Crypto Margin Trading EXPLAINED [MUST WATCH VIDEO BEFORE DOING IT!]
Crypto Margin Trading is RISKY and here is why!
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In simple words, Crypto Margin Trading means that you will borrow money from the exchange or the broker. Guess what? It is not gonna be free and cheap!
In this Crypto Margin Trading video you will learn the risk you take when you are borrowing money from the crypto exchanges.
If you have the experience to catch the volatile moments when Bitcoin is very bullish you can earn some quick profits with crypto margin trading. But if the price drops and stays below your average price for a long time, then you might be in a trouble.
This is because when you borrow money from the exchanges or the brokers there are fees and there is an interest rate. If the price does not recover for a long time, you might end up paying more money to the exchange instead of earning money from your investment.
That is why if you are a beginner trader or crypto investor you would prefer not to use Crypto Margin Trading but to trade with as much as you have(as a risk capital).
And the crypto Margin trading comes from leverage. What margin actually means is how much capital you have in the account to trade with. When we use leverage, we borrow money from the broker.
For example, if we use leverage 1:2, this means that for every dollar we trade, the exchange or the broker will give us 2 dollars.
In many of our courses, I use crypto margin trading, and usually, when investing I do not use it:
https://eaforexacademy.com/courses/cryptocurrency-manual-trading/
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Thank you for watching this Crypto Margin Trading Explained video and I will see you in the next one!