In current bear market, crypto derivatives offer crucial diversification for portfolios

In the current bear market, being a crypto investor isn't easy. 

Extraordinary levels of volatility — brought about by a plethora of challenging headwinds in the global economy — mean going long on Bitcoin or Ether isn't necessarily the best play.

And according to Eightcap, this has led traditional and seasoned investors alike to explore what crypto derivatives have to offer.

With more than 350 digital assets supported, the trading platform says it gives people an opportunity to capitalize on falling crypto prices — not just when things are heading up.

This approach to diversification has the potential to offer a more rounded portfolio during an unprecedented time of uncertainty.

In total, Eightcap says it offers more than 350 crypto derivatives — altcoins, crypto-crosses and crypto-focused indices among them — with ultra-low spreads.

The platform says trading a Bitcoin contract for difference typically costs between $8 and $12, according to TradeProofer data as of Sept. 30, 2022, making it extremely competitive when compared with more mainstream exchanges.

A suite of unique and easy-to-understand educational resources also ensures that traders aren't entering the crypto market blind. Executives at Eightcap say it's crucial for users to have access to a wealth of information and tools so they can make the right decisions at the right time.

Crush the competition

One distinctive offering from Eightcap is called Crypto Crusher — a tool that delivers daily trading ideas with precise entry, target and stop levels. It gives users the ability to scan the markets quickly based on trends, prices, percentage chances, and highs and lows. At a glance, investors can assess current market sentiment and make use of exclusive indicators to ensure they're ahead of the pack. This is complemented by live educational resources that offer an additional insight into what's going on, as well as a 24-hour chatroom. 

Eightcap says getting involved with Crypto Crusher is easy — as only three straightforward requirements need to be met. Users must have an active trading account, a balance of more than $500, and to have placed at least one trade over the past month.

A partnership with Capitalise.ai also means that customers can automate their trading, without requiring coding knowledge. Free training sessions are also provided so users can maximize their trading performance while managing risk. Meanwhile, monthly webinar sessions are also offered that cover an array of topics — from how to make use of backtesting, to setting alerts when certain market conditions are met.

Powerful integrations

Eightcap has also integrated with TradingView — one of the world's most popular charting platforms — giving users key features that enable them to stay one step ahead of the game. Given how the crypto markets run 24/7, the unmissable alerts it offers are crucial — opening up access to a vibrant social network that boasts over 30 million traders.

What's more, Eightcap is regulated by the Australian Securities and Investment Commission, Britain's Financial Conduct Authority, the Cyprus Securities and Exchange Commission and the Securities Commission of the Bahamas — crucial for traders who want a sense of security when they're selecting a broker.

Eightcap told Cointelegraph: "The old investing rules don't apply anymore, there has been a sudden shift to crypto derivatives trading and that trend won't be going away anytime soon as the market currently presents itself with different opportunities. It's a new era of trading and we have seen more smart traders stepping into the space to spot market opportunities with the increased volatility that the crypto market has been seeing."

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