Thousands Lose Money in Crypto Margin Trading

Initially, bitcoin wasn’t much until people realized its value. Then it was like gold and people started rushing to it, looking for every opportunity to own even if it’s just a coin. Well, that’s still where most people are today, but it’s not as easy to get bitcoin as it was a decade ago. Then crypto margin trading surfaced. Factual stories tell about people who have made a million dollar worth of bitcoin in a second through crypto margin trading. And then there are other stories of those who made that much and lost it a second later, on the same platform.

Crypto Margin Trading

This cryptocurrency trading method enables you to trade altcoins with borrowed money by leveraging your position. For instance, if you had $5000, you could borrow 50% of the money you already have from a broker and end up with $7500. The idea here is that the more money you have the more profit you stand to make from crypto margin trading.

Altcoins use blockchain technology, which makes them virtually incorruptible and impossible to trace; hence, highly secure. The blockchain technology is what makes altcoins reliable and seem like the future trading method. Most people realize this value and that is the reason they are willing to take their chances with crypto margin trading, which, of course, involves altcoins.

Crypto Nothin’ Trading

People heard about crypto margin trading and they rushed to it. However, it turns out it is not something you want to rush into blindly like the way thousands did only to find their wallets much lighter on their way out. Crypto margin trading has proved to be a risky endeavor because only 20% of those who have explored it came out with something to show.

Crypto margin trading involves altcoins. As you’ll discover on margin trading websites on bestbitcoinexchange.net, more altcoins are available today than a decade ago when bitcoin was the dominant one. Still, bitcoin is in the lead and it seems like things may stay that way for a while. The problem with altcoins, however, is that they are volatile in nature. Moreover, crypto margin trading is a trading activity, not an investment one. Most people tend to confuse it with an investment platform, which makes them use investment mindsets when a trading mentality is what would be the most useful to them.

It is not that crypto margin trading is a scam or anything of the sort. It is just that the method requires strategy and taking calculated risks. The problem is that most people who get involved in the trading only take risks without the “calculated” part. Therefore, they end up losing money. And so many people have lost their altcoins, and dollars to crypto margin trading.

For starters, most people begin with too much leverage. They have the right idea but taking a large bite of food you’ve never eaten before could leave a very nasty taste in your mouth if it turns out the food is awful. The point here is that people are taking big risks in an unfamiliar environment where they are likely to lose a lot if something goes wrong. To make it worse, some of them bet everything. An article in the Guardian features a guy who made a million dollars on bitcoin, and then it was gone.

If you are new to crypto margin trading but haven’t yet been burned, and would like to avoid being burned, here are a couple of tactics to observe.

  • Like forex trading, start crypto margin trading with a dummy account. There is another story of a student who lost all his savings, including part of student loans, to crypto margin trading. Be smarter and use dummies instead.
  • If you make something substantial in the trade, take your profit and enjoy it instead of taking more risks. The thing with altcoins is that their volatility makes them worth a lot now and worth nothing later. And later is only a second, later. Be careful.
  • Start small. Bet within your pocket range.
  • Take calculated risks. Be vigilant and only invest when you are sure of what you are doing. First study the market, learn how it works, and then do your thing.

Now that you know more about crypto margin trading, may you be the next big thing in the world of money!

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