Margin Trading digital Assets

As a crypto margin trader there is an opportunity for a trader to lend funds 3x worth what he owns and make x3 profits, this is a quick way to make money. If you are a good trader and also a quick way to lose money if you are a novice.

Say for instance you have just $2 x N361 =N 722.00

Using Margin x 3 trading you have: 3 x 2 x N361 = N2,166 to trade with

When you make a trade say your profits target is 3%:

That means using without margin: 1.03 x 2 x N361 = N743.66

With margin your profits 3 x 1.03 x 2 x N361 = N2,230.98

Your profit without margin is: 743.66–722.00 = N21.66

Your profit after using x3 margin is 2,230.98–2166 = N64.98 (You make x3 profits)

If you have $200 (i.e. about N72,200) and you make ten good trades with a profit margin of 3%, you will have a total of:

N649.8 per $18, (if you earn this every from 100 good trades, keeping the profit margin within 3%, this will return almost 10% of the total amount invested).

With the high-risk volatility of cryptocurrencies it is important to mitigate risk, curtail greed, create a system that is highly probable and avoid over leveraging and over shooting profit margin.

Bitfinex exchange provides x3 margin high risk (bitfinex.com)

Bitmex exchange provides x100 margin extreme risk (https://tinyurl.com/y8vnzp3v)

“The next question is, how can one make 100 good trades and how much work is required to achieve that?”

Yes, its possible especially if you don’t want to lose money, as margin trading also gives the equal loss times how much margin you took, the best way to keep within the limit and not lose any money is to keep it very technical and no emotions involved.

Accurate and responsive indicators that tell you when to sell and when to buy, just like;

Exponential Moving averages 9 and 5 cross using 4hour time frame.

If you don’t know what this is or how to use it you might need further tutorials on how.

Basically,the exponential moving average lays emphasis on the current price movements and the previous closing values to draw a line moving with prices , the 5 days is faster and the 9 days is slower , if the 5days EMA crosses the 9 days ema from below and cuts through price, this means it’s ok to buy; meaning the new price movements are increasing faster than the previous 9days, and vice versa.

It’s important to use the 4 hour/2hour time frames for your trades and these are more accurate for daily movements.

Never put all your money into one trade mitigate your losses by putting not more than 10% in a position and reduce your loses to 3% and taking profits above 3% depends on your strategy.

Note that this is for highly experienced traders who know when to get into the market, placing trades and taking profits.

There are other ways to make money from trading bitcoins without leverage, but buying at bottoms and holding for awhile till the price gets high, those whom bought at $600 last year 2017 are still in profits even though the price went as high as $19,000.

What do you think of margin trading? Let us know in the comment section below.