12-30-2021, 04:49 AM
Leverage Trading Isn't That Bad If You Understand And Use It Correctly
<!-- SC_OFF --><div class="md"><p>There is a big misunderstanding that leverage trading is either a 'I'm homeless now' or 'I'm a billionaire now' tool, as opposed to being there to simply minimize risk with your trades. There is nothing wrong with using leverage, the issue we've seen is that your average Joe does not understand how to properly use it.</p> <p>Rather than using it to lower exposure, people are using it maximize their capital. A dangerous game to play in crypto where we know prices can disappear in an instant. A good way to think of it is: <em>"If I have 10,000 USDT in my trading account, and I use 10x leverage, I can make a 10,000 dollar trade using only 1,000 dollars, keeping 90% completely safe and available should I wish to make more trades, or buy the beloved dip."</em></p> <p>The incorrect way to think of leverage trading is: "I have 10,000 dollars, if I use 10x leverage I can make it 100,000 dollars! Rinse and repeat, easy money!"</p> <p><em>"One does not simply YOLO their entire balance at 10x leverage."</em> - Gandalf, circa 1975.</p> <p>At the end of the day, do what you want with your money - but please don't ever over-invest. Always have money to pay the rent and have leftover for ramen. Merry Christmas and Happy New Year - here's to a huge 2022 ahead.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Environmental_Point3"> /u/Environmental_Point3 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rr7kj2/leverage_trading_isnt_that_bad_if_you_understand/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rr7kj2/leverage_trading_isnt_that_bad_if_you_understand/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>There is a big misunderstanding that leverage trading is either a 'I'm homeless now' or 'I'm a billionaire now' tool, as opposed to being there to simply minimize risk with your trades. There is nothing wrong with using leverage, the issue we've seen is that your average Joe does not understand how to properly use it.</p> <p>Rather than using it to lower exposure, people are using it maximize their capital. A dangerous game to play in crypto where we know prices can disappear in an instant. A good way to think of it is: <em>"If I have 10,000 USDT in my trading account, and I use 10x leverage, I can make a 10,000 dollar trade using only 1,000 dollars, keeping 90% completely safe and available should I wish to make more trades, or buy the beloved dip."</em></p> <p>The incorrect way to think of leverage trading is: "I have 10,000 dollars, if I use 10x leverage I can make it 100,000 dollars! Rinse and repeat, easy money!"</p> <p><em>"One does not simply YOLO their entire balance at 10x leverage."</em> - Gandalf, circa 1975.</p> <p>At the end of the day, do what you want with your money - but please don't ever over-invest. Always have money to pay the rent and have leftover for ramen. Merry Christmas and Happy New Year - here's to a huge 2022 ahead.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Environmental_Point3"> /u/Environmental_Point3 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rr7kj2/leverage_trading_isnt_that_bad_if_you_understand/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rr7kj2/leverage_trading_isnt_that_bad_if_you_understand/">[comments]</a></span>Kind Regards R