📈 Leverage Example in Bitcoin 📈
Imagine you foresee a Bitcoin price increase and decide to invest $500 with 25x leverage.
🏠 Starting: Bitcoin at $27,000. Your actual position is $500, but with leverage, you control $12,500 ($500 x 25) of Bitcoin.
💹 Bitcoin rises to $27,800, an $800 price difference.
Without leverage, your profit would be: ($800/$27,000) x $500 = $14.81.
But with 25x leverage, your profit becomes: $14.81 x 25 = $370.25.
Leverage can amplify profits, but remember, it multiplies losses too. Proceed with caution!
#CryptoEducation 🚨Disclaimer: This is just an example, not investment advice. Always research before investing!🚨
Short Version:
Invested $500 in Bitcoin with 25x leverage. Bitcoin rises $800. Without leverage: $14.81 profit. With leverage: $370.25 profit. Leverage boosts gains but increases risks.
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