Here are the pros I could sum up:
. First of course is the bigger market exposure. It seems like the right time to cash in on the crypto market, and for many beginners with limited capital, leverage seems to be the only option.
. Lesser risk when you set tight stops and trade smaller amounts. You don’t risk all of your capital and as you gain experience, learn how to navigate the leveraged trading market.
The biggest disadvantage obviously is the extreme volatility of the market which can magnify losses as much as it can increase profits through leverage.
How many of you here are using leverage to trade crypto, and how much, and through which broker? Let’s bring to light the many unknown aspects of crypto trading, besides what is known - that you screw things up when you don’t understand technical analysis and blindly enter and exit trades.
Leverage trading has only one pros: If you luckily catch good time, then you can happily see the increased profit, which, according to your leverage, can range from 2x to 10 or 100 or even higher, depends on if it's cross/isolated or you used leverage on futures.
Otherwise, leverage is the thing that can ruin your budget and life. Leverage is great for liquidity provider because in any way, he/she gets the profit and you are the one who risks the capital and the mental health. The market is so volatile that even if you use the lowest - 1x leverage, you can get liquidated in minutes. Yeah, I have seen when price skyrocketed for 1-2 minutes and then felt down.