What is Leverage in Cryptocurrency? How Can I Trade at 100X Leverage?

2023/07/04By:

Leverage trading can be perplexing, particularly for novices. But, before you experiment with leverage, you must first understand what it is and how it works. This essay will focus on leverage trading in cryptocurrency markets, however most of the information is also applicable to regular markets.

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What is Crypto Leverage？

Margin is a fraction of the amount a trader requires as security to start a more prominent position. When trading, you can double the amount of positions called leverage. Thus, if a margin trader uses 100 times the leverage, their risk and possible profit can be increased by 100 times.

Leverage is a powerful tool for traders. You can use it to benefit from relatively small price fluctuations, provide larger position sizes for your portfolio, and grow your capital more quickly.

Leveraged trading is like margin trading.Margin is a small fraction of the amount a trader needs as security to start a more prominent position. When the transaction is in progress, if a trader uses 100 times the leverage, their risk and possible profit can be increased 100 times.

Different Bitcoin exchanges offer different levels of leverage. While some Bitcoin exchanges offer 200x leverage, enabling traders to create positions worth 200x their original deposit, other Bitcoin exchanges only provide 20x, 50x, or 100x leverage. A trade with 100:1x is called a 100x leverage trade.

Look more:Best High Leverage Crypto Trading Exchange Platform

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What Happens When You Trade with Leverage?

When you trade with leverage, you are borrowing money from the market. Hypothesis the price of BTC is $10,000. You want the price to go up, and this time, you put in $50 with 100x leverage.

Now you are in the market with $50 x 100 = $5000 worth of contracts. It is attractive because if the price of BTC goes up, Your profit has also increased ten times. But the same applies to your losses. Now, if the price of BTC drops from $10,000 to $9,000, in other words, the price drops by 10%, you may be in trouble.

Why? Because although you’ve only put $50 into the trade because you did so with 100x leverage, you are exposed to price movements with $5,000 worth of contracts. A 10% drop for you, means your $5000 has now turned into 5000 x 0.9 = $4,500.In other words, you’ve lost $500 – or the actual amount you put into the trade. It means you must exit the market.

Look more:Best Crypto Exchange to Trade with Leverage

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Benefits of Using Leverage

Expanded profits. You only need to invest a fraction of the value of the trade to make the same profit as any other regular trade on the exchange.
Take advantage of opportunities. Using leverage frees up capital that can be used for other investments. The ability to increase the amount available for investment is called leverage.
Profiting from market declines. Using leveraged products to speculate on market movements allows you to benefit from both down and up markets.

Look more:How do contracts trade on BTCC? BTCC Account Guide.

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Risks of Using Leverage

Margin trading was, until recently, much more common in currency markets, as it was generally considered too risky to be used in highly volatile cryptocurrency markets.

Unlike regular trading, you can lose your entire initial investment margin trading. Further, the more you leverage, the quicker you can lose it. For example, if I go long on a 3:1 margin. Margin trading is a type of leveraged trading. It’s means that I can deposit $100 into a margin account and get three times my buying power trading balance.

It’s also means that if I trade three times my balance ($300) and my position becomes -$100, I will lose everything I hold as collateral. I have made more money in a short period through margin trading than I have ever made in my entire life. And more money is lost than ever before.

Leverage increases risk and cryptocurrencies are more volatile than stocks and other traditional markets. However, recognizing the potential risk, the vvolatility of cryptocurrencies creates profits for traders, and in a shorter period, only a part of the investment can produce significantly high profits.

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Where to Trade Futures at 100X Leverage?

To trade crypto futures at 100x leverage, you can choose BTCC crypto exchange. BTCC was founded in June 2011 with the goal of making crypto trading reliable and accessible to everyone.

We specializes in crypto futures contract trading, offering perpetual futures contracts. The maximum leverage offered by BTCC for daily futures contracts is 150x. The vast variety of futures offered by BTCC accommodates the trading habits and objectives of both novice and seasoned traders.We offer the USDT-margined futures and Coin-margined futures . Users can trade futures using USDT or cryptos like BTC, BTC, and XRP. And Large orders of up to 300 BTC can be executed at the top price levels.

Here are the main advantages of using the BTCC crypto exchange to trade futures:

Largest variety of futures: Daily, Weekly, Quarterly and Perpetual futures
Flexible leverage from 10x to 150x
Lowest trading fees 0.03%
Industry-leadingmarket liquidity
Plenty of campaigns to win exciting rewards

100x leverage trading

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BTCC FAQs

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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Where to Trade Crypto Futures?

Now you can trade Crypto futures on BTCC. BTCC, a cryptocurrency exchange , was founded in June 2011 with the goal of making crypto trading reliable and accessible to everyone. BTCC is a crypto exchange offering users liquid and low-fee futures trading of both cryptocurrencies and tokenized traditional financial instruments like stocks and commodities.

BTCC Exchange

BTCC offers exclusive bonus for new users. Sign up and deposit on BTCC to get up to 15,000 USDT in bonuses. Meet the deposit targets within 30 days after successful registration at BTCC, and you can enjoy the bonus of the corresponding target levels. Find out what campaigns are available now: https://www.btcc.com/en-US/promotions

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

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Why Trade Crypto Futures on BTCC

To trade Crypto futures, you can choose BTCC crypto exchange.BTCC, a cryptocurrency exchange , was founded in June 2011 with the goal of making crypto trading reliable and accessible to everyone. Over 11 years of providing crypto futures trading services. 0 security incidents. Market-leading liquidity.

Traders may opt to trade on BTCC for a variety of reasons: