The entire history of the existence of cryptocurrencies is inextricably linked with various types of speculation. Previously, most of them concerned participation in direct transactions for the purchase/sale of coins actually available to users through exchangers and cryptocurrency exchanges.
However, recently, margin cryptocurrency trading has become a particularly popular branch of crypto trading, which is increasingly attracting beginners with the opportunity to receive quick super-profits. However, not all of them are aware of the associated financial risks. And of course they exist.
Therefore, before taking your first steps in cryptocurrency margin trading, it is recommended to pay attention to studying the basics and features of this type of trading.
What is cryptocurrency margin trading
To introduce you to the course of margin trading, we will refresh your knowledge of terms and concepts.
Difference between fiat trading and cryptocurrency
There are two types of positions in financial asset trading: long and short. With long, everything is simple - [buy low, sell high]. With shorting, everything is a little trickier: the trader borrows shares from the broker, sells them, and then, when the price falls, buys back these shares at a reduced price and gives them back to his agent. It is not the money that is taken from the broker to buy shares, but the shares themselves.
Classic trading involves transactions with shares of real companies or securities for industrial goods. For example, for gold or a share in Tesla. If the stock price falls, someone is fired, jobs are closed, or corporate loans are taken out to pay off debts. If the price rises, someone gets a raise, new projects open, and salaries rise.
Corporations are always preparing for a drop in their stock prices. For example, they create sub-projects and explore new directions. As a result, large fluctuations in the exchange rate of real assets are low, calculated or rare. It is difficult to make money on such exchange rate fluctuations alone, without coordinated actions. A fresh example from 2021 where [amateur traders made billions of dollars by squeezing money out of hedge funds]. But this is rather an exception that cannot be relied upon.
Crypto trading involves transactions with cryptocurrency, changes in the exchange rate of which do not lead to corporate bankruptcy and job loss. Consequently, the exchange rate may change frequently and dramatically. In order to consistently make money from sharp fluctuations in the exchange rate, you need large investments, but not always.
Margin trading and cryptocurrency rate changes
Given the nature of short trading, companies can profit from competitors when their stock prices fall. There also appears a direct financial interest in crushing opponents in the market - shorting their shares and earning billions from it. Such a model implies that someone will remain in a severe minus, because the final broker loses money due to a fall in the exchange rate.
This is how people appeared who got jobs, because of which the company’s shares collapsed, and money was made from this. But for an ordinary person without large capital, insider information and comprehensive knowledge in trading, it will be difficult to make a profit from trading.
However, there is a special type of trading that allows anyone to make money from price fluctuations - margin trading. Its advantage is the relatively low requirements for opening positions. For example, to open a margin position to sell or buy 0.5 BTC, you need no more than $200.
conclusions
Trading cryptocurrency with leverage is a high-risk process, which, in experienced hands, can become a tool for significantly increasing trading profitability.
Before you start margin trading, you need to study all the features of cryptocurrencies and conducting trading operations with them.
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How margin trading works: in simple words about the complex
Margin trading
is
a financial instrument that allows you to trade a large number of assets with a limited budget.
Essentially, it is a tool for maximizing profits through debt obligations.
Margin trading is based on the principle of short positions:
the broker lends money to the trader, he trades on the stock exchange, pays back the amount of debt, and takes all the profit for himself. Thus, margin trading allows you to equalize the opportunities between large experienced traders and beginner amateurs.
The low entry amount for margin trading is due to its purpose.
When a person buys 20 shares of Brent oil, he can exchange those shares for oil itself at any time. This is spot trading. With margin trading, the goal is to make money on price changes. The shares purchased using this method will not be used to purchase 20 barrels of Brent oil, they will simply be sold. Hence the availability of collateral for issuing funds for trading operations.
Margin trading is optimal for working with cryptocurrencies.
In cryptocurrency, assets are not backed by many years of work of large companies, which allows you to freely trade down and up. Since the cryptocurrency market is extremely volatile, margin trading allows you to make a profit on sharp price fluctuations without having your own investment fund.
You invest $100 for trading and get $10,000.
This is with a leverage of 1-to-10. It should be understood that this 10,000 is borrowed, and if the asset price moves sharply, the margin trader's position will be automatically liquidated to avoid losses to the lender. But the profit from transactions worth 10,000 USD will belong entirely to the trader. The exchange will only take the loan amount and a commission, which usually reaches 0.5% of the transaction.
Trading Rules
Key points:
- Margin trading in most cases is carried out from a special margin account. That is, a regular account on the stock exchange is not suitable. A margin account usually must have a certain minimum amount. Previously, some exchanges set a threshold of several thousand dollars, but now it is more democratic.
- The lending service is paid. That is, interest is charged on funds borrowed from the exchange. This is usually around 0.03% - 0.05% per day.
- After the trader carries out a purchase and sale transaction, he is the first to pay off the debt to the exchange. In case the trader does not succeed, which happens in most cases, the exchange deducts the required amount from the deposit.
Here are a few rules for success:
- To prevent the exchange from deducting the amount from the collateral, you need to avoid margin calls . To do this, when prices move in an unfavorable direction, it is recommended not to wait for 100% losses. It is better to use a stop loss and put the asset up for sale at the market price if it declines by 20-30%. This will allow the funds to be returned to the lender, that is, the exchange.
- You should not choose coins that are too volatile for margin trading. It is recommended to choose a cryptocurrency with which the user was familiar before margin trading and can roughly predict its behavior.
- Beginners are advised not to take the maximum leverage, but to use smaller offers. If the exchange offers x10 and x2, then it is better to choose the latter.
Another point that even more experienced traders forget: the collateral (margin) is the asset, and it is not measured in the currency borrowed. For example, there is a bitcoin in the account that was worth $10,000. The trader took out a loan, but in the process the value of the bitcoin dropped to $8,000.
That is, the margin decreases, and even with successful trading, the roller may face a margin call.
Basic concepts and terms in trading with leverage
- Long or Buy.
Bet on exchange rate growth, purchase order. Long because the beginning of growth is not a quick process. - Short or Short.
A bet on a fall in the exchange rate, a sell order. Short because the fall is rapid. - Order.
An order to buy or sell cryptocurrency. For example, an order to long 20 ETH is an order to buy with subsequent sale when the rate of 20 Ether coins rises. - Positions.
This is the name given to a group of buy or sell orders. - Equity.
Indicator of available funds on the account at the moment. It also takes into account the money that is in open positions. - Margin Level.
Account health indicator. It is calculated as the ratio of available funds to used margin. The higher the number, the better. When the level drops below 25%, the position is liquidated. - Liquidation.
It’s scary, painful, unpleasant, but it’s necessary so that the trader doesn’t lose big money.
the exchange itself forces the closure of positions Serves as a security mechanism that allows the trader to keep the apartment in the event of an unfortunate set of circumstances. - Bearish trend.
The bear has crushed the market: prices are falling, shorts are rejoicing, longs are suffering. - Bullish trend.
The market has been thrown into turmoil: prices are rising, short sellers are crying, long sellers are rejoicing.
Take Profit orders
and
Stop Loss
, as the most important components of margin trading.
- Take Profit.
Orders have conditions. Take Profit is the condition “Sell some asset when its rate is such and such” for an order.
For example:
in February 2022, the trader opens a long position of 20 ETH at a rate of $1,620. The trader understands that he cannot follow the sharp movements of the exchange rate, but wants to sleep peacefully. He sets the Take Profit condition at 1700, and when the rate breaks through this bar to 1701 and above, the exchange closes the deal with a profit for the trader of $80 for each ETH. In the morning, the trader can only gnaw at his elbows, because the order closed the position completely, and an hour later the currency rate rose to 1770.
- Stop Loss.
Without it, you don't open a trade. Condition in the order for risk management. Literally: “To avoid losses, sell such and such an asset when the price falls/rises to...”. Allows you to avoid huge disadvantages.
For example:
in February 2022, a long position of 20 ETH is opened at a rate of 1620 USD per coin. The trader does not want to lose money on this trade, given the volatility of the cryptocurrency market. Having calculated the risks, he places a stop loss order for $20. Now, when the rate falls to 1600 USD, the deal is closed automatically, and the trader loses only 20 dollars.
Without a Stop Loss mechanism, a trader can lose his entire deposit in just a second and end up in a debt hole if the liquidation does not keep up with the exchange rate. Yes, liquidation may not keep up with the rate
, if the trading speed is too high. Take this into account and set Stop Loss to buy more Lambo, rather than sell the apartment.
Risks
Margin trading is a high-risk type of trading and is recommended for experienced traders. At the same time, cryptocurrency exchanges are making margin trading easier and creating training grounds where newbies can hone their skills. The same can be said about futures.
Main risks:
- lack of understanding by beginners of the essence of transactions, especially short;
- low chances of guessing the direction of a volatile crypto market;
- ill-considered strategies;
- excitement and ignoring stop losses;
- a chance to choose an unsuitable and even fraudulent site.
Best Cryptocurrency Exchanges for Margin Trading
| Where is it registered? | Shoulder sizes | Reliability | Work with | |
| Cex.io | Great Britain | from 1 to 100 | ⭐️⭐️⭐️⭐️⭐️ | 2013 |
| Binance | Hong Kong | from 1 to 125 | ⭐️⭐️⭐️⭐️ | 2017 |
| Bybit | Virgin Islands | from 1 to 100 | ⭐️⭐️⭐️⭐️ | 2018 |
| OKEx | Hong Kong | from 1 to 100 | ⭐️⭐️⭐️⭐️ | 2013 |
| Deribit | Netherlands | from 1 to 100 | ⭐️⭐️⭐️⭐️ | 2016 |
| BitMEX | Republic of Seychelles | from 1 to 100 | ⭐️⭐️⭐️ | 2014 |
Cex.io
Official website: https://broker.cex.io/
CEX has all analytical tools available out of the box. The service’s support responds adequately to users and shares tutorials on cryptocurrency trading. The exchange itself has a low commission, up to 0.2% on transactions for takers and 0.1% on transactions for makers. CEX provides materials to teach beginners how to trade. The exchange supports passive income from staking cryptocurrencies. More details in our [review of the CEX exchange].
Binance
Official website: https://binance.com/
The most popular world-famous cryptocurrency exchange, originally from Hong Kong, has been operating since 2022. The exchange is loved by hackers - in 2022 [the exchange was hacked] by scammers and [stole 7,000 BTC]. The exchange itself [is blocked by Roskomnadzor]. But, on the other hand, the exchange has a low commission for trading cryptocurrencies - only 0.1%. In addition to margin trading, Binance has many more tools for trading and exchanging cryptocurrencies.
Bybit
Official website: https://bybit.com/
A total of 10 currency pairs for trading. The exchange trades cryptocurrency futures, but not the cryptocurrency itself. It features a negative commission on maker transactions, i.e. the site pays extra for such positions.
OKEx
Official website: https://okex.com/
Pleases users with a convenient and friendly interface. Positions itself as a platform for beginners with basic knowledge of trading art. Like CEX.IO, the exchange is dedicated to educating users in the field of trading by creating educational materials.
Deribit
Official website: https://deribit.com/
Headquartered from Amsterdam, founded by John Jansen, who previously [worked as a trader] at the Amsterdam Options Exchange (from 1998 to 1999). It has a friendly and understandable interface, but is still aimed more at advanced traders. The exchange API is designed to work with trading bots like HAAS or Actant.
BitMEX
Official website: https://bitmex.com/
Hong Kong exchange, founded in 2014 and adapted for trading cryptocurrency futures. Pure cryptocurrency is not traded on the exchange. The exchange works exclusively with Bitcoin: deposits and withdrawals of funds are carried out only in this cryptocurrency. On the exchange itself, BTC is called XBT. Not suitable for beginners due to the difficulty of mastering and the high entry threshold.
Criteria for choosing a suitable exchange
The main parameters that you should pay attention to when choosing a specific platform for reliable and safe margin trading are:
- Implementation of the most diverse tools on the site for both trading and market analysis. Good technical analysis can only be done on those sites that implement various popular types of charts, as well as functionality for monitoring trends.
- The presence of a high level of security, which can be verified by a detailed inspection of the capabilities of your personal account. The bare minimum should be two-factor authentication and various additional passwords. It will also be useful to check the site to see how positive the reviews are about its security on the Internet.
- It is advisable to analyze reviews online. Of course, many of them are written by competitors, but if the exchange is truly high-quality and safe, then most of the reviews and comments about its work will convince you that it is safe to use. It should be understood that several reviews from 2-3 sites cannot be taken seriously. It’s better to spend more time and study up to a hundred reviews from a dozen sites.
- It is important to choose sites with high liquidity of assets. The more users there are on the exchange, the higher the likelihood that at the right time you will sell or buy this or that cryptocurrency at the price you need. Otherwise, any strategy will suffer greatly and even an advanced trader will not be able to make money effectively.
- It is equally important to choose a platform that is convenient for you. Choose only those cryptocurrency exchanges that have navigation, side features and design that fully satisfy all your needs. Even aesthetic ones.
- You should definitely pay attention to commission indicators. The average for most exchanges is within 0.2%. Anything that is significantly higher than this bar is not your option.
- The withdrawal process should be fast and simple. You should always be fully familiar with all the rules and nuances of this process, so that you ultimately do not run into bureaucratic problems, which many problematic exchanges are silent about.
How to trade with leverage: an example of margin trading on the CEX.IO exchange
Previously, we [reviewed the process of registering an account on the CEX.IO exchange]. In order not to repeat ourselves, we will analyze the simplest trading strategy using two moving averages.
We select technical analysis tools for a trading strategy
We will need two types of tools: ETA and Full Stochastic.
EMA
is
a tool for tracking trend lines
- where the price is heading over a time period of a certain size. The lines themselves serve as indicators for support and resistance levels.
Using moving averages in strategy
The classic trading strategy is based on the use of two lines with different steps. The idea is to use the crossover of the short and long moving averages as a basis for signals. When a line with a short step crosses a line with a long step, this is a signal for a change in market behavior.
How Moving Averages Work
For example, EMA 5 will display the average price over five price points. One price point is the result of one change in the price of an asset. Such a moving average is considered “short”.
EMA 21 will show the average price over 21 price points. The intersection of the long and short moving averages serves as the basis for a buy or sell signal. When compared to EMA 5, EMA 21 would be considered “long”.
Let’s check whether this strategy works on the price chart of the BTC/USD pair.
Places where there were excellent opportunities to buy Bitcoin are highlighted in purple.
How to trade moving averages
At first it would be nice to just add them. Find the icon with function sets.
For example:
When EMA 5 drops to EMA 21, this is a signal that it is time to sell.
When EMA 5 rises to EMA 21 from bottom to top, this is a buy signal.
Moving averages should be supplemented with other tools and the step should be changed. For example, a combination of ETA 5, ETA 25 and ETA 150 helps well in bidding. The first two will help you find places to purchase, and the third will show the direction of the main price trend.
You cannot trade using Moving Averages alone. Technical analysis indicators should be supplemented with news and various indicators.
What to do if the short MA does not cross the long MA for a long time?
In such situations, additional lines with long pitches are used. Their intersection will mean a change in market direction.
In the screenshot above, EMA 25 (short) crosses EMA 150 from below (long) - this is a signal about the beginning of a Bullish trend and rising prices. This is confirmed by the further price change chart.
If the lines do not intersect at all, then it is recommended to refrain from trading.
How to complement a moving average trading strategy
Full Stochastic
is
a tool for tracking the number and direction of transactions.
For example, what is the situation on the market - is everything being sold or bought now? The stochastic oscillator reflects market sentiment in numbers. With standard settings, the lines will show a situation of oversales at the level of 20 or purchases at the level of 80.
When the oscillator lines go beyond the 20/80 levels, this is a signal for a trend change. For example, when there are more purchases than sales, the price will rise, and vice versa. This is a kind of indicator of when it is safe to make purchases, and when it is better to wait. For example, when the indicator lines go beyond the “OverBought” band, this signals a potential trend change to Bearish.
Momentum is a tool for tracking the direction of transactions.
Crossing the zero line serves as a signal for a trend change. The same rule applies here as with moving straight lines: from top to bottom - the trend is Bearish, and if from bottom to top - Bullish.
Bybit.com
Bybit.com is a cryptocurrency exchange that offers its services to individual and institutional traders and solves the problem of market manipulation that exists on other exchanges by creating a fair and transparent environment.
To start working with Bybit, you need to go through a simple registration procedure. When registering, you must provide an email. We recommend using email from Google, as it is considered the most secure.
| # | Currency pair | Leverage |
| 1 | BTC–USD | 100:1 |
| 2 | XRP–USD | 50:1 |
| 3 | EOS–USD | 50:1 |
| 4 | ETH–USD | 50:1 |
Bybit was the first exchange to offer contracts on the ETH-USD, XRP-USD and EOS-USD currency pairs with the underlying coin as collateral (for example, ETH tokens must be deposited to trade ETH-USD).
Commissions
0.075% — taker commission
-0.025% — maker’s rebate (discount)
Advantages
Coinswap - traders can exchange coins/tokens with each other.
Hedging the current balance on a trading account in dollar terms by converting coins/tokens into dollars and fixing the price for an unlimited period.
No overloads or downtime . The platform has a powerful engine that can process 100,000 transactions per second per contract, meaning the order matching engine runs 10 times faster than the industry average, ensuring no overloads.
Instantly responsive servers and the latest technologies prevent overloads, so traders' positions are not liquidated, and, accordingly, they do not need to place new orders, as often happens when the server fails.
Why is there no congestion on Bybit even with increasing volumes/orders
- All core modules are built in C++ and Golang, so they respond faster than most platforms written in PHP and Java. Only Golang excels at supporting coroutines, which are so important for high consistency.
- All key modules are processed in RAM, including order submission, order matching, position and risk management, etc.
- Each user enjoys a separate order coroutine, so different users place orders in parallel without interfering with each other in any way.
“Grey release” functions –
Customer support 24/7. Live chat with support allows you to get answers instantly.
Strong affiliate program. The highest payouts among cryptocurrency exchanges, plus a percentage for second-level partners. The platform provides full reporting on referrals: link clicks, registrations, deposits, trading volume, commissions, and you are also accompanied by a personal development manager (full technical and marketing support).
Get your welcome bonus and start trading: https://www.bybit.com/ru-RU
How to open buy or sell orders on CEX.IO
Guide to creating an order:
- Specify Take Profit.
There is a PiP indicator nearby. For the BTC/USD pair it is equal to one dollar. We set the expected profit, for example, 3 USD. Next, the system itself will adjust the selling price. - Specify Stop Loss.
The price must be lower than the BID (red line) so that the system does not reject the Stop, but sets it correctly. Using the selection method, you can determine the optimal PiP or specify the price manually.
If you did everything correctly, then you should start to see green trades—profitably closed orders.
BitMEX
BitMEX facilitates margin trading of cryptocurrencies and has gained a lot of respect in the crypto space in a fairly short period of time.
The team consists of experienced developers, economists and traders, which makes the exchange a quality product.
The registration process with BitMEX is simple as you just need an email, plus you can also secure your funds using the 2-FA authentication feature that BitMEX provides.
BitMEX currently offers margin trading for 6 cryptocurrencies, with Bitcoin margin trading being the most numerous. Below in the table you can see the commissions and leverage sizes for all cryptocurrencies:
table:
| # | Cryptocurrency | Margin shoulder | Maker | Taker | Settlement |
| 1 | Bitcoin | 100x | -0.0250% | 0.0750% | 0.0500% |
| 2 | Bitcoin Cash | 20x | -0.0500% | 0.2500% | 0.0000% |
| 3 | Cardano | 20x | -0.0500% | 0.2500% | 0.0000% |
| 4 | Ethereum | 50x | -0.0500% | 0.2500% | 0.0000% |
| 5 | Litecoin | 33.33x | -0.0500% | 0.2500% | 0.0000% |
| 6 | Ripple | 20x | -0.0500% | 0.2500% | 0.0000% |
Advantages and disadvantages of margin trading
Advantages:
- High chances of raising money with a small deposit.
Margin trading allows you to make real profits when trading from $50.
- Evens the odds with large traders.
Gives the average person a financial basis for trading. For example, closing deals for $1000 with only $100.
- Provides an opportunity to conclude large transactions.
Allows you to trade cryptocurrency in volumes that can bring huge profits. Cryptocurrency can be bought in ten thousandths, but these crumbs will bring only one twentieth of a cent of profit.
- Allows you to maximize profits.
Due to the amount of transactions. - A great way to get an adrenaline rush.
If we consider margin trading purely from an entertainment point of view.
Flaws:
- You are playing for big.
Jokes about losing an apartment due to margin trading are not jokes at all. The higher the risk, the higher the profit. This is the law of investing.
- Exchange rate fluctuations cut into margin positions.
With margin trading, the exchange itself closes unprofitable positions. This happens when the account margin falls below 25%.
- Narrow neck for trading.
The margin position is designed for one direction of the exchange rate - either up or down, but not both at once. If the exchange rate falls below the threshold value, the position is liquidated, and this in turn limits the spread in trading.
Huobi
Huobi is an international cryptocurrency exchange known for its international multilingual platform and good user support. The exchange is headquartered in Singapore, but Huobi has offices in Hong Kong, Korea, Japan and the US and has been operating in this space since 2013.
To get started with Huobi, you need to register with your email address and get verified (for margin trading). This process may take a day or two.
Huobi offers margin trading for several cryptocurrencies:
| # | Cryptocurrency | Margin leverage |
| 1 | Bitcoin | 5x |
| 2 | Ethereum | 5x |
| 3 | Ripple | 5x |
| 4 | Litecoin | 5x |
| 5 | Bitcoin Cash | 4x |
| 6 | EOS | 5x |
| 7 | Ethereum Classic | 4x |
| 8 | Cardano | 3x |
| 9 | Zcash | 3x |
| 10 | OmiseGO | 3x |
| 11 | Dash | 3x |
| 12 | TRON | 4x |
| 13 | Ontology | 2.5x |
| 14 | Bitcoin SV | 2x |
| 15 | Bytom | 2x |
| 16 | BitTorrent | 2x |
| 17 | IOST | 2x |
| 18 | Cosmos | 2x |
| 19 | Zilliqa | 2x |
| 20 | Qtum | 3x |
| 21 | HyperCash | 2.5x |
| 22 | NEO | 2.5x |
| 23 | aelf | 2x |
| <24/td> | Elastos | 2x |
| 25 | DATA | 1X |
| 26 | Ruff | 1X |
For beginners: rules for trading on a margin crypto exchange to minimize risks
Margin trading is a tool comparable in risk to going to a bar with a drunken bear on your arm. On the one hand, you can have a great and fun time, but on the other hand, you are likely to wake up with your stomach ripped open. If you want to make money on a new Lambo, follow these simple rules.
Remember: you are trading with money that you should be mentally prepared to lose.
This means that the cash pool for trading is not provided by the last funds that are supposed to be spent on buying food or paying utility bills. Even if the big European Seven, Elon Musk and Bill Gates personally say in unison “Buy Bitcoin!”
- Test strategies only on DEMO deposit.
Spend at least a week cuddling with him. The DEMO account is loaded with candy wrappers; it simply simulates trading assets at the current exchange rate. This way you won’t lose your personal funds if the strategy turns out to be unsuccessful, or you will work out an exact plan of action if trading starts to make a profit. - Trade in one direction - either buy or sell.
For example, by opening two positions long + short, a trader expects to make a profit with any movement in the exchange rate. However, if positions are pulled into a meat grinder, then profitable closing of the short will mean a sharp jump in margin due to the open long. And it’s not far from liquidation. - Follow the trends.
This is where the cryptocurrency price is heading on the 4-hour chart. For example, if the trend is upward, then you should prepare to open a long position. - Don't create a position.
God loves a trinity, which means no more than three positions at a time. - Knowledge is money.
Don't trade something you know nothing about. Cryptocurrencies have a life of their own. They are often associated with a large technology project or a well-known company. Study the project itself so that it doesn’t turn out that you are going long, and the CEO of the company is caught trading in user data. - One transaction - up to 15% of the deposit.
Do you have 100 dollars? Great, then you can spend no more than $15 on one transaction. This way, when liquidating a position, you will limit possible losses. - Fill in the “Stop Loss” field
. Always. This is the indicator at which the deal will be closed. Essentially, you determine how much you are willing to lose. A trader who sets up to 10% of the order for a loss has a better chance of keeping the apartment than a trader who does not set a stop. - Don't get stuck on one pair.
Study the currency pairs available to you, analyze their charts, study the projects to which they relate. - Learn technical analysis tools.
Start with simple ones - EMA, SMA, Stochastic, Momentum and RSA. - Develop your strategy.
To do this, you need to study technical analysis tools, starting with EMA and SMA. Next, you can move on to the Stochastic Oscillator. For example, the simplest strategy is to buy or sell when short and long trend lines cross. - Do not take out a loan for margin trading.
Even if you are 200% sure that you can make x5 with the money you receive. Cryptocurrency is a wild mustang, and it kicks hard. - He who is greedy loses everything.
A stable plus is more important than short-term profit. An increase of 19% to the deposit monthly will give 228% annual profit. This is when 200 dollars turns into 456 without unnecessary movements. But a greedy approach to half the deposit is a direct road to liquidation. - Trade the 1-hour chart, but keep an eye on the 1-minute chart.
An important point: if there are buy signals on the minute chart, then check the hourly chart - you may find yourself in a downward trend in the rate. To check the trend on the 1-minute chart, ETAs are used in increments of 250. - Leverage as high as 1-to-50 is for those whose nuts are tougher than Will Smith's.
Well, or for very gambling players. Essentially, this is when with $100 you can make trades of up to $5,000 or $10,000. This increases your potential profit, but also increases your chances of losing your apartment. - Follow the cryptocurrency hashtag on Twitter and other social networks for news.
If you are serious, get an additional monitor. Based on the news, you can partially predict the course. This theme works well in conjunction with technical analysis strategies. - Channels with signals = risk.
There are good channels with signals for cryptocurrencies that practically do not misfire. But. The channel must have reviews from real people with evidence of effectiveness. For example, a photo with a note for which channel it is for against the backdrop of a large sum being credited to the account is a pretty powerful argument. Although, again, if it is not possible to write to a person in a personal message and see for yourself, then it is better to refuse the advice of such a channel. In general, think of signal channels as a cheat sheet with tips on when and what is best to do. No one can guarantee 100% accuracy - neither neural networks, nor trading geniuses. - Check Tradingview for cryptocurrencies from time to time.
There traders post their ideas about the further movement of the exchange rate. Additionally, the site has an oscillator, which, based on traders’ ideas, shows whether it is worth going long or short. The tool is not perfect, so don't expect accurate predictions.
Basic trading rules
Some useful tips and strategies that will reduce the risk of losing funds when trading Bitcoin on margin with leverage:
- Not using maximum leverage. There should always be a reserve in case of a sharp market reversal.
- Use margin trading to diversify your portfolio. Then, even if the price of one asset drops significantly, the likelihood of a margin call will decrease.
- Be prepared for losses. No trader can trade only for profit. Try to reason with a cool head and understand that sometimes it is better to exit a trade with a small loss than to hope for a rate reversal and thereby lose many times more.
- Manage risks. Do not leave your investments unattended, monitor news and other factors that may affect the rise or fall of prices.
- Use take and stop.
- Develop a trading strategy and follow it.
Poloniex
Poloniex is undoubtedly one of the pioneers in the crypto space. Poloniex, founded by Tristan D'Agosta, is based outside the US and has been operating since 2014. It is currently owned by circle.com, a financially restricted Internet company.
Registration with Poloniex is quite simple and you can start by registering an email, but in order to increase your trading limits, you need to complete the KYC verification process with Poloniex, which usually takes a few hours.
Poloniex, in addition to providing regular trading accounts for traders, also offers margin trading features for advanced users.
On Poloniex you can use leverage up to 2.5X for BTC, and 11 cryptocurrencies can be paired with BTC in margin trading:
Remember: as soon as you register with Poloniex using your email, enable two-factor authentication!
