There's one way in crypto to make the most money while trading.
The possibilities of turning hundreds of dollars into tens of thousands of dollars or more
exist in this one tiny part of the crypto ecosystem.
But on the flip side,
the possibilities of turning hundreds of thousands of dollars into zero dollars also exists.
This crazy world is called leveraged trading,
and it certainly isn't for everyone.
But as we face a huge influx of new investors into the space,
it's important everyone understands what it is
and how to use it
so they don't get wrecked.
Find out what it is today.
Let's get it.
Welcome to BitBoy Crypto!
My name is Ben.
Everyday, I show you how to make money in cryptocurrency.
If you like money, then make sure to hit that Subscribe button.
If you ever do want to try your hand at leveraged trading, which we'll talk about today,
the best place to do it is Bybit.
For a few more days, you can actually get up to a $500 deposit bonus.
Just register a new account by visiting bybit.bitboy.live.
Then go to the Bybit rewards hub,
and type in the promo code "WIN$500".
That's WIN$500.
But listen.
Leveraged trading is not for everyone.
Only those with a strong understanding of what they're getting into should try it.
In this video, we're going to be telling you exactly what leveraged trading is
and why the potential for big gains and big losses exist with it,
and then we're going to be showing you exactly what it looks like.
But here's the first piece of advice I would give.
Keep your leveraged trading portfolio separate from the rest.
So, what exactly is this fancy leveraged trading people talk about?
This is a trading tool used for highly speculative moves in the market
to maximize the amount of an asset you're holding.
What separates this trading tool from others is that, with leveraged trading, you are able to borrow in many times,
up to 100 times the amount of capital that you have,
without having to pay back the full amount.
So, if you have $10,000,
you can trade with $10,000 on normal exchanges,
but with leveraged trading, you could trade up to a million dollars off of $10,000
if you use what is called 10X leverage.
You can make all the profits off of that trade.
This is why the returns from margin trading are exponential.
It's the quickest way to turn $100 into $100,000.
But, just like most everything, there's a huge downside.
If you were to have $10,000 in Bitcoin on a regular exchange,
and the price of Bitcoin were to drop 50% in a huge move,
then you would still have $5,000 in BTC,
but with leveraged trading,
you could have $10,000 worth of BTC in a trade,
if the market moves in a violent direction,
the wrong way,
you could lose it all.
This is why leveraged trading is known as a double-edged sword.
You can gain the world or lose your entire portfolio within a few movements or moments.
The amount of swing that you can handle is called your margin.
It's the safe zone, if you will, for your trade.
If an asset's movement goes out of that safe zone,
you face what is called liquidation,
where you lose all of the money you have in your trade.
And if you use what's called cross margin,
you could lose everything that's in your account.
But with isolated margin,
despite of what some fearmongers may tell you,
you cannot lose more than you have in a trade.
It's a big misconception.
At least, in crypto. Now, in the world of forex,
a dangerous world to begin with,
it's actually a little different.
Sometimes, brokers can come after people if they lose too much money,
with too high of leverage,
but in crypto, that is not a thing.
With leveraged trading though, you can make one of two basic trades.
You can choose to go long on Bitcoin, which means you believe the price will go up,
or you can go short on Bitcoin, which means you believe the price will go down.
In general, you never want to go against the market, or you have a better chance to lose.
What do I mean by that?
Well, right now, we're in the midst of a huge bull market.
You don't want to bet on Bitcoin going down.
You want to wait until Bitcoin has a price drop
and then long the market.
When the price is rising, as we've seen recently, there can be no real way to tell where it stops.
But you can rest assured, if the price drops, it's going back up and higher.
Inversely, in a cold bear winter, you don't want to long the market.
You want to wait until prices rise and then short the market.
The level to which you are executing leverage is determined by the amount you are borrowing.
If you have 1 Bitcoin and borrow 2, it is called 2X leverage.
If you have 1 Bitcoin and borrow 5, it's called 5X leverage.
If you have 1 Bitcoin and borrow 100, then it's called 100X leveraged trading. Now,
I highly suggest not to ever use above 25X,
but most people will even tell you a 5-10X is pretty much the highest you go.
But no matter what leverage you use,
there's a way for you to minimize your losses and prevent liquidation 100% of the time.
That is to use a stop-loss.
This will prevent you from going out of the safe zone of your trade.
You basically set your stop-loss to a level where, if you lose the trade,
you are comfortable with the amount that you lost.
Basically, you risk some,
but not ever all.
Now, the amount of leverage you use will also determine the size of your safe zone.
If you use 2X leverage, you will have a gigantic window of margin.
If you use 100X leverage, you'll have almost no volatility to work with.
This is why 100X is extremely risky,
and I don't ever recommend it.
I don't do it myself.
Now that you understand what leveraged trading is,
let's take a look at Bybit to see exactly what it looks like.
And, of course, if you want to sign up, you can do so by visiting bybit.bitboy.live.
Depending upon where you live, you may also need to use a VPN.
Now, if you can't figure out how to use a VPN, then leveraged trading may not be for you.
So, let's go ahead and check it out.
Alright, guys. So, this is what you're looking at when you get on Bybit.
Right now, I am on a VPN.
Sometimes, you need it. Sometimes, you don't.
I don't know the rhyme nor the reason,
but let's take a look around a couple things.
So, when you look at your page setup here, at the top, it's just gonna have some information.
Now, you're gonna be able to drag any of these areas around on your dashboard,
so like let's say I wanted to move this down,
I could just slide this down here
and then move this back up.
This is the way I have it set up, looking my trades at the top for demonstration purposes.
Here is obviously the chart.
This right here is going to be active trades that you have, but there's other things you can click
to look at other areas.
We'll see in a second.
Then, of course, you have your buy and sell order book.
Then, up here, on the top right, you will basically be able to see--
This is the control board.
Okay, that's what you're looking for.
You're gonna be able to control your margin, whether you want cross or isolated.
You're gonna be able to do limit orders, market orders.
Limit orders, you're gonna be able to, you know, make at better on or even get less fees.
And then the market orders,
it's gonna be more fees, but it's gonna happen quicker.
It's gonna happen instantaneously.
And then, you can have conditional ones as well.
So, okay, so,
Let's look up here. So,
this is where you can see your positions,
your active, conditional, filled, order history, mutual insurance and risk limit, so
here's some trades I did yesterday or a couple days ago,
closed P & L,
you guys can see on a long,
I closed for a 0.54 BTC profit,
another one for 1.04 BTC,
another for 0.27 BTC.
Those were some good trades from the 16th.
You guys can see right here.
So, when you come over here, you have a few options like I said, so
first thing I want to look at is cross margin or isolated margin.
When you use cross margin,
to me,
I don't like it as much because it can start eating into the other money in your account
that's not necessarily in this trade,
and so I don't like to use cross margin. I'm always going to use isolated margin
that keeps each one of your individual trades
your individual trade.
So, as you guys can see right here, it goes up to 100X.
I never suggest trading with 100X.
I would say put it somewhere between 5 and 10, is about useful.
25 is what I like to trade on because I'm a little more degenerate.
I use, you know, some stop-losses and things like that.
Now, with the limit order, you're going to be able to set your order price, alright?
So, if it's at 17.79, like if you kind of look here at this chart for instance,
this is the 30-minute chart,
you guys can kind of see, right?
That you have like kind of a support line somewhere about right here.
You have a resistance.
This was a very clean resistance right here.
So, right now, what you're looking at is
you know,
the price could bounce down somewhere around $17,600 based on these two candles right here,
giving us some nice support.
So, right now, I might want to set a long at $17, 578 right where this line is
because there's a good chance that this is going to come down, bounce off of that line, and go back up.
So, that would be why you'd want to set a limit order
so you can basically set the price
where if it goes down to this level,
I want to catch a trade right here.
And if you look kind of over here, you see this right here is basically along that same support line,
so,
That's $17,578. That's a pretty good number
to be looking at right now.
Market--
personally,
this is my personal preference.
I don't mind paying fees.
When I make money on trades, you guys can see,
I make big money on trades.
When I lose money in trades,
I lose big money in trades, so
I'm going to win a lot or I'm going to lose a lot,
I don't really sweat a percent or whatever the fee is going to be.
Sometimes, it's a few percent.
They're called maker and taker fees.
So, I tend to just want to do the market orders.
When I'm ready to put a trade in,
I'm ready to put the trade in right then
because there's something I'm seeing I want to take advantage of.
So, right now, if I wanted to short the market,
which, as I said in the video,
you don't want to go against the market,
so I'm not going to do that, okay?
But, hypothetically,
if I want to short the market from where it is right now
to $17,578,
then what I could do is come over here to Isolated.
Okay, so, right now, when I put 25X, you guys can see, when I hit 100%,
it translates it into a million US dollars,
a million contracts,
I don't want to go 100X.
If I click on 50X, as you can see, it still is a million.
It doesn't change if I click 50, 75 or 100.
That's because I got a decent amount in this account.
For most you guys, that will change.
I usually like to trade with 100% of my account.
I don't have a problem doing that.
So, oh and look! Right as we're talking,
look at it. Look at it. It just came down almost to that same level and bounced.
Wow! Absolutely extraordinary.
Just what I said was going to happen.
So, anyways, once you have this set,
now, you have to decide whether you want to buy long or sell short.
But what you really want to do is click one of these boxes
because you want to set your stop-loss in the beginning, so
if we want to long it right now, because I was going to short it, but it just bounced off that line,
so I'm going to click Buy/Long.
I'm going to click where I want to take my profit,
like I just look here and see this is like
let's say $17,900.
So I'm gonna say 17900, okay?
And that, guys, has set my stop-loss.
It's got these nice little figures here for you.
So, you can set your stop-loss at 5%, 15%, 25% or 50% loss.
Let's just do a small one. Let's set it at 5% loss
and see what happens
and then you hit Buy/Long
and boom!
Here is my trade.
I come over here. I click Positions. It'll show you what your trade is.
One million contracts, okay?
It shows my entry price.
It shows my liquidation price.
It shows my unrealized P&L right now.
It's 900, 1000.
Let's see here.
And then in my in profit,
I'm not quite in profit yet,
so I'm gonna need to let that thing go up a little bit more.
This right here will show you exactly how much money your trade is making.
You guys can see how fast the money moves here.
You guys see how fast the money moves?
$337
-$171
It just goes really fast one way or the other,
so you just gotta kind of stomach it.
I mean, a second ago, it was up $1000.
Now, it's down $1500.
It just is what it is.
So, I've got my stop-loss set.
I've got my take profit set.
We're just gonna let this trade sit around for a while
and see what happens.
So, that's basically all you need to know.
That's how it works.
But as you can see on these money swings,
how violent they are.
You can make a lot of money,
or you can lose a lot of money.
So if you guys wanna try out Bybit,
check out bybit.bitboy.live.
And, hey! Let me know what you guys think about it.
Drop a comment down below.
That's all I got.
Be blessed.
BitBoy out.