How to Trade Bitcoin with Leverage
Traders employ various strategies to improve their chances of making profits. While skills and discipline count, leverage can be used to amplify gains, a beautiful addition, especially for traders who may be short of capital.
Even so, one thing is clear. Bitcoin and crypto are volatile assets. This attribute makes the scene attractive even for traders who can make purchases via spot exchanges.
Exchanges like CryptoAltum allow leverage, increasing the trading and purchasing power of traders. Unlike some spot cryptocurrency exchanges without leverage, using CryptoAltum, clients can use up to 500X, meaning the barrier to entry is drastically lowered.
At spot rates, Bitcoin trades at around $35k.
Employing leverage of 500X, all a trader needs is $70 in their account. Out of this, they technically 'own' 1 BTC, enjoying the same volatility and profits as a person who owns the same via a spot trading cryptocurrency exchange.
Still, it must be mentioned that trading leverage is a double-edged sword.
Indeed, on one end, users can rake in huge profits, especially if used properly. Trading Bitcoin with leverage can be used to keep margins low while enjoying a decent level of profits.
On the other hand, it can amplify losses.
The good news is, CryptoAltum has guaranteed negative balance protection, therefore, limiting losses while still allowing the potential for unlimited profits.