How to make money on leverage? Tips for beginner investors
Trading with leverage allows you to take full advantage of all the opportunities offered by the cryptocurrency market. This type of investment, although highly profitable, is associated with increased risk. It is worth considering whether you should trade on derivatives with leverage.
Whichever investment method you choose, it's always good to test it first. Every time you select a new trading platform, make sure you have a good understanding of its interface and that you can navigate safely. The Geco.one cryptocurrency derivatives exchange is a great place to test the method of leveraging trading in a safe and intuitive environment. The interface is easy to read, and you can freely modify it to your needs and use the day-night mode for convenience.
Then, once you feel comfortable in the website's interface, use a small number of funds to understand how derivative trading works. Never invest more than you are willing to lose!
It is much easier to use leverage when dealing with more stable cryptocurrencies. Chasing a short-term trend can turn out to be a drastic move.
Professional investors usually recommend holding positions for a short period. Monitoring variables over the long term requires a great deal of attention. Also, you need to bear in mind trading fees. Geco.one already offers competitive transaction fees, but GEC holders can cut their fees by 20%, which is a cut from 0.03% to just 0.024%. Settlement fee (0.01%) is charged every 8 hours for holding a position.
Don't be too greedy if you've made a profit on one of your positions. Set the target for a specific price that you want to close your investment - both loss and profit. One of the fundamental mistakes of beginner traders is holding positions for too long.