Many “Cryptopians” are taking a closer look at “Leverage Trading.” Why?
First of all, what is leverage trading?
What Is Leverage Trading?
Leverage trading involves borrowing a certain amount of the money/crypto needed to trade with. That is, increase your position when trading. In the case of trading on ByBit – a new leverage trading platform – you can leverage 1x, 2x, 5x, 10x, 25, 50x, up to 100x (these are multipliers).
For example, if you place one Bitcoin on ByBit, you can increase your trading margin by leveraging it. So, rather than trade with one Bitcoin you can – for example – leverage it 10x and you will be trading with 10 Bitcoin.
The upside to leveraging is that you can gain a lot. The downside is if you enter into a leveraged trade and the price action does not go in the direction you thought it would, you will get liquidated.
When you are liquidated, you only lose the one BitCoin you placed on the trade. There are ways to minimize your trading investment by setting stop losses. (Risk management)
Why Becoming Popular?
Mostly because people have been burned by platforms promising passive income. They all seem to work for a while and then fizzle or scam out.
The benefit of leverage trading is that you control your investment. You are not entrusting others with your crypto/money.
Educate Yourself First
Before engaging in leverage trading, learn all you can about it. Learn it well. Learn all you can about basic technical analysis and build upon it to get better at it. Learn it well, too.
There are many great free resources on YouTube to tap into.
Before you actually start leverage trading with real cryptocurrency, practice first with fake money. How? On ByBit. ByBit has what is called a TestNet that allows you to practice using realtime charts. See the video below to see how to access their TestNet.
Here is a video that shows how to register. It’s all free. Register to get on the ByBit TestNet here.
Remember, when investing, invest only what you can afford to lose.
A retired Information Technology Specialist and Foreign Service Officer with a large U.S. Government Federal Agency, Technical Instructor, Blogger, WordPress Instructor, Web Designer, Internet Marketer and Cryptocurrency Investor and Mentor.