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Learn how to use leverage in crypto trading safely. Discover key tips to avoid liquidation and protect your capital. A must-read for new traders.
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? How to Use Leverage Safely in Crypto Trading By Extsy – Trade Smart, Trade Safe ? https://extsy.com Leverage allows crypto traders to amplify their buying power — but it also amplifies risk. This guide will help you understand leverage and use it wisely. 1⃣ What is Leverage? ? Leverage lets you open bigger positions than your capital allows. For example, 5x leverage means you can control $500 with just $100. ⚠ 2. Know the Risks ? Leverage boosts profits and losses. A small price drop against your position could lead to liquidation. ? 3. Start Low ? Begin with 2x or 3x leverage. Avoid anything higher until you're experienced. ? 4. Use Stop-Loss Orders ? A stop-loss protects your funds by automatically closing a losing position at a set price. ? 5. Monitor Liquidation Price ? Know your liquidation level — the price at which your position is forcibly closed. ? 6. Avoid Volatile Coins
? Don’t use leverage on coins with extreme volatility or low liquidity. Stick to stable, high-volume assets. ? 7. Practice Risk Management ? Only risk 1–2% of your total capital per trade. Don't over-leverage! ? 8. Use a Trusted Platform ✅ Platforms like Extsy offer transparent leverage tools, risk controls, and user support. ? 9. Learn with a Demo First ? Practice leveraged trades with virtual funds before risking real money. ? 10. Stay Educated ? Keep learning through guides, videos, and expert insights. The market changes fast — so should you.