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RE: Steemit Crypto Academy Contest / S13W6 - Leverage in cryptocurrencies.
Hello @chetanpadliya.
Great explanations from your side. Leverage is definitely a double edged sword as you said as Traders can generate profit with the help of leverage but can also incur losses.
If trader is inexperienced, he maybe liquidated and lose all his capital in short period of time.
Yes, Inexperienced traders can lose their capital because of high leverage, even small movement in price against the direction can lead to huge losses.
Good luck for the contest.
It is true that trading is very dangerous for inexperienced trader, but sometimes if experienced trader break the rules can incur huge losses. Nobody can be perfect here. It is a business of discipline and management. Thanks for your valuable comment on my post!
Very well said. Nobody is 100% accurate here. Even experienced traders also incur huge amount of losses but Experience traders have risk and money management. That's what make them different from Inexperienced.