Trading altcoin on margin

Click here for the BitMEX trading video tutorial. The same is true for taking profit. It could happen where the leverage is relatively high, so the liquidation value is relatively close. The following image describes a classic event of a long squeeze followed by a short squeeze. The position was worth

Litecoin – LTC

Follow us on Twitter or join our Telegram. There has been a lot of hype surrounding crypto margin trading lately. As you may have heard, it is a high-risk, high reward activity. Combined with already volatile crypto assets and highly leveraged positions, it can either make or break your portfolio. As a result, you should be extremely careful before you venture into the unknown. In this guide, we review the best cryptocurrency margin trading exchanges and their key features. Cryptocurrency margin trading is a way to trade assets using funds provided by a third party.

What is margin trading?

Although Bitcoin is certainly the cryptocurrency that is most traded on leverage, trading Altcoins is no less interesting for many profit-oriented traders. Here, too, there are many that can be traded on margin, some even with as high leverage as Bitcoin. Note that trading with leverage always means derivatives, i. For most crypto margin brokers, BTC is the collateral you have to deposit. In some cases you may also be able o deposit ETH or other major cryptocurrencies. With eToro, Fiat money is deposited into the account.

How does Bitcoin margin trading work?

Margin trading of cryptocurrencies doubles the risk, and even. Exchanges are considered hot targets for hackers, and in recent years there have been several hackings of exchanges, including hacks of the major exchanges. Margin trading can also be against the market, so we can also have a short position with leverage. Risk Management: When trading on margin, set clear rules of risk management, beware of excessive greed. Even though many traders rely only on technical analysiskeep in mind that those events might have a critical impact on the crypto market. As mentioned above, the cost of the margin position includes paying the ongoing interest for the borrowed coins, and fees for opening a position with the exchange. Reserved margin funds will be used instead, if available. Margin trading tips Costs and risks. So if you have USD in your margin wallet. You are advised to conduct your own research before making any investment decisions. When you open a margin position long trading altcoin on margin short altcoim needed liquidity will be automatically borrowed at the best available rate. IE a margin position with a USD value up to On the other hand, we could have altcoij a leveraged trade, and use our 1 BTC to enter a long position with leverage. The position was worth This is an example of a standard, non-leveraged trade.