Why You Should Trade Crypto With Leverage

[darewaller]

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.

True and the crypto market is so volatile that 10-15% change is normal within weeks and even days at times specially with altcoins because they are even more volatile than bitcoins. But that said if you do a sensible leverage trading and use 3x or 5x at max then actually chances are less that the value will drop as much as quickly and you can see some funds in balance for sudden changes and you can put some extra money when market drops.

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.

For sure newbies should not even think of leverage trading and one thing that people miss about leverage trading is that you have to pay some interest, although small, to the lender because you basically borrow money from them and you always feel the heat of paying interest so you make rush trades a lot of time to make things happen and one thing everyone must avoid in leverage trading is rush because it can empty all your balance.

[Quidat]

Here are some good links to be seen on towards Leverage.

https://www.investopedia.com/articles/forex/07/forex_leverage.asp
https://www.youtube.com/watch?v=lHUXYDtwAqY

Sounds to easy and profitable but when you are on the amidst of this leverage trading then you surely
felt that you're playing with fire.

[CASTIEL05]

Its good only for veteran traders because leberage or marginal trading needs to pay the interest rate. And margin trading is so much stressful specially when your positions had been liquidated. I believe that spot trading will less your stress and as well as you are confident to lose because you don't have to cover your loans at exact time.

[The Sceptical Chymist]

OP, if I wanted to discuss margin trading on steemit, I'd just go there.  If you want to start up a discussion on bitcointalk, just start it up here instead of linking out to steemit.  It's annoying.

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?

Sometimes I swear the luckiest newbies are the ones who've never even heard of margin/leverage, because it's so easy to lose everything in a short period of time if you don't know what you're doing. 

I fully understand how using leverage works and how it can potentially increase your profits to an extent that would be impossible without using leverage--but I've never purchased stocks, crypto, or anything else on margin and don't ever intend to.  For one thing, it's akin to gambling, which I detest; and second, margin is debt.  That's something I also detest and try to avoid at all costs.  I'd rather buy an investment with money that's mine instead of borrowing someone else's to buy it with. 

But hey, to each his own and good luck to any of you who're trading on margin.

[XZERO1]

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

You know it's not very nice to talk about things you know nothing about to just get some more views for your steemit page and get some beginners in trading trapped into leveraged trading.

I believe it's the opposite and you should never trade "Cryptocurrencies" on leverage, leverage at the start was a way to increase the volatility of the price of different assets/currencies to make them more trade worthy and maybe more profitable like what you see right now traders in Forex do, in Forex market currencies only go up or down about 0.5-3% maximum in a day which makes sense for a trader to use a little leverage on it while in crypto market a coin/token can change 20-50% in just a single day easily and fast too and if you use leverage on crypto you can lose it all in just a blink of an eye.

The bottom line is crypto is by itself is volatile enough and you don't need leverage to make crypto trading any more risky.

[stompix]

Sometimes I swear the luckiest newbies are the ones who've never even heard of margin/leverage, because it's so easy to lose everything in a short period of time if you don't know what you're doing. 

Yup and the author is trying to make sure that everybody finds out about leverage trading as soon as possible. 

You know it's not very nice to talk about things you know nothing about to just get some more views for your steemit page and get some beginners in trading trapped into leveraged trading.

Oh, but he knows a lot, look at his name which by coincidence is the same name as the exchange that the steemit article points to, his other two little posts with timid shilling for snapex and you get the idea. Nobody is going to tell that you can lose all your money with their business, you don't see posters with beggars in the ads of casinos, you don't see pictures with poor people on the walls of a betting cafe.

Those things are just on the 134th page somewhere in the terms and conditions.

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.

A few percentages at a time, and if you lose twice in a raw you will take higher risks and those percentages will increase till there is one big flat zero in your account. I think that not only you shouldn't trade with money you are borrowing or you can't afford to lose but more important in trading I think that you need to know when to give up when it's clear you're not cut for this. Not everyone can be a good doctor, not everyone can be a successful trader if we could all be then there would be no more poverty in the world as we would be making tons of money.

[Shasha80]

For me who has a bad experience using margin trading features, it is certainly not a good idea to make profit from trading.
I have lost up to $ 1000 in just a few days trading with leverage, According to me, only professional traders and those who
have large capital can trade with leverage. For me spot trading or manual trading is the best for making profit.

[Distinctin]

You are actually putting a trader at high risk and a misserable life if they got in trouble with his trading life. What a leverage strategy can do to confidently have the assurace to someone that will use this? Probably not. And to know that Marging trading or leverage trading is not for noobs, but for those who have a long experience in trading.
Better stop assuming that this will give help and they can benefit from this but rather to say also the possible negative results in order to keep everyone informed about leverage trading, not to mislead them.

[StephenJH]

There are pro traders who know how to use effectively the leverage for boosting their profit but the leverage can be a tool for melting the balance faster than anything else. Saving the balance is not possible if the risk lovers gonna trade the highly volatile markets with 1:500 leverage. In the normal financial markets, the 1:10 leverage is normal for trading assets but the crpyot industry is known as the daily 30% price change, so the point here is to take into consideration the possible risks with all aspects.

[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

You know it's not very nice to talk about things you know nothing about to just get some more views for your steemit page and get some beginners in trading trapped into leveraged trading.

I believe it's the opposite and you should never trade "Cryptocurrencies" on leverage, leverage at the start was a way to increase the volatility of the price of different assets/currencies to make them more trade worthy and maybe more profitable like what you see right now traders in Forex do, in Forex market currencies only go up or down about 0.5-3% maximum in a day which makes sense for a trader to use a little leverage on it while in crypto market a coin/token can change 20-50% in just a single day easily and fast too and if you use leverage on crypto you can lose it all in just a blink of an eye.

The bottom line is crypto is by itself is volatile enough and you don't need leverage to make crypto trading any more risky.

We appreciate your feedback and views. Trading crypto can be risky - yes, but with the right knowledge and expertise, huge profits can be made.

[wxa7115]

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.

And that bothers me, after all there is no need to hide it, to begin with almost all the information you could be interested in is on the Internet already, so anyone interested looking at margin trading will see that their losses can be multiplied as well, so what is the purpose of not mentioning in an article that tries to promote it? In my opinion there are only two reasons, one the person is not as knowledgeable about the subject as he is trying to make us believe.

Or the second option is that he is trying to hide that information from newbies because he knows they are not going to make any kind of deep research on the subject and they will begin margin trading despite the fact only experts should use it due to the enormous risks they are taking.

[XZERO1]

Or the second option is that he is trying to hide that information from newbies because he knows they are not going to make any kind of deep research on the subject and they will begin margin trading despite the fact only experts should use it due to the enormous risks they are taking.

I'm pretty sure that the most traffics of these websites are coming from newbies and other people that are even a little experienced know that with leverage trading they're not going to get rich magically overnight, when you trade cryptocurrencies on leverage you either lose a lot or gain a lot very fast and you can be certain that if you are one of those lucky people that gained a lot at their first try you will not just stop there and say I'm done, and you will keep trading more until you are one of those people that lost a lot of money by leverage trading without calculating the risks properly, so if you are looking for any real long-term success in trading start thinking more reasonably and ignore any kind of trading that involves that much risk unless you have absolutely no problem losing it all in one single bad trade.

[tvplus006]

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

I am sure that trading with leverage is not the right decision for all traders. I am also sure that there are many of us who, thanks to margin trading, have already destroyed their deposit several times. Before starting such a trade with leverage, you need to thoroughly understand all the nuances of trading on the spot market.

[Yamifoud]

Leverage is good when you are making business outside the forum but if you are thinking about increasing your capital in trading with the help of leverage, you'll make it wrong. I understand that both of them have risk but you can tell also yourself that trading is of higher risk. However, it the choice of a trader to use this kind of strategy, and probably he knows already the possible consequences once they failed. But in myself, I can't afford to do that, nor I have to risk more in trading asking a loan to someone just to extend my capital.

[Dorodha]

Just as there are risks in leverage trading this powerful tool makes it possible for you to actually invest more money. Leverage is a very important issue for crypto trading. Leverage means taking salt from the work of a broker so the salt thing is like a double-edged sword if you can use it properly it will give you good results and if you can't use it well then you have to go poor. So depending on your deposit you have to take leverage. If you are trading crypto with capital then you can increase the leverage a little and if you trade with more capital then the more leverage you can get the better. You can also set leverage according to your money management.

[tvplus006]

...
The bottom line is crypto is by itself is volatile enough and you don't need leverage to make crypto trading any more risky.

You can't do without leverage if you see that a certain coin should fall in price, but you don't have it. In this case, using the margin, you borrow it from the exchange and sell it, and then when the price falls, you buy it and repay the debt. This cannot be done without leverage in the spot market.

[sambuddha]

Its good only for veteran traders because leberage or marginal trading needs to pay the interest rate. And margin trading is so much stressful specially when your positions had been liquidated. I believe that spot trading will less your stress and as well as you are confident to lose because you don't have to cover your loans at exact time.

For margin trading, I recommend Bitmex exchange. Bitmex fees and commission are quite low comparing to Bitfinex or Binance. Bitmex commissions are not related to leverage but to quantity (it is important!). And there are negative fee (a rebate) on Bitmex - it's very cool!

[justdimin]

There is this "urgency" in some people that I will never understand, they look at the wealthy people all around the world and they want to be like them and I understand that logic because I want to be like them as well however does nobody realize that people are not super wealthy because they got rich overnight with some lucky investment?

People got wealthy because they worked hard for years even decades to get there. You think warren buffet was this goliath in business world over night?

It took him 4 decades to even reach to a point where he would influence stock prices, FOUR DECADES! This is why I do not see the point of leverage, sure maybe you make a buck here and lose a buck there and get a bit better but why risk and rush everything when you can gradually get richer consistently.

[Xinarae*]

The value of the currencies of various countries varies consistent with the economic situation and financial events of various countries. Dollars or euros are going to be bought and sold altogether countries of the planet at an equivalent price at which you purchase dollars or euros. there's an outsized leverage or loan facility available for trading within the Forex market, then you'll make an honest profit with little or no market movement. this suggests open trade for a really short time. it's possible to form an honest profit with little or no change within the forex market many of us open a trade for 10 or 15 seconds and exit the trade with a profit. within the case of loans, more people use the leverage trade.

[yhiaali3]

For me, I do not think that trading with leverage is a good thing because it contains high risks, it is true that you can win a lot through the use of leverage, but also the loss will be large, especially for those who do not have much experience in this type of trading, so I prefer trading Immediate because it is more secure and easier to learn.