The technical analysis tries to predict the price by studying market statistics, such as past price movements and (Bitcoin )trading volume. An attempt is made to identify patterns and trends in the price that indicate what will happen with the (bitcoin) price in the future or which payout methods can be expected to generate even more profit.
How to make a profit on your Bitcoin margin
Margin trading is simple and attractive for many traders. Buying on margin can be defined as borrowing from a broker to purchase goods, stocks, currencies, etc..
Here’s an example:
You expect a price increase for (bitcoin) mining, but you only have 1000 euros. If you had more money to invest, you could make higher profits. Margin trading is the easiest solution – after depositing 1000 Euros you can borrow up to 50 percent of the deposited amount.
So now you can invest 1500 euros. Of course, you could borrow 10 or 25 percent of the deposit if you want. If the price of the purchased BTC coins increases, you can repay the loan and still keep a nice profit for yourself, depending on your choice of withdrawal methods.
Sounds good, doesn’t it? Well, it’s not always like that with Margin for Bitcoin.
Leverage at Bitcoin – Risks of Bitcoin Revolution
The thing that many beginners don’t understand or neglect is what happens if Is Bitcoin Revolution a Scam? Beware, Read our Review First the investment goes wrong. Below are a few levers at Bitcoin that users need to think about when they start margin trading.
Leverage at Bitcoin: Maintaining Equity
The trading platforms always require traders to maintain a minimum level of equity capital of typically 30 percent. This applies to the blockchain regardless of the payout methods you choose later.
If your account balance falls below this value, you must pay additional funds into the account to increase equity immediately. If you can’t or just don’t want to deposit more money, the broker will close your positions to increase the equity on the account.
Leverage at Bitcoin: Interests can outperform profits
Margin trading can be profitable when used for short-term investments. If you invest the money and the expected increase in value does not occur, think about reducing your losses and paying short-term interest. Keeping your margin trading position open for Bitcoin over a longer period of time can result in losses, even if the BTC price rises.
Why? Margin trading involves significant interest rates and in some cases the profits are not enough to offset the cost of long-term loans.
You can lose more than you have
Margin trading not only increases profits but also losses. In the event that things go wrong and your tracking fails, you will not only lose your investment, but you will also have to pay back the money you borrowed to the broker and pay the interest. That means if you’re not careful, you could get into debt.
Conclusion Bitcoin Trading Volume
Investing in Bitcoin margins is only profitable if you can pay it all back in a negative case. Want to learn more about blockchain and crypto currencies, the latest ICOs, Airdrops & the most profitable top coins? Then CLICK HERE and visit our CryptoWealthCenter.