Summary

In cryptocurrency trading, leverage refers to the use of borrowed capital to place trades. Leverage trading can amplify your buying or selling power, allowing you to trade with larger amounts. Therefore, even if your initial capital is small, you can use it as collateral to make leveraged trades. While leveraged trading can double your potential profits, it is also subject to high risks, especially in the volatile cryptocurrency market. Be careful when using leverage to trade digital currencies. It may lead to significant losses if the market moves in the opposite direction to your trades.