3 Top Tips to Stay Safe While Margin Trading Crypto

[FanEagle]

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.

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[nicolas1979]

Stay safe is set your stop loss and take profit point before enter the market, when reached one of them just execute don't ask. Margin is similar with guarantee, high range high return small range small return we can't control it. So far when you get disciplines with TP and SL I believe patient is the last answer for safe trading. To many theory and never practice will create bankrupt trader, trust me.

[South Park]

Yes, this is absolutely true. I often get caught up in big levers until I have my account burnt for the first time. Things were crazy and I lost confidence in myself a few months ago. But until now, I have met some pretty good people in this short-term trading field and they advised me exactly as the article wrote. and it's important to never trade like gambling, keep your mind as stable as possible.

You better find strategy that helps you out from losing instead.

That is a good one. Follow their advice and stick to the strategy that you've to feel right and really making a good profit. It is also important to know the status of our trades, never think that leverage trading could help you out instead, it only gives you losses in the coming days.

It is really important to think about our potential losses, most people are always thinking about the profits that they can get, not understanding that whatever potential profits they imagine they could get are unattainable if they lose all their capital before they get to that point, with that in mind it is really important to concentrate yourself on not losing all your money in a case you hit a streak of several losing trades but that can be a really hard advice to follow when most people never imagine that they can lose at all.

[dark08]

Yes, this is absolutely true. I often get caught up in big levers until I have my account burnt for the first time. Things were crazy and I lost confidence in myself a few months ago. But until now, I have met some pretty good people in this short-term trading field and they advised me exactly as the article wrote. and it's important to never trade like gambling, keep your mind as stable as possible.

You better find strategy that helps you out from losing instead.

That is a good one. Follow their advice and stick to the strategy that you've to feel right and really making a good profit. It is also important to know the status of our trades, never think that leverage trading could help you out instead, it only gives you losses in the coming days.

It is really important to think about our potential losses, most people are always thinking about the profits that they can get, not understanding that whatever potential profits they imagine they could get are unattainable if they lose all their capital before they get to that point, with that in mind it is really important to concentrate yourself on not losing all your money in a case you hit a streak of several losing trades but that can be a really hard advice to follow when most people never imagine that they can lose at all.

Thats why alway set stop loss and manage your risk because the market are crazy it can be pump or dump anytime, margin trading is risky if you compare to regular exchange site but like other said high risk is equal to high profit. Dont be fooled and control your emotion anytime dont be greedy if you think you have a profit then grab it.

[acdc]

Margin trading is a high-yielding trade, but the risk is also very high. Margin trading is much harder than normal trading, it is very easy for you to lose all your capital in one order. If anyone intends to participate in Margin Trading he needs a large amount of knowledge, stable nerves and control of his emotions.
My advice: if you are not a good everyday trader, you should not participate in Margin Trading.

[tonyvo2017]

The benefits of cryptocurrency margin trading are numerous. By allowing for incredible profitability and the ability to trade on the short side, margin exchanges have become popular with cryptocurrency traders of all experience levels.

However, although margin trading has the potential to generate spectacular profits without requiring much starting-capital, it is also possible to suffer significant losses if traders lack adequate caution when selecting and executing trades.

Read the top 3 tips here

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?

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.

Just like what is happening to Bitcoin and other cryptocurrencies now, the prices are going down and it may expect to go even deeper as much as $7,400. Now it's hanging on around $7,600+.

Yes, the prediction is always predictive and when we know to avoid the risk of going against the trend, then we are the successful traders. such as where we plan to place the stoploss when we see the market price has moved to a different level from our open price. It is one of the very important skills that will help us make a small loss but predict the future market trend.
In general, trading in the crypto market is quite risky, so we need to get used to it for a long time to be surprised and should start with low leverage if the market moves beyond our prediction.

[South Park]

It is really important to think about our potential losses, most people are always thinking about the profits that they can get, not understanding that whatever potential profits they imagine they could get are unattainable if they lose all their capital before they get to that point, with that in mind it is really important to concentrate yourself on not losing all your money in a case you hit a streak of several losing trades but that can be a really hard advice to follow when most people never imagine that they can lose at all.

Thats why alway set stop loss and manage your risk because the market are crazy it can be pump or dump anytime, margin trading is risky if you compare to regular exchange site but like other said high risk is equal to high profit. Dont be fooled and control your emotion anytime dont be greedy if you think you have a profit then grab it.

That is a sensible advice but very few people want to follow it, besides they do not have a systematic way to set stop losses, how can they decide when the market has gone in the opposite direction of their prediction too much to the point they have to sell? That is a difficult question to answer and one that traders have to face all the time when they are trading, and this is something difficult to figure out in the moment when we consider the huge psychological pressure you are felling at that time.