Crypto leverage trading

Leverage trading in crypto means you borrow funds to control a larger position than your own capital allows. You put up a margin and the platform lends you the rest. This amplifies both gains and losses. A small favorable move can yield a big return. A small adverse move can wipe out your margin. Traders use leverage to long when they expect price rises. Traders use leverage to short when they bet on price falls. Margin is the skin you leave on the table. Maintenance margin is the skin you must keep alive. If the market moves against you your margin shrinks. A margin call asks you for more collateral. Liquidation closes your position to stop further losses. Volatility in crypto makes margin calls and liquidations more frequent. High leverage makes even tiny swings deadly. Very high ratios can mean a one percent move ends your position. That is why risk management is not optional. Use stop-loss orders to cap downside. Size positions so a single trade cannot destroy your account. Prefer conservative leverage ratios when you start. Understand funding rates and fees that can erode returns. Know the difference between initial margin and maintenance margin. Beware of slippage when markets gap. Practice with demo or paper trading accounts before using real funds. Backtest a strategy and trade it on small size first. Learn to read order books and use limit orders to control entry. Keep some capital off-exchange and in hardware wallets for long-term holdings. Study margin call mechanics on your platform. Read about position liquidation waterfalls so nothing surprises you. Education beats bravado every time. Many failed leveraged trades are due to lack of knowledge. Start simple with spot trading if you are new. Explore lower-risk strategies like arbitrage or dollar-cost averaging. If you decide to use leverage, allocate only disposable funds you can afford to lose. Track your positions and update risk limits as the market moves. Keep emotions in check and avoid chasing losses. Use position-sizing rules and risk per trade limits. Remember that leverage is a tool. It can be a razor or a stake. Learn its edges. Train in daylight and trade at night without fear. Knowledge is your talisman against being undone by the market’s hunger.