Bitcoin Forum
June 25, 2024, 03:52:37 AM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Bitcoin traders using up to 100-to-1 leverage are driving the wild swings in cry  (Read 55 times)
Woodie (OP)
Hero Member
*****
Offline Offline

Activity: 1848
Merit: 879


Rollbit.com ⚔️Crypto Futures


View Profile WWW
May 26, 2021, 09:58:28 AM
Last edit: November 15, 2023, 08:35:13 PM by Woodie
 #1

Bitcoin traders using up to 100-to-1 leverage are driving the wild swings in cryptocurrencies

Bitcoin’s aggressive moves are being driven by much more than the next China crackdown or Elon Musk headline.

Traders taking excessive risk in the unregulated cryptocurrency market being forced to sell when prices go down were in large part responsible for last week’s 30% drop in prices and outages for major exchanges, according to analysts. A burgeoning bitcoin lending market is also adding to the volatility.

The price of cryptocurrencies tanked last week, with bitcoin losing roughly a third of its value in a matter of hours. Bitcoin popped to nearly $40,000 on Monday but is still down about 33% from its high.

When traders use margin, they essentially borrow from their brokerage firm to take a bigger position in bitcoin. If prices go down, they have to pay the brokerage firm back in what’s known as a “margin call.” As part of that, there’s often a set price that triggers selling in order to make sure traders can pay the exchange back.

Read more https://www.cnbc.com/2021/05/25/bitcoin-crashes-driven-by-big-margin-bets-new-crypto-banking.html



If not Elon or China can this truly be traders themselves, if this is true then we are trading using emotions!

R


▀▀▀▀▀▀▀██████▄▄
████████████████
▀▀▀▀█████▀▀▀█████
████████▌███▐████
▄▄▄▄█████▄▄▄█████
████████████████
▄▄▄▄▄▄▄██████▀▀
LLBIT
  CRYPTO   
FUTURES
 1,000x 
LEVERAGE
COMPETITIVE
    FEES    
 INSTANT 
EXECUTION
.
   TRADE NOW   
OcTradism
Hero Member
*****
Offline Offline

Activity: 1778
Merit: 810



View Profile WWW
May 26, 2021, 10:35:02 AM
 #2

100x leverage is a best way to suicide in crypto market. With 100x leverage, they will suicide many times in 24 hours.

1x leverage is safest but in crypto market, liquidations can call you anytime. Moreover, when you are in trading, with leverages, you will not control your emotion, and from 1x, you can go up to 10x, 20x at which you will be liquidated.

The margin calls with Bitcoin crash help to liquidate gamblers. It is a positive liquidation call to help the market moves up stronger.

Gamblers burn their money with Long and Short liquidations

███████████████████████████
███████▄████████████▄██████
████████▄████████▄████████
███▀█████▀▄███▄▀█████▀███
█████▀█▀▄██▀▀▀██▄▀█▀█████
███████▄███████████▄███████
███████████████████████████
███████▀███████████▀███████
████▄██▄▀██▄▄▄██▀▄██▄████
████▄████▄▀███▀▄████▄████
██▄███▀▀█▀██████▀█▀███▄███
██▀█▀████████████████▀█▀███
███████████████████████████
.
.Duelbits.
..........UNLEASH..........
THE ULTIMATE
GAMING EXPERIENCE
DUELBITS
FANTASY
SPORTS
████▄▄█████▄▄
░▄████
███████████▄
▐███
███████████████▄
███
████████████████
███
████████████████▌
███
██████████████████
████████████████▀▀▀
███████████████▌
███████████████▌
████████████████
████████████████
████████████████
████▀▀███████▀▀
.
▬▬
VS
▬▬
████▄▄▄█████▄▄▄
░▄████████████████▄
▐██████████████████▄
████████████████████
████████████████████▌
█████████████████████
███████████████████
███████████████▌
███████████████▌
████████████████
████████████████
████████████████
████▀▀███████▀▀
/// PLAY FOR  FREE  ///
WIN FOR REAL
..PLAY NOW..
Lakai01
Legendary
*
Offline Offline

Activity: 2338
Merit: 2832


Top Crypto Casino


View Profile
May 26, 2021, 11:42:51 AM
 #3

-snip-
Gamblers burn their money with Long and Short liquidations
That's right, you could have even ended your sentence after "Gamblers burn their money". When you use 100x leverage you have to be aware that in 50% of the cases your stack is gone immediately. You might as well go to the casino and bet on black or red (ok, not quite).

The problem with such high leverage is simply that the bitcoin market turns way too fast. Even small recovery phases in a bear market can liquidate you very quickly, such as last week, when after the massive dump a few hours later a short recovery phase set in. Leverages originally come from trading with currency rates, which due to the very small fluctuations (0.001% per hour, for example) trading was only possible/meaningful with very high stacks. This is of course a completely different case with cryptos with fluctuations of xx% per day.

█████████████████████████
████▐██▄█████████████████
████▐██████▄▄▄███████████
████▐████▄█████▄▄████████
████▐█████▀▀▀▀▀███▄██████
████▐███▀████████████████
████▐█████████▄█████▌████
████▐██▌█████▀██████▌████
████▐██████████▀████▌████
█████▀███▄█████▄███▀█████
███████▀█████████▀███████
██████████▀███▀██████████
█████████████████████████
.
BC.GAME
▄▄░░░▄▀▀▄████████
▄▄▄
██████████████
█████░░▄▄▄▄████████
▄▄▄▄▄▄▄▄▄██▄██████▄▄▄▄████
▄███▄█▄▄██████████▄████▄████
███████████████████████████▀███
▀████▄██▄██▄░░░░▄████████████
▀▀▀█████▄▄▄███████████▀██
███████████████████▀██
███████████████████▄██
▄███████████████████▄██
█████████████████████▀██
██████████████████████▄
.
CASINO
.
SPORTS
.
RACING
EVENT DETAILS
EURO 2024
Wind_FURY
Legendary
*
Offline Offline

Activity: 2954
Merit: 1842



View Profile
May 26, 2021, 12:26:57 PM
 #4

OP, no that might be wrong. The traders that are causing the large swings are the traders who might be leveraged 3 to 1 - 5 to 1. They are the majority of leveraged traders, trading in billions total.

The traders who are leveraged 100 to 1 are liquidated, or take profit, in minutes time average, plus they use only very little capital.

██████████████████████
█████████████████████████
█████████████████████████
█████████████████████████
█████████████████████████
█████████████████████████
█████████████████████████
█████████████████████████
█████████████████████████
█████████████████████████
█████████████████████████
█████████████████████████
██████████████████████
.SHUFFLE.COM..███████████████████████
███████████████████████
███████████████████████
███████████████████████
███████████████████████
█████████████████████
████████████████████
██████████████████████
████████████████████
██████████████████████
███████████████████████
███████████████████████
███████████████████████
███████████████████████
███████████████████████
███████████████████████
██████████████████████
██████████████████████
██████████████████████
███████████████████████
███████████████████████
███████████████████████
███████████████████████
███████████████████████
███████████████████████
███████████████████████
.
...Next Generation Crypto Casino...
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!