Advantages and disadvantages of leverage trading and hodl in the market #crypto .
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Each trading method has its own advantages and disadvantages. Usually using leverage is called margin or futuers, but recently margin is rarely used.
(Almost only professional traders use margin. Most newbies will trade Futuers because futuers have many experts and call teams).
1. Leverage trading.
- The appeal of leverage trading is undeniable. It is possible to get rich with little capital.
Look at the profits earned quickly. For newbies, there are experts ready to guide you at home. You just need to spend money, follow them and become rich. But everything has two sides:
1.1 Advantages of leverage trading:
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Leverage trading helps investors amplify profits. Increase capital quickly.
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Leverage trading often closes orders and keeps short-term profits. Long-term investors often lose profits in short waves.
(In the crypto market, it is called short waves but is also divided by two or three compared to the price of the wave peak).
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The crypto market trades 24/7, so leverage traders can open positions at any time. You can trade both up and down.
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Leverage traders mainly use technical analysis and short-term time, so they ignore fundamental analysis. Therefore, they have the opportunity to trade more coins.
Even junk coins that long-term investors never touch.
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Just one big winning order can make up for a lot of previous losses.
