Make The MOST Money Trading Bitcoin (Crypto Leverage Trading Explained)

there's one way in crypto to make the most money while trading the possibilities of turning hundreds of dollars into tens of thousands of dollars or more exist in this one tiny part of the crypto ecosystem but on the flip side the possibilities of turning hundreds of thousands of dollars into zero dollars also exists this crazy world is called leverage trading and it certainly isn't for everyone but as we face a huge influx of new investors into the space it's important everyone understands what it is and how to use it so they don't get wrecked find out what it is today let's get it welcome to bitboy crypto my name is ben every day i show you how to make money in cryptocurrency if you like money then make sure to hit that subscribe button if you ever do want to try your hand at leverage trading which we'll talk about today the best place to do it is by bit for a few more days you can actually get up to a 500 deposit bonus just register a new account by visiting then go to the buy bit rewards hub and type in the promo code win 500.

That's win dollar sign 500. but listen leverage trading is not for everyone only those with a strong understanding of what they're getting into should try it in this video we're going to be telling you exactly what leveraged trading is and why the potential for big gains and big losses exist with it and then we're going to be showing you exactly what it looks like but here's the first piece of advice i would give keep your leverage trading portfolio separate from the rest so what exactly is this fancy leveraged trading people talk about this is a trading tool used for highly speculative moves in the market to maximize the amount of an asset you're holding what separates this trading tool from others is that with leverage trading you are able to borrow in many times up to 100 times the amount of capital that you have without having to pay back the full amount so if you have ten thousand dollars you can trade with ten thousand dollars on normal exchanges but with leveraged trading you could trade up to a million dollars off of 10 000 if you use what is called 10x leverage you can make all the profits off of that trade this is why the returns from margin trading are exponential it's the quickest way to turn 100 into 100 000 but just like most everything there's a huge downside if you were to have ten thousand dollars in bitcoin on a regular exchange and the price of bitcoin were to drop fifty percent a huge move then you would still have five thousand dollars in btc but with leveraged trading you could have ten thousand dollars worth of btc in the trade if the market moves in a violent direction the wrong way you could lose it all this is why leveraged trading is known as a double edged sword you can gain the world or lose your entire portfolio within a few movements or moments the amount of swing that you can handle is called your margin it's the safe zone if you will for your trade if an assets movement goes out of that safe zone you face what is called liquidation where you lose all of the money you have in your trade and if you use what's called cross margin you could lose everything that's in your account but with isolated margin despite of what some fear mongers may tell you you cannot lose more than you have in a trade it's a big misconception at least in crypto now in the world of forex dangerous world to begin with it's actually a little different sometimes brokers can come after people if they lose too much money with too high of leverage but in crypto that is not a thing with leveraged trading though you can make one of two basic trades you can choose to go long on bitcoin which means you believe the price will go up or you can go short on bitcoin which means you believe the price will go down in general you never want to go against the market or you have a better chance to lose what do i mean by that well right now we're in the midst of a huge bull market you don't want to bet on bitcoin going down you want to wait until bitcoin has a price drop and then long the market when the price is rising as we've seen recently there can be no real way to tell where it stops but you can rest assured if the price drops it's going back up and higher inversely in a cold bear winter you don't want along the market you want to wait until prices rise and then shorten the market the level to which you are executing leverage is determined by the amount you are borrowing if you have one bitcoin and borrow two it is called 2x leverage if you have one bitcoin and borrow five it's called 5x leverage if you have one bitcoin and borrow 100 then it's called 100 x leverage trading now i highly suggest not to ever use above 25x but most people will even tell you a 5 to 10x is pretty much the highest you go but no matter what leverage you use there's a way for you to minimize your losses and prevent liquidation 100 of the time that is to use a stop loss this will prevent you from going out of the safe zone of your trade you basically set your stop loss to a level where if you lose the trade you are comfortable with the amount that you lost basically you risk some but not ever all now the amount of leverage you use will also determine the size of your save zone if you use 2x leverage you will have a gigantic window of margin if you use 100x leverage you'll have almost no volatility to work with this is why 100x is extremely risky and i don't ever recommend it i don't do it myself now that you understand what leverage trading is let's take a look at buy bit to see exactly what it looks like and of course if you want to sign up you can do so by visiting depending upon where you live you may also need to use a vpn now if you can't figure out how to use a vpn then leverage trading may not be for you so let's go ahead and check it out all right guys so this is what you're looking at when you get on by bit uh right now i am on a vpn uh sometimes you need it sometimes you don't i don't know the rhyme nor the reason but let's take a look around a couple things so when you look at your page setup here at the top it's just gonna have some information now you're gonna be able to drag any of these areas around on your dashboard so like let's say i wanted to move this down i could just slide this down here and then move this back up this is the way i have it set up by looking my trades at the top for demonstration purposes here is obviously the chart this right here is going to be active trades that you have but there's other things you can click to look at other areas we'll see in a second then of course you have your buy and sell order book then up here on the top right you will basically be able to see this is this is the control board okay that's what you're looking for you're gonna be able to control your margin whether you want cross across or isolated um you're gonna be able to do limit orders market orders limit orders you're gonna be able to you know make out better on and get less fees uh and then the market orders it's gonna be more fees but it's gonna happen quicker it's gonna happen instantaneously and then uh you can have uh conditional ones as well so okay so let's look up here so this is where you can see your positions your active conditional field order history mutual insurance and risk limit so uh here's some trades i did yesterday or a couple days ago a closed pnl you guys can see on on a long uh i closed for a 0.54 btc profit uh another one for 1.04 btc another 4.27 uh btc those were some good trades from the 16th you guys can see uh right here so when you come over here you have a few options like i said so you first thing i want to look at is cross margin or isolated margin when you use cross margin uh to me i don't like it as much because it can start eating into the other money in your account that's not necessarily in this trade and so i don't like to use cross margin i'm always going to use isolated margin that keeps each one of your individual trades that your individual trade so as you guys can see right here it goes up to 100x i never suggest trading with 100x i would say put it somewhere between 5 and 10 is about useful um 25 is what i like to trade on because i'm a little more degenerate i use you know some stop losses and things like that uh now with the limit order you're going to be able to set your order price right so if it's at 17.79 like if you kind of look here at this chart for instance uh this is the 30 minute chart you guys can kind of see right that you have like kind of a a support line somewhere about right here uh you have a resistance this was a very clean resistance right here um so right now what you're looking at is uh you know the price could bounce down somewhere around 1700 17600 uh based on these two candles right here giving us some nice support uh so right now i might want to set my set along at 17 578 right where this uh line is because there's a good chance that this is going to come down bounce off of that line and go back up so that would be why you'd want to set a limit order so you can basically set the price where if it goes down to this level i want it i want to catch a trade right here if you look kind of over here you see this right here is basically along that same uh support line so that 17 hundred and seventy eight that's a pretty good number uh to be looking at right now market personally personally this is my personal preference i don't mind paying fees when i make money on trades you guys can see i make big money on trades when i lose money in trades i lose big money in trade so i'm going to win a lot or i'm going to lose a lot i don't really sweat a percent or whatever the fee is going to be sometimes it's a few percent uh they're called maker and taker fees um so i i tend to just want to do the market orders when i'm ready to put a trade in i'm ready to put the trade in right then because there's something i'm seeing i want to take advantage of so right now if i wanted to short the market which i as i said in the video you don't want to go against the market so i'm not going to do that okay but hypothetically if i want to shorten the market from where it is right now to 17 578 then what i could do is come over here to isolated okay so right now when i put 25x you guys can see when i hit a hundred percent it translates it into a million us dollars a million contracts i don't want to go 100 x um if i click on 50 x as you can see it still is a million it doesn't change if i click 50 75 or 100 that's cause i got a decent amount in this account for most you guys that will change um i usually like to trade with 100 of my account i don't have a problem doing that um so oh and look right as we're talking look at it look at it it just came down almost to that same level and balance well absolutely extraordinary just what i said was going to happen um so anyways once you have this set now you have to decide whether you want to buy long or buy sell short but what you really want to do is click one of these boxes because you want to set your stop loss in the beginning so if we want to long it right now because i was going to short it but it just bounced off that line so i'm going to click buy long i'm going to click where i want to take my profit like i just look here and see this is like let's say 17 900.

So i say 17 900 okay and that guy set my stop loss it's got these nice little figures here for you so you can set your stop loss at 5 15 25 or 50 loss let's just do a small one let's set it at five percent loss uh and see what happens uh and then you hit buy long and boom here's my trade now i come over here i click positions it'll show you what your trade is one million uh contracts okay shows my entry price it shows my liquidation price uh it shows my unrealized p l right now is 900 a thousand uh let's see here and then in my in profit i'm not quite in profit yet so i'm gonna need to let that thing go up a little bit more this right here will show you exactly how much money your trade is making you guys can see that how how fast the money moves here you guys see how fast the money moves 337 dollars negative 171 dollars it just goes really fast uh one way or the other so you just gotta kind of stomach it i mean a second ago it was up a thousand dollars now it's down fifteen hundred dollars it just is what it is so i've got my stop-loss set i've got my uh take profit set we're gonna let this trade sit around for a while and uh see what happens so that's basically all all you need to know that's how it works uh but as you can see on these money swings how violent they are you can make a lot of money or you can lose a lot of money so you guys wanna try out by bit uh check out hey let me know what you guys think about it drop a comment down below that's all i got be blessed [Music] you

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