What does leverage mean in the world of cryptocurrencies?

1 answers

• Dec 18, 2021 · 3 years ago
  Leverage in the world of cryptocurrencies is a feature offered by some exchanges, including BYDFi. It allows traders to borrow funds from the exchange to increase their trading position. With leverage, traders can potentially make larger profits with a smaller initial investment. However, it's important to note that leverage also increases the risk of losses. Traders should be aware of the potential risks and carefully consider their risk tolerance before using leverage in cryptocurrency trading. It's always recommended to start with lower leverage ratios and gradually increase as you gain more experience and confidence in your trading strategies.
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