Ive been trading in some few exchanges (e.g., Binance, Okex, Mercatox, MetaMorph Pro, etc.) from time to time. However, theres something that I want to explore.
Recently, Ive met a couple of guys who is promoting a margin trading platform. Its the first time Ive encountered a margin trading platform, and they said that it does not have the open orders feature like most crypto exchanges have.
Binance is adding margin trading; it's currently in beta testing. Okex has already supported margin trading for a long time. You can try it there without using a new platform.
Just like the crypto exchanges, we also invest and trade an amount that we could afford losing. But what are your thoughts about margin trading? Is it ideal for crypto day trading?
It really depends on your trading style and level of risk aversion. If you're a profitable trader who can handle emotions well, then using leverage is a great tool for your arsenal. On top of magnifying your profit potential, it means you can keep less funds on exchanges to achieve the same trading profit.
I recommend using 2-3x leverage for a while before messing with 5x or 10x. I don't use anything above 10x because crypto volatility is too high. You're just gambling at 20x and higher.