Wow leverage trading in cryptocurrency and also storing in exchanges that's too way risky.
Personal it depends on the amount. I would suggest it been splitted into two or more reputable exchanges since it would quite be rare to have 2+ exchanges suffering hacks or maybe centralization issue at the same time. At least with maybe one exchange having issue it gives you little time to access to the funds in the other exchanges
Topic: Leverage investment strategy during bull market - page 2. (Read 201 times)
Using exchanges is fine despite the risks; just use the ones that are already very reputable to start with. It's not like you're going to put in 50%+ of your total capital into the exchange for leverage, as obviously that's a very irresponsible amount to risk for most cases.
On the other hand you can use non-custodial DEXs — but that proposes other risks such as smart contract exploits so I really can't recommend this option for significant amounts of money.
On the other hand you can use non-custodial DEXs — but that proposes other risks such as smart contract exploits so I really can't recommend this option for significant amounts of money.
Know that leverage trading is highly risky. This is not about leverage trading though, but about using leverage as an investment. Be it trading or investment using leverage, it is highly risky. The more the leverage, the more would be the risk.
I remember in 2020, I knew bitcoin would hit at least $30000, but surprisingly it goes above. When bitcoin got to $20000, I opened a long position from 50 to 125x using BTC/USDT perpetual future and all got liquidated as bitcoin price fall slightly most of the time before it continues its bull market. Leverage trading can be profitable but not advisable because it is highly risky and can turn a rich man to a poor man in minutes, hours or days.
In future trading, I can open a perpetual position using leverage, because it is not a week, a month or quarterly, this type of position opened do not close at any specific date. It has been the best I can use during bull run. Quarterly is not also bad, but I prefer perpetual which most traders are using.
The problem is that it is not good to leave your coin on exchanges, the best and safe place your coin can be are on wallets, noncustodial wallet to be specific, which you can hold and protect its private key.
During bull run, some people may decide to leverage their coins and go on like 2x which is still safe to some people in a way bitcoin can still not get to liquidation price or the chance to get to liquidation price is still low. You can not hold 2x on a wallet, you have to leave your coins on exchanges and this may be up to a year or more that you want to hold your coins using like 2x leverage. What ways can use maximally protect your coins if you are a leverage holder?
This question is funny though, but just want to see the opinions of others about this. Or someone should not hold using leverage because of the reason of risks of going for leverage trading for maximising profit?
I remember in 2020, I knew bitcoin would hit at least $30000, but surprisingly it goes above. When bitcoin got to $20000, I opened a long position from 50 to 125x using BTC/USDT perpetual future and all got liquidated as bitcoin price fall slightly most of the time before it continues its bull market. Leverage trading can be profitable but not advisable because it is highly risky and can turn a rich man to a poor man in minutes, hours or days.
In future trading, I can open a perpetual position using leverage, because it is not a week, a month or quarterly, this type of position opened do not close at any specific date. It has been the best I can use during bull run. Quarterly is not also bad, but I prefer perpetual which most traders are using.
The problem is that it is not good to leave your coin on exchanges, the best and safe place your coin can be are on wallets, noncustodial wallet to be specific, which you can hold and protect its private key.
During bull run, some people may decide to leverage their coins and go on like 2x which is still safe to some people in a way bitcoin can still not get to liquidation price or the chance to get to liquidation price is still low. You can not hold 2x on a wallet, you have to leave your coins on exchanges and this may be up to a year or more that you want to hold your coins using like 2x leverage. What ways can use maximally protect your coins if you are a leverage holder?
This question is funny though, but just want to see the opinions of others about this. Or someone should not hold using leverage because of the reason of risks of going for leverage trading for maximising profit?
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