What is margin trading?
Margin trading refers to borrowing assets from a lender - so that you can trade more than you normally could. The guarantee of one dollar that Ralph left with his parents was his margin account. Using this guarantee, they lent him a larger amount for trading. This enabled Ralph to achieve greater profits.
Using margin trading, you can make a profit regardless of whether the market is bearish or bullish. Margin trading is also called leverage trading. The term ‘leverage’ refers to a multiplying factor that increases the trading capital of a trader. Margin trading multiplies your profits quickly with minimum capital requirements.
Margin trading, due to its very nature, could yield great profits in volatile markets - and no market is more volatile than the crypto market.
Crypto margin trading
To understand crypto margin trading, let's go through an example. We assume you have $500 worth of BTC and want your investment to grow exponentially. But, you don't have the money to buy more BTC. So, you take that $500 and decide to trade using leverage, which is usually 1-100x in the case of the crypto market. If you use 10x ‘leverage’, your $500 gives you access to $5000 in terms of trading.
Now, assume the price of one BTC is $10,000 and you expect the price to go up. You proceed to open a long position worth $1000 and add a x10 leverage. If the price of BTC now increases by 5%, you gain 50%.
So, are there no risks involved?
Of course there are. In the previous example, if BTC drops 5%, one could lose their whole position - just like one could win if it goes up. But usually, the losses are not proportionate to the leverage. You lose nothing more than the trading capital you committed.
Moreover, margin trading on major platforms is not hassle-free. A lot of exchanges and CFD platforms that allow crypto margin trading use complicated models and charge high fees.
For crypto margin trading, you need to choose a platform that doesn’t restrict you, and allows hassle-free trading.
Is there a platform that could do all this?
The answer is YouHodler’s Multi HODL, an uncomplicated, state-of-the-art trading tool with very low fees. Here is how it works:
Create an account with YouHodler and navigate to Multi Hodl
Select the currency pair of your choice
Choose your leverage
Set take profit and margin call levels. You can also change them later
Press the start button, and watch your profits flow in!
Win a brand new iPhone
As a special welcome you can now win a brand new iPhone or the equivalent value in the cryptocurrency of your choice. All you have to do is:
Open a Multi HODL deal with at least
Prove that your results are better than other "YouHodlers" at the end of the contest (December 27th)
Get one of three shiny Iphones or equivalent value in crypto of your choice.
*the precise terms can be found on YouHodler's web page
So, what are you waiting for? Head on over to Youhodler, and let Multi HODL multiply your crypto!