When it comes to crypto trading, leverage is by far the most important thing that should come to your mind. Spot trading is not very profitable, especially for those who have very small amounts of money.
That’s where Futures Trading comes inclick here for a full article about Futures Trading.
In today’s article, I’m going to give you the ultimate guide to leverageby the end of this article you would know what is leverage and you would be using leverage for making infinite amounts of money! So let’s get started!
Leverage is a multiplier that we can put to any amount that we want to trade with, let’s say I have $10 and I set the leverage to 500x I would actually be trading with $5000! Yes that’s actually the power of leverage, this way we can multiply our start amounts even up to 500x!
“But it’s not that simple, you are trading with $5000, it will mean that if the price goes down only 0.2% opposite of what you predicted, you lose all of the $10.”
So it magnifies your profits but also magnifies your losses. So using leverage is not that easywhenever we use it we have to be very careful about the risk management that we do. Making mistakes is not a good thing with leverage as it’s possible to loose all of our money.
But, if we are careful with what we do, leverage can turn out to be heaven for us and we can make unlimited amounts of money from leverage, let’s say you start a trade with $100 and 500x leverage, and the price goes 0.2% up after you buy, you would literally double your money up! and it it goes down you of course loose all.
Leverage is not safe for everyone, to use leverage we must know when to start trades, stop at profit and stop at loss. We can’t just randomly trade with leverage, there are several factors that we would need to consider.
Also we must be careful with the amount that we put in, if you start a trade with $10k and you lose all it won’t be the best thing…….
So if you talk about is it safe or not, I’d say it’s not the safest thing, but to use it to your advantage, we have to trade responsibly. And be careful of our actions and stay away from greeed, if you would follow these factors then leverage would be awesome for you.
This is the simple 5 step process to start using leverage:
- Signup to a crypto brokerStormgain is the best one with up to 500x leverage, you would also get a free miner feature in it $3+$5 signup bonus, it has a free cloud miner, that you can use to make money by clicking a button, click here to signup for $8 total miner bonuses, when you have $10 in miner after clicking buttons, you would be able to trade for free!
- Choose an asset You want to trade, don’t choose shitcoins, I’d prefer to stick to bitcoin, as its most stable one so far.
- Choose an amount You want to trade with and also choose the leverage amount you want.
- Then start a trade buy means longing which means you predict the price goes up, and sell means shorting which means you predict the price will go down.
- Stop the trade whenever you want.
- Signup to Stormgain by clicking here and get total of $8 bonus in your free cloud miner account, then after you have $10 you can withdraw them to trade for free!
- Go to Trading and choose BTC/USDT.
- Now hit indicators and type in MACD, choose the first one that comes.
- Go to indicators again and type in EMA, choose the first one that comes.
- Go to the ema on the top left of the chart and hit the settings icon, then go to inputs and set length to 200. And go to style and choose the color yellow.
- Now look at the MACD at the bottom of the graph, look at the blue and orange line. Wait for the both of the lines to go below the histogram. Now wait when the blue line goes above the orange line, look at the histogram, histogram must show the color pink or green, it must not be red. Remember that both of the lines must be below the histogram.
- Now look at the yellow 200 EMA, it must be above the current price graph, if it’s below the current price graph, don’t start a trade.
- Start a trade with 50x leverage and stop at profit 1% or alternately start a trade with 500x leverage stop at profit 10%. Both of these would work absolutely fine on normal days. But disclaimer is don’t overuse 500x leverage as it can rip you very fast, and don’t go all in one trade.
So After reading this article, you would have clearly understood what is leverage and how to use it, this was the simplest method to use leverage that any beginner can start with.
If you found this helpful article make sure to help your friends by sharing this article.
Also, remember you can leave up to 50 claps.
Never miss any updates, Subscribe Now!
JOIN DISCORD
Contents distributed by Learn.Block6.tech
👉 Discord — Live Talks
👉 Twitter — Latest articles
👉 LinkTr.ee
New to trading? Try crypto trading bots or copy trading
