Do you wish to trade cryptocurrencies, but are worried about the limited capital? Well! Stop worrying! There is a perfect approach which allows you to effectively leverage both short and long positions in crypto trading. What's that?

Yes! It's margin trading which allows the traders to leverage their positions on Bitcoin or other cryptocurrencies by 2x, 5x, 10x, or 100x and you don't need to maintain the capital value which is required to open long or short positions. Let's understand what is margin trading in the crypto sphere?

Margin trading

Margin trading is an extremely profitable strategy that works well for beginners, intermediate, as well as advanced traders. Crypto trade with leverage enables its traders to trade with power by borrowing funds from the top exchange platforms

Let's understand this with an example:

Imagine you are trade cryptocurrencies online and you are confident about one of the assets which is about to take off. Now you wish that you could increase your holdings, and you want to enter or exit any position. With margin trading, you can increase your holding without having to liquidate other assets. While margin trade multiplies your profit, it can also multiply your losses at the same time if the trade doesn't go well.

Trade with leverage or margin trading multiplies the amount of money you have to invest in any trade. So, if you have $10,000, then margin trading with 2x leverage will allow you to trade worth $20,000 of assets. BitMEX margin Trade is gaining huge popularity among crypto traders these days that allows 20x to 100x of leverage, depending on the asset.

Over recent years, margin trading has become exponentially popular and many established exchanges like Binance and Huobi have started margin trading of perpetual swap contracts and cryptocurrency futures, replicating the BitMEX business model effectively.

If you need any kind of information on this article related topic click here: crypto to crypto exchange