We know that many beginner crypto traders start trading with leverage (especially those who have already tried trading and earned a profit).
In short: Leverage is a tool that allows you to borrow crypto from an exchange for a specific trade (against your other assets).
Even simpler: If you think Bitcoin is going to grow in the near future and you are willing to spend $100 on this transaction, you can use leverage, say 10x, and then you can enter the transaction not for $100 but for $1,000 (or much more, depending on the exchange’s policy).
Indeed, ideally, you can make a large amount of money, but what’s more likely (if you are a beginner) is that you will almost certainly lose your $100 instantly.
We won’t go into detail about leverage: We simply ask you to beware of this trading method until you can truly call yourself an experienced investor with training and lots of practice.
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