I have seen many people who are asking around how to trade ethereum with leverage? If you are a beginner then you must read this article first before investing into ethereum
Trade Ethereum with leverage
For beginners, there is a lot of confusion about the terms that are used in forex trading, commodities trading and cryptocurrency trading. So, I have decided to clear a few terms first before disclosing a few platforms that you can use for trading ethereum safely.
What is Leverage?
Whenever, a trader or an investor decides to invest money in trading, they need an online broker to place a trade. You need to open an account with the broker first to invest into forex, commodities or cryptocurrency. For trading purpose, you need to open a margin account with a trustworthy broker. The broker has different margin options for you to trade with for instance x1, x2, x5, x10 etc. Or 50:1,100:1. 200:1, 400:1 etc.
I started with an example, so that you can better understand the concept of leverage. So in this case, let’s open a trade with a leverage of 50:1 by investing $1000. It means that if we are investing $1000 with a leverage of 50:1 margin, then we have a potential of making $50,000 with a trade by risking only $1000.
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How much leverage should you use?
Now, the question is how to trade ethereum with leverage and make money online? So, I will suggest you to use either x1, or x2 leverage for ethereum. The reason is that, there is a lot of fluctuation in this cryptocurrency.
Try to invest more money with less leverage to reduce the risk factor. Let’s say make an initial investment of $1000 with a leverage of x2. You can make a reasonable amount with this leverage. And if we specifically talk about ethereum, then I suggest you to trade ethereum with leverage of x2 and no more than that.
Now I have listed down a few trustworthy brokers who are offering a good leverage for ethereum trading.
These are a few main features of Simplefx
- You can trade in 15 base account currencies
- Leverage that is available to use is upto 1:500 leverage
- No minimum deposit requirements
- Trade 24 hours, 7 days a week and 365 days in a year
- 60 currency pairs are available to trade
- lowest spreads in the market i.e. 0.1
- There is no trade commission on this platform
- It has the latest Meta Trader 4 platform
Because Whaleclub is specifically engineered to run on digital currency instead of fiat, everything feels fluid and fast. Just click to trade, and browse the latest news and analysis right from your dashboard. And say goodbye to the pain of partial execution and slippage. All trades are executed fully at the prices that are quoted. No other trading platform is so effortless and natural.
- This platform is easy to use for the beginners
- You have 50 plus selected instruments to trade
- The spread is as low as 0.001
- Free practice account to get use to the platform
- You get bonus payments from time to time
- Trade with high leverage
- Execution of trades in seconds
- Trade anonymously and no verification is needed to start a trade
- The platform is user friendly
- They offer leverage upto 1:400
- Traditional web trader platform
- Copy trades of best performer traders to make huge profits
- You can invest in forex, commodities, stocks and cryptocurriences
So these are a few recommended platforms to trade ethereum with leverage which ever suits you the most. If you like this article, then please appreciate me in comments. If you have any suggestions, to improve my recommended list, then please let me know. Thank you