There's, one way in crypto to make the most money, while trading the possibilities of turning hundreds of dollars into tens of thousands of dollars or more exist in this one, tiny part of the crypto ecosystem.
But on the flip side, the possibilities of turning hundreds of thousands of dollars into zero dollars also exists. This crazy world is called leverage trading and it certainly isn't for everyone, but as we face a huge influx of new investors into the space, it's important everyone understands what it is and how to use it.
So they don't, get wrecked, find out what it is today. Let's, get it welcome to bitboy crypto. My name is ben every day. I show you how to make money in cryptocurrency. If you like, money, then make sure to hit that subscribe button, if you ever do want to try your hand at leverage trading, which we'll talk about today.
The best place to do it is by bit for a few more days. You can actually get up to a 500 deposit bonus just register. A new account by visiting buybit.bitboy.live then go to the buy bit, rewards hub and type in the promo code win 500.
that's, win dollar sign 500., but listen. Leverage trading is not for everyone, only those with a strong understanding of what they're. Getting into should try it in this video. We're, going to be telling you exactly what leveraged trading is and why the potential for big gains and big losses exist with it.
And then we're, going to be showing you exactly what it looks like. But here's, the first piece of advice. I would give keep your leverage trading portfolio separate from the rest. So what exactly is this fancy leveraged trading people talk about? This is a trading tool used for highly speculative moves in the market to maximize the amount of an asset you're.
Holding what separates this trading tool from others is that with leverage trading you are able to borrow in many times up to 100 times the amount of capital that you have without having to pay back the full amount.
So if you have ten thousand dollars, you can trade with ten thousand dollars on normal exchanges, but with leveraged trading you could trade up to a million dollars off of 10 000. If you use what is called 10x leverage, you can make all the profits off of that trade.
This is why the returns from margin trading are exponential. It's, the quickest way to turn 100 into 100 000, but just like most everything there's, a huge downside if you were to have ten thousand dollars in bitcoin on a regular exchange and the price of bitcoin were to drop.
Fifty percent a huge move, then you would still have five thousand dollars in btc, but with leveraged trading you could have ten thousand dollars worth of btc in the trade. If the market moves in a violent direction, the wrong way, you could lose it all.
This is why leveraged trading is known as a double edged sword. You can gain the world or lose your entire portfolio within a few movements or moments. The amount of swing that you can handle is called your margin.
It's, the safe zone. If you will for your trade, if an assets movement goes out of that safe zone, you face what is called liquidation where you lose all of the money you have in your trade and if you use what's called cross margin, you could lose Everything that's in your account, but with isolated margin.
Despite of what some fear mongers may tell you, you cannot lose more than you have in a trade. It's, a big misconception, at least in crypto. Now in the world of forex dangerous world to begin with it's, actually a little different.
Sometimes brokers can come after people if they lose too much money with too high of leverage, but in crypto that is not a thing with leveraged trading, though you can make one of two basic trades. You can choose to go long on bitcoin, which means you believe the price will go up or you can go short on bitcoin, which means you believe the price will go down in general.
You never want to go against the market or you have a better chance to lose. What do i mean by that? Well, right now we're in the midst of a huge bull market. You don't want to bet on bitcoin going down.
You want to wait until bitcoin has a price drop and then long the market when the price is rising. As we've seen recently, there can be no real way to tell where it stops, but you can rest assured if the price drops it's, going back up and higher inversely in a cold bear winter.
You don't want along the market, you want to wait until prices rise and then shorten the market. The level to which you are executing leverage is determined by the amount you are borrowing. If you have one bitcoin and borrow two, it is called 2x leverage.
If you have one bitcoin and borrow five, it's called 5x leverage. If you have one bitcoin and borrow 100, then it's called 100 x leverage trading. Now i highly suggest not to ever use above 25x, but most people will even tell you a 5 to 10x is pretty much the highest.
You go but no matter what leverage you use there's, a way for you to minimize your losses and prevent liquidation 100 of the time that is, to use a stop loss. This will prevent you from going out of the safe zone of your trade.
You basically set your stop loss to a level where, if you lose the trade, you are comfortable with the amount that you lost. Basically, you risk some, but not ever all. Now the amount of leverage you use will also determine the size of your save zone.
If you use 2x leverage, you will have a gigantic window of margin. If you use 100x leverage, you & # 39. Ll have almost no volatility to work with. This is why 100x is extremely risky and i don't ever recommend it.
I don't. Do it myself now that you understand what leverage trading is, let's? Take a look at buy bit to see exactly what it looks like and, of course, if you want to sign up, you can do so by visiting buybit.
bitboy.live depending upon where you live. You may also need to use a vpn now, if you can't figure out how to use a vpn, then leverage trading may not be for you. So let's, go ahead and check it out all right guys.
So this is what you're, looking at when you get on by bit, uh right now i am on a vpn uh. Sometimes you need it. Sometimes you don't. I don't, know the rhyme nor the reason, but let's. Take a look around a couple things.
So when you look at your page setup here at the top it's, just gonna have some information. Now you're gonna be able to drag any of these areas around on your dashboard. So, like let's say i wanted to move this down.
I could just slide this down here and then move this back up. This is the way i have it set up by looking my trades at the top for demonstration purposes. Here is obviously the chart. This right here is going to be active trades that you have, but there's.
Other things you can click to look at other areas. We'll, see in a second, then, of course you have your buy and sell order book. Then up here on the top right, you will basically be able to see. This is this.
Is the control board? Okay, that's? What you're! Looking for you're gonna be able to control your margin, whether you want cross across or isolated um. You're gonna be able to do limit orders. Market orders limit orders, you're gonna, be able to you, know, make out better on and get less fees uh, and then the market orders it's.
Gon na be more fees, but it's. Gon na happen quicker. It's, gonna happen instantaneously and then uh you can have uh conditional ones as well. So, okay, so let's. Look up here. So this is where you can see your positions, your active conditional field order, history, mutual insurance and risk limit.
So uh here's, some trades i did yesterday or a couple days ago a closed pnl. You guys can see on on a long uh. I closed for a 0.54 btc profit uh another one for 1.04 btc, another 4.27 uh btc. Those were some good trades from the 16th.
You guys can see uh right here. So when you come over here, you have a few options like i said so you first thing i want to look at is cross margin or isolated margin when you use cross margin uh to me, i don't like it as much because it Can start eating into the other money in your account that's, not necessarily in this trade, and so i don't like to use cross margin.
I'm, always going to use isolated margin that keeps each one of your individual trades that your individual trade, so as you guys can see right here, it goes up to 100x. I never suggest trading with 100x, i would say, put it somewhere between 5 and 10 is about useful.
Um 25 is what i like to trade on, because i'm a little more degenerate. I use you know some stop losses and things like that. Uh now, with the limit order, you're, going to be able to set your order price right.
So if it's at 17.79, like if you kind of look here at this chart, for instance uh, this is the 30 minute chart. You guys can kind of see right that you have like kind of a a support line somewhere about right here.
Uh, you have a resistance. This was a very clean resistance right here, um. So right now what you're, looking at is uh. You know the price could bounce down somewhere around 1700 17600 uh, based on these two candles right here, giving us some nice support, uh.
So right now i might want to set my set along at 17 578 right where this uh line is because there's, a good chance that this is going to come down bounce off of that line and go back up. So that would be why you'd, want to set a limit order, so you can basically set the price where, if it goes down to this level, i want it.
I want to catch a trade right here. If you look kind of over here, you see this right here is basically along that same uh support line so that 17 hundred and seventy eight that's, a pretty good number uh to be looking at right now market.
Personally, personally, this is my personal preference. I don't mind paying fees. When i make money on trades, you guys can see. I make big money on trades. When i lose money in trades, i lose big money in trade.
So i'm, going to win a lot or i'm, going to lose a lot. I don't, really sweat a percent or whatever the fee is going to be. Sometimes it's, a few percent uh. They're called maker and taker fees um. So i i tend to just want to do the market orders when i'm ready to put a trade in, i'm ready to put the trade in right then, because there's, something i'm.
Seeing i want to take advantage of so right now if i wanted to short the market which i, as i said in the video you don't want to go against the market, so i'm, not going to do that. Okay, but hypothetically, if i want to shorten the market from where it is right now to 17 578, then what i could do is come over here to isolated, okay.
So, right now, when i put 25x, you guys can see when i hit a hundred percent. It translates it into a million us dollars a million contracts. I don't want to go 100 x um. If i click on 50 x, as you can see, it still is a million it doesn't change.
If i click 50, 75 or 100, that's cause, i got a decent amount in this account. For most you guys that will change um. I usually like to trade with 100 of my account. I don't, have a problem doing that um.
So, oh and look right as we're talking, look at it look at it. It just came down almost to that same level and balance well, absolutely extraordinary. Just what i said was going to happen, um so anyways once you have this set now you have to decide whether you want to buy long or buy sell short, but what you really want to do is click one of these boxes, because you want to set Your stop loss in the beginning, so if we want to long it right now, because i was going to short it, but it just bounced off that line, so i'm going to click, buy long.
I'm, going to click where i want to take my profit like i just look here and see. This is like let's, say 17 900., so i say 17, 900, okay, and that guy set my stop loss. It's, got these nice little figures here for you, so you can set your stop loss at 5, 15, 25 or 50 loss.
Let's. Just do a small one. Let's, set it at five percent loss uh and see what happens uh and then you hit buy long and boom here's, my trade. Now i come over here. I click positions. It & # 39. Ll. Show you what your trade is: one million uh contracts.
Okay, shows my entry price. It shows my liquidation price uh. It shows my unrealized p. L right now is 900, a thousand uh. Let's, see here and then in my in profit. I'm, not quite in profit yet so i'm gonna need to let that thing go up a little bit more.
This right here will show you exactly how much money your trade is making you guys can see that how how fast the money moves here, you guys see how fast the money moves. 337 dollars negative 171 dollars.
It just goes really fast, uh, one way or the other, so you just got ta kind of stomach it i mean a second ago. It was up a thousand dollars. Now it's down fifteen hundred dollars. It just is what it is.
So i've got my stop-loss set. I've got my uh take profit set. We're gonna let this trade sit around for a while and uh see what happens so that's. Basically, all all you need to know that's, how it works uh, but, as you can see on these money swings how violent they are.
You can make a lot of money or you can lose a lot of money, so you guys wan na try out by bit uh check out buybit.bitboy.live, hey. Let me know what you guys think about. It drop a comment down below that's.
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