direction: Sell
Close: 196.53 USD
Profit: 2.03 BTC / 121.57%
Just missing out on a podium spot, we have a trader who shorted bitcoin for 27 hours. Seeing the market declining, this trader followed the trend and shorted a 1.68 BTC deposit to more than double their holdings.
However, this trader could have easily made more by realizing their gains. It was not until the market began to correct with momentum that they decided to close the position.
3. The Early BirdOpen: 268.37 USD
Direction: Sell
Close: 245.99 USD
Profit: 2.07 BTC / 75.58%
In third place we have a very interesting short. This trader was shorting before the first sell-off and kept the position open even when the price rallied 7 USD higher.
Eventually the price dropped allowing the trader to net 2.07 BTC from a 2.73 BTC deposit. This trade shows the benefits of not setting stop losses too low. While they did miss out on most of the action, they should be praised for not getting greedy and taking profits.
2. The ROI WinnerOpen: 228.07 USD
Direction: Sell
Close: 185.90 USD
Profit: 2.12 BTC / 194.11%
Although this trader came second in terms of BTC, they did win in terms of % gained. A 194.11% return on investment was achieved by opening a short position with 10x leverage after the price broke key support at 230 USD.
Similar to the previous trade, they initially lost money on their position. Thankfully, their stop loss was not set too low and they kept their position open to profit hugely from large sell-offs.
1. The WhaleOpen: 226.23 USD
Direction: Sell
Close: 188.84 USD
Profit: 7.33 BTC / 137.47%
In first place we have a trader that generated a 137.47% return on a 5.33 BTC deposit to produce a 7.33 BTC profit. This trader followed the market lower and was not deterred by minor corrections on the way down.
This trader was smart to close his position within 24 hours, avoiding the daily funding charge and exiting close to the bottom. The remarkable profit shows the power of 10x leverage.
Lessons to be learnt:
Do not panic if the market initially turns against you — many of our profitable traders initially lost money on their position.
Do not set stop losses too low — setting a stop loss to low will force you to exit a position even if you are not worried about the market moving against you.
Consider closing your positions early before each 24 hour duration— this allows you to avoid a daily funding charge.
Do not get greedy — closing positions guarantees your profits.
If you want to use the power of leverage / margin trading to increase your potential returns, check out BTC.sx. We offer up to 10x leverage on Bitfinex, Bitstamp and itBit.