How to Trade Bitcoin with Leverage on BTCC?

2022/12/21By: C, Fiona

Bitcoin (BTC) is known as a volatile asset; the price of BTC reached an all-time high of roughly $42,000 in January 2021, only to fall around $31,000 within days. BTC previously reached a high of $20,000 before falling to $4,500 the following year. The Bitcoin price’s extreme volatility presents trading possibilities for investors seeking potential returns through leverage.

Leverage is a popular financial instrument that allows investors to maximize their potential return on investment with a limited amount of capital. Leverage is widely used in a variety of financial instruments and is an important component in laying the groundwork for today’s financial markets.

Many types of Bitcoin derivative products contain leverage. BTCC, the world’s longest cryptocurrency exchange, for example, provides 10x, 20x, 50x, 100x, and up to 150x leverage for BTC/USDT futures contracts. Before making an investing decision, it is critical to grasp the ideas and mechanics of leverage.



What is the Leverage?


Bitcoin leverage enables investors to gain maximum exposure to Bitcoin volatility with a little initial commitment, known as margin. Margin is defined as the amount of money that must be deposited into your account in order to achieve a given level of leverage.

For example, 20:1 leverage allows you to trade $5,000 in Bitcoins with a $250 margin deposit. If Peter purchased $30,000 in Bitcoins at $5,000 per BTC and the price increased to $6,000 three days later. Without using any leverage, Peter will make $6,000 in Bitcoin trading. However, if Tom utilizes 20:1 leverage, he only needs $1,500 in margin to trade $30,000 in Bitcoins and profit $6,000.

Leverage trading is a two-edged blade that can enhance both your earnings and your losses. Using the preceding scenario, if the price of BTC falls to $4,750, Peter will lose $1,500 and have $28,500 remaining. In a leveraged deal, however, Tom will lose all of his margin deposits.


Bitcoin’s price is extremely volatile; it is not unprecedented for BTC to fluctuate by more than 30% in a single week. It is critical to carefully select the level of leverage that is appropriate for your risk tolerance.


For instance, Peter and Eric each have $5,000 in their accounts. The Bitcoin price is currently trading at $7,000. Peter is upbeat and chooses to open a $200,000 BTC transaction with a leverage of 40:1. While Eric is cautious about the consequences of high leverage, he enters into a $25,000 BTC transaction with a 5:1 leverage. If the price of Bitcoin falls by $100 to $6,900. Peter will lose $4,000, leaving him with $1,000 in his account. Eric, on the other hand, would have lost only $500 and would still have $4,500 in his account balance.


It is critical to understand that margin levels are not fixed and change over time depending on the price of the item being traded. If you hold a long position and the asset declines in value, you will receive a margin call informing you that you must deposit additional funds known as maintenance in order to keep your margin level. If you do not deposit more funds, your account will be liquidated.


In terms of liquidation. Many cryptocurrency exchanges have a widespread practice of covering someone else’s negative balance with “insurance money,” which are made up of other users’ balances.


One of the unique features of BTCC is negative balance protection, in which the exchange will cover the user’s negative balance entirely rather than forcing the user to liquidate or having other users share the losses.





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How to Trade Bitcoin with Leverage on BTCC?


Step 1


To begin trading Bitcoin futures on BTCC, you must first open an account and complete KYC. You can sign up with your phone number or email address.


Step 2


After completing the first step, you must deposit USDT in order to begin trading futures. USDT can be deposited in BTCC via USDT-ERC20 or USDT-OMNI. If you do not have USDT, you can purchase USDT using a credit card; BTCC accepts credit card payment methods such as Visa and Mastercard.

Step 3


After depositing your USDT, navigate to the trading panel and begin trading Bitcoin futures by selecting the leverage level, number of lots, and long or short options. For beginners, you can try a Demo account with virtual currency by downloading the BTCC app from the Google Play or App Store.


BTCC also has an iOS app and Android app if you prefer to trade on the go.


    iOS QR Code               Android QR Code 


New users can get a deposit trading bonus of up to 3,500 USDT when they make their first deposit. More information can be found by clicking here.

The BTCC, which was launched in 2011, has been functioning in space for over ten years with no security incidents. There are 9 main cryptocurrencies and 16 trading pairs available on the exchange, including BTC/USDT, ETH/USDT, LTC/USDT, BCH/USDT, EOS/USDT, XRP/USDT, XLM/USDT, ADA/USDT, and DASH/USDT.




1.Is BTCC safe?

Since its inception in 2011, BTCC has made it a priority to create a secure space for all of its visitors. Measures consist of things like a robust verification process, two-factor authentication, etc. It is considered one of the most secure markets to buy and sell cryptocurrencies and other digital assets.

2.Is it possible for me to invest in BTCC?

Users are encouraged to check if the exchange delivers to their area. Investors in BTCC must be able to deal in US dollars.

3.Can I Trade BTCC in the U.S?

Yes, US-based investors can begin trading on BTCC and access the thriving crypto asset secondary market to buy, sell, and trade cryptocurrencies.



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