Over the years, the benefits of derivatives trading including hedging and leverage have been well known and recognized by Institutional traders in the cryptocurrency market. With these trading options, investors and traders can determine their maximum losses and gains even in assets that have high volatility such as Bitcoin.
While these investment instruments tend to be complicated and complex, they help and support investors and traders to generate profit that is not dependent to what happens over the next months or weeks. For traders, this is very helpful to keep their peace of mind to achieve high performance.
Relatively, derivatives have been recently used by retail traders even though they have focused mostly on the futures contracts offered by some companies such as Binance, BitMex, OKEx and many more. However, liquidation risk is probably the main challenge. This is because in general, cryptocurrencies are incredibly volatile.
Although, you do not own any bitcoins, it is still possible for you to make or generate profit by utilizing leverage to bet on the next direction of the BTC price. A lot of brokers provide wide variety of leverage levels for bitcoin leverage trading. You can also get more detailed information from Bitcoin code review. Looking for auto trading bitcoin code review? You can check this page for information.
Overall, using leverage in your bitcoin trading is certainly legal. It will help you grow your money and generate significant amount profit in your trading activities. However, it is important that you become aware and knowledgeable about the proper and the right ways of using such financial instruments. If you done it incorrectly, there is a high possibility that you will just lose your money instead of growing it. You can look for helpful and reliable information from online sources.