Leverage and Margin Trading Is A Double Edge Sword Leveraging Bitcoin Investment allows you to accomplish more with less capital investment. However, we all know that Bitcoin is a highly volatile . Dec 16, · Bitcoin Leverage Trading T rading Bitcoin derivatives with leverage does not require you to own any Bitcoin. You can make a potential profit by predicting the direction of BTC price. Many exchanges offer various leverage for Bitcoin trading. For example, BTCC bitcoin futures trading exchange offers 10x, 20x, 50x, x and up to x leverage. Bitcoin leverage trading allows you to control more sizable positions and make more profits. In many cases, you can control 10 to 20 times the amount required to open the position. The amount put down to open a trade in bitcoin leverage trading .
Leverage trading btcHow to Do Bitcoin Leverage Trading In | coinpedia
The Bitcoin market has evolved to the point where traders have no shortage of options when it comes to platforms for crypto margin trading. Create Binance Account. First things first - you will need to open an account on the Binance cryptocurrency exchange. The process is pretty straightforward, and similar to what you can expect when creating an account on any online platform. Click on the leverage button to adjust the leverage you will be using.
As an example, we have reduced the leverage from 20x to 10x. To start off, it might be a good idea to switch to isolated margin. This gives you less flexibility but can reduce the total amount of losses you can take when having multiple positions open at the same time. In this example, we will be using a limit order to enter a long position worth 0.
The procedure is the same when you are opening an order for your selected cryptocurrency, in this case Bitcoin. We set the limit price at 7, and we are using 20x leverage, so entering this position will require 3. Of course, you can use stop orders to manage your risk. You can check out this tutorial from Binance to understand how different types of stop orders work and how they can prevent unnecessary losses.
This helps you not to over-commit with the losses. The guaranteed stop is the conventional stops, but it is just that it comes with an additional twist. This helps you to stop your position at any given time. Hence, no matter how volatile your asset is, you will be able to stop when you feel you are facing any kind of crisis.
Bitcoin leveraging can really be rewarding, that is, if you have a clear understanding of it. The volatility makes sure that you gain profit more than the normal. However, it is a double-edged sword. So, with a little miscalculation, it can backfire as well.
Show More. Contact me: Partner coinpedia. Related Articles. December 9, The ability to increase the amount available for investment is known as gearing. Gaining from the market fall. Using leveraged products to speculate on market movements enables you to benefit from markets that are falling, as well as those that are rising. Leverage Calculator.
Leverage calculator allows you to calculate the total amount of buying power that you will get on the PrimeXBT platform based on your capital Your capital. Your buying or selling power. Your capital. Open an account now.