The Risks and Realities of Crypto Leverage Trading

What do you guys think about #Crypto leverage trading and what are the risks of it?

This is without a doubt a good question from the users who have newly joined the #Crypto market. We all know that crypto market is the best place for trading and earning money.

But this is also to keep in mind that this market is high volatile and if you have not enough knowledge and learning then surely you will lose money in this market.

I will try to make you people understand about the leverage trading and what are the pros and cons.

We have three types of market in Crypto. Spot, future and Margin trading. Spot trading is the most safest market where you will not lose money until you hold your coin.

But in future market you have an option of leverage trading. Leverage is something where you borrow money from others which you use for trading.

Suppose you have only $20 and you ask a leverage of 100X. Your this $20 will be converted to $20,000. Which means if you get 1% percentage profit then you will also get $200 in return.

But if the market go down to 0.1% only then you will loose all of your $20. This is how this feature works.

I always prefer you guys to never use leverage trading. This is something that always end in loss.

Those only who have good information and knowledge about leverage then they can use this feature but only 5X leverage. This is not recommended for the ones who have not enough learning about market.

THE ABOVE IMAGE IS TAKEN AND DESIGNED IN CANVA

THANK YOU!

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