How to turn BEARISH situation into a BULLISH suituation - Bitshares Edition

Hello guys, as promised, I will be teaching you how to properly use Bitshares Borrowing System in a losing situation. We all know that Bitshares shows great progress during this past few days. Breaking every walls that comes around it. Most of us doesn't wawnt to get left behind by Bitshares fast growth. Me too, I'm afraid to convert my Bitshares to bitUSD, that's why I will teach you guys how to use Bitshares Borrowing System.

1. FEED PRICE - this is the current price of Bitshares in the Bitshares DEX. BTS/bitUSD

2. CALL PRICE - this is the limit where if the price of BTS/bitUSD exceed the call price, the collateral you've set will be all taken by Bitshares Network.

3. DEBT - this is where you set the amount you want to borrow within Bitshares Network.

4. COLLATERAL - this shows how many Bitshares was used as collateral. When adjusting the RATIO.

5. RATIO - this bar must be atleast at 1.75 ratio. This is to ensure that when the price goes down the bitUSD that we borrowed are well collaterized even when Bitshares price goes down.

As you can see guys, we can adjust the ratio up to six. As we set the ratio the call price will increase meaning that we can safely assume that even when the price goes up to 50% if we set the collateral to 6 our Bitshares will not be called by the Bitshares Network.

Why use this is a bearish situation?

In a bearish situation, the price of the asset will go down. This is the perfect time we can use the Bitshares Borrowing System. Why? When the price goes down to 30-50% we can safely assume that Bitshares will return into it's original price in no time. Right? If that happens we can start borrowing from the system.

To compute how you can safely sure that you have the amount of Bitshares to collateral the amount you will borrow.

1. You must compute the total amount of your Bitshares in bitUSD in the current price.

2. Divide the amount of bitUSD in 6

3. The answer is the safest value that you can borrow to the system.

For example. Let's say Bitshares price is at $1 so 1 is to 1. If I have 600 Bitshares. The safest total of bitUSD I can borrow is 1. So I can collaterized it with 599 Bitshares. Remember to atleast save 1 Bitshares in order to make transactions.

Once you have borrow you can now buy Bitshares in the Bitshares DEX. If in the current price you buy Bitshares and the price goes up to let's say 10% you will gain a 10% increase based in the amount you borrowed in the system.

If the price goes up to 100% the total Bitshares that you've bought with bitUSD is now at 110 bitUSD. This is because the Bitshares price increased in 10%. Meaning you will have 10 more Bitshares in your wallet. Then we can now bought back the bitUSD using the Bitshares that we've bought with the bitUSD we borrowed from the system.

In order to get the Bitshares that we use in order to borrow. We will pay our debt with the same amount of bitUSD that we have borrowed from the system. If we borrow 100 bitUSD, we need 100 bitUSD in order to get back the Bitshares the we use as collateral. Don't worry about the fee. It's as low as 0.1 something if you can gain 10 Bitshares it's small compared to the Bitshares you gain using this guide.

This is my Christmas Gift to all my readers out there. Have a Merry Merry Christmas Everyone!

Your Bitshares Enthusiast,
Nem Dayao