Quote from: South Park on November 21, 2019, 05:38:09 PM

Quote from: cheezcarls on November 21, 2019, 04:44:43 PM

I have a question to all of the traders here, especially when it comes to crypto margin trading. Do you think these three tips about staying safe while doing margin trading crypto would be effective?

Despite that you can say it's the safest way in trading cryptocurrencies, there's no such guarantee that it would be really "safe" as the market is so unpredictable that it would go down anytime without warning.

Just like what is happening to Bitcoin and other cryptocurrencies now, the prices are going down and it may expect to go even deeper as much as $7,400. Now it's hanging on around $7,600+.

I read the article and the advice is not bad but I have some problems with it.

Source: https://beincrypto.com/3-top-tips-to-stay-safe-while-margin-trading-crypto/

Quote

Overall, trading with low leverage is a simple way for newer traders to get to grips with the market, providing traders with more breathing room compared to high-leverage positions. Once a trader feels comfortable with around 2-5x leverage and has a thorough understanding of a platforms margin call levels, they might then want to begin testing higher leverages to increase the profitability of trades.

My main problem with the quote above is that they are encouraging new traders to use leverage, and that is a mistake, unless you have been in the market for years and you have been obtaining profits through those years then there is no justification for you to use any level of leverage, the market of cryptocurrencies is too volatile and even a very low level of leverage can be enough to wipe out your account in minutes and that is not something that a new trader can manage effectively.

Why would they be trading on a margin trading platform if they don't intend to use leverage?

I wouldn't say that the markets are too volatile for any kind of leverage, newbie traders should be safe playing with 2-4x leverage, after all, 25-50% moves in a single day for a major cryptocurrency are practically unheard of.

Personally, I'd suggest sticking with low leverages and a nice tight stop loss for beginners, if they're not the type of person to watch the market 24/7.