What is Bitcoin trading?
Bitcoin trading is the act of buying low and selling high. Unlike investing, which means holding Bitcoin for the long run, trading deals with trying to predict price movements by studying the industry as a whole and price graphs in particular. So let’s have a look at what Bitcoin margin trading is.
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
What is Bitcoin margin trading?
One extremely profitable yet risky trading strategy is margin trading, also known as leveraged trading. This simply means that traders borrow capital at relatively high interest rates to increase their leverage. Let’s have a look at some terminology:
If a margin trade Bitcoin goes in the wrong direction, individuals will be required to add funds to their accounts in order to avoid order liquidation. This is known as a margin call. If a trader is unable to provide further funds to secure an order, it will be closed out automatically.
If a margin trade loses more money than the trader has on hand, the trade will be liquidated. This means the position will automatically close and the trader loses all of his money. Chances of liquidation increase dramatically when margin trading
Where can I margin trade Bitcoin?
If you want to margin trade Bitcoin, then you should do it on the fastest cryptocurrency derivatives exchange platform: Phemex!
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