Hey, guys. Welcome to BitBoy Crypto!
Today, we got a special video for you guys.
The crypto markets,
are they going up?
Or are they going down?
I'm not really sure.
But did you know that there is a way you can actually make money
whether the price is going up or down?
It's called shorting Bitcoin.
And I'm not telling you to do it.
But some people want to know how.
A lot of people in 2018/2019 made a ton of money shorting Bitcoin
down to the bottom around $3,200 in December of 2018
and, of course, plunging back to $3,900 in March of 2020.
So if you've ever wondered how would I possibly consider shorting Bitcoin,
because I believe the price is going down,
then Frankie Candles is going to join us,
show you how it's done.
Let's get it!
Thanks, Ben!
What's going on, guys?
Today, I'm going to be showing you guys how you can make massive profits
even if the price of Bitcoin is going down.
A lot of people think that you can only make money while Bitcoin's going up, right? In a bull market.
And then a bear market comes, you've got to sell,
wait for it to get to the bottom and then put your money in
and ride it back up to the top for the next bull market.
So what a lot of people don't know is you can make huge profits
while Bitcoin is on the way down, right?
Just like you make money on the way up, you can make money on the way down.
And I'm going to show you guys how to do that today.
So let's jump into the computer.
We're going to hop on phemex.com,
which is the platform that I choose to use when trading with leverage
or if I want to short Bitcoin,
and I'm just going to show you guys how you can short,
how you can use leverage, the different types of orders.
And I'm just going to give you a quick run-through on how you could make massive profits
while Bitcoin is dumping.
We're not afraid of bear markets over here.
Let's get into it.
Okay. So here we are on phemex.com.
Now, if you guys want to sign up for Phemex,
my referral link will be in the description below.
You will get a deposit bonus if you use my link.
And it helps us out a little bit, so it's a win-win situation.
Okay, guys, So you can see we are here on phemex.com.
And if you want to sign up for Phemex, my referral link will be in the description below.
You can click that link and sign up, and you will get a deposit bonus.
So you get a little extra money in your account.
It helps the channel out a little bit, so win-win situation.
But as you can see, we're here on Phemex.
I'm not going to do a Phemex tutorial.
This is just going to be a tutorial on how to short, right?
So what you're going to want to do is come over to Markets and come to Contract, right?
And then you're going to want to go ahead and click on Bitcoin.
So here we go. Here is the trading dashboard.
And you can see here on the left side,
you see Place Order, and then you have, you know, a couple different options.
You have Limit, right?
So this is your typical limit order.
You would set your price, right?
So, say, you know, Bitcoin's right now at about $40,398.
You know, you think you're coming up to support and you want to long,
you can type whatever price you want in here,
and that would be the level when price reaches that level, it would enter you into the trade, right?
Just a typical limit order like anything else.
And then right here, you have market order.
So typically, you only want to use market orders if the market is going absolutely nuts
and you think you're going to miss out and you want to hop in real quick.
You would just type in how many contracts you want to use here
and then just go hit Long or Short, and it will get you right into the trade.
You will pay some more fees with this,
so you might want to keep this for, you know, situations where Bitcoin is absolutely ripping
and you think you're going to miss a move and you just want to hop in quickly.
Typically, I recommend using limit orders.
And next to that you have conditional orders.
I'm not going to cover this too much,
but you just have different parameters that you can set here for more specific orders.
We're not going to cover that one too much.
Basically, we're going to be covering market and limit.
So let's say, you know, you wanted to long Bitcoin from here.
Let's just say for example, you see it got rejected here two times,
and you wanted to put in a long.
You think you're bottoming out.
I'm not saying this is a great trading setup.
I'm just using this as an example.
But, you know, you see it got rejected twice.
You think you want to try a long off of this level.
So what you would do for a limit order,
if you wanted to try to get a little bit of a better price,
you think maybe Bitcoin is going to go a little lower, you know, say to $40,343,
so you can go type in here 40,343.
And then you want to type in the amount of contracts you want to trade with, right?
You know, one contract equals one US dollar.
So, you know, just for this example purpose, I'm just going to put 1.
So right here, you can pick how many contracts you want to buy or sell
depending on if you're longing or shorting.
So we'll just say you want to do 100, you know, 1,000 contracts, right?
And then, you know, right here, you can see the costs.
So you see 0.0016 Bitcoin.
And then, you know, with the leverage, it equals 0.02 Bitcoin, right?
So if you want to change your leverage, you can either drag this slider.
You have 1, 2, 3, 5, 10, 25, 50, 100x.
And if you wanted to do a specific number, you can click that little pencil,
and say you wanted to do 13x leverage,
you can go ahead and click that, and it will change it right here.
See, you know, it tells you that you modified your leverage here.
I never recommend using cross margin, right?
This one all the way down here.
You want to use just regular isolated leverage, alright?
You do not want to use cross margin
because it will eventually start pulling money from your account.
And if you get liquidated on that trade, it could liquidate your entire account.
Ignore my little mini ETH trade here.
Up a whopping $17.
So let's say that you guys, you know,
you think Bitcoin is going to break this support line and come down further, right?
So you want to short in that case.
What you would want to do is, you see here limit order.
Obviously, it functions just as a normal limit order like you would on any other exchange.
You would type the price that you want to enter your trade in at right here.
And then when price hits that level, it will enter you into the trade.
Now, we'll say, you know, we want to wait to see if we bounce up a little bit to get a better entry,
so we think, just for example, say you think it's going to come up to about 40,395,
so you'll go 40,395.
And right underneath that, you could pick how many contracts, right?
One contract equals $1.
So we'll say we want to do, say, 1,000 contracts, right?
So you can see here, the cost is 0.0019 Bitcoin
and then your position size,
because we will be using leverage down here, we'll talk about this in a second,
but with the leverage, it's 0.02 Bitcoin, right?
So that is your position size.
Now, if you scroll down here, you'll see we have leverage.
You can drag this back and forth to change the leverage.
You have 1, 2, 3, 5, 10, 25, 50 and 100x.
Now, if you wanted to make, you know, a custom number, this is 10x,
if you wanted to, say, trade with, you know, 12x or, you know, 14x,
you could just, you know, type that in right here, 14, and then hit OK.
And then you'll see it changes right here to 14x.
It pops up and updates you and lets you know that your leverage was changed.
And then, essentially, all you would do is you're going to go ahead and click.
So now you have your limit set at 40,395.
So Bitcoin would have to come back up to that level for it to trigger your order.
So if we don't wind up coming up, and it just dumps from here,
you're not going to get into your trade.
So always important to remember with limit orders.
But then once you get all that set up,
you picked your leverage, right?
This is going to be dependent on each individual person.
I usually don't trade with more than 15x leverage.
I usually trade with 15 and below.
But that's obviously going to be up to you,
depending on how much money you're trading with,
your risk tolerance, all that stuff.
But then you just go ahead and click here.
You want to click Short.
Shorting is you're basically betting that the price is going to go down, right?
So you click Short.
And then this window pops up.
It's your little order brief, right?
So your order price is $40,395.
So your order will be filled if price goes back to that level.
This is your amount of contracts, right?
Your costs,
your actual cost was 0.0018 Bitcoin.
You're using 14X leverage.
Your position size is, you know, negative 1,000 contracts
because you're shorting, right?
And then mark price is just the current Bitcoin price at 40,280.
Your estimated liquidation price, this is an important price to keep an eye on,
43,269.
If price goes in the opposite direction that you want it to go,
and it winds up going up to $43,269,
then you will be completely liquidated and lose all the money that you have on that trade.
So very important level.
I definitely recommend setting stop losses above this level, well above this level.
You don't want to get liquidated.
So this is your distance to liquidation price.
And then you see here Time In Force GoodTillCancel.
This just basically means the order is going to sit there until it's triggered
or until you cancel it, right?
So that is worth noting.
And then down here, obviously, you can see Take Profit.
You can set your take profit at 25% if you're looking to make 25% profit.
50% profit, 75, 100, 150, 200.
You can also set a custom level, a price that you want to take profit at, right?
So we'll just say we're looking for 25% profit for the sake of this example.
And then right here, you see estimated profit, 0.00044194 Bitcoin, right?
So you see your profit right here,
your estimated profit, if your take profit level gets hit.
And then right underneath that, kind of the same idea with your stop loss.
You know, we'll just set a 5% stop loss.
And then it shows you your estimated loss, right?
You want to be okay with that number.
Be okay with that number.
Set your trade and leave it alone, right?
And then all you have to do is click Confirm.
So once you click that confirm button,
you can see here, if you come over to your active orders, right?
These are orders waiting to be filled.
You'll see Bitcoin,
negative 1,000 contracts because we're shorting.
And then you see all your information here.
Once price comes up and hits this line, you'll be entered into your trade,
and then if it comes back down, that's when you would start to profit.
Now, I'm just going to go ahead and cancel this because this was just an example.
Now, let's cover market orders. Right?
So with market orders, these are much simpler, right?
Limit orders-- I mean, limit orders aren't too complicated,
but market orders are much, much simpler.
All you want to do is you want to put how many contracts.
So we'll put 10 contracts, right?
You know, cost isn't even registering because 10 contracts is like not that much money.
And then basically, what you would want to do is just come down here and click Short.
And then you get the same little briefing here.
You know, quantity, same thing. We just ran through this.
We're going to set our take profit to 25% for this example
and then stop loss at 5% just for the sake of the example.
This is how much you'll make.
And then this is how much you could lose.
And then you just go ahead and hit Confirm.
I'm actually going to put this trade in.
You know, so here you go.
And then if you come over to your open positions,
you can see on top of this Ethereum trade, you do have the Bitcoin trade now.
Actually, look at that!
We're about--
Oh! Yeah, kind of in profit there.
But there you go. You just click OK with the market order.
You set how many contracts, right?
And then you can also drag this slider to pick how much of your account you want to use, right?
If you want to trade with 5% of your account, you do that.
And then you just hit Short.
Check your little market brief.
Make sure everything looks good.
Hit Confirm and then your trade is put in immediately, right?
And you just enter the trade right away.
And your profit starts moving.
So as you guys can see here, this is our stop loss level right here,
and then you have our take profit level down here.
And the cool thing about Phemex and a lot of these other leverage exchanges
is you can move these live, right?
So you could visually see your trade
and, you know, if you wind up getting deep in profit,
you can just drag this take profit level in.
You can drag it into profit, right?
And it's just nice. It's a nice little visual aid.
And then the same thing with the stop loss,
let's say you wanted to move your stop loss down or up--
I don't recommend moving your stop loss.
I recommend setting your stop loss and leaving it there.
But it's just cool that you can visually move these.
It's-- I just love that feature about Phemex.
If you wanted to close, right?
If you wanted to close out of this trade,
I'm going to do that right now just because it's a very small trade.
And you can see here Margin.
So we decided to trade with about 72¢.
So that is the actual amount of money that we have in.
So I'm just going to close this because I used that as an example.
But we're actually up 1.3%.
So what you can do is you can click Market, right?
This is the same idea.
So for market close, you can type how many contracts you want to take out.
So say you only wanted to remove half of your contracts,
you hit a take profit level that you know you're happy with the profit,
you want to take half your position out,
pull a little money off the table,
you could change it from 10 to 5, cut it in half and then click Confirm,
and it closes out half your position.
You can see now we only have 36¢ in there.
And then for limit,
you would click this,
and same idea,
you set that, you know, that price that you would want to take the rest of your profit at,
type that price in right here and then hit Confirm,
and then, you know, when price hits that level, you will come out of the rest of the trade.
And we just left the current price in there, so it just closed automatically.
But you could have changed that price to a lower price,
and then when Bitcoin came down to that level and crossed that level,
it would pull out the rest of your trade.
So, guys, I think that's all I got.
Just a little quick and dirty rundown on how to short on Phemex, right?
I didn't go over all of the features or anything.
This is not a Phemex tutorial.
Just a shorting tutorial.
But if you want to learn how to use Phemex, definitely follow me at Frankie Candles on YouTube.
I have Phemex tutorials.
I go in depth on tons of stuff.
TA, trading strategies,
how to work with leverage, how to use it as a tool,
risk management, all that good stuff.
So if you want to make money trading crypto whether the price is going up or down,
definitely follow me at Frankie Candles.
That's all I got, guys.
Frankie Candles out.