In cryptocurrency trading, leverage allows traders to amplify their trading capacity, and therefore their potential profits. It’s the term used to describe when a trader borrows assets from an exchange so they can increase their buying and selling power,
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In cryptocurrency trading, leverage allows traders to amplify their trading capacity, and therefore their potential profits. It’s the term used to describe when a trader borrows assets from an exchange so they can increase their buying and selling power, in order to control a much larger position than they could do with their existing capital.
Depending on the exchange used, the amount of leverage varies. While more comprehensive exchanges like Dolomite and Uniswap might allow for 5x or 10x leverage, there are some specialist exchanges that can boost this all the way up to 100x and beyond.
