3 Best Ways to Use Crypto Leverage and Shorting [2020]

3 Best Ways to Use Crypto Leverage and Shorting [2020]

Leverage and shorting have long been used by stock and forex traders, and have only relatively recently become a big part of the cryptocurrency market.

There is a lot to be said for this change. Mainly it has to do with the ever increasing sophistication of crypto traders, who today are searching for more efficient and safe ways to generate profits in the markets.

Crypto leverage is the process of creating much larger crypto trades by borrowing funds from a broker.

As an example, I could have $500 called the “margin” which I use to secure the loan, then I am loaned 50 times more than my margin, meaning that the size of my position is now $25,000.

For every $1 I would have normally made, I will now make $50 instead.

Shorting is the process of borrowing funds from a broker and then selling those funds and waiting until the price is lower to rebuy the same amount.

When the rebuy is made, it will be cheaper than the original cost and so the difference between the cost of borrowing the funds originally and rebuying those same funds will be kept as profit.

PrimeXBT

PrimeXBT is one of the largest crypto margin trading platforms on Earth, and has by far been the fastest growing cryptocurrency trading platform of 2019 and 2020.

Traders enjoy a wide range of assets to trade, and fast, simple funding and withdrawal systems. On top of this, PrimeXBT is one of only a very small number of trading platforms to provide no KYC when signing up — reducing registration times to less than 2 minutes in the process.

Fees are set at a low 0.05% on the platform which is one of the most competitive rates on the market and is a key reason for the exponential growth of the platform recently.

Traders can buy and sell a wide range of traditional assets such as forex pairs, stock indices, and commodities, as well as many different cryptocurrencies that include BTC, ETH, EOS, XRP, and LTC.

Binance

Binance is known for having a strong social media presence and listing a big range of cryptoassets.

Launching in 2017 and moving its base from Hong Kong to Malta quite recently, Binance has grown fast and been on pushing the limits of what can be done in the crypto industry.

The platform suffered a huge hack to the tune of $40 million in 2019n however, and this damaged their reputation somewhat.

But since then til now they have worked to get the ship back on course and have done a good job and continuing their trajectory.

Bitfinex

Bitfinex is one of the oldest crypto exchanges, and has been hit with much controversy as a result of dealing with it stable cryptocurrency, Tether.

Bitfinex had been a mainstay of the crypto industry for years and has progressively grown its listings and user base.

The user interface of the platform is sleek and easy to use, with a range of different tools and chart options.

Tether has been a controversial cryptoassets, with many believing that the required amount of fiat that is meant to be held in reserve is actually not there and widespread suspicion and demands for audits have been made.

Apart from this Bitfinex has generally provided a good service and has continued to adapt to the ever changing crypto market.

Crypto leverage and shorting are two really important tools for any crypto trader to understand.

Not only can the use of crypto margin trading potentially increase profits, but it can also potentially reduce risk.

When selecting a crypto trading platform for margin trading, it’s important to find the best platform possible based on facets like fees, maximum leverage and potential safety of the platform.

Published at Mon, 13 Jan 2020 19:11:42 +0000

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