Why Do Crypto Traders Use Leverage to Trade?

[Suba]

Leverage trading refers to borrowed capital for trading, so that the strength of the capital we have becomes greater for both short and long, such as if we only have $1k capital, then if we take 5x leverage it will be $5k. Previously, the leverage method has been known for a long time in the world of forex and commodities/stocks and was later adopted in crypto trading.

Leverage trading is not recommended for novice traders before they master risk, analysis and capital management strategies, but for intermediate traders, they can start by taking small leverage such as 2x or 3x, do not use all capital to trade and use stop loss/cut loss. So why do you think traders use leverage to trade crypto?

 

[Augusta]

Crypto leverage trading allows traders to borrow funds, enabling them to control positions much larger than their initial investment. By increasing exposure to market price movements, traders can achieve higher potential gains,