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Use Leverage With Extreme Caution

Leverage enables you to hold a much higher stake in a trade than the actual capital in your account would otherwise allow. Though this may seem appealing, and can indeed lend itself to significant profit, it can also lead to huge losses if a leveraged trade was to turn against you.

Successful use of leverage is a balancing act between risk and reward and takes practice to master.

For bitcoin beginners, leverage is best used with extreme caution and preferably avoided altogether, at least until you have developed your confidence and trading style.

Only the most experienced traders with sound market knowledge should adopt leverage as part of their bitcoin trading strategy.

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