Margin trading. Where to start?

[magneto]

I was looking for some ways to increase my profits and eventually decided on margin trading. I am aware of the risks, but the potential gain impresses. What should I consider before going in for margin trading and which exchange offers more favorable conditions for that?

First of all, don't do margin trading. Margin trading is how you make money fast. Stick to you what you have for now, especially if you are a newbie to the forum(so i suspect you might be a newbie at trading as well). I know that you are aware of the risks, i just want to remind you again that you can definitely lose a lot due to margin trading, and the interests that are charged are pretty high. By using margin trading you are playing a negative sum game.

Kraken has margin trading, so does poloniex. These are the two exchanges that I use often. Polo i don't use often anymore because it's got a lot of problems rn. Bitmex offers bitcoin derivatives and pretty sure you are able to trade with margin as well.

I was looking for some ways to increase my profits and eventually decided on margin trading. I am aware of the risks, but the potential gain impresses. What should I consider before going in for margin trading and which exchange offers more favorable conditions for that?

I only know that poloniex have margin trading. From what I heard it has a higher risk compared to your ol' trading. I know some people who benifit and actually are getting a lot of profit in it. The only thing I can say is, be prepare for the possible loss and only risk the money which you can afford to loose.

There are actually lots of them offering margin trading if not to mention Poloniex. Among them are also CEX, Kraken, Bitfinex… That’s why I am a bit confused.

As i said, don't use polo. I wouldn't even recommend bitfinex because they seem to have issues every few months, not something you would like. CEX has high spreads, kraken is the best imho.

[recklessMe]

I was looking for some ways to increase my profits and eventually decided on margin trading. I am aware of the risks, but the potential gain impresses. What should I consider before going in for margin trading and which exchange offers more favorable conditions for that?

A friend of mine has been doing margin trade of a long time already and he advised me that if you will go on margin trade you need to be sure with your position before placing because one wrong move then you might lose your money or you will be liquidated. In short you have to be good in reading chart or at least a good trader before doing so to avoid losing money.

100% agree. Since you are new to margin trading, start small. After you catch the trick of doing it, try to play with bigger amounts.

[mrBTCman]

According to the comments there are not so many supporters of margin trading… Why’s that? Because of risks only? But I guess everything related to cryptocurrency involves risk.

[Alice Nuttal]

According to the comments there are not so many supporters of margin trading… Why’s that? Because of risks only? But I guess everything related to cryptocurrency involves risk.

Not only because of risks. It also requires skills and expertise. And if you are a complete newcomer you obviously lack them.

[Idrisu]

I was looking for some ways to increase my profits and eventually decided on margin trading. I am aware of the risks, but the potential gain impresses. What should I consider before going in for margin trading and which exchange offers more favorable conditions for that?

The most important thing to know is what you know and that is you are "aware of the risks" margin trading is all about risk and like the business man said "the high the risk the high the return. If you know how to management risk and used stop and take profit features on poloniex the sky will be your limit. Remember the warning on margin trade on most trading sites "don't invest the money you can't afford to lose".

[MRlong]

According to the comments there are not so many supporters of margin trading… Why’s that? Because of risks only? But I guess everything related to cryptocurrency involves risk.

Not only because of risks. It also requires skills and expertise. And if you are a complete newcomer you obviously lack them.

Have more type in trading and Margin Trading is a type for day trader have good experience and skills in trading. With day trader, they always check chart and have more time for work, because if they have a misstake, they will take a big loss! Exchanger and Holder are type useful and friendly with newbie

[Vaskiy]

According to the comments there are not so many supporters of margin trading… Why’s that? Because of risks only? But I guess everything related to cryptocurrency involves risk.

Not only because of risks. It also requires skills and expertise. And if you are a complete newcomer you obviously lack them.

Have more type in trading and Margin Trading is a type for day trader have good experience and skills in trading. With day trader, they always check chart and have more time for work, because if they have a misstake, they will take a big loss! Exchanger and Holder are type useful and friendly with newbie

In my view margin trading is not that easy. It has got more risk than normal trading. Even a small mistake will lead to a big loss. Have never been into margin trading, have come across poloniex providing the service. With margin trading the only benefit is that even with small capital we can try to make larger Volume trading. Experienced traders seems successful with margin trading.

[naidray]

In my view margin trading is not that easy. It has got more risk than normal trading. Even a small mistake will lead to a big loss. Have never been into margin trading, have come across poloniex providing the service. With margin trading the only benefit is that even with small capital we can try to make larger Volume trading. Experienced traders seems successful with margin trading.

I believe margin trading but with very small position size must be eliminating possible risks. But out of greedy almost all the traders will never prefer small position size when they will be having more capital exposure to trade with. That is the reason mostly margin trading are ending up losing capitals.

There are few set of rules which must be followed for margin trading, if you are very much careful and following them then making money with margin trading will be easier and consistently achievable.

[negancoin]

try etoro.com, they added bitcoin, ETH , DASH and you can copy traders if you don't have skills, but can only trade with BTC/USD OR ETH/USD or DASH/USD.

[manggis97]

All margin trading platform only offer trading pair mayor crypto,  and in this situation of market  actually a lot of others altcoin below top 10 ranking increased the price more than 200% in a month,  so if you are still beginner trader is better more focus on spot market and avoid margin trading. But if want to try it,  in my opinion Bitmex is good platform for margin trading and very important  to use leverage not more than 5x,  others good platform for margin trading is fxopen broker, they has low spread. 

[shadyrifles]

It is now possible to trade margin on most exchanges. The advantages of leveraged trading are very clear and another important advantage is the security aspect. Crypto traders should strive to minimize the number of coins they hold on exchanges.

Today, most of the exchanges allow margin trading with the advantage of leveraged trading which is very clear to the trader and the most important advantage is the security aspect. The user can strive and minimize the number of coins which they hold on exchanges. It also allows opening increased positions with no bitcoin required, in this way the user can hold less amount of coins on exchanges.

[andrey111]

if you want leverage trading go on Forex (400-500 leverage) where the "system" is safer... if you loss, you loss for bad choice not for lag, wallet offline, Blockchain congestion, site down, scam,bitcoin crack,ecc..
In forex you can find secure stop loss (only some brokers)... here nothing is secure... the probability that you loss all is very high.

We do not consider forex. For example, trading on BitMex stop loss is as easy to adjust as in the forex market.
I agree that the risks are directly proportional to the profits - this is yes.

[charlotte04]

I was looking for some ways to increase my profits and eventually decided on margin trading. I am aware of the risks, but the potential gain impresses. What should I consider before going in for margin trading and which exchange offers more favorable conditions for that?

Truly you could earn more by margin trading, but that plan is to risky for me so I have decided to turn back on my regular trading so it could be safer.

[Streamlink]

What is up with all these margin topics here today, check out the trading discussions on bitcointalk (where we are right now) and count how many margin trading topics are alive today, it is not really normal. I mean margin trading is not that new neither, it is quite new compared to other types of trading but it is not couple weeks old thing. I am fearing the worst case, new people getting into margin trading to make a lot of money thanks to leverage and than leaving with their hands empty.

If there is a new wave of newbies trying to do margin trading we should try to find a way to keep them away from it before they know what they are getting into. Margin trading is risky and if you do not know what you are doing you will lose all the money you have. We can't have new users going around telling non crypto people how they lost all their money in some exchange.

[Fury Road]

Look trough tese tips:
1.Start small
In the beginning stages, it is more important to start with small amounts of money that you can afford to lose.
2. Understand interest rates and conditions
3. Be careful of major news events and decisions
4. Pay attention to squeeze
5. Always use a Stop Loss

[karungbitcoin]

In my opinion in this situation of crypto market is bad idea to do margin trading because alot of crypto in the bottom price, so to make huge profit is not necesary to jump in to more risky trading, because so many altcoin has potential to offer more than 100% profit in 1  month. But if you would like to do that, use only 5% of trading balance and use broker of Fx open or Weltrade because both broker offer low spread.

[TheUltraElite]

I would not suggest anybody to do margin trade unless they know the risks and have money at hand to pay the loan in case market does not turn out to the way it was supposed to be. I know several people do day trading with a margin trade strategy but its risky and would give me a headache because I would not want to lose the money that I put in.

Some people have the guts to do that because they trust their skills or they get some inside info on how market is going to perform. Still its a matter of luck and knowing about whales who manipulate markets to able to successfully do it.

[ethereumhunter]

Did you try with bitmex or poloniex? I see that you can get a bigger profit in that site but the risk will bigger too. It is not easy to do margin trading because we trade on the up and down of the trend of the coin, so you need to always in front of your computer at that moment. And when something change and it's opposite with your trading, you need to close your trade and take your profit before it's lost. Besides that, you need a bigger balance to start if you want to make a bigger profit too.

[apityeh71]

Before you start by use real money is much better learn and try it first in demo account,  there are alot of trading platform that provide margin trading,  for example many Metatrader platform also offer crypto pair, and some crypto exchange also launched margin trading,  like poloniex,  Okex, Gate.io, Bitfinex,  Huobi,  Bitmex. Between all that platform, choose that offering low leverage start from 1x, and avoid platform that offer minimum  10x leverage.

[el kaka22]

Before you start by use real money is much better learn and try it first in demo account,  there are alot of trading platform that provide margin trading,  for example many Metatrader platform also offer crypto pair, and some crypto exchange also launched margin trading,  like poloniex,  Okex, Gate.io, Bitfinex,  Huobi,  Bitmex. Between all that platform, choose that offering low leverage start from 1x, and avoid platform that offer minimum  10x leverage.

This is by far the best suggestion. The demo account is really where you can know how you are. Just because you made a ton of money on the demo account doesn't mean you will make money. Do not forget that demo account is not the real one so people react differently and do not expect to be a master when you switch to real one because a person who made 500% return on demo could lose all his money in one day at real one.

Moreover, the purpose of the demo is to see if you will lose the money, because if you win at demo it means you may win in real one or lose in real one however if you lose on demo that means do not even test the real one. Hence its just an elimination process and if you lose money there and fail to be a good trader that means do not even attempt to test the real one.