Is it a good idea to invest a small amount of capital in BTC via the futures mar

[Adams0001]

Instead trading and risking your money in leverage trading, you should choose buying Bitcoin using DCA. That method will safe you from panic and you don't need monitoring your trading position even you trade using small money. No guarantee you can profit using leverage trading and besides that, you can get more risks if the plan is not work as you want. Trading will depend on skills so make sure you have that so you can trade better and earn Bitcoin you want. But I will not suggest you to trade to increases the Bitcoin amount if you are not good in skills.

That is the only thing that can safe you from losing a lot because trading is a higher risk and if you can’t take risk is not advisable to start with trading is better you focus on investing in bitcoin when you get profit you can start to risk on trading and knows how he goes, when you get profits and you can start it and you will be learning gradual.

Starting investment with small amounts is the best idea when you don’t get any experience or knowledge about it. DCA method is always best for new investors that want to invest in bitcoin for long term. Is always good to take risk because without risk sometimes he will be difficult for you to achieve your goal, taking risk in trading by using your funds in leverage doesn’t means you can’t get profit when he works for you but using small amounts is much better.

[Fivestar4everMVP]

right now my income isn't high so buying one or two whole bitcoins on the spot market isn't feasible for me. However, I’ve had an idea: what if I invest a small amount of money to buy BTC using leverage—say, 10x—to generate significant profits, and then hold it for the long term, selling during the next bull run (for instance, at a price above $200k)? What do you all think? Is this a good solution for someone with limited capital? While the spot market is comfortable, given my small budget, I’m considering buying BTC on the futures market using a leverage ratio that I deem safe 

Well, 10x leverage is not damn safe bro, its damn risky if you ask me, owning to the fact that this is a trade you plan to leave open for a very long times, it's very risky to open such a trade with a leverage as high as 10x, any significant decline in the price of bitcoin would have your position liquidated and closed by the exchange where you opened the trade on.

And another reason I think this is not a great idea is that I've heard stories of some exchanges closing users open trades in the futures market after the leave the trade open for some number of days or weeks or months, especially if the trader opened the trade using a any number of X leverage.
I don't know if this is true any way since such has never happened to me, but I think it's worth putting into consideration so as to help avoid making a mistake one would end up regretting.

If you must open a trade like this, better to do it using 1x leverage, which is basically your money, and considering the 1x leverage is your money, then its better to simply buy bitcoin on the spot market, move it to your private wallet and hold, this is better than depending on a third party exchange.

[Wind_FURY]

right now my income isn't high so buying one or two whole bitcoins on the spot market isn't feasible for me. However, I’ve had an idea: what if I invest a small amount of money to buy BTC using leverage—say, 10x—to generate significant profits, and then hold it for the long term, selling during the next bull run (for instance, at a price above $200k)? What do you all think? Is this a good solution for someone with limited capital? While the spot market is comfortable, given my small budget, I’m considering buying BTC on the futures market using a leverage ratio that I deem safe 

I believe you need to be patient, and plan for a LONG TERM Bitcoin accumulation journey. Plus by HODLing ANY amount of Bitcoin in your wallet gives you in control of a censorship-resistant cryptocurrency. That starts your path in being a self-sovereign individual, AND I believe that's a more important mentality to have in my personal opinion. We PLEBS may stay PLEBS in this lifetime BUT the Bitcoin we save, we could give to our descendants as inheritance and it will be for THEM to continue the Bitcoin accumulation journey.

[el kaka22]

When you are not sure about what to do, the best thing to do is nothing. For example, if you buy leverage and think that you can hold it until the next bull run, then you have no idea how leverage works, and you should not do it. If you bought a bull, long futures with a high leverage today, and before the bull run comes, there is a small drop, then all of it is gone and you lost it all.

It is literally the simplest way for someone who knows how this works. So if you did not know this, then you should not be trading leverages. If you think that we couldn't think of "buy leverage long futures and wait until bull to get rich" before, then you have no idea how this market works or you think everyone in the world is stupid and you are the only smart person.

[EarnOnVictor]

right now my income isn't high so buying one or two whole bitcoins on the spot market isn't feasible for me. However, I’ve had an idea: what if I invest a small amount of money to buy BTC using leverage—say, 10x—to generate significant profits, and then hold it for the long term, selling during the next bull run (for instance, at a price above $200k)? What do you all think? Is this a good solution for someone with limited capital? While the spot market is comfortable, given my small budget, I’m considering buying BTC on the futures market using a leverage ratio that I deem safe 

Many calculations, plans and risks are going on in the world of cryptocurrency, but we should be reasonable ours, above all. No one would give you a leveraged product without inflicting the risks in it; this is natural. Are you calculating the liquidation risk as well? Is it worth it?

I asked because you didn't sound like a rich guy that would have enough to hold the position. Just be safe and ensure the position that could maintain your liquidation to the prices that look impossible to hit, like $35,000 or thereabouts.

[Alphakilo]

right now my income isn't high so buying one or two whole bitcoins on the spot market isn't feasible for me. However, I’ve had an idea: what if I invest a small amount of money to buy BTC using leverage—say, 10x—to generate significant profits, and then hold it for the long term, selling during the next bull run (for instance, at a price above $200k)? What do you all think? Is this a good solution for someone with limited capital? While the spot market is comfortable, given my small budget, I’m considering buying BTC on the futures market using a leverage ratio that I deem safe  

Many calculations, plans and risks are going on in the world of cryptocurrency, but we should be reasonable ours, above all. No one would give you a leveraged product without inflicting the risks in it; this is natural. Are you calculating the liquidation risk as well? Is it worth it?

I asked because you didn't sound like a rich guy that would have enough to hold the position. Just be safe and ensure the position that could maintain your liquidation to the prices that look impossible to hit, like $35,000 or thereabouts.

This is just a big liquidation trap OP wants to fall into.
A leverage of 10x for a year or two or depending on how much of a long term plan he means is a bad idea a smart investor should never think about this, unless there's love for high stakes risk and the funds isn't important at the moment.
Even a dip to ~$58,500 could be deadly and enough to clean out your portfolio.

The point isn't that leverage is even that bad, it's for short term trading, but thinking of holding a leverage position for a year or two or longer term is a bad idea. That isn't what leverage is supposed to be for as a smart investor. Instead, accumulate by DCA strategy which is easy, slowly and tailored according to your budget and be assured that a year or two or a long term, would be enough to reap x2 -x4 of returns on your consistent DCA investment if there's a bull run.

[landheer]

Just know that if you use 10x and bitcoin price is $64000, your fund liquidation will be around $57600.

You will be charged funding rate mostly than given because the funding rate is positive almost all the time. I will prefer to use the future that has no funding rate instead of the perpetual.

10x is too much, bitcoin might get there and which will result in your trading asset liquidation.

Is a 10x leverage too high, or what? What if I used, say, only 4x leverage—would that be safe? Of course, the spot market is the safest option, but since my current income isn't very high, it looks like I have to invest in futures. I’ll probably lower the leverage, though, because BTC could drop even further—we seem to still be in a bearish market. I suppose I also need to add more funds to avoid liquidation, right? The risk in futures is extremely high if the liquidation price is close.

[Wind_FURY]

When you are not sure about what to do, the best thing to do is nothing. For example, if you buy leverage and think that you can hold it until the next bull run, then you have no idea how leverage works, and you should not do it. If you bought a bull, long futures with a high leverage today, and before the bull run comes, there is a small drop, then all of it is gone and you lost it all.

It is literally the simplest way for someone who knows how this works. So if you did not know this, then you should not be trading leverages. If you think that we couldn't think of "buy leverage long futures and wait until bull to get rich" before, then you have no idea how this market works or you think everyone in the world is stupid and you are the only smart person.

Because "trading" without an actual edge is actually GAMBLING, especially "trading" with leverage, then the best thing to do is Buy the Bitcoin DIP, and HODL.

If only there was a 50% DIP from the last All Time High. That would be very nice for PLEBS like US to start accumulating Bitcoin.

 

[FinneysTrueVision]

Is a 10x leverage too high, or what? What if I used, say, only 4x leverage—would that be safe? Of course, the spot market is the safest option, but since my current income isn't very high, it looks like I have to invest in futures. I’ll probably lower the leverage, though, because BTC could drop even further—we seem to still be in a bearish market. I suppose I also need to add more funds to avoid liquidation, right? The risk in futures is extremely high if the liquidation price is close.

Even with 2x leverage you can have some steep losses. For example, if Bitcoin drops 10%, that loss would be doubled to 20% on your position. As a beginner you might even consider starting with 1x as you are learning. Once you get the feel for how futures markets work you can start to increase your leverage.

[landheer]

Is a 10x leverage too high, or what? What if I used, say, only 4x leverage—would that be safe? Of course, the spot market is the safest option, but since my current income isn't very high, it looks like I have to invest in futures. I’ll probably lower the leverage, though, because BTC could drop even further—we seem to still be in a bearish market. I suppose I also need to add more funds to avoid liquidation, right? The risk in futures is extremely high if the liquidation price is close.

Even with 2x leverage you can have some steep losses. For example, if Bitcoin drops 10%, that loss would be doubled to 20% on your position. As a beginner you might even consider starting with 1x as you are learning. Once you get the feel for how futures markets work you can start to increase your leverage.

In my opinion, using just 2x leverage isn't overly risky—though, of course, futures trading always carries danger. Still, I feel there is a safe margin with 2x leverage because I don't think BTC will crash hard; it likely won't drop below $30k. Using 1x leverage would certainly be very safe, as the liquidation price would be far off. However, even though I lack experience and should probably follow your advice, I’m feeling greedy and want to try 4x leverage; I plan to add more funds if the price nears the liquidation point so I don't lose my capital to liquidation.

[Bobrox]

I don't think good ideas purchasing bitcoin and hold for future trading no matter how much leverage set up but bitcoin price can't predicting keep on higher always. Bad possibility for loss your bitcoin investment trough many time bitcoin price drop signifiant if you place long position and your margin fund not enougj back up from liquidation.
I have experienced based on your ideas recover my loss from bitcoin by placing long position, indeed use small leverage inder x10 still not enough yet avoid from liquidation indeed I have nore enough back up fund. I think hold and invest in bitcoin how much as possibility don't try to increase your investment trough future trading.

[Nothingtodo]

right now my income isn't high so buying one or two whole bitcoins on the spot market isn't feasible for me. However, I’ve had an idea: what if I invest a small amount of money to buy BTC using leverage—say, 10x—to generate significant profits, and then hold it for the long term, selling during the next bull run (for instance, at a price above $200k)? What do you all think? Is this a good solution for someone with limited capital? While the spot market is comfortable, given my small budget, I’m considering buying BTC on the futures market using a leverage ratio that I deem safe 

Many have advised you on whether it is reasonable for you to take 10× leverage. If you trade futures with 10× leverage in the current market and wait for it to rise to $200k and then leave your trade, I think you will have been liquidated before that. However, there is a saying in crypto currency that if you cannot take risk, you will not get profit. Since you cannot collect a bitcoin by trading in the spot market, you are going to take more risk in future trading, so you must keep USDT in your wallet as a backup so that you can add funds if you face market liquidation in the future. Because it may take several times to go up to $200k.

[Itz-prisigold]

right now my income isn't high so buying one or two whole bitcoins on the spot market isn't feasible for me. However, I’ve had an idea: what if I invest a small amount of money to buy BTC using leverage—say, 10x—to generate significant profits, and then hold it for the long term, selling during the next bull run (for instance, at a price above $200k)? What do you all think? Is this a good solution for someone with limited capital? While the spot market is comfortable, given my small budget, I’m considering buying BTC on the futures market using a leverage ratio that I deem safe 

I don't believe that futures are a good alternative to spot investing just because you don't enough capital. The issue is not about the amount of Bitcoins that you can acquire today,  but whether you can still have your investment tomorrow.

This 10x leveraged position, does not just amplify your profits, it also amplifies your losses. Bitcoin has the capacity to drop 10% against you and then go back on a long term trend, which may be enough to knock you out.  If this occurs, you're not going to reap any rewards if Bitcoin ever moves up to $200k or even more.

A small budget isn't a bad thing if your main goal is to hold your Bitcoin for long term.  Many investor also started with small amounts of money and increased their holdings when they had money to spare. You might have less bitcoin than those who have a larger investment, but the important thing is that you actually own it rather than risking your whole investment to liquidation. Patience is typically the better strategy to use than taking shortcuts with leverage.

[Faisal2202]

right now my income isn't high so buying one or two whole bitcoins on the spot market isn't feasible for me. However, I’ve had an idea: what if I invest a small amount of money to buy BTC using leverage—say, 10x—to generate significant profits, and then hold it for the long term, selling during the next bull run (for instance, at a price above $200k)? What do you all think? Is this a good solution for someone with limited capital? While the spot market is comfortable, given my small budget, I’m considering buying BTC on the futures market using a leverage ratio that I deem safe 

There are two main failing reasons for your strategy.

1st is the market volatility. Let's say you opened your position at $64k with 10x leverage, and if I am right, then your liquidation price would be 10% down from the current price. It means if the market dumps by another 11%, you will be liquidated, and from the current price, 11% would be around $56,900. If Bitcoin really dumps to $57k, you are gone. Your money will be wasted, which you could have used to make 2x to 4x at least by the next bull run, but you wanted to make more, which is greed, and it always hits back, and hard.

2nd reason is the funding rates. When you open your trade for months to years, the funding rate, to keep the price stable and to match it with the spot price, has to be paid to short traders. This way, the funding fee will be deducted. At first, it will be deducted after 8 hours, and then the amount and the time will change. You could lose a great amount of margin to pay the funding fee, and your liquidation price will eventually come near.

Therefore, go for spot. Avoid this for the long term.

[LogitechMouse]

right now my income isn't high so buying one or two whole bitcoins on the spot market isn't feasible for me. However, I’ve had an idea: what if I invest a small amount of money to buy BTC using leverage—say, 10x—to generate significant profits, and then hold it for the long term, selling during the next bull run (for instance, at a price above $200k)? What do you all think? Is this a good solution for someone with limited capital? While the spot market is comfortable, given my small budget, I’m considering buying BTC on the futures market using a leverage ratio that I deem safe 

I wonder what will be the liquidation price of that one though if you put 10x leverage on Bitcoin.
Also, how much if your capital if you want to share it to us?

Anyway, I'm not saying that I don't want that to do because I myself thought about it back when Bitcoin is at around $120,000. I had the opportunity to enter a sell position at that price, but my other self said that you should not because it might go up even more. That ended up as one of my biggest "what-ifs" right now. If you will ask me to enter a long position now and hold for the long term, I will not say that you should do it now because I still believe that it could still go down even more. This is just me though, and many here have different opinions about it.

I will not say that you should not do it, but do it with caution especially if you're not really a trader, and you can be easily swayed by double or triple-digit profits. In trading, there's no such thing as "safe" because like what I said, there's still a chance that it could go down as we are still in a bear market. I might do the same as what you're thinking though, but not this time. Maybe in October.

[Wind_FURY]

right now my income isn't high so buying one or two whole bitcoins on the spot market isn't feasible for me. However, I’ve had an idea: what if I invest a small amount of money to buy BTC using leverage—say, 10x—to generate significant profits, and then hold it for the long term, selling during the next bull run (for instance, at a price above $200k)? What do you all think? Is this a good solution for someone with limited capital? While the spot market is comfortable, given my small budget, I’m considering buying BTC on the futures market using a leverage ratio that I deem safe 

I wonder what will be the liquidation price of that one though if you put 10x leverage on Bitcoin.
Also, how much if your capital if you want to share it to us?

Anyway, I'm not saying that I don't want that to do because I myself thought about it back when Bitcoin is at around $120,000. I had the opportunity to enter a sell position at that price, but my other self said that you should not because it might go up even more. That ended up as one of my biggest "what-ifs" right now. If you will ask me to enter a long position now and hold for the long term, I will not say that you should do it now because I still believe that it could still go down even more. This is just me though, and many here have different opinions about it.

There's a high probability that, OP as a mere PLEB like the rest of us in BitcoinTalk, he/she will panic if Bitcoin starts going through a massive DIP especially if it caused by a Black Swan.

I will not say that you should not do it, but do it with caution especially if you're not really a trader, and you can be easily swayed by double or triple-digit profits. In trading, there's no such thing as "safe" because like what I said, there's still a chance that it could go down as we are still in a bear market. I might do the same as what you're thinking though, but not this time. Maybe in October.

If a person is a fellow PLEB = NEVER tell him/her to "trade" with leverage. Tell him/her to HODL actual Bitcoin in cold-storage.