Leverage vs Spot

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The difference between leverage and spot buying is when you use leverage and your trade goes underwater for a few days, you could get liquidated or be under a lot of stress if a large size trade, whereas spot buying in a bull market means no stress if underwater for a few days, as you know the market will go up according to the cycle of BTC/Altcoins.

In a bull market you spot buy as much as you can. Take trades on the side to make USDT with and then spot buy BTC or altcoins with it. If you want to risk it and make more, then you use these newly acquired purchases of crypto to use as leverage using cross margin trading. Always use a stop loss using leveraged positions. If you see the market retrace that is when you take a short trade with leverage(safely) to hedge against your spot purchases.

Yes, you could just leverage at 125x and make more money but if you are wrong, you are wrecked on that trade.

Now is not the time to be opening up leveraged longs. In the coming days, there is a BTC crash scenario that may play out. It may not and BTC continues to pump, but we need to be aware this is possible and not to be stupid and start opening up longs into a possible scenario that has occurred 100% of the time it happened previously on the BTC chart, since inception.

Obviously this is just my opinion based on analysis and experience and is not financial advice.



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