How to Trade Bitcoin with Leverage on BTCC?

Bitcoin (BTC) is known as a volatile asset; the price of BTC reached an all-time high of roughly $42,000 in January 2021, only to fall around $31,000 within days. BTC previously reached a high of $20,000 before falling to $4,500 the following year. The Bitcoin price’s extreme volatility presents trading possibilities for investors seeking potential returns through leverage.

Leverage is a popular financial instrument that allows investors to maximize their potential return on investment with a limited amount of capital. Leverage is widely used in a variety of financial instruments and is an important component in laying the groundwork for today’s financial markets.

Many types of Bitcoin derivative products contain leverage. BTCC, the world’s longest cryptocurrency exchange, for example, provides 10x, 20x, 50x, 100x, and up to 150x leverage for BTC/USDT futures contracts. Before making an investing decision, it is critical to grasp the ideas and mechanics of leverage.

What is the Leverage?

Bitcoin leverage enables investors to gain maximum exposure to Bitcoin volatility with a little initial commitment, known as margin. Margin is defined as the amount of money that must be deposited into your account in order to achieve a given level of leverage.

For example, 20:1 leverage allows you to trade $5,000 in Bitcoins with a $250 margin deposit. If Peter purchased $30,000 in Bitcoins at $5,000 per BTC and the price increased to $6,000 three days later. Without using any leverage, Peter will make $6,000 in Bitcoin trading. However, if Tom utilizes 20:1 leverage, he only needs $1,500 in margin to trade $30,000 in Bitcoins and profit $6,000.

Leverage trading is a two-edged blade that can enhance both your earnings and your losses. Using the preceding scenario, if the price of BTC falls to $4,750, Peter will lose $1,500 and have $28,500 remaining. In a leveraged deal, however, Tom will lose all of his margin deposits.

Bitcoin’s price is extremely volatile; it is not unprecedented for BTC to fluctuate by more than 30% in a single week. It is critical to carefully select the level of leverage that is appropriate for your risk tolerance.

For instance, Peter and Eric each have $5,000 in their accounts. The Bitcoin price is currently trading at $7,000. Peter is upbeat and chooses to open a $200,000 BTC transaction with a leverage of 40:1. While Eric is cautious about the consequences of high leverage, he enters into a $25,000 BTC transaction with a 5:1 leverage. If the price of Bitcoin falls by $100 to $6,900. Peter will lose $4,000, leaving him with $1,000 in his account. Eric, on the other hand, would have lost only $500 and would still have $4,500 in his account balance.

It is critical to understand that margin levels are not fixed and change over time depending on the price of the item being traded. If you hold a long position and the asset declines in value, you will receive a margin call informing you that you must deposit additional funds known as maintenance in order to keep your margin level. If you do not deposit more funds, your account will be liquidated.

In terms of liquidation. Many cryptocurrency exchanges have a widespread practice of covering someone else’s negative balance with “insurance money,” which are made up of other users’ balances.

One of the unique features of BTCC is negative balance protection, in which the exchange will cover the user’s negative balance entirely rather than forcing the user to liquidate or having other users share the losses.

How to Trade Bitcoin with Leverage on BTCC?

Step 1

To begin trading Bitcoin futures on BTCC, you must first open an account and complete KYC. You can sign up with your phone number or email address.

Step 2

After completing the first step, you must deposit USDT in order to begin trading futures. USDT can be deposited in BTCC via USDT-ERC20 or USDT-OMNI. If you do not have USDT, you can purchase USDT using a credit card; BTCC accepts credit card payment methods such as Visa and Mastercard.

Step 3

After depositing your USDT, navigate to the trading panel and begin trading Bitcoin futures by selecting the leverage level, number of lots, and long or short options. For beginners, you can try a Demo account with virtual currency by downloading the BTCC app from the Google Play or App Store.

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New users can get a deposit trading bonus of up to 3,500 USDT when they make their first deposit. More information can be found by clicking here.

The BTCC, which was launched in 2011, has been functioning in space for over ten years with no security incidents. There are 9 main cryptocurrencies and 16 trading pairs available on the exchange, including BTC/USDT, ETH/USDT, LTC/USDT, BCH/USDT, EOS/USDT, XRP/USDT, XLM/USDT, ADA/USDT, and DASH/USDT.

Where to Trade Crypto Futures?

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Why Trade Crypto Futures on BTCC

To trade Crypto futures, you can choose BTCC crypto exchange.BTCC, a cryptocurrency exchange , was founded in June 2011 with the goal of making crypto trading reliable and accessible to everyone. Over 11 years of providing crypto futures trading services. 0 security incidents. Market-leading liquidity.

Traders may opt to trade on BTCC for a variety of reasons:

• Security：safe and secure operating history of 11 years. Safeguarding users’ assets with multi-risk management through the ups and downs of many market cycles
• Top Liquidity：With BTCC’s market-leading liquidity, users can place orders of any amount—whAVAXer it’s as small as 0.01 BTC or as large as 50 BTC—instantly on our platform.
• Innovative：Trade a wide variety of derivative products including perpetual futures and tokenized USDT-margined stocks and commodities futures, which are innovative products invented by BTCC.
• Flexible：Select your desired leverage from 1x to 150x. Go long or short on your favourite products with the leverage you want.

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