Post
Topic
Board Bitcoin Discussion
Re: Would it be foolish to take out a crypto loan at this stage of the bull market?
by
tranthidung
on 12/05/2021, 13:53:40 UTC
When you take a loan with cryptocurrency, not stable coin, you have double risk of liquidation
  • Risk of the cryptocurrency you use to make your loan (as a collateral). Its value can be decreased that cause your margin trade will be more easily to be liquidated
  • Risk of the cryptocurrency you are in trades will decrease.
  • In worst case, you will have double decreases from your collateral and the coin in opened positions
  • Make sure you don't use more than 10% of your capital for loan, and margin trades
  • Read Differences Between the New Isolated Margin Mode and Cross Margin Mode, then choose one type that fits your need and your risk management
I don't recommend you to go with margin trades if you are not experienced traders in crypto market. In bullish altcoin season, you can choose good ones and hold. It is safer, pressure-free and more profitable at the ends.