I have been in the cryptocurrency trading world for the past 10 months and couldn't make much profits when the market moved to bear phase. I have been reading about margin trading and have not been able to wrap my head around it? I think i can make some money in the bear phase! Am i correct?
The biggest improvement over regular trading is in margin trading you can trade short as well. This means normally you either buy bitcoin or go back to fiat, with margin trading you can use your money to say "bitcoin will go down" and make profit from that.
Everyone talks about how margin trading allows you to leverage your money and just make ton of more than what you have which I agree doesn't exist anywhere else on crypto or normal life outside of margin trading but that is definitely not the biggest improvement.
You can definitely lose your money a lot more quickly if you use that option. However being able to bet on the fact that bitcoin will go down is still an amazing feature even if you just trade on x1 leverage (meaning no leverage at all) that options can still make you money during bear markets.