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What do you think of leveraged crypto trading?

Leverage Crypto trading allows users to maximize their exposure to different kinds of assets by going either long or short based on the market position. It helps in increasing profits by using borrowed funds for purchasing an asset. 

Leverage also helps a trader to improve his/her competitiveness by using a small amount of capital.  Since only a small percentage of money is deposited as a margin, the trader can invest in a variety of industries to manage his risks in a better way. Innovative tactics like short trading can be used to make profits from the fall in the price of a particular cryptocurrency. Risk can be managed by using tools like stop loss, and automatic order. This would help in moving the funds to a predetermined point. 

The disadvantages of Leverage Crypto trading must also be taken into account by exchanges as well as traders. 

If there are losses and the trader loses 100% of his deposit, the crypto exchange will have no option but to lock the trader’s account and recover at least a minimum amount. This will lead to foregoing of the title of ownership of shares and delivery of futures.

 If the market moves against the trader’s position, the trader will be liable to bear higher losses than his initial margin in the form of the minimum investment, interest costs, and commission. This can be catastrophic to his trading operations. 

It is important to keep control over the amount of money being risked on each trade. This will ensure better management of the portfolio and survival in the long run.