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Leverage trading, also known as margin trading, is when a trading platform allows you to increase your capital through borrowed funds and leverage your trade.

Today we discuss why we think trading with leverage is a good idea, come check it out here: https://steemit.com/crypto/@brokaine/why-you-should-trade-crypto-with-leverage-in-south-africa

I read what you posted on that article and you only present one side of the coin, you only present the good aspects that make margin trading attractive and why many people try to use it on the first pace, why do not we talk about the other side, if you lose 10% in a single trade if you leverage that with 10x then you lose all your capital, and if you use 100x then a 1% loss is enough to wipe out your account.

I think you are taking the wrong approach here, the question should be who can trade using leverage and do it without destroying their accounts in days or weeks? And the only ones that can do that are expert traders, newbies should stay away from it until they have showed themselves they can make money consistently on the markets and they have a solid money management strategy.

Everyone assumes that people "should" be doing something but this arrogance that caused by "I know it better than some stranger online" was created in the past 10 years alone, before that humanity wasn't like this, nobody assumed that they would know more than a stranger, they assumed they would know more about something than a person they know but not really strangers, maybe you are talking to someone who is an expert financial class professor in a top notch university? You would never know that.

Leverage is known, you can go google and see what leverage is if you do not know what it is, to tell people they should be using it is really a bad move and sounds horrible, it is quite risky and you could make a ton of money with it but you could also lose it all and some people do not like that, including me.

Yes he didn't say that the leverage can also amply the loss not to mention that its hard to do it on exchanges particularly in binance because you have to be in the right page, right button and then shift to another page to place the order. Train yourself well because its risky and not as intuitive as spot market interface.

Remember that the loan will have an interest and when you execute short/long, you risk yourself with margin level which you don't wanna get liquidated.

To say that even including the inexperienced traders, you are putting them at their huge loss and disappointment. I'm not an expert trader but leverage trading isn't for me. I understand the risk and reward that it contains but I'm more careful with the losses.
I've seen several stories online that they do profit with leverage but I've seen sad stories as well which made me think to stay on the conventional way of trading.

All things does have different side and some people do only focuses out to show the positive ones without giving out or even tending to make some warnings or some sort that leverage/margin isnt really for anybody.
Yes, this one can really give out enormous amounts of profits once the price did really go up on what you had anticipated but to think that it will be doing the same thing when the price is going to the opposite direction.
When someone do decide to dive in leverage trading then they should at least have the idea on how all thing works in spot trading.It is different but the entire scheme is just the same.
They do only differ on the level of risk involved.If someone can embrace such risk then its their choice to do so but be sure that youre ready on dealing with it.

Honestly, from a technical point of view, it's not actually wrong to trade crypto with leverage "as long as people don't just know the basics but rather the whole idea why they consider doing that".

In the article shared by OP, I don't see much information about the reasons why people should trade with leverage. The list was full of quick pointers so I should say, just a summary and to bring viewers to the article. And in the last part, an advertisement of a crypto leverage trading platforms that claimed to be one of the top in South Africa.

The bottom line, trading with leverage is not recommended to those newbies who think that earning decent money out of it is just as easy as 1,2.3. If by any means they don't know how to leverage trading works, they should try to understand the risks first then decide to themselves if they will take a shot of it or not.

Leverage trading success stories are sometimes paid too because the exchange wants to attract new traders and give them the bait of leverage which is why there are so many success stories in the market. I have done leverage trading myself and I can comfortably say that it is not easy because a small swing of the market can make you sweat and better to just trade with your own capital and avoid leverage.

Also people must consider which exchange they are using to do this type of trading and read their terms and conditions because you don't want to pay higher interest while better exchanges exists that allow this at very reasonable rates.

This is too risky and many loss their money out of their control in reality, Leveraging is only to those who have money and afford to lose money, a risk taker that can take that much. The article says the good side of Leveraging and of course, there should be the bad side and mostly trader are easily losing their money because of this Margin trading, i still recommend to trade on your own using your capital that you have and own your timeline.

I never thought of that but it could possibly happen. If the exchange sees that they have not that much user and they want to attract more traders, they'll certainly create a story for the exposure which will get the users who have viewed that story of an individual attractive.
And those users who are hype by that story will do the same as said in that story to leverage their trading and what happens next, they're all gone, the money's gone and they've been liquidated.

I just went through the article. While it was written well, the information there might be misleading because it only talks about the good stuffs that margin trading has to offer but not the risks associated with it. In my opinion,  it is always better to tell the two sides of the story so people can make an informed decision.

I do trade with margins and futures. Just as they have an increased profit potential, they also have the tendency to go sideways and bring about huge losses.

We should also talk about how the huge risk when a trader using leverage.
It's a huge risk and for me, it's not a newbie-friendly. So if there will be a user may see this thread, I really advise don't start with leverage trading when you are starting to trade or doing practice. Go try to use first spot trading, even me now, I am using a very small amount of leverage.

After reading the article, thought about the important points of leverage in trading. The double-edged sword can be a powerful gun but having decent skills will protect the trader from cutting his body parts. The high leverage is overkill dose for new traders but experienced traders know how to use this financial tool professionally. Due to volatile crypto markets, accepting or cutting loss is essential especially if the trader use 1:100 leverage or higher. Some forex brokers have high leverage offers for shares and they just included crypto pairs on this list.

The article says a lot of good stuffs about leveraging and that is right but i do not suggest this one to newbies because leveraging is not an ordinary trading, you must understand everything first. I did loose money in leveraging and i wont try it again so there is no must to trade using leveraging. It will depend on you, and on your plan in trading.

That's how you advertise things, more on the good feedback and never share the bad side.
Leveraging can be profitable of course but it requires the skill to analyze what indicators to be use, we should not put ourselves into something we are not familiar with, well everything can be learned its just a matter of time and sacrifices. Exhanges offer a great margin trading platform, all you have to do is to learn the platform and if you are a confident trader and a risk taker, you can consider this one that's your choice.

Leveraged trading is for advanced traders only.

I will complete this thread with "why shouldn't you use leverage?"
- you are not an active trader (do not have target times)
- you don't know much about technical analysis
- You have poor emotional control
- your trading portfolio is not good enough
- you want independent trading capital and pure profit
- you do not want to be bothered with warnings and do not want your account to be closed unilaterally.

I don't think you should be basing a guide or a tip based on how much one can actually earn. You should base it on the chances of one can earn. It isn't always about making the biggest money out of an opportunity, it's about making an opportunity to create money. The guide pretty much indicates the advantages of leverage, which, in tl;dr terms, it makes you earn more money, but the risk also increases together with it. There were quite a lot of advantages indicated in the article, but never disadvantages. Even if you were to advertise something, a negative output would actually be quite helpful, ones that are painfully obvious and part of that certain feature specifically.

I don't use leverage trading, but I have the experience to use leverage before the bitcoin price touch $19k a few years ago. At that time, I can buy bitcoin at $3k and leave it grows price by price, and close the trade at $18,700. That is the biggest profit that I can make a few years ago, and I know that I can make another big profit in the future.

But today, I realize that use leverage trading can't just depend on your luck because bitcoin price now moves without we can't predict. Even if we can buy bitcoin at a low price, it doesn't mean that the price can't go lower a few days or months later. Perhaps, you can close the trade after making a profit, so you don't risk your money to expect to make a bigger profit.

I prefer to use the usual trading type at the exchanges and don't trade using leverage, especially if we don't have the skills to analyze where the trend will move.

Oh yeah, and you made such profits by telling people to buy the dip at 18,200 (https://bitcointalk.org/index.php?topic=2604742.msg26520118#msg26520118)? Just for fun let's imagine you would have gone x10 long on that price, how much profit you would have made?   ;D


The first thing is not to use exchange or derivatives exchange that is trying to gain visitors with articles in which they throw a bit of general ingo and 80% advertise their platform. The general rule is that when a stranger tells you his platform is the best for earning money and there is no disadvantage and no risk or he avoids telling about that it's a good thing to avoid him also.

Also, one more thing to add to your list: You can't afford to lose the money you're playing with.

There's this popular saying of not trading with funds you can't afford to lose, also don't trade with borrowed money as your emotions might cause you to make unhealthy decision. Now advising newbie to adventure into leverage trading goes against all those tips as basically what you're saying is borrowing money to trade which obviously is money the borrowers can't afford to lose.

The last dump saw many leverage traders longing bitcoin getting rekted. Leverage trading isn't meant to be tried by inexperience traders and if you're in that category but have tried leverage trading and profited, that doesn't mean you're a pro but just lucky. Even professional traders get it all wrong sometime and loses funds that meant demoralized them from trading.

If you're still new to trading is preferable to stick to spot trading, the worst scenario will only result to you losing few percentage of your portfolio provided you had the stoploss feature setup.

True and the crypto market is so volatile that 10-15% change is normal within weeks and even days at times specially with altcoins because they are even more volatile than bitcoins. But that said if you do a sensible leverage trading and use 3x or 5x at max then actually chances are less that the value will drop as much as quickly and you can see some funds in balance for sudden changes and you can put some extra money when market drops.

For sure newbies should not even think of leverage trading and one thing that people miss about leverage trading is that you have to pay some interest, although small, to the lender because you basically borrow money from them and you always feel the heat of paying interest so you make rush trades a lot of time to make things happen and one thing everyone must avoid in leverage trading is rush because it can empty all your balance.

Here are some good links to be seen on towards Leverage.

https://www.investopedia.com/articles/forex/07/forex_leverage.asp
https://www.youtube.com/watch?v=lHUXYDtwAqY

Sounds to easy and profitable but when you are on the amidst of this leverage trading then you surely
felt that you're playing with fire.

Its good only for veteran traders because leberage or marginal trading needs to pay the interest rate. And margin trading is so much stressful specially when your positions had been liquidated. I believe that spot trading will less your stress and as well as you are confident to lose because you don't have to cover your loans at exact time.

OP, if I wanted to discuss margin trading on steemit, I'd just go there.  If you want to start up a discussion on bitcointalk, just start it up here instead of linking out to steemit.  It's annoying.

Sometimes I swear the luckiest newbies are the ones who've never even heard of margin/leverage, because it's so easy to lose everything in a short period of time if you don't know what you're doing. 

I fully understand how using leverage works and how it can potentially increase your profits to an extent that would be impossible without using leverage--but I've never purchased stocks, crypto, or anything else on margin and don't ever intend to.  For one thing, it's akin to gambling, which I detest; and second, margin is debt.  That's something I also detest and try to avoid at all costs.  I'd rather buy an investment with money that's mine instead of borrowing someone else's to buy it with. 

But hey, to each his own and good luck to any of you who're trading on margin.

You know it's not very nice to talk about things you know nothing about to just get some more views for your steemit page and get some beginners in trading trapped into leveraged trading.

I believe it's the opposite and you should never trade "Cryptocurrencies" on leverage, leverage at the start was a way to increase the volatility of the price of different assets/currencies to make them more trade worthy and maybe more profitable like what you see right now traders in Forex do, in Forex market currencies only go up or down about 0.5-3% maximum in a day which makes sense for a trader to use a little leverage on it while in crypto market a coin/token can change 20-50% in just a single day easily and fast too and if you use leverage on crypto you can lose it all in just a blink of an eye.

The bottom line is crypto is by itself is volatile enough and you don't need leverage to make crypto trading any more risky.

Yup and the author is trying to make sure that everybody finds out about leverage trading as soon as possible.  ;D


Oh, but he knows a lot, look at his name which by coincidence is the same name as the exchange that the steemit article points to, his other two little posts with timid shilling for snapex and you get the idea. Nobody is going to tell that you can lose all your money with their business, you don't see posters with beggars in the ads of casinos, you don't see pictures with poor people on the walls of a betting cafe.

Those things are just on the 134th page somewhere in the terms and conditions.


A few percentages at a time, and if you lose twice in a raw you will take higher risks and those percentages will increase till there is one big flat zero in your account. I think that not only you shouldn't trade with money you are borrowing or you can't afford to lose but more important in trading I think that you need to know when to give up when it's clear you're not cut for this. Not everyone can be a good doctor, not everyone can be a successful trader if we could all be then there would be no more poverty in the world as we would be making tons of money.

For me who has a bad experience using margin trading features, it is certainly not a good idea to make profit from trading.
I have lost up to $ 1000 in just a few days trading with leverage, According to me, only professional traders and those who
have large capital can trade with leverage. For me spot trading or manual trading is the best for making profit.

You are actually putting a trader at high risk and a misserable life if they got in trouble with his trading life. What a leverage strategy can do to confidently have the assurace to someone that will use this? Probably not. And to know that Marging trading or leverage trading is not for noobs, but for those who have a long experience in trading.
Better stop assuming that this will give help and they can benefit from this but rather to say also the possible negative results in order to keep everyone informed about leverage trading, not to mislead them.

There are pro traders who know how to use effectively the leverage for boosting their profit but the leverage can be a tool for melting the balance faster than anything else. Saving the balance is not possible if the risk lovers gonna trade the highly volatile markets with 1:500 leverage. In the normal financial markets, the 1:10 leverage is normal for trading assets but the crpyot industry is known as the daily 30% price change, so the point here is to take into consideration the possible risks with all aspects.

We appreciate your feedback and views. Trading crypto can be risky - yes, but with the right knowledge and expertise, huge profits can be made.

And that bothers me, after all there is no need to hide it, to begin with almost all the information you could be interested in is on the Internet already, so anyone interested looking at margin trading will see that their losses can be multiplied as well, so what is the purpose of not mentioning in an article that tries to promote it? In my opinion there are only two reasons, one the person is not as knowledgeable about the subject as he is trying to make us believe.

Or the second option is that he is trying to hide that information from newbies because he knows they are not going to make any kind of deep research on the subject and they will begin margin trading despite the fact only experts should use it due to the enormous risks they are taking.

I'm pretty sure that the most traffics of these websites are coming from newbies and other people that are even a little experienced know that with leverage trading they're not going to get rich magically overnight, when you trade cryptocurrencies on leverage you either lose a lot or gain a lot very fast and you can be certain that if you are one of those lucky people that gained a lot at their first try you will not just stop there and say I'm done, and you will keep trading more until you are one of those people that lost a lot of money by leverage trading without calculating the risks properly, so if you are looking for any real long-term success in trading start thinking more reasonably and ignore any kind of trading that involves that much risk unless you have absolutely no problem losing it all in one single bad trade.

I am sure that trading with leverage is not the right decision for all traders. I am also sure that there are many of us who, thanks to margin trading, have already destroyed their deposit several times. Before starting such a trade with leverage, you need to thoroughly understand all the nuances of trading on the spot market.

Leverage is good when you are making business outside the forum but if you are thinking about increasing your capital in trading with the help of leverage, you'll make it wrong. I understand that both of them have risk but you can tell also yourself that trading is of higher risk. However, it the choice of a trader to use this kind of strategy, and probably he knows already the possible consequences once they failed. But in myself, I can't afford to do that, nor I have to risk more in trading asking a loan to someone just to extend my capital.

Just as there are risks in leverage trading this powerful tool makes it possible for you to actually invest more money. Leverage is a very important issue for crypto trading. Leverage means taking salt from the work of a broker so the salt thing is like a double-edged sword if you can use it properly it will give you good results and if you can't use it well then you have to go poor. So depending on your deposit you have to take leverage. If you are trading crypto with capital then you can increase the leverage a little and if you trade with more capital then the more leverage you can get the better. You can also set leverage according to your money management.

You can't do without leverage if you see that a certain coin should fall in price, but you don't have it. In this case, using the margin, you borrow it from the exchange and sell it, and then when the price falls, you buy it and repay the debt. This cannot be done without leverage in the spot market.

For margin trading, I recommend Bitmex exchange. Bitmex fees and commission are quite low comparing to Bitfinex or Binance. Bitmex commissions are not related to leverage but to quantity (it is important!). And there are negative fee (a rebate) on Bitmex - it's very cool! 8)

There is this "urgency" in some people that I will never understand, they look at the wealthy people all around the world and they want to be like them and I understand that logic because I want to be like them as well however does nobody realize that people are not super wealthy because they got rich overnight with some lucky investment?

People got wealthy because they worked hard for years even decades to get there. You think warren buffet was this goliath in business world over night?

It took him 4 decades to even reach to a point where he would influence stock prices, FOUR DECADES! This is why I do not see the point of leverage, sure maybe you make a buck here and lose a buck there and get a bit better but why risk and rush everything when you can gradually get richer consistently.

The value of the currencies of various countries varies consistent with the economic situation and financial events of various countries. Dollars or euros are going to be bought and sold altogether countries of the planet at an equivalent price at which you purchase dollars or euros. there's an outsized leverage or loan facility available for trading within the Forex market, then you'll make an honest profit with little or no market movement. this suggests open trade for a really short time. it's possible to form an honest profit with little or no change within the forex market many of us open a trade for 10 or 15 seconds and exit the trade with a profit. within the case of loans, more people use the leverage trade.

For me, I do not think that trading with leverage is a good thing because it contains high risks, it is true that you can win a lot through the use of leverage, but also the loss will be large, especially for those who do not have much experience in this type of trading, so I prefer trading Immediate because it is more secure and easier to learn.

High risk is equals to high rewards, that's the equivalent of taking such risk. Leverage trading is fun, I personally trading with leverage in Binance and I must say that it's good everytime as long as you know the market's behavior that day. Always remember to manage the risk that you are taking, I usually trading at 50x so the liquidation is quite near after my position, stop loss will catch you and you don't have to worry that much.

Of course trading with leverage is not for beginners, if you want to learn trading don't skip steps. Don't just read someone's experiences, make it happen to yourself.

X50 is a very big risk for trading when you are only 2% away from liquidation. Even using a 1% stop loss destroys your deposit by half. Obviously, using such a large leverage brings a large profit, but I think that you are only trading a small deposit. X50 is like a casino to me.

Be careful not everyone can trade crypto with leverage, I think only professional traders who have experience in the trading world
are able to successfully use leveraged trading. Because our risk of losing all the capital we have is very likely. To be honest, I have
never tried trading crypto with leverage, because based on the reviews that I read, there are a lot of people who have lost trading
with leverage. So I decided not to try it. Besides, my trading skills are not that good either.

That is pretty much what my veteran trader friend said about leverage trading. I did some research about this type of trading and I know there and then that it will not match my risk tolerance which could result in me lossing more although I learning comes with it, it is still not worth it. I do believe that the reward seems lucrative but this is a pretty good trap that can go downhill in one click or tap on a button. Like what my friend said, be careful when it comes to leverage, the money is not worth the losses you may incur in the first places.

this is a very bright idea, but what about the risks?
you can literally loose everything

Trading without leverage is a waste of time, but you must control your risk and have knowledge what you are doing.

The funny thing about leverage trading is that if you try to use money management techniques to try to limit your losses then you will end up with the same results as if you did not used leverage at all.

For example supposing that someone decides to use a leverage of 100x on his trades, anyone that is using money management techniques will find out that now he needs to reduce his position to 1% of its usual size which means that on average his profits should remain the same, with the only exception of course that now he has to pay for the money he borrowed and this reduces his profit margins, if anything leverage could only add to the diversification of our portfolio and even that is questionable as what it is the point of diversifying in this market when we have bitcoin?

Leverage trading comes with huge risks. It comes with a destructive nature to be able to quench all of your invested money in case the leverage at which you’re trading falls below the standard. It is strictly advised not to trade with indispensable money, such as borrowing money from relatives or friends to deal with bitcoins or its likes. Nonetheless, you should take note that the rewards are just as great as the risks in this method.

10x, 50x or 100x leverage, whichever works for you, you can use that to trade and make profits without heeding the volatility. For instance, if you bought a coin worth $2000, and the price hiked up to 10%, then you would have gained a $100 profit. This trade is mostly for the experienced, however with commonsense, knowledge and caution, and a little bit of luck, you should be well on your way to making profits and money.

Trading with Leverage is risky. And I'm surprised to see how the article you shared on here only looks at the benefits of trading with a margin.

To put it simply, trading with leverage is indeed powerful as you can multiply your money up by borrowing much more than you have but at the same time is just as risky as leverage works in both directions. That's not only you increase your odds say by 50x but the same odds of 50x apply to losing also.

This is why I think Leveraged trading is for very experienced traders, definitely not newbie.

In your article. I see that an advantage of trading with leverage is less risk than holding actual crypto
That part isn't correct. Trading with leverage has higher risk than holding. With holding, you cant loose all your funds. But with trading, you can loose any amount. Especially when you are trading with leverage.

Not true in all cases, if you don't close the order the loss is only on the paper. Similar logic for HODL, the longer the investor keeps the position the higher the chances the price will return to the original level one day. Leverage trading can be risky for newbies but experienced traders know how to use it effectively in the volatile crypto markets. The leverage can be overkill if the trader has no idea about the slippage on the order book, the multiplied loss can cause a suicide too. Unfortunately, the trading companies don't want to decrease the leverage for newbie traders.