Bitcoin Forum

Here are the pros I could sum up:

. First of course is the bigger market exposure. It seems like the right time to cash in on the crypto market, and for many beginners with limited capital, leverage seems to be the only option.
. Lesser risk when you set tight stops and trade smaller amounts. You don’t risk all of your capital and as you gain experience, learn how to navigate the leveraged trading market.
The biggest disadvantage obviously is the extreme volatility of the market which can magnify losses as much as it can increase profits through leverage.
How many of you here are using leverage to trade crypto, and how much, and through which broker? Let’s bring to light the many unknown aspects of crypto trading, besides what is known - that you screw things up when you don’t understand technical analysis and blindly enter and exit trades.

While having tight stop losses can definitely help decrease risk, it's definitely going to increase the likeliness of you losing trades by orders of magnitude. Leverage is simply not the best way of learning how to trade. It's mostly just used as a sort of 'Hail Mary' of people with low amounts of money, in the hopes that they could gamble away their small amounts into good amounts.

And leverage isn't the only way of winning big. You can focus on small-mid caps to potentially have higher potential price increases. And yes, these are risky, but not as risky as leverage trading for the absolute trading newbie.

Trading is very risky, common spot trading still leading to losses if not talked about leveraging, leveraging increase the risk. Even going for higher leverage makes the risks higher and new traders that are vulnerable to loss are the ones that like higher leverage.

Tight stop loss has advantage and disadvantage, do not expect the position opened to alwas first go in the direction you analysed it to go, it can first go the opposite direction and then favor your direction later.

Only when the price is not in the direction of the position, that is why leveraging is disadvantage, there are still chances that the price of the coin taken to retrace.

Leverage trading significantly got me into trouble after many months of experience, even two years of experience, the better is to use 2x leverage but the best is to never use leverage.

Trading with leverage is a very dangerous thing for a beginner, especially for a gambler, because if you try it once, you can't pull everything off.
As a beginner, I was losing my deposits, trading with a leverage of x10, x20, but I realized that it was necessary to trade with a maximum of x5, and it would be hard to stop.

The market just crashes 1 hour ago. It is a good example you can take into consideration and answer the question by yourself. Whether you should trade with leverage. What leverage to use. How much the capital for leverage trading is in your total capital. Cross or isolated collateral margin trading.

If today, you got a margin call in the last 1 hour, the answer is You should stop trading with leverage. If you are lucky and were not liquidated today, you will be liquidated in the future if you won't improve your trading skills.

I think it doesn't matter when you have leverage or not as long as you know what it's for and how it can affect your trading journey ahead of you. Most of the time, people don't understand and see how important it is to consider leverage and manage it correctly. It's almost always going to be abused at first, and you will get liquidated. It's crucial to know your liquidation limit with your capital and always understand that it's always going to be like that.

If you don't learn it, you can gamble in casinos instead of the trading exchange. It depends on the person on how it's going to be used.

It's not recommended for newbies especially if they don't master the risk management. That's what will happen to any traders who don't know how to manage the risk and they just rely to luck and will ended up broke. I use high leverage even though I'm not a professional trader but I only use it if I'm really confident with my technical analysis.

I think it doesn't matter if you have using leverage or not as long as you know what it is and how it can affect your trading journey ahead of you. Leverage trading as far as I know, in the most basic sense, is any type of trading that involves borrowing money or otherwise increasing the number of shares involved in a trade beyond the number of shares you could afford when paying in cash. It’s not a bad thing to trade on leverage if you know what you’re doing and understand the risks. But if that’s not the case, it’s extremely risky and you could potentially lose a lot more than you can afford to. Trading has a lot of risk that's why we need to be more careful on it.

I am not using any leverage when it comes to trading. In the past I traded some futures with friends but only short term. The higher risk for trading on margin was not for me. You said that higher exposure we get through leverage is a positive thing for trading, that is only true when the market moves in our direction. When we are losing the leverage will make our losses even worse because we still have to repay the loan in the future. That is why I would never recommend new traders to work with leverage. Even when using tight stop losses there is always risks involved to lose more money. Even experts in trading who know technical analysis very well can get hurt with leverage. Trading is not a guaranteed success, no matter your experience level. Unforseen risks like a market crash can be devastating when using leverage. In my opinion there are two ways to trading, either you try to maximise your returns, at which point leverage can be helpful, or you try and minimise your risk for a certain amount of return. These days I am trying to focus more on minimising risks.

Nope, it's the very last option for beginners, or else they will even lose all the Limited capital they have in an instant because they don't know how the market works or the trading basics.


With the very volatile crypto market, tight stop losses will definitely lead to a very low win rate. Not recommended.

In my personal opinion, trading with leverage in Margin trading or Future is very risky. ANd the risk is higher than trading on the spot.
I know that the earning or profits are very promising, but the higher profits, of course, higher risks.
We can use the stop-loss feature, but if we also don't know the exact way to set up this, we may also have the risks.

Of course, every trading will have different risks and also everybody has their pons and cons.
As a beginner, I will prefer only to trade on the spot market although it still has risks but at least fewer risks.

Trading with leverage is very risky, but why using gambling? Anyone that is making use trading as gambling will not even gain but lose and lost more and more if not having the knowledge and experience about trading, even using no leverage is not meaning someone can not still lose.

5x leverage is not bad at all, but it is very possible someone can lose the whole money during volatile market if the price go against the position taken by the trader.

Trading and gambling are two different things entirely, I am not saying someone can not do both together or choose the one he likes but they are different. I use the money I can afford to gamble, but I still put more to trading because gambling is riskier.

It is good to manage leverage, the main cause of liquidation is the leverage used, many people are losing money and  tired all because they are using leverage or using too much leverage. I started to trade future with 125x, I later know that even using 10x is too much and resulting to liquidation. There is nothing better than using 2x or not to leverage at all.

Even with tighter stop loss leverage is still risky. I scalp majorly when I trade using leverage because the market volatility increases chances of losses if the market goes against the trend. leverage is trading on a borrowed capital which means an increased lot size. And with leverage just the same way we double our profit same way the losses comes

I agree with you, but it seems to me that there are more cons than pros. I traded using margin trading on Binance about a year ago, but at this point I was under a lot of stress. If anyone is interested, then on this page (https://cryptogeek.info/en/blog/best-exchanges-for-margin-trading) is a list of the most popular exchanges with access to margin trading.

I know they are different things. I'm just saying to the OP that he could just go and gamble his money instead of trading because if you don't learn it, it's like you are just gambling. It's a suggestion with what the OP could do if he doesn't study it.

That's why it's better to understand and learn how it becomes like that and how it's being calculated. x125 is suicidal. x20 is okay, x10 is safe. That's just how I view it. As long as you have a very good spread and capital, you will be safe.

It will be no problem using limited funds to use leverage trading, but the problem is how good your skills in trading are because that will determine how you can profit from the trade. If you can control your trade by using a stop loss and only taking profit when you think you can make a profit, you can increase your funds using leverage trading and you could get a chance to make a bigger profit. As we know, using leverage trading will not guarantee you to make a big profit quickly. You need to have high skills in trading so you can analyze deeper in a short time.

Binance, Bitmex, Kucoin have leverage trading to start with them and I advise you to use Binance as Binance is one of the best exchanges with leverage trading.

If your post is in any way meant for beginners to follow, then you shouldn't be advising that in quote ☝️. Leverage trading should be the last thing to ask a beginner to go into. Yes, it allows someone with limited capital access for more trades but once the loss comes you will regret ever going for it. Again, most veteran traders don't even use Stop Loss (this is bad though), let alone beginners who may not even know how to fix it. Spot trading is best fit for beginners, than leveraging.

I’ve experienced leverage trading several months ago. I usually do 5x to 10x for that, but yes it’s much more riskier than the traditional spot trading. If you are a beginner or newbie in trading, this isn’t for you. Even me that has some experience in leveraging trading, I had more losses than gains. This is only for those who have the emotional guts to lose an amount that they can afford to invest and trade.

When summarizing, the advantages are submissive to disadvantages which is the reason, most of this community members never appreciate about going with leveraged trading. Honestly spot trading is guaranteed for no losses when you are not hunting for targets. Simply, in trading environment, no losses is something incredible which is still possible with spot market long term trading; then why should anyone go for leveraged trading?

By crypto trading, if you refer spot trading then I guess this discussion will have something useful for this community but at the same time, if you are intended about leveraged trading then I am sure only paid shills will fill this discussions with their non-sense.

Just a reminder just because you set a stop loss at a certain price it does not mean that it is going to be executed at exactly the price you specified, there is something called slippage which is the difference between the price you expect to sell and the actual price at which you sell, this means that in a moment of great volatility you could end up selling for a price way lower than what you thought, which means that just when you needed it the most the protection that you thought you had with the stop loss will not be there.

I think trading future is not a good idea for a beginner because he or she might endup losing money, have been in Cryptocurrency for years now which mostly am into spot trading but sometimes I trade future which yesterday I got liquidated and I used just 5 laverage which is very low but still got liquidated, I believe future trading is not for beginners so perfect yourself with normal trading first before thinking about future.

Yes exactly. Trading with leverage is very risky although we may know how to set SL or CL.
But in fact, many newbies are also joining this in order to expect getting big and high profits very quickly. This is not a good mindset for most newbies.
However, if we have been very common in trading with leverage, it will not give a big matter and will give us very promising profits. But of course, higher profit will also require higher risks. As long as we can manage and control the risks, we know the market analysis and also strategy and we are ready with the risks, I think it will be okay for us.
But once more, not for those who are on trying only moreover beginners.

Yes I would definitely not recommend an absolute newbie to use high leverage, but those who have a basic understanding of the market and know technical analysis can surely benefit from it.

Thank you for echoing my thoughts!

I am presently doing leverage trading with 3x Isolated margin with binance, I can't cope with leverage of 10x, 15x etc because of the risk involved and fear of liquidation though stop lossing a leverage trade is the best way out of getting liquidated, however for a trader to trade with a high leverage such a trader must be highly experienced and skillful in the art, above all newbies are always advice to start with spot trading so as to pass through the learning process that is how I also started my trading journey.

Even with tight stop losses, trading with leverage is still dangerous and would normally be not recommended. Trading is something you don't want to gamble with, even if you do know how to trade. After all, no amount of TA could increase your chances of making a successful trade to 100%. It's really not worth the risk. Imo, leverage trading is only done by impatient people which shouldn't be imo, trading is something that would require time and patience, it isn't something that should be done quickly just because you want to.

I'm not sure if what you are saying is right, even if you have limited fund you will still be able to trade on spot trading, learn the same lesson you can have on the leverage and earn profit too and last you both can be risky because of the volatility of the coins. So if you are newbie and you don't have yet experience it is much better to stay on the spot market.

If you are new to market leverage is not a good option, it is suitable for advanced traders if you are seeking experience and actual market experience you can have that in spot trading the only difference I see is that you will lose instantly your money in leverage trading if you don't have any actual trading experience.

Beginners + leverage + limited = Margin Calls/Liquidations.

Plus it’s not the only option. You can find a job, save a portion of your salary in Bitcoin. I believe you would have a higher probability of long term success with that than gambing with leverage. Think where you will be 10 years from now if you keep gambling with leverage.

Yeah, OP is trying to misguide new traders because theoretically leverage markets might look like an advantage but when getting into market then high volatility might swallow all their capital in matter of one or two sessions. Basically, limited funds cannot be a constrain for considering about leverage market.

Leveraged market might suit the traders who are able to accurately predict the market directions in short term. Such traders already might have big capital and still go for availing leverage to maximize their profit levels when trading on multiple assets.

OP:
When you are having small capital then going for leverage with all 100% of your capital might lead to disasters on a small correction on your expected market direction. Only when you gain experiences then you may start think about leverage trading.

Trading with leverage is profitable when your capital is big, because if your capital is just $10, you're wasting time and your TA. I mean if you successfully made a profit through your TA using your $10 with only 20x leverage on futures, you'll only get a little, such a waste of opportunity in my opinion unless you are a very patient perseverance person, then go for it.

But if you've got a pretty good capital in Trading, using 5x-10x leverage while betting 30-40% of it is good by putting the right stop loss and take profit with your TA.

Many traders with intensive training, after returning from such training, leverage seems to have been ranked by quite a few people as the hardest foods to swallow in the trading market, they have arrogance about knowledge but also because their manners are serious and know how to admit right and wrong, they appreciate risk and know leverage is not always the game for them. Casual and beginner traders are not qualified to participate in such courses and when the knowledge base is weak while eager to show off, all fail very quickly with the leverage

Nice understanding and some analysis but I think your percentage of staking is high whether with leverage or no leverage. 5 to 10x leverage with 30-40% of it is high. Leverage isn't your money, it is considered as a loan that you first service before your capital meaning anything can happen despite the assurance you see in your trade order. Meanwhile leverage for small capital or big capital is the same is to understand it

10x leverage is too high and if the market is volatile, it can lead to liquidation. 5x leverage is still fear but not that good and also still very risky and can lead to liquidation too if the market is very volatile against the direction taken. What I have noticed is what you said, it is better not to leverage at all, but having 2x leverage is not bad for me, before it can lead to liquidation, it will be hard. But the question is, is the person a good trader? Because even spot trading and no leverage trading can still lead to losses for many people especially new traders.

It’s years and years of experience, the right psychology, and the most important, THE TALENT which most of us plebs don’t, and will NEVER EVER have. Plebs most of the time don’t have a choice but should do it the proper way. Get a better life through hard work.

Stop loss is not a panacea for trading with leverage, because its use also requires knowledge and experience of its proper use. After all, if the stop loss level is set incorrectly, it will not only not protect your balance, but will also lead to the fact that you will quickly lose it.

Even many people here are into leveraged trading, I guess your question should be "how many people here are consistently profitable with leveraged trading" because against high volatile nature of bitcoin markets, most people get liquidated their account sooner or later. So, if you are trying to enlighten people on the merits of leveraged trading, I guess all your efforts may go in vain.

I am into spot trading of bitcoin against high volume altcoins. I got back up plan of converting my positions into holding hence I am literally profitable with my way of trading without any need of leverages.

Yeah, there are lots of methods are available to make profits out of crypto trading within available funds and also by not losing our peace of mind. Availing leverage definitely a big headache for all the traders as it bring another layer of risk along with what market fluctuations are providing. You really got a working plan. I also have tried this but sold my positions once I got into profit zones.

Spot trading must be 100 times better than leveraged trading even you are good at technical part. Because, most people are switching to leverage from spot trading and migrating for new target levels based on risk/reward calculations makes most people messing up things even they are used to it for years. So, just sticking with what is comfortable definitely will get us good profits even it is slow.

Leveraging out the markets is definitely not an easy thing to conquer (and can never be). The most important thing that comes to my mind when I leverage trade is that, I must keep my mind under control and not to lose confidence that my trade will go in profits if it's in loss already, because then, either I'll add more margin or increase the leverage, then remove the margin and then add more USDT in the position that I took out. Leverage trading is no less than gambling IMHO (or call it dice in other words with the odds being selected here as leverage).

Patience and control over yourself, keeping leverage to limited and understanding the highly volatile nature of markets, using some part of the capital and not going all in, even if not tight - stops must be there and even a TP.

Using up stop loss isnt something that you could indeed make use without any knowledge because this would really in result not only on good things but also in missing out
opportunity considering that price swings on this market isnt some thing that you could just set some shallow stop loss which will really be not good on your trading
dealing.When it comes to leverage then this is something required knowledge which not all would really able to have or simply wont able to get it on
first few tries and i do consider leverage or options to be on that gambling side of things basing of the level of risk.

indeed, with trading leverage we can choose the leverage to be used, and that means the smaller the leverage, the more secure our capital, because we can only use limited lots, the rest of course will easily exit the market automatically. as long as we can manage the opening of transaction lots and manage greed, then with this system we will be more structured towards the planned portfolio

Trading with leverage is just an option you can make a trade with low leverage or zero leverage but if you have a small amount of money only and you want to make a trade its not profitable at all, else you will put leverage so you can get a higher chance of profit. Always make a trade which you can only afford on it. Lossing a trade does not mean you lose a profit still at the end of the day number of earning on every trade is the one you gives a good outcome. So base in my experience safe leverage is with the range of 25-75x.

Leverage trading is the riskier,  you can get wiped out in a minute.  Those that are not familiar with future and leverage should stay away until you know your risk and your are willing to take those risks head on!  Those with little money to trade can always focused on micro caps!

Is this almost similar to Future? Because I've never done leverage. It seems tempting if this is similar to futures. But if it's the same it seems the risk is very big. I once did Futures trading but I gave up because if it goes down deep without SL then you will lose money. I am currently comfortable playing spot trading. Maybe I'm just uncomfortable because of the unstable emotional factor. You have to be able to control your emotions and that is very difficult. Because I've tried many times and it always failed.

Yep, it is indeed got more risk but there are a lot of people who are owning in trading with leverage.
If you got good risk management and patience in trading, futures market or leverage trading is the best for you.

Newbie is not advisable to do trading with leverage at first, they might try first spot or even with leverage but they must first start with small leverage.

If you are trading only smaller amount means then why should you go for leveraged trading? Moreover tight stolploss are known for easy triggering by considering the amount of volatile we do have in crypto markets. There would be no mandatory requirement to have exposure on leveraged trading. So, simply doing all these in spot market will be more than enough for a trader who looks for gaining experiences.

Instead of going for small leverage, I guess just sticking with spot trading and increasing capital might help any trader as it will not multiply their risk factors. Small or high leverage, anything may get liquidated these days if you are not good at technical to enter at right price levels.

Leveraged trading is good but only as long as you know what you are doing. There are people who consider the trading market as a gambling house and will just buy any coin and that too with leverage.

I consider spot trading the best form of trading while leverage is good for those with low on funds but high on skill and knowledge. Then comes futures trading which in simple words is terrible and rich man's market. It is manipulated pretty badly and only the rich with unlimited capital can survive such a market. The small traders just bleed out.

I do not think that even those that have a basic understanding of the market should use leverage either, I understand that people want to increase their profits but leverage is a very risky way to do this, especially because I often see people using something like 100x in leverage and anyone using that kind of leverage is just asking for trouble, because as we know the volatility in this market is extreme, so a single movement can be more than enough to force you to close your position due to a margin call.

so if you know where you belong, you should know your limitations. don't push too hard because this will only just hurt your funds.
you can slowly increase your portfolio if you are patient enough in this market and while doing that, you can also increase your knowledge when it comes to crypto. because it is better to learn first hand regarding the tips & tricks because getting it from someone - usually you won't understand its importance. but if you gain it on your own, it would be easy to apply on your next movements.

No ser, it would depend on how much leverage is used.

Hahaha bad advice! Those with little money should definitely be adviced to SAVE money, not GAMBLE their little money in “microcaps”!

The main reason why people leverage is because they do not have large amount of money to trade, that is why they instead think of going 2x, 3x or more. It all depends on experience, the leverage used and patience. Some people are good enough to turn small amount of money into something good. If anyone can not start to trade like this with lillte leverage like 2x, then the person can not be a good trader or will lose a lot before becoming a good trader that will make profit.

Yeah, it can be a catastrophe which most traders wouldn’t like to experience at all. The idea of leverage trading usually sounds cool, why not? When you can use just $1,000 to make another $1,000 and turning your money into double. But the same way that you can turn your money into double is the same way that you can as well end up losing your whole money when the market goes against you. So before anyone considers leverage trading it would be best for them to first of all start with regular trading and make sure that they have maxed out their skills completely.

Trading with leverage is a good choice for those who know more and exactly understand, but not recommended for beginners.
We know that high profits commonly will require higher risks. It is also the same in this case.
Trading with leverage commonly will have higher profits than others, this can multiple our capital when trading and take big profits.
But, this also requires higher risks, we may also lose our money or because of the liquidity in the market.
This is very dilemma if we are not good enough or professional doing this generally.
But, actually, there are some ways to at least help us to minimize the risks, like using the feature of Stop Loss and also Hedging.
Once more, never try this if we are realy new

Leverage trading has only one pros: If you luckily catch good time, then you can happily see the increased profit, which, according to your leverage, can range from 2x to 10 or 100 or even higher, depends on if it's cross/isolated or you used leverage on futures.

Otherwise, leverage is the thing that can ruin your budget and life. Leverage is great for liquidity provider because in any way, he/she gets the profit and you are the one who risks the capital and the mental health. The market is so volatile that even if you use the lowest - 1x leverage, you can get liquidated in minutes. Yeah, I have seen when price skyrocketed for 1-2 minutes and then felt down.

Yeah, leverage on the other hand will help to highly skilled trader who are capable of predicting market turning points more accurately. If there would be a very little to no negative direction of market movements after we take the positions then we can find leverage trading as a gift but unfortunately no one could predict markets in that manner. So, we need to consider about availing leverage at very low fold or just trading in spot market would be a good decision.

I agree that when our losses are happening in higher magnitude then the pain we are suffering also higher. Just facing the market with actual capital and then keeping the losses within affordable and minimum level will help anyone to be sustaining within market rather than opting for quitting completely.

Actually, I cannot say that trading with leverage is a secure way. this may be secure (or fewer risks) for professional traders.
But it is very risky for non-professional or moreover for the beginners.
SL is only one of the features that can help us manage our trading, but it cannot guarantee that it has lesser risks.
I will not take this if I am not ready enough, at least with some knowledge of the features, TA analyzis, and also otehrs.

“Some people” will be “good enough”, of course. But MOST people, especially 90% of people who trade will lose their money to the 10% under a large sample. We mere plebs should save, not gamble. Would you advice your poor friend to gamble?

When we talk about leverage trading I personally feel this is good way to earn daily or weekly money I don't understand why many traders fail into this leverage system. I trade on octafx with high lot, I loss my money but when I come to lowest lot trade not has liquidated but you have to wait. So there is nothing way to shortcut. In spot trading or leverage trading you have to wait means patience will going to test you always.

Your statement applies most of all to beginners who do not have enough money to fully trade on the spot market. But most professional traders and those who have already mastered spot trading well enough will certainly switch to margin trading. Because this is a completely different level, no matter what kind of deposit you have.

Leverage trading is very risky. And a sudden pump or dump can vanish our whole account balance. And we lost our money. So, my advise is don't do leverage trading. Spot trading is safe and low risky. So, spot trading is a best option for trading. And if you use leverage trading then just set leverage 3x to 5x. It is a low risky leverage.

Trading with leverage is double edged sword, it could protect or cut! When the market sentiment is positive such as we have now, it might  be wise to use leverage as you are likely going to have a better prediction. But watch out for bitcoin retest, resistance and support so you know when to short or long!

If that is the case then they need to save more money until they have the minimum necessary to trade the markets, I understand your explanation and on the surface it makes sense, but when you begin to think about it more deeply you can see that it does not, those that have the highest amount of money try to reduce their risks as much as possible to protect their capital, so it is interesting that the ones that have many times less capital choose the opposite strategy and they are reckless with their capital when it is so low, if anything they should be even more conservative in their strategies, but since this could limit their profits this is something they do not want to do.

If we talk about the advantages of margin trading, the main thing in this will be the fact that it allows you to make a profit when the market is moving down. Those who adhere only to spot trading are forced to sit on the sidelines and wait for a new purchase point and, accordingly, they can only profit from the price increase.

Actually trading with leverage is much more profitable than trading without it but obviously, it's highly risky for beginners, there is big money to be made and at the same time big money to be lost when it comes to leverage trading, unfortunately, the newbie traders aren't able to resist the temptation that leverage trading provides which means they are too much attracted towards making quick money in the short duration that they forget the concept of risk management which is thoroughly important when it comes to trading for a longer term. So trading with leverage is obviously a great thing to have but new comers shall stay strictly away from it.

This is a very bad advice for beginners. Man, If y'all beginners manage to stumble upon this, DO NOT OVER LEVERAGE! or better yet, NEVER GO TO FUTURES and MASTER FUNDAMENTALS in trading first instead! If you really are itching to trade, do spot while you are still learning about the fundamentals and only use 1-5% of your funds first. Normally, I would advice beginners to start off with the top 20 coins when still learning the basics on trading. But if you are really stubborn and want to try trading shitcoins (which I strongly advice beginners to stay away from) just use 1% of your funds.

Another thing you can do is unvest on good potential low cap coins or start ups. This is a but riskier though but with proper research about specifics like developing team of the altcoin/project, partners and its community, you can drastically lessen the risk.

- Bottom line is that if you have enough time and/or money to invest, please please please do invest first on at least the very basic fundamentals/knowledge about this industry and trading if you are interested in trading before jumping in. Break the cycle guys, to not repeat the mistakes that I, along with dozens of traders have done and may still he doing to this day. You have the chance to learn without experiencing regret, don't waste it.

Because you see, crypto investing and trading is more like a survival game. How long you can sustain constant "just enough profitability" with minimal risk is more important than rare huge wins that are followed by recurring huge losses.


Now if you really don't want to go through such hassle, then better go and gamble in a casino. Because as what I like to say;

"While crypto lottery like jackpot wins really do happen and is not impossible, it doesn't happen pretty often nor does it costs cheap.
Remember, survivor bias is real; you will always hear about the jackpot winners but not about the ones who have gotten their life savings liquidated."


Hope this helps y'all beginners out there.

You are right. No one wants to understand that leverage trading is not for everyone. Because if a trader cannot predict the future movement of the market, then that trader will not be able to stay in the market by leverage trading in any way. Leverage trading is only for expert traders, who know proper money management and can make a guess about the next movement of the market by analyzing the market. You will find numerous screenshots on the internet of people who have lost their entire capital while trading with extra leverage.

So before doing leverage trading, you must have trading skill expert level, otherwise it is easy to make loss instead of profit.

From my own understanding, leverage trading is another form of gambling, not trading, and like you said understanding the danger/complication involved is the best and the first thing to know cause most people that participated in leverage were blind by the end profit.

Exactly the case, the people that have enough money to trade and are patient (because not all with enough money are patient, that is why some lose thousands of dollars on just few days), they will not even leverage at all, this helps them in many cases, the market can go against there direction to the extent they would have been losing much but later the market will correct itself to the extent such traders will make profit at the end, but if they had leverage the position opened, then the market would have liquidated. Some people will also prefer to wait for market to decrease a little, then enter market without leverage, this also helps because no matter how bitcoin drops, it will still increase back and surpass the price of the position opened.

OR accept the fact that like 90% of the market participants who “trade” actively are losers, and mere gamblers. Then once accepted, start saving Bitcoin and HODL. Small capital will never make you rich enough in a single bull cycle. It will take YEARS of hard work, and saving.

Yes if you have better prediction and confidence ,you can trade with leverage .Its always a death pool to trade on leverage if anything happen unfortunately it can wash your portfolio .We all know that crypto is a high volatile market so it is always risky to trade with leverage if you are not professional on trading .On the other hand if you have enough experience on crypto market you can earn a lot from here as well .So that's why i never suggest new trader to trade with leverage .

These are definitely the misguiding statements. If you set tight stoploss means, 9 out of 10 trades you will lose your capital even you set your targets tightly. A tight stoploss is not a strategy but it will eat all your capital sooner or later because a strategy of many small losses is no way different from an usual strategy which gets you equal probability of winning and losing. So, all the dangers of leverage trading is not getting minimized just because you set your stoploss too closer but it may multiply your risks in multifold.

Leverage is the place that causes the most catastrophic accidents in trading, many traders love to convince themselves with their professionalism and good prediction to adapt quickly to the leverage but the answer is that accidents still happen randomly, of course, with professional ability, the consequences do not lead to death but at least, one accident is enough to inculcate in the memory of many professionals about leverage trading method. Leverage trading is surgery with a low success rate and full of unpredictability, traders are expert doctors but complications that increase the failure rate are very common in this process

The most important thing is to correctly assess the risks. It should be understood that for a trader this is a really important question, on which the result of the work can depend quite strongly.

There are many plebs like us who believe “they can assess risk” correctly, but more than 90% of plebs end having their accounts liquidated. Because if truly they knew how to assess risk, they wouldn’t use leverage with little capital, trading an already volatile asset.

It is understandable why they do something like that but at the same time they should know that something like this is never going to work, there is a reason those that have a lot of money decide to not use leverage, and if they do, they use a very low leverage with a very strict stop loss, but instead what we see is people using 100x of leverage and then they complain about losing their money, but what else did they expected to happen? When you take such huge risks the risk of bankruptcy is 100%, and even if someone can obtain some profits doing that sooner or later the risk will catch up to them.

The truth is, operating with leverage for me is something of extreme care and with an exaggerated risk, there are people who have a lot of experience with leveraged trading. I have seen some traders who use leverage especially when the market enters "Short" because a fall is easier than an increase in leverage, in addition to that in some exchanges when the person leverages in "Long" they have to pay additional fees, because it is more expensive.

Trading became a essential one now a days.People from various background investing their money in the cryptocurrency now.It was a positive one in the bitcoin flow now.But the mining of bitcoin was not taking place due to less profit in bitcoin mining.So the supply is limited.We can expected huge rise in bitcoin in upcoming year.

Trading using leverage is always too risky because there are too many whales playing games these days so people, especially newbies, lose money so I never recommend leverage trading, instead I recommend spot trading.

Trading with leverage isn’t bad, the good thing about it is that it magnifies your profit. But then it also has its bad side which is magnifying your losses as well. I wouldn’t really say that it is that bad, as long as you know what you are doing and you are very sure that the decision you are about to make is going to work out and you make profit from it, if not then you are going to end up with a huge loss.

Anyone who is trading with leverage can use a little amount of money to make about 100% of what they’re trading with, but without leverage you’re making less, so This is why a lot of people like to trade with leverage. But at the same time they are taking a huge risk.

I have to say that good side doesn't worth the bad side for me. If you are a veteran of it and can make a lot of money with it then by all means go ahead and do it, however that doesn't mean that you should do it, if you are good at leverage then you will most likely be good at spot trading as well. Knowing the direction is the most important part isn't it? If you know the direction then you could do spot trading and yes you will earn a lot less that way but you will lose a lot less as well and would guarantee that you would be holding at least some money.

I tested it before and I dislike it, losing all of your money if it goes on certain direction never really work well with me. I like to lose a bit if I am wrong and earn a bit if I am right, that way I would be doing a lot better. In the end it really works as perfectly as people hope it would be whereas leverage just takes all of your money away if you are wrong.

If there were 10 traders who used 10x leverage, how many of them, do you believe, will get a margin call sooner or later? More than 5, if you ask me.

If those traders simply HODLed Bitcoin since 2020, how many of them would be in profit? 10. 8)

The thing is if only those that were expert traders used leverage then that will be OK; but the majority that are using leverage are newbie traders which were attracted by promises of huge profits in a relatively short amount of time, they do not see that even if they can produce short term profits with leverage sooner or later they will make a mistake and that is when no only they will lose the money they got with their leveraged traders but they will lose their seed capital as well.

That’s smart. Traders, most specifically the new traders need to understand that it’s not important to use leverage on every trade. Use it when you are very sure about a trade but it’s not good to exceed a certain limit even if you are very experienced.

I agree and I’m not at all trying to misguide anyone. It’s true that newbies with small capitals are the ones who mostly use leverage to quickly grow their account. A small amount of leverage can be beneficial if you are following sound analysis to predict the price movements. However, if someone is just gambling around, I won’t suggest them the same.

25X- 75X is extremely high for crypto trading.It gives me shrills. I won’t suggest it to anyone. Also, I don’t think there’s any broker who offers such a high leverage for crypto trading.

I agree with you that leverage trading is ideal for enhancing an account size with a small capital. But i don’t agree that it is good for beginners, it can get hard for them to identify the potentially good trades and the right time to exit a trade. Although as of now I’m using 5x leverage on turnkeyforex but I wouldn’t have done this when I just started out.
What I can recommend is trading smaller lots with leverage, so even if you lose a trade it won’t be all of your capital in 1, so splitting your money in multiple trades seems like the right thing to me.

This is too simplistic a view of holding and trading. And in this case, it all depends on how experienced the trader who uses leverage is. If this knowledge is not enough to make money on margin trading, then this will undoubtedly lead to losses and in this case the best solution for him will be a hold.

The most important thing is not to risk beyond your capabilities. It should be understood that the outcome of such activity may not be the most positive.

The most convenient exchange to trade is Binance as for me. Trading with leverage is a dangerous thing and I know that only 1 from 10 traders earn and the rest 9 actually lose. You have to investigate this market for a long period of time, study technical indicators to be a successful trader. Trading with leverage is ok for me as I don't have to risk big money to get a big profit.

I don't think there could be anything not covered by this community about crypto trading or leverage trading because in the past we had lots of similar discussions and on-which people had contributed into the core level of each details so I guess you cannot bring any merits of leverage trading because it is already proven as one of the biggest dangerous way of trading for or both beginners and experienced traders.

Still I read that leverage trading might be suitable for the traders who are all experts in technical analysis at the same time it is a fact that even professional traders are not consistent in profit making. By combining these two facts, you cannot win in leverage trading even being good at technical analysis.

The idea would be to become a veteran spot trader first, and then put a small amount into leverage trading. That way you could turn small amount into big amount if you are good at what you are doing and a little bit lucky as well, but it is definitely a must that you should be an expert at what you do.

Without that expertise, you would be just gambling and considering how all of your bet would be gone as soon as it goes to wrong direction, I would suggest that small amount is a must if you are starting out new. So, you could be a "newbie" but in leverage trading, even the most expert people start for the first time one day, and that means they are newbies in leverage, but you need to become amazing at everything else before you turn into leverage.

Simplistic? But you can prove it for yourself, try HODLing Bitcoin vs. Trading then track your 10 year results. Plus statistically 90% of active “traders” lose their money to the top 10%. That’s a fact.

OR, I believe MANY of you from before 2017 have experience this. Recall all your trading losses in Bitcoin and compute how much you would be having now if you merely HODLed.


Then we have the same opinion?

Big profit although use small capital, but big risk because only need small movement and it will really affect on our trade. I think before do leverage trading or maybe future trading that still in trend for now, we should really good in spot trading, because leverage is more complicated and not simple as we buy and hold, we must set stop loss, or maybe do anything to avoid to be liquidated.

Big profits but really be very risky and if you dont know on what you are doing then it is just simply be considered are pure gambling yet you could blow up your account
in a short span of time specially with leverage or futures trading but there are people who do really love on dealing with this kind of trading other than spot.
Why? they dont like on seeing small profits that they could get on spot trading which i could say to be a very bad kind of behavior.
Trade on this one on your own risk and dont be shocked on how things to be that fast.

Someone who's not good in spot trading, he has to practice spot first before proceeding in futures.

But there could also be traders that are talented and better in futures but not performing well trades on spot. It's just the other way around and we're aware where we're good in these two trades.

I'm not good in futures so I'm staying in spot.

I agree with the half of your statement but I disagree with the other half or more like I do not have data for that. I agree that yes if you hold bitcoin and not trade it, then there is a great chance that you would make a profit from it. Buy bitcoin today and wait for 10 years and you would be doing much much better. However, there is also the fact that traders could make profit, we do not know how many of them make a profit.

You are saying that 90% of active traders lose their money but there is no proven data for this, you are just making it up, this is the part that I can't agree with because there is no data to back this claim up. So yes, holding is guaranteed profit, so why would people trade I do not know, but if they are making more money than a holder then it would make sense.

You are right, but here for example if there is no experience in leverage, it is always good to start with a 5% leverage, because if the operation goes against the money that is lost it is not much like leveraging at x100, however I do not recommend the leverage when there is no previous experience, I really recommend is to start on a platform with real money to be able to test well how it works and what the "take profit" is like.

I do find that most people are having similar opinions like they will never recommend leveraged based trading but OP got complete different view on leverage trading. Not sure why OP is having different opinion than most of the people of this community.

I understand that being real money or not is not a concern here because you can start with demo money but you should start only in spot trading and not in leveraged trading. Even you are practicing in leveraged environment with demo money, you cannot learn any useful experience there because the market volatility will not let you learn anything out of real time experiences. You must need a common and steady environment where you will spend time to learn things but rushing out everything will not help you to gain knowledge about it.

That could be a decent approach, after all not every single trade that we make has the same chances of turning favorable to us, but unfortunately newbies do not do something like this, many newbies have the mistaken idea they can win 100% of their trades and when you have that kind of mentality then it does not make sense to not use leverage on every single trade, unfortunately their expectations about their skills and winning rate are as out of place as the profits they want to get, making them more susceptible to make mistakes from which they cannot recover.

Crypto trading carries a very high risk, so don't be too bold to use leverage in trading. We must first look at our analytical skills, if we still often
lose money when trading, don't try trading with leverage. I see newbies who use leverage when trading, because they want to make big profits
right away. We must be aware of the risk that we will lose all the capital we have if we use leverage without proper preparation. Therefore trading
with leverage is only recommended for professional traders, who are already experienced in the trading world. I've been trading crypto for 5 years,
very rarely trade with leverage, because I know the risk is very big. I prefer trading without leverage, it doesn't matter the profit generated is small,
but if it is accumulated it will be large too.

By using proper risk management strategies, traders can really benefit from leveraged trading.

If you are placing random trades without any knowledge then of course it’s gambling but we are not talking about gamblers here. Leveraged trading is for those who believe in strategic moves.

But the people who have made significant profit are only the top 10% of traders, 90% will always be left in pleb-world. That’s the truth of the game.


There’s no comprehensive evidence to conclude that 90% of active day-traders always lose, some researchers conclude that the losers are only 80%, but there are arguments that the losers can also be higher than 90%, because trading is a zero-sum game. The profits will come from the unprofitable.

Research “90% of traders lose”. You will see NO strong challenges vs. that statement.

We are ignoring the fact that those with high capital don't need to increase their position size. They are already getting high returns. Also they need not worry about growing their account quickly. Their focus is to protect what they have at the same time trying to earn whatever they can.

Exactly my point. If you know what you are doing and how you can utilize it to your advantage, you can definitely reduce the risk.

If, in fact, the OP has to be a case very different from everything common, the logic and what everyone recommends is to be careful with that type of leverage, the idea is to protect the interests of people in terms of economic or economic and this generates that type of advice so that not everyone loses money, I think OP was greatly accompanied by luck.

Sometimes it happens that these types of decisions to leverage work for them, but it really has to be taken into account that luck is not on our side all the time, in that case it is when many enter trading gambling but at some point that luck it ends and that is when it fails.

trading is risky but if we can control it well then it will be profitable. It takes experience and good knowledge in order to be able to control emotions and also be able to analyze the crypto market well, that is what all traders need. in trading we can't do whatever we want without careful thought, don't be rash and but be careful with the crypto market. The ups and downs of the crypto market have made many traders lose control and give up, so we must learn from it.

I think it is necessary to trade with leverage with caution, because this market is eaten by a beginner right away, the liquidation of your deposit can happen at one moment, but there is also positive news on the other hand, this market is very profitable if an experienced trader knows how to cope with it.

Leverage is a critical trading instrument. Leverage is the most effective technique to create a large sum of money with a little quantity of beginning capital. Typically, traders borrow money from their brokers in order to maximize their profits with a modest investment. However, investors frequently forget that this trading tool is a high-risk game that may result in massive losses.

Using leverage is not safe for beginners that's why it's highly recommended to stay on spot trading to prevent liquidation, unless if you are sure that the coin your trading is really promising because if not you will end up nothing.. Especially using 10x or more leverage because in just one mistake there's a chance that capital will disappear in just a short period of time ..that's why as well mostly traders relies on 2x leverage in order manage the risk. So better think about it before trading with leverage to prevent massive losses and make sure you're trading a good coin before using that feature to have a good profits after all.

Numerous expert merchants get cash to contribute or utilize techniques that permit them to put away more money than they have close by This is called contributing with influence or influence exchanging This allows them enormously to build their purchasing influence and likely returns just as their danger.

The biggest problem with this type of work is risk. As for me, it is really important to be ready for this.

The trading with leverage is too much risky and mostly for newbies and I never recommend leverage trading because now days market full with whales first whales greed us then play a game in market so use only less leverage if you want but I think spot Is best

Fact also says that 90% of the traders fail no matter what. Should we quit trading?

Yes, I agree that it's the right time to invest in the crypto market and a golden opportunity for beginners.
Also investing small amounts reduces the risk. No one can predict exactly what will go to happen in the market. Will it go upwards or down? It all depends upon market trends.
Which is always be uncertain.
Also getting proper knowledge of the market and understanding technical analysis is also necessary.

For spot then yes but for leverage then it is really very risky and i would say that it is really like gambling which you shouldnt really step your foot on

here if you arent really ready nor experienced with the market because you are just basically dealing or playing with fire in talks with futures or leverage.

But if you could bare with the risk then its your choice but if not then better avoid and stick on spot.

I do respect everyone’s opinions but maybe being on the side of what everyone thinks is right is the reason most of us are failing. I don’t believe in following herd mentality. I do what I feel is right (not for the sake of being different).

Risk is and will always be there in trading. Without taking risks we can’t make money.

I agree with you. You don’t need to over leverage your positions.  2X  is enough and can earn you good profits.

A lot of young users who want to get started very quickly go to futures to trade with leverage, just not understanding the basics of trading they immediately drain their capital in the first minutes of trading. I advise everyone in the beginning not to go more than 5 times the leverage, of course everything depends on the volatility, but still you shouldn't even go to x10 from the start

Many people nowdays are missused crypto as a gambling platform by using leverage in future exchanges, there people are mostly not doing investing and trust the crypto project value will be much more valueable in the future and much more profitable than what they are doing with the future market.
But it's the people choice to make their own decision, but the bad thing is when they are losing a lot of money from losing on futures they spread out the their social media and make crypto looks bad for the people who doesn't know crypto yet.

Well that is something that can be beneficial for many who are just entering the market, there are some who make a leverage with up to x100 as allowed in Binance, that for me is like a double-edged sword, in my case the most that I I have leveraged it is x10 and the truth is I am very scared, because I am not used to it, and it is very easy for them to liquidate the position, it is very dangerous, I prefer normal trading that you just have to wait or go short with the minimum required, Maybe this way the money is more protected, at least for me I see it that way. Leverage represents a great risk.

Leverage itself is a comparison of a trader's margin with the amount of loan funds from a broker to increase returns. This means that traders can use a margin that is smaller than the nominal forex contract they trade. leverage is one of the important factors in the world of trading. The existence of leverage can reduce the capital to play forex while increasing the ability of the cost of traders to transact. leverage is one of the important factors in the world of trading. The existence of leverage can reduce the capital to play forex while increasing the ability of the cost of traders to transact.

It is important for those who really know how to trade with margin. But you know what? it's not advisable for every trader to get into margin because we have our tolerance for the risk that we take. And trading with leverage is not for everyone who can take risks.
There are some that cannot really take the risk from within because they've tried it once and don't want to try it again just like me. I'm safe with spot.

Traders can only use leverage to their advantage if they employ proper risk management techniques to minimize the downsides of it.

That’s why it’s advisable to do proper research before putting your money in any cryptocurrency. It’s better to keep yourself limited to popular cryptocurrencies than trying out every coin that comes in the market.

I have been trading with leverage with Alpari Forex exchange before the advent of crypto currency Which am still doing same with Binance exchange an am currently doing well because of my previous experience. But if you are new to the use of leverage please endeavor to learn with demo account first before you start with real account to avoid story that touch the heart. Equally, make sure to use the same of money you will need for your real account in your demo account so that you will be able to maintain same strategy.

Trading with leverage is very risky it's full with fear because now market.can Change any time due to whales games so better to  avoid to leverage trading or use less leverage then we don't  face any big loss

Are you willing to recommend any of the projects in which so much trust that will profit investors in time to come as compared to future trading as you rightly advise above. So many people including myself have invested previously and all turned scam and with that experience I will not advice anyone to go into project investment no matter how good their white paper look like or which ever Manager that promote them.

Sometimes operating according to certain criteria of your own is not so bad, as long as you keep in mind that the main thing is to risk what you are willing to lose, and above all to ensure your operations with a good stop loss, for me that is the main thing, When we take into account that we can do many things by following some advice, it is not bad, but it is good to have our own criteria, at least I obtained it by reading some books, which have taught me many things about the market and how it moves in Sometimes, but there are always events that we do not see, and that most of the time we fail.

Based on how you learned those criteria of course. I mean if it is a good one then you are going to be doing fine, but if it is a bad one then you are not going to be making that much profit from it.

I personally do have a system in place and not for leverage but for spot trading and so far I have been doing fine with it, but I failed many many many times before I did anything like this. Sure it is not really a great system if you consider the fact that I am making a profit NOW but it took me losing a lot to reach here. So if you want to do leverage trading you need to be even more careful, losing at leverage doesn't mean a bit of a drop, it means all of your "bet" is gone in that sense.

Using anything directly on a real account without trying to understand how it works for you is only going to give bad results. One should always try leverage trading on a demo account first and should never forget about risk management.

Do you think that trading without leverage is not risky?

When everyone else is struggling by following the same things then you must try to look beyond it in order to succeed.