Price predictions are the norm when it comes to cryptocurrency. With such an infamously volatile market, all you can really do is estimate what the price will become. And when the final price comes out, your outcome will either be lucrative or unprofitable. But is it possible to profit from a price prediction? With HedgeTrade, the answer to that question is yes. And in fact, this capability is one of many aspects that makes the platform unique.
This article will explore how you can generate a profit from Bitcoin price predictions on the HedgeTrade platform. Moreover, it will explain how you can potentially turn a profit even when a prediction ends up being incorrect.
Brief overview of social trading
Let’s first go over ‘social trading’, as it ties into how HedgeTrade operates.
This is one of many investing forms, with this one allowing investors to observe trading behavior. Specifically, the behavior from their peers and expert traders. By drawing from their investment strategies, they can use them through two other methods: copy trading and mirror trading. ‘Copy trading’ enables those in the financial markets to automatically copy positions that other individuals opened and are managing. ‘Mirror trading’ allows investors to copy the trades of successful forex investors with much more experience. They can then implement those same trades into their own accounts and almost in real-time.
When you think about it, social trading works in a similar manner to a conventional social network. In the case of the latter, you are sharing selfies or an array of photos. Now, when it comes to a trading network, people share trading ideas in lieu of photos. Traders are able to interact with each other and watch the trading results of other professionals. Moreover, they can brainstorm on market situations in real-time.
As an investor or a trader with less experience, your trading decisions have a certain foundation in social trading. These decisions draw their information from other skillful investors who were able to generate financial content. To be specific, it is content that was collected from a variety of reliable platforms. Put simply, you need to pick out a successful trader with a trading strategy that you like. Once you do that, you can start following them and copying their trades.
With social trading, you have quick access to reliable trading information and a better understanding of the trading market. Furthermore, you can earn while you learn and create a trading community of investors.
The purpose of HedgeTrade
HedgeTrade is a platform that has been in development for years, only launching in recent months. It is a forecasting platform that is primarily for amateur traders who want to conduct trades alongside the experts. Professional traders stake HEDG tokens (the platform’s currency) to show confidence in their “Blueprints.” These Blueprints are the trading predictions that these traders make. Novice traders, meanwhile, can purchase these Blueprints in order to trade like the pros.
This is how the process works:
- If the trader’s predictions are correct: The traders will earn proceeds from the users who bought their Blueprint. They have the potential to earn more by staking additional HEDG tokens on their Blueprint. This will effectively increase the purchase price for other users.
- If the trader’s predictions are incorrect: The purchasers will receive a full refund of the Blueprint purchase. In addition, the original buyers for each Blueprint will share the staked tokens should the trader’s forecast end up inaccurate.
The core intent of HedgeTrade is to bring novice traders and professional traders together. They carry out this objective with the use of a ranking system. It is with this system that beginners can get an inside look as to how the pros carry out their work. Moreover, the two groups have a mutually beneficial relationship on the platform. Novices gain knowledge and professionals gain monetary rewards should their predictions be correct.
HedgeTrade’s ranking system aids in identifying traders with experience according to numerous criteria. This includes the following:
- Birth of account
- Number of successful Blueprints
- Blueprint Viewership
- Blueprint Contributors
- Amount of HEDG earned
- Account age of contributors
Traders possessing the proper skills for successful engagement in market trades can pass on their knowledge to those new to trading. They are able to monetize their trade predictions by way of creating Blueprints on the HedgeTrade platform. Novice traders in turn can purchase these Blueprints so that they can unlock the details of the prediction. The traders that post their predictions can earn HEDG tokens in exchange for sharing their knowledge.
The saving of a Blueprint is done through an Ethereum smart contract. This is a blockchain program that, in the case of HedgeTrade, provides a form of recordkeeping. The beauty part of this system is that there is no way that any entity can modify it. Hosting all of the Blueprints takes place on the blockchain. This, as a result, creates a vital component to the accountability of the HedgeTrade platform.
Following its creation, the Blueprint will be available to HedgeTrade users for purchase. They can buy it either with HEDG tokens or with bitcoin. Users are able to browse the Blueprint Market to get a good look at the predictions that the traders publish. Not only that, but users can click on the name of the trader to view details on their current Blueprints. Additionally, they can get information on their historical performance.
At some point, a user will be ready to go forward with purchasing a Blueprint. Again, they can buy with either their HEDG tokens or bitcoin. After this, they will effectively unlock the Blueprint details and it will be visible on the user’s “Purchased Blueprints” page.
Every time a Blueprint closes, there is an allocation of a small fraction of funds. Specifically, for reinvestment into the HedgeTrade platform.
The Rublix Development team came to an important decision last year. That being investing the money back into the platform’s users would effectively provide a wide variety of benefits. With this in mind, they would go on to set up the Affiliate Program. With it, they are able to automate a system of commission payouts to affiliates. The payment of these commissions are with HEDG tokens following the completion of each and every Blueprint.
The Affiliate Program is quite beneficial for the HedgeTrade ecosystem. It provides the following advantages, among others:
- All users now have another method in which they can earn HEDG tokens through affiliate commissions.
- The program provides users with the incentive to invite and attract new participants to HedgeTrade. This in turn will result in additional strength and attention for the overall platform.
- Novice traders now have a way in which they can earn through the Affiliate Program. Moreover, they can do so without ever needing to publish and sell their own prediction Blueprints. This will give them an opportunity to earn in a different way. That is until they feel that they are confident enough to finally start publishing their own predictions.
- The more users there are on the platform, the more it will help the marketplace grow for trade predictions.
How can I join it?
On the surface, the HedgeTrade Affiliate Program appears to be some sort of VIP group. One that only a select few can join, and they have to pay a monthly fee to stay in it. However, contrary to this assumption, joining the Affiliate Program is not a tricky thing to accomplish. As a matter of fact, it is straightforward.
Becoming a part of the Affiliate Program only takes three simple steps. Traders looking to join need to do the following:
- You, of course, need a HedgeTrade account. The very first thing you need to do is create one by signing up on HedgeTrade.
- Click “Settings” to view the affiliate link and then copy it.
- Share the affiliate link with your friends, followers, and anyone else who has an interest in the crypto trading world.
And that’s all it takes to join the program. After you complete these three steps, you will earn commissions every time a Blueprint that one of your affiliates owns closes.
Now we reach the point where we go over how payout works on HedgeTrade. As soon as a Blueprint reaches its expiration, one of two things will happen to the tokens that have been staked. Sometimes, they will return back to the creator of the Blueprint. Other times, they will go to the users who bought the Blueprint.
There are four notable outcomes concerning a Blueprint’s closure. It will either close successfully, be successful without any purchaser, close unsuccessfully, or its closing will be more neutral.
Firstly, should the Blueprint close successfully, then a 30% commission charge will be made. This charge will be on the total amount of HEDG tokens that users put towards purchasing the Blueprint. Whatever remains will go towards the user that is responsible for creating the Blueprint. There is a chance for a Blueprint to be successful, but there were no takers. In other words, no one opted to buy it. In this particular case, there will be a charge of a 10% commission on the total amount HEDG tokens staked.
What about the opposite outcome? Well, if the Blueprint were to close unsuccessfully, then a 30% commission charge will be made. Similar to closing successfully, it will be on the total amount of HEDG tokens. However, the main difference is that it is the tokens that the creator themselves staked. Whatever remains will go towards the users who have bought the Blueprint.
There may be times where the Blueprint closes neutrally. In other words, there was a failure to hit the Entry and Exit points. In this situation, there is a charge of a 10% commission on the total amount HEDG tokens the creator stakes. If there were any users that purchased the Blueprint, they will receive a full refund.
Profiting from failure
It is not impossible to generate a profit from a Blueprint being inaccurate. In fact, if you are one of the first seven users to purchase a Blueprint, you will earn additional proceeds. And this is on top of the refund of your purchase price.
This ties into the unsuccessful Blueprint that leads to a 30% commission charge on the creator’s staked tokens. Moreover, that the purchasers of that Blueprint will receive the remainder. If you just so happen to be one of the first seven users to purchase a Blueprint, then you will earn extra proceeds. And again, this is in addition to a refund of your purchase price. All in all, these seven buyers will garner a higher profit than the rest of the buyers.
On HedgeTrade, making Bitcoin price predictions can prove to be a lucrative investment. And as you can see, if you are one of the first seven users to purchase a Blueprint, you can benefit from its inaccuracy.
Sign up today on HedgeTrade and start exploring the emerging world of social trading!