You are maybe asking, what is leveraged crypto trading? To put it simply, it is a way for you to maximize your crypto amount, it will multiply your position so you can earn leveraged profits. But take note that as you multiply your potential for earnings you also multiply the risks when you are using leveraged trading. If you do not really know what you are doing in trading or if you do not have a proven plan or trading strategy yet I suggest you avoid this option.
To illustrate it further, say you have $10k and Bitcoin at this time has a current price of $10k. And you used 10x leverage on your trading. You can now put in a position of 10 Bitcoins instead of just 1. You bought it at that said 10k price and after a few minutes, the price rose to $10,100. You, therefore have a profit of about 1k. Now trading with the same amount and the same profit margin without using leverage you only gain $100.
But again this can work as a two-edged sword. Because say for example you put the same amount and the value of Bitcoin goes down to $9900 and since you are using 10x leverage you therefore lose about $1000 and you are left with just $9000 on your account.
What is worse is that if the price goes further South to say for example $9000, your $10k will be liquidated with all the interest and charges taken out of your account. This is the reason why a lot of leveraged accounts are emptied if there is price flash crash. And crypto as volatile as it is today has that potential of flash crash and just revert again in a moment.
I should say, that leveraged trading can be a wonderful opportunity if given to the hands that knows how to use it. But a terrible mistake to someone who just dabbled into it, If you want to see or give it a try. Here are the list of popular crypto exchanges that offers leveraged trading. 1. Bitmex 2. PrimeXBT 3. Bybit and 4. Binance. Please also read carefully the interests and the transaction fees of the particular exchanges before you open your trade position.
