Hi,
I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.
But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro, but it doesnt appear at all cryptos...)
I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...
If anyone could shed some light on this that would be appreciated.
Let me tell you a general notion. There are various types of markets. Spot/future or unleveraged/leveraged. But there generally is one rule. The amount of money deducted from your account at the time of order is the maximum amount you can lose. What I can interpret from your message is that you are confused in 2 things. Number one is the warning on coingecko. I think it might be merely a disclaimer by coingecko implying that they don't solicit you for any trade. While on Binance you might be entering trade from a future/leveraged account. In a leveraged trade you just have to keep the margin amount of your order at time of purchase with Binance and that margin is your maximum loss but Binance will liquidate your position at the liquidation price which means squaring off your position without your approval.