Why You Should Trade Crypto With Leverage

[SnapExOfficial]

Leverage trading, also known as margin trading, is when a trading platform allows you to increase your capital through borrowed funds and leverage your trade.

Today we discuss why we think trading with leverage is a good idea, come check it out here: https://steemit.com/crypto/@brokaine/why-you-should-trade-crypto-with-leverage-in-south-africa

[wxa7115]

Leverage trading, also known as margin trading, is when a trading platform allows you to increase your capital through borrowed funds and leverage your trade.

Today we discuss why we think trading with leverage is a good idea, come check it out here:

I read what you posted on that article and you only present one side of the coin, you only present the good aspects that make margin trading attractive and why many people try to use it on the first pace, why do not we talk about the other side, if you lose 10% in a single trade if you leverage that with 10x then you lose all your capital, and if you use 100x then a 1% loss is enough to wipe out your account.

I think you are taking the wrong approach here, the question should be who can trade using leverage and do it without destroying their accounts in days or weeks? And the only ones that can do that are expert traders, newbies should stay away from it until they have showed themselves they can make money consistently on the markets and they have a solid money management strategy.

[bitgolden]

Everyone assumes that people "should" be doing something but this arrogance that caused by "I know it better than some stranger online" was created in the past 10 years alone, before that humanity wasn't like this, nobody assumed that they would know more than a stranger, they assumed they would know more about something than a person they know but not really strangers, maybe you are talking to someone who is an expert financial class professor in a top notch university? You would never know that.

Leverage is known, you can go google and see what leverage is if you do not know what it is, to tell people they should be using it is really a bad move and sounds horrible, it is quite risky and you could make a ton of money with it but you could also lose it all and some people do not like that, including me.

[cabron]

Leverage trading, also known as margin trading, is when a trading platform allows you to increase your capital through borrowed funds and leverage your trade.

Today we discuss why we think trading with leverage is a good idea, come check it out here:

I read what you posted on that article and you only present one side of the coin, you only present the good aspects that make margin trading attractive and why many people try to use it on the first pace, why do not we talk about the other side, if you lose 10% in a single trade if you leverage that with 10x then you lose all your capital, and if you use 100x then a 1% loss is enough to wipe out your account.

I think you are taking the wrong approach here, the question should be who can trade using leverage and do it without destroying their accounts in days or weeks? And the only ones that can do that are expert traders, newbies should stay away from it until they have showed themselves they can make money consistently on the markets and they have a solid money management strategy.

Yes he didn't say that the leverage can also amply the loss not to mention that its hard to do it on exchanges particularly in binance because you have to be in the right page, right button and then shift to another page to place the order. Train yourself well because its risky and not as intuitive as spot market interface.

Remember that the loan will have an interest and when you execute short/long, you risk yourself with margin level which you don't wanna get liquidated.

[batang_bitcoin]

To say that even including the inexperienced traders, you are putting them at their huge loss and disappointment. I'm not an expert trader but leverage trading isn't for me. I understand the risk and reward that it contains but I'm more careful with the losses.
I've seen several stories online that they do profit with leverage but I've seen sad stories as well which made me think to stay on the conventional way of trading.

[dunfida]

To say that even including the inexperienced traders, you are putting them at their huge loss and disappointment. I'm not an expert trader but leverage trading isn't for me. I understand the risk and reward that it contains but I'm more careful with the losses.
I've seen several stories online that they do profit with leverage but I've seen sad stories as well which made me think to stay on the conventional way of trading.

All things does have different side and some people do only focuses out to show the positive ones without giving out or even tending to make some warnings or some sort that leverage/margin isnt really for anybody.
Yes, this one can really give out enormous amounts of profits once the price did really go up on what you had anticipated but to think that it will be doing the same thing when the price is going to the opposite direction.
When someone do decide to dive in leverage trading then they should at least have the idea on how all thing works in spot trading.It is different but the entire scheme is just the same.
They do only differ on the level of risk involved.If someone can embrace such risk then its their choice to do so but be sure that youre ready on dealing with it.

[harizen]

Honestly, from a technical point of view, it's not actually wrong to trade crypto with leverage "as long as people don't just know the basics but rather the whole idea why they consider doing that".

In the article shared by OP, I don't see much information about the reasons why people should trade with leverage. The list was full of quick pointers so I should say, just a summary and to bring viewers to the article. And in the last part, an advertisement of a crypto leverage trading platforms that claimed to be one of the top in South Africa.

The bottom line, trading with leverage is not recommended to those newbies who think that earning decent money out of it is just as easy as 1,2.3. If by any means they don't know how to leverage trading works, they should try to understand the risks first then decide to themselves if they will take a shot of it or not.

[justdimin]

I've seen several stories online that they do profit with leverage but I've seen sad stories as well which made me think to stay on the conventional way of trading.

Leverage trading success stories are sometimes paid too because the exchange wants to attract new traders and give them the bait of leverage which is why there are so many success stories in the market. I have done leverage trading myself and I can comfortably say that it is not easy because a small swing of the market can make you sweat and better to just trade with your own capital and avoid leverage.

The bottom line, trading with leverage is not recommended to those newbies who think that earning decent money out of it is just as easy as 1,2.3. If by any means they don't know how to leverage trading works, they should try to understand the risks first then decide to themselves if they will take a shot of it or not.

Also people must consider which exchange they are using to do this type of trading and read their terms and conditions because you don't want to pay higher interest while better exchanges exists that allow this at very reasonable rates.

[Johnyz]

Leverage trading, also known as margin trading, is when a trading platform allows you to increase your capital through borrowed funds and leverage your trade.

Today we discuss why we think trading with leverage is a good idea, come check it out here: https://steemit.com/crypto/@brokaine/why-you-should-trade-crypto-with-leverage-in-south-africa

This is too risky and many loss their money out of their control in reality, Leveraging is only to those who have money and afford to lose money, a risk taker that can take that much. The article says the good side of Leveraging and of course, there should be the bad side and mostly trader are easily losing their money because of this Margin trading, i still recommend to trade on your own using your capital that you have and own your timeline.

[batang_bitcoin]

I've seen several stories online that they do profit with leverage but I've seen sad stories as well which made me think to stay on the conventional way of trading.

Leverage trading success stories are sometimes paid too because the exchange wants to attract new traders and give them the bait of leverage which is why there are so many success stories in the market. I have done leverage trading myself and I can comfortably say that it is not easy because a small swing of the market can make you sweat and better to just trade with your own capital and avoid leverage.

I never thought of that but it could possibly happen. If the exchange sees that they have not that much user and they want to attract more traders, they'll certainly create a story for the exposure which will get the users who have viewed that story of an individual attractive.
And those users who are hype by that story will do the same as said in that story to leverage their trading and what happens next, they're all gone, the money's gone and they've been liquidated.

[nelson4lov]

I just went through the article. While it was written well, the information there might be misleading because it only talks about the good stuffs that margin trading has to offer but not the risks associated with it. In my opinion,  it is always better to tell the two sides of the story so people can make an informed decision.

I do trade with margins and futures. Just as they have an increased profit potential, they also have the tendency to go sideways and bring about huge losses.

[GreatArkansas]

We should also talk about how the huge risk when a trader using leverage.
It's a huge risk and for me, it's not a newbie-friendly. So if there will be a user may see this thread, I really advise don't start with leverage trading when you are starting to trade or doing practice. Go try to use first spot trading, even me now, I am using a very small amount of leverage.

[Danslip]

After reading the article, thought about the important points of leverage in trading. The double-edged sword can be a powerful gun but having decent skills will protect the trader from cutting his body parts. The high leverage is overkill dose for new traders but experienced traders know how to use this financial tool professionally. Due to volatile crypto markets, accepting or cutting loss is essential especially if the trader use 1:100 leverage or higher. Some forex brokers have high leverage offers for shares and they just included crypto pairs on this list.

[crzy]

The article says a lot of good stuffs about leveraging and that is right but i do not suggest this one to newbies because leveraging is not an ordinary trading, you must understand everything first. I did loose money in leveraging and i wont try it again so there is no must to trade using leveraging. It will depend on you, and on your plan in trading.

[goaldigger]

The article says a lot of good stuffs about leveraging and that is right but i do not suggest this one to newbies because leveraging is not an ordinary trading, you must understand everything first. I did loose money in leveraging and i wont try it again so there is no must to trade using leveraging. It will depend on you, and on your plan in trading.

That's how you advertise things, more on the good feedback and never share the bad side.
Leveraging can be profitable of course but it requires the skill to analyze what indicators to be use, we should not put ourselves into something we are not familiar with, well everything can be learned its just a matter of time and sacrifices. Exhanges offer a great margin trading platform, all you have to do is to learn the platform and if you are a confident trader and a risk taker, you can consider this one that's your choice.

[noorman0]

Leveraged trading is for advanced traders only.

I will complete this thread with "why shouldn't you use leverage?"
- you are not an active trader (do not have target times)
- you don't know much about technical analysis
- You have poor emotional control
- your trading portfolio is not good enough
- you want independent trading capital and pure profit
- you do not want to be bothered with warnings and do not want your account to be closed unilaterally.

[Wexnident]

I don't think you should be basing a guide or a tip based on how much one can actually earn. You should base it on the chances of one can earn. It isn't always about making the biggest money out of an opportunity, it's about making an opportunity to create money. The guide pretty much indicates the advantages of leverage, which, in tl;dr terms, it makes you earn more money, but the risk also increases together with it. There were quite a lot of advantages indicated in the article, but never disadvantages. Even if you were to advertise something, a negative output would actually be quite helpful, ones that are painfully obvious and part of that certain feature specifically.

[maydna]

I don't use leverage trading, but I have the experience to use leverage before the bitcoin price touch $19k a few years ago. At that time, I can buy bitcoin at $3k and leave it grows price by price, and close the trade at $18,700. That is the biggest profit that I can make a few years ago, and I know that I can make another big profit in the future.

But today, I realize that use leverage trading can't just depend on your luck because bitcoin price now moves without we can't predict. Even if we can buy bitcoin at a low price, it doesn't mean that the price can't go lower a few days or months later. Perhaps, you can close the trade after making a profit, so you don't risk your money to expect to make a bigger profit.

I prefer to use the usual trading type at the exchanges and don't trade using leverage, especially if we don't have the skills to analyze where the trend will move.

[stompix]

I don't use leverage trading, but I have the experience to use leverage before the bitcoin price touch $19k a few years ago. At that time, I can buy bitcoin at $3k and leave it grows price by price, and close the trade at $18,700. That is the biggest profit that I can make a few years ago, and I know that I can make another big profit in the future.

Oh yeah, and you made such profits by telling people to buy the dip at 18,200? Just for fun let's imagine you would have gone x10 long on that price, how much profit you would have made?   

I will complete this thread with "why shouldn't you use leverage?"
~

The first thing is not to use exchange or derivatives exchange that is trying to gain visitors with articles in which they throw a bit of general ingo and 80% advertise their platform. The general rule is that when a stranger tells you his platform is the best for earning money and there is no disadvantage and no risk or he avoids telling about that it's a good thing to avoid him also.

Also, one more thing to add to your list: You can't afford to lose the money you're playing with.

[CryptopreneurBrainboss]

Leverage trading, also known as margin trading, is when a trading platform allows you to increase your capital through borrowed funds and leverage your trade.

There's this popular saying of not trading with funds you can't afford to lose, also don't trade with borrowed money as your emotions might cause you to make unhealthy decision. Now advising newbie to adventure into leverage trading goes against all those tips as basically what you're saying is borrowing money to trade which obviously is money the borrowers can't afford to lose.

The last dump saw many leverage traders longing bitcoin getting rekted. Leverage trading isn't meant to be tried by inexperience traders and if you're in that category but have tried leverage trading and profited, that doesn't mean you're a pro but just lucky. Even professional traders get it all wrong sometime and loses funds that meant demoralized them from trading.

If you're still new to trading is preferable to stick to spot trading, the worst scenario will only result to you losing few percentage of your portfolio provided you had the stoploss feature setup.