Many times, investing in cryptocurrencies is complicated, that’s because the criptodivisas most striking have a quote high; therefore, not everyone can invest the way they would like. However, with the leverage it is possible to operate with little money and generate a lot of profits, it is therefore worth knowing more about how to invest in cryptocurrencies with the financial leverage.
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Is it possible to invest in cryptocurrencies with leverage?
Financial leverage is a mechanism to increase the amount of money that will generate an investment; in this way, it is possible to obtain considerable profits with little capital. Now, this quality is commonly seen in certain financial products, such as futures contracts. Therefore, to be able to invest in cryptocurrencies with leverage, it is necessary to resort to the brokers online, that are offered in the future.
The growth of the brokers cryptocurrencies
Currently, there are many brokers and platforms of exchanges that have achieved a great popularity in the market, thanks to its products with leverage, this is All due to that, many investors are turning to futures and CFDs to invest; because, so that you can begin investing, even when you do not possess a large capital. It is for this reason that, many brokers and platforms for exchange of cryptocurrencies, have begun to add the option of investing in futures and CFDs.
What offers Binance with its launch of futures at 125?
Last October 18, 2019, Binance implemented a new option in the platform. It was from such a date, where he began to afford traders and investors, they could choose leveraged positions of 1x to 125x; thus surpassing the average that had, since before this change could only choose from 1x to 20x. The reason for this change was that there was a high demand for the future of Binance; so, a way to please the demands of the users, was to improve the performance and the options offered for this product. Clearly, this change has impacted positively and resulted in more of an investor began to use the leverage of 125x, as this offers a significant increase in any investment of future of cryptocurrencies.
Is it recommendable to operate with leverage?
Despite the great benefits that it offers leverage, it is not always advisable to use it. This is because, may involve serious risks, as well as you can multiply the amount of earnings, you can also give this effect with the losses. Therefore, in every position that is taken with leverage, they must operate with caution; due to that, it will be possible to prevent significant losses, which may cause heavy losses. It is worth mentioning that, a recommendation to keep in mind to operate with leverage, is to analyze the techniques to operate with the future of cryptocurrencies. In this way, you can have a better idea of how to start a position and exit with success.
Other options for investing with leverage
It is important to clarify that not only the future are products that allow you to operate with cryptocurrencies and leverage. In fact, CFDs are also a great option to invest in this way; it is worth to add that the platforms that offer CFDs, provide higher leverage ratios. Therefore, it is recommended to analyze what are the brokers and platforms, in which you can trade with CFDs, so you start to experiment with these and this type of investment. It is worth mentioning that, at the time of operating with cryptocurrencies and leverage, it is advisable to diversify investments. This is due to that, so you have more options and chances of winning money. The following two tabs change content below. I am a young man from Venezuela 18 years, lover of technology, innovation, and economic events that govern the world. One of my passions are cryptocurrencies.