What concerns me is the risk. But what I find most worrisome, is I have heard that with leveraging, you can end up losing more than your capital. What do I mean by this?
What I mean is, lets say I have $1000 on Binance balance. I use leveraging and I lose $1200, that will mean my balance is -$200. Yes minus!
No, that's not true. You can't exceed your capital when in loss but you can exceed it when in profit. What brokers do (just like exchanges trading Futures) is to give you leverage on your capital by multiplying it and allowing you assess to trade more than ordinarily your capital can take. But once your loss in attempting to go beyond your initial capital the platform will automatically close your position(s). In essence, the trader bears the loss alone. No exchange allows you an overdraft. You can't lose more than your capital.
Otherwise, leveraging is very dangerous.
Leveraging on crypto assets is like trading Forex or Binary. Again, trading in general is like every business engagement. There are risks and gains involved. You don't expect profit alone. Also prepare for loss when it comes.