If you are a little bit aware of the cryptocurrency world, you must know that cryptocurrency trading can be both sometimes satisfying and sometimes may be risky. One needs to be very smart and essential to learn all the basics before investing a substantial amount of money.
One may suppose that they have capitalized $1K in cryptocurrency and after a couple of days, it gets valued as $2K. But, at the same time, one wants to know that they may have a risk of getting initial investment reduced to $100.
Hence, it’s important for each investor to know an important trading concept whether it’s for rewards or risk. Here, margin trading theaters a very important role in achieving investment.
What is margin trading?
Margin trading is just like the act of copyingcrypto currency or additional money by enhancing the number of cryptocurrencies that already own. The trading is also mentioned as leverage trading which is just the application of the old age method in the traditional markets.
The concept was started in the US and is now practiced in various exchange platforms all across the world. But, in traditional markets, there are varied rules and rules while the margin rules for cryptocurrency are quite simple. However, all the basic values are almost the same.
Take an example:
Suppose, you requirement to make an investment of $2k in BTC but have only $1k. So, you need to borrow another $1k with the boundary of 2:1. Hence, your $2k now becomes $3k
Now, you can envisage that the BTC price increased by 50%, so your asset also enhanced. Hence, your $2k now becomes $3k and you pay back $1k to the lender and you enjoy the profits of $1k. But, at the same time, if the BTC price reduced by 50%, it may cause loss.
Hence, the margin can be a prize as well as risk, so you always gain information first before proceeding for margin trading.
However, if you want to obtain detail knowledge of margin trading, you can method the Kucoin Support phone number and could gain complete knowledge.
Resource Link:- https://onlinecallsupport.com/kucoin-support-number/
