Margin Trading versus Investing | Bitcointalksearch.org

pooya87

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Quote from: richstan69 on February 17, 2021, 07:33:38 PM

With a hyperthetical USD 50,000 would you invest in bitcoin or use the money to fund a margin trading account

Nothing will ever compete with investing in bitcoin directly. Any other strategy including trading itself (traditional way) is bad, mainly because of the high volatility of the bitcoin market which makes margin trading even worse specially if you are going against the market which is most of the times. Not to mention that margin trading is more of a gamble, even worse than trading.

Quote

(the trades will all be made by trading bot handled by signals group with 100% return)

In other words you are going to be scammed out of all of your money with 100% certainty.

Lorence.xD

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Quote from: ubercool on February 17, 2021, 11:48:54 PM

In my honest opinion, diversify your investment in top coins, hold the major part of your portfolio in ETH or BTC.

Margin trading comes with its risk factor, you can make a 1000$ in a day with 50$ but you can also lose that 50$ in a minute. It's always your wish to do whatever you want with your money, If you are able to learn and trade then it's well and good. But if you don't want to take that risk then better go with long term holding or regular trading.

Diversifying helps you curtail losses, when one of your investment is doing bad then it is alright because your other investment is doing good, it is rare to see a diversified portfolio with all the investments doing bad, I would back the opinion of the quote above because I believe diversification is good way to make more money. Margin is a bit of a so-so, as the quote above says, there are risks but if you know how to trade and you can manage your risk then you might as well do it, a lot of people make money doing margin trading, some of my friends do it too and the results shows. To OP, you should move this topic to the Trading Discussion, you can see "move topic" on the lower left of this thread and click it to move it to that topic.

Ludmilla_rose1995

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Quote from: richstan69 on February 17, 2021, 07:33:38 PM

With a hyperthetical USD 50,000 would you invest in bitcoin or use the money to fund a margin trading account (the trades will all be made by trading bot handled by signals group with 100% return)

For me, margin trading carries a greater risk than just buying and investing in the long term. I prefer to buy bitcoin and invest. Besides, I don't know margin trading very well. Grin

ubercool

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In my honest opinion, diversify your investment in top coins, hold the major part of your portfolio in ETH or BTC.

Margin trading comes with its risk factor, you can make a 1000$ in a day with 50$ but you can also lose that 50$ in a minute. It's always your wish to do whatever you want with your money, If you are able to learn and trade then it's well and good. But if you don't want to take that risk then better go with long term holding or regular trading.

jackg

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https://bit.ly/387FXHi lightning theory

Quote from: richstan69 on February 17, 2021, 08:55:04 PM

Quote from: jackg on February 17, 2021, 08:14:22 PM

How sure are you that this will work and return a profit? A lot of signals groups (especially if they lose leverage) don't turn a profit - some do but the majority probably don't and most pass the trades they have higher certainty on to the free channels in advance or lie about their potential profits (as in saying how much they'd make if they went in at the buy price and sold at the last take profit - which wouldn't be done in anyone's strategy as the win rate would be ridiculous)

I'm going on a report from an independent website https://safetrading.today/traders/crypto-rocket-signals/ although i'm not 100% i'm interperetting the figures properly. It looks very transparent in terms of their reporting and at $90 isn't too much to trial. I'm trying to figure out how much a 5K margin balance could bring in. I guess it's hard to say without giving it a go.

They don't look to have reported ANYTHING since September though? That looks a little problematic.

Quote from: Darker45 on February 17, 2021, 10:59:47 PM

Don't trust signal groups with their signals! But, most of all, don't trust them with your funds!

Yeah autotrading rarely works. A lot of the autobots like cornix that can track signal groups have errors where they don't properly set stop losses (so you can end up getting liquidated on leverage instead - even if the group is fairly accurate normally).

The groups themselves can sometimes work for determining sentiment/finding key resistance/support points but other than that they aren't really reliable.

OcTradism

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Quote from: richstan69 on February 17, 2021, 07:33:38 PM

With a hyperthetical USD 50,000 would you invest in bitcoin or use the money to fund a margin trading account (the trades will all be made by trading bot handled by signals group with 100% return)

Leverages from margin tradings can multiply your initial capital $50,000. It is more risky to use margin tradings rather than investment with your capital only.

Honestly, with $50,000 as your capital, it is a big capital enough to invest or to trade and get rewards. I would not go with margin trading if I have $50,000 or about 1 Bitcoin for investment or trading.

If you think margin trading as a fast way to get rich or if you gamble with your margin orders, let's forget it and do investment instead. If you can not manage your greediness, your emotions, margin trading will liquidate your capital and you will lose them fastly.

Darker45

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If that money is an extra savings then use it to buy Bitcoin and wait for years, or why not months, right? Just keep it safe in a wallet totally under your control.

First, AVOID margin if you are less than an expert trader. Second, and most of all, AVOID funding any trading account by any signal group promising anything.

Don't trust signal groups with their signals! But, most of all, don't trust them with your funds!

richstan69

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Quote from: jackg on February 17, 2021, 08:14:22 PM

How sure are you that this will work and return a profit? A lot of signals groups (especially if they lose leverage) don't turn a profit - some do but the majority probably don't and most pass the trades they have higher certainty on to the free channels in advance or lie about their potential profits (as in saying how much they'd make if they went in at the buy price and sold at the last take profit - which wouldn't be done in anyone's strategy as the win rate would be ridiculous)

I'm going on a report from an independent website https://safetrading.today/traders/crypto-rocket-signals/ although i'm not 100% i'm interperetting the figures properly. It looks very transparent in terms of their reporting and at $90 isn't too much to trial. I'm trying to figure out how much a 5K margin balance could bring in. I guess it's hard to say without giving it a go.

jackg

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https://bit.ly/387FXHi lightning theory

Quote from: richstan69 on February 17, 2021, 07:33:38 PM

With a hyperthetical USD 50,000 would you invest in bitcoin or use the money to fund a margin trading account

Just invest it and hold.
You could take $5k and make a decent amount on margin while keeping the $45k on the exchange - I wouldn't go higher than $5k though.

Quote from: richstan69 on February 17, 2021, 07:33:38 PM

(the trades will all be made by trading bot handled by signals group with 100% return)

How sure are you that this will work and return a profit? A lot of signals groups (especially if they lose leverage) don't turn a profit - some do but the majority probably don't and most pass the trades they have higher certainty on to the free channels in advance or lie about their potential profits (as in saying how much they'd make if they went in at the buy price and sold at the last take profit - which wouldn't be done in anyone's strategy as the win rate would be ridiculous)

GreatArkansas

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I'd rather allocate more on investing/long-term hodl and a small portion on trading. Trading may be difficult especially if you are newbie, so the best advice is first practice, use small amounts first, don't all in.
You need to master first the basics of trading if you are new, so using a huge amount of money for first-time trading is a very bad idea.
And speaking of using tradingbot, not all bots will generate you a return, you may still lose, it will also depend on how you configure it and you may lose also if the bot you are using will encounter some bugs.

boyptc

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You want to get into quick gains then do margin trading but it's riskier than just investing it on bitcoin.

I have more confidence buying bitcoin and just holding it rather than putting it into the flames through margin trading.

richstan69

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With a hyperthetical USD 50,000 would you invest in bitcoin or use the money to fund a margin trading account (the trades will all be made by trading bot handled by signals group with 100% return)

Topic: Margin Trading versus Investing (Read 158 times)