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margin trading

Margin Cryptocurrency Trading

Crypto trading has many variations, and every participant picks one appropriate depending on the level of risk one is ready to take. The less stressful trading strategy is when investors buy assets and hold them until the market trends change. That is called “position trading”. margin trading

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There are dynamic trading methods like intraday and scalping, implying frequent deals daily.

Different platforms offer different tools for buying selling cryptocurrency:

  • futures trading;
  • margin;
  • spot markets;
  • p2p exchange;
  • and so on.

Let’s talk about how to trade crypto using margin.

Margin Trading

Margin trading is widespread not only in the crypto field. Margin means that a user borrowed funds and buys something with them with the purpose of making a profit. In crypto, that means you borrow crypto assets to increase your initial investments because the larger the initial investment, the bigger the potential profit. Thus, by borrowing funds, investors can access much more significant capital and leverage their trading positions.

However, together with the significant income, you can get from using margin, you face increased risks connected with it. The bigger margin you take, the more enormous losses you will bear in the case your trade is not successful.

Top platforms for margin trading:

  • Binance
  • WhiteBIT
  • KuCoin
  • Kraken

We recommend using the WhiteBIT exchange for margin trading. It is the biggest crypto exchange in Europe that operates under European jurisdiction and complies with all the regulator’s requirements. The platform allows for leverage up to X20 and supports the following crypto pairs for this type of trading: APE/USDT, LTC/BTC, DOT/USDT, NEAR/USDT, AVAX/BTC and many others.

You can buy and sell crypto on WhiteBIT at low fees (0.10%). The platform offers convenient charts and a calculator where you can enter the data about your trade and leverage you pick, and it will display the possible result.

 

Driven by wanderlust and a passion for tech, Sandra is the creative force behind Alertify. Love for exploration and discovery is what sparked the idea for Alertify, a product that likely combines Sandra’s technological expertise with the desire to simplify or enhance travel experiences in some way.