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.
I agree with you that leverage trading is ideal for enhancing an account size with a small capital. But i don’t agree that it is good for beginners, it can get hard for them to identify the potentially good trades and the right time to exit a trade. Although as of now I’m using 5x leverage on turnkeyforex but I wouldn’t have done this when I just started out.
What I can recommend is trading smaller lots with leverage, so even if you lose a trade it won’t be all of your capital in 1, so splitting your money in multiple trades seems like the right thing to me.