Don’t Let Leverage Destroy Your Portfolio

[I_Anime]

I’m sure many of you have seen messages or post like this , of number of folk that got liquidated in particular asset , either digital currency( like Bitcoin) or commodity (like Gold) Etc.  

Like you all know Leverage amplifies losses as well as gains, which means that using leverage can literally increase the risk in your investment same time increasing the reward too (ROI) . But in time like this the market is somehow (given bearish vibe) a lot of folk are going to get liquidated, due to wanting higher returns.

I know building bitcoin portfolio with leverage will take time , yes there’s no shot cut for it you willl definitely have to build it with time using any strategy that suit you or convenient for you (like Dca and lumsuming) . But still far better than using leverage , because when using leverage the market condition can literally wipe out your full portfolio with just one crazy move . That’s why most time is for those that have enough liquidity, to prevent their money from getting liquidated fast , but when come to trading , leverages can be encouraging (but still risky though)  because you are making use of it for a short while not for long term purposes like holding and it also help little trade to grow with their little capital.  Though  Try to stay away from  leveraged holding .

[Churchillvv]

I believe anyone who leverages bitcoin or any crypto has a set out amount that they use for that and not generally their investment, for invest what you keep is not supposed to be tempered with or tried to maximize profit during bearish or bullish market but however taking profit is quite okay if you can do it perfectly as supposed bullish seasons one rarely loses.

For anyone who will lose now in the market apart from traders they are basically or probably lacking the cycle knowledge.

[Stable090]

Like you all know Leverage amplifies losses as well as gains, which means that using leverage can literally increase the risk in your investment same time increasing the reward too (ROI) . But in time like this the market is somehow (given bearish vibe) a lot of folk are going to get liquidated, due to wanting higher returns.

I feel say some people wey Dey involve themselves in leverage trading na just greed Dey disturb them. Some people wey Dey trade futures no really understand Wetin e Dey about self, they just think everything is just long and short, dem no get proper knowledge self. The main reason why people Dey do leverage trading na just because of the money, dem believe say Dey go fit make quick money from that side, but dem no talk go d risk side.

E better make u Dey Dey ur spot trading, if u Dey market and e Dey against u, if d money wey u Dey loss don too much, na to hold the coin till when he bounce back before u go sell am, but if na future trading, if d price don reach liquidation level, na everything wey u use enter d trade u go lose.

If u Dey into future trading, u go Dey win and lose, but if u come do plus and minus, u go see say money wey u Dey lose fit don pass Wetin u don make self, so e better make we just Dey spot trading make we get peace of mind.

[Amphenomenon]

I know building bitcoin portfolio with leverage will take time...

You are referring to building the bitcoin portfolio without using leverages, right.


To be honest, leveraging will continue to make traders suffer great loss especially when there are uncertainty in the market. Today,  we can be on a upward trend and before anything else can be process another news causing a down trend and those who trade with leverages often suffer from it. Even, if there is a retraced to take the actual price or flow it has to be, your funds has been liquidated and forever gone, except you earn more.

Trading with spot help you on this and thereby removing liquidation because if you HODL with time it will bounce back except when trading some altcoins and meme coins, that does seem more like gambling, after getting to a key point or an All Time High, that might be the end and it will continue to go down in price and investors will continue suffer losses from HODLing such coin or token.