I have a question to all of the traders here, especially when it comes to crypto margin trading. Do you think these three tips about staying safe while doing margin trading crypto would be effective?
Like that article suggests, the list of tips must be continuing. It means those three tips will not be sufficient to protect yourself. You must understand that trading itself too dangerous when you are not appropriately equipped in knowledge and experience wise. Margin trading is adding extra risks to the conventional trading then why should we go for it when our primary motto should be protecting our capital rather than looking for profits.
Margin trading is not at all recommended even for high-risk traders. You may take same level of risks in spot markets which will definitely get you more profits compared to frequency of losses you may face in margin trading. Margin trading is good only when you are 200% sure about market directions. But, it is proven that achieving at least 70% to 80% accuracy in predicting market direction will be too hard for any experienced traders too.
Despite that you can say it's the safest way in trading cryptocurrencies, there's no such guarantee that it would be really "safe" as the market is so unpredictable that it would go down anytime without warning.
Yes market is always unpredictable but you can stay safe in spot trading because you can hold your position without worrying about auto-liquidation/daily interests which are the biggest hassles of margin trading. Compared to margin trading, holding way of trading cryptos must be SAFEST. I guess anyone from this community will agree with this.