With the great rise we are witnessing in the crypto market, more and more people are interested in knowing how to invest in Bitcoin (BTC).
However, at today’s high price for Bitcoin, for some it may not be very appealing to buy currencies on the spot market. But don’t worry, there’s a solution to this, and we’ll show it to you below.
How to invest in Bitcoin using leverage
To a novice investor, it may seem that investing $100 in Bitcoin Compass is really not much because of the high price of the asset, and while this is partly true, the important thing is to take the first step, and start adding money on a regular basis.
But if you want to start profiting from Bitcoin’s fluctuations, however small, then leverage is what you need to use.
This tool is a service offered by brokers, which allows you to increase your buying power.
For example, if you deposit the same $100 with a broker, and the broker allows you to leverage up to 5x or 1:5, you’ll have the ability to open trades that need an initial capital of $500.
So, while a $100 purchase at Bitcoin would earn you $10 with a 10% price increase, with the same equity, but using 5x leverage you’d earn $50 with the same 10% increase.
Interesting, isn’t it? Without a doubt.
But since not everything is pink, using this tool also has an inherent risk, and that is the possibility that all your capital will be lost in a shorter time.
Just as with the example you earn $50 with a rise of 10%, it means that in a fall of 20% you lose your capital of $100.
However, this can be avoided, and is by using the risk management tool known as: stop loss.
If you want to know exactly how to invest in Bitcoin with 5x leverage, here’s a detailed tutorial on how to do it.
Buying Bitcoin with XTB Leverage
The first thing we need is a broker, being one of the most reliable XTB, which we will be using to exemplify how to buy BTC with leverage.
To start, you must register and create a demo or a real account.
In the case of a real account, you will have to perform a quick data verification procedure.
Afterwards, you will be able to choose whether to use XTB’s own XStation 5, available in both desktop and mobile versions, as a Metatrader trading platform.
In this tutorial we use the desktop version of XStation 5, let’s start …
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