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alright ladies and gentlemen crypto-jew here today's video is gonna be focused around leverage trading primarily for beginners things to look out for some tips for maybe the more seasoned trader but better yet it's really a public service announcement I think that's probably the best way of putting it it's a lot of people in my chats that are getting absolutely wrecked and there's ways to avoid this so I'm gonna go through some of the bigger exchanges show you how they get you and really it's a mindset thing you need patience to leverage trade if you don't have patience if you're someone who's very impulsive I don't suggest even getting involved with this unless it's what a very very small amount of money I'm talking maybe ten or twenty dollars because you do have the possibility to get completely wiped out so we're gonna go through some of the bigger names exchanges and just kind of show you like I said how to get you first off before we do any of that we're gonna jump in what really is leverage trading so leverage training the best and simplest way to understand it is basically rocket fuel for your trades where you can make substantial gains or substantial losses in a very short period of time with a low amount of money so where most people get screwed with leveraged trading is they're trading with their entire wallet and what do I mean by that well let's say you're somebody and and we're gonna keep everything kind of low-key here you know let's say you've got a thousand dollars in Bitcoin in your coin base account you know you've been every few weeks you get paid from work or maybe you know grandma gives you some cash whatever it may be you're adding and you're basically stacking so Toshi's is what we call it you go ahead and find a leveraged trading platform such as buy an answer or bit max or whatever and and you trade the whole stack you trade your whole thousand dollars into the exchange the way I like to think of an exchange especially with leveraged trading is it's a casino you know when you go into a casino in Las Vegas what's the biggest problem that people have they go in there and they give away their bank account they gamble away their house think of the exchange in the same regards you want to go into a casino with a fixed amount of money and if you you know leave ahead fantastic and if you lose the whole amount that was the amount that you were comfortable losing and I think that's probably the best approach with starting on leverage trading let's just throw a number out there let's say you have a thousand dollars you should only be training with 10% of your of your balance so you should only be training with $100 and I'm going to show you how you can turn that hundred dollars into more using leverage carefully okay so here's the probably the most popular leverage trading or futures trading exchange is binding futures so as you can see here you log in you get all booted up it gives you a couple messages you click OK open up futures account and here we are so the first thing I'm looking at up here is it's defaulting you to 20x leverage okay which is way too much it's way too much for an experienced trader let alone someone who's new we go over to bit max it's the same thing they default you to 25 X I have a small trade in here for demonstration purposes and lastly with bid seven same thing you log in it's defaulting you to 25 X and what what is 25 X what does that even mean traditionally if you are just trading a crypto currency doesn't necessarily have to be Bitcoin you buy at a certain price and you choose to sell at a certain price and you basically work from the balance of your wallet well when you are talking about futures or you're talking about leverage or margin trading you're adding like I say rocket fuel to your trade and you can go up to on finances case a hundred and 25 percent of your equity if you have one dollar you can actually trade with 125 dollars okay it's crazy as that sounds yes but what happens if you're borrowing the exchanges money in this case it comes with what's called a liquidation price I have a trade in here with a 10x leverage okay so with my 10x leverage I get what's called a liquidation price now a liquidation price is a number that stays intact it does not change but if Bitcoin goes the opposite way of your trade up to this particular dollar amount you lose your your capital you lose your margin okay so what I would recommend especially when beginners start is you shouldn't be doing anything more than like 3 or 5 X I think that's where a lot of people get trapped they enter trades they're not experienced traders the mark ends up going against them and they lose their entire stack of Bitcoin the liquidation price again is something that you want to bear in mind and if you keep your leverage at 3 5 or even 2 or even 1 your liquidation price is gonna be so far away from as you can see as I move this slider here so that would basically mean in my short position the price right now is 88 and 94 in order for me to lose my whole margin which is my equity Bitcoin would have to rock it up past seventeen thousand eight hundred and fifteen dollars now that's highly unlikely okay but if you on this on the contrary if you wanted to hop on here and you wanted to do 25 X X leverage which is 25 times your your margin which is what the exchange defaults to when you log in look at how close your the quotation price is so you're only about three hundred dollars away okay which and the Bitcoin world isn't much we see five seven nine hundred points wings pretty regularly I would say once every two weeks so if you're someone who's new who hasn't been studying the market you can see how you can very easily get destroyed your trading with your entire balance you're using too high of leverage and you're not experienced due to the current marking additions this is why most traders lose it doesn't have to be that way you could very easily come in with a 3x position you know you've got a hundred bucks that 3x will then turn it to 300 and you can trade with that your liquidation price won't be anywhere near your mark price or your entry price and it won't create a sense of urgency or a sense of fear that you know you may lose your entire capital lastly I just want to cover on YouTube you need to really be careful and this isn't a hit piece on any particular youtubers but what you really need to understand is there's some of these youtubers who profit off of you losing your trade okay they get a percentage of your fees and the liquidations that are generated per the exchange now let me explain so I'm sure you've seen some of the youtubers here you know Karl the moon and you know his buddy mmm crypto and you know again I'm not targeting these two individuals but they're one of the that probably the top two by bit link Schiller's that are out there and what you need to understand is they very rarely talk about leverage they'll create a video they'll cause you know some sort of hype in the market whatever it may be News article they'll entice people to sign up with their link before the exchange usually in exchange for an extra hundred dollar bonus or something like that and it just basically cascades into an inexperienced trader trading entering with too high of leverage in a market that they don't understand you you might as well just go to the casino is my point so with you know with being careful and with kind of taking it easy don't just watch this video hop around on YouTube try to find the videos that are out there that are for informational purposes and that there's no catch on them there's no links to sign up for anything okay that usually dead giveaway that the individual that's producing the content doesn't necessarily have your best interest in mind so just a few warnings just a few tips leave your comments and questions down below I'm gonna have more videos like this on my channel here and I hope this video will portray the actual mindset attitude you must have in order to succeed in leverage trading especially with a highly volatile market such as cryptocurrency in Bitcoin take care everybody have a great day