How To Lose Your Shirt Trading Crypto With Leverage

You’ve heard, “Buy the freaking dip”, and, “Buy dips sell rips”.

Translation: buy when prices drop, and sell when they rise.

But inexperienced traders do the opposite. They buy on FOMO when prices are up, and sell on FUD when prices fall.

Ideally, we win or we learn. That’s why I keep a journal of my rationale for going into any trade.

Without leverage, swings are small and losses (usually) limited. It’s hard to lose too much money on a couple of trades. At the very least, you can treat losses as the cost of learning.

But things are different with leverage. A couple of bad trades CAN wipe you out.

A 10% crash with 10x leverage takes a portfolio to $0.

Now I’ve never even done 5x leverage, but you can find people trading 20x live on Twitch.

Source: https://medium.com/coinmonks/how-to-lose-your-shirt-trading-crypto-with-leverage-97f515d19e45?source=rss——-8—————–cryptocurrency