The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

According to market data, Bitcoin rose 1.55% today, with a 24-hour turnover of US$9.391 billion. This is also the reason why investors choose to invest in Bitcoin. Bitcoin transactions are generally divided into currency transactions and contract transactions. As well as margin trading, today the editor of the currency circle will explain to you Bitcoin leverage trading. So, how to play Bitcoin leverage trading? Below is a tutorial for beginners on Bitcoin leverage trading collected by the editor of Coin Circle. Follow the editor of Coin Circle to learn more about it.

## How to use Bitcoin leverage trading?

1. Go long (buy up)

Here we take BTC/USDT leverage trading as an example (USDT is benchmarked against the US dollar, 1USDT = 1 US dollar) to introduce how to use Bitcoin leverage. Assume that the current price of Bitcoin is 10,000 US dollars, and you predict that the price will rise in the near future, you can choose to go long at this time, if you only have 10,000 US dollars
USDT principal, the platform is 3 times leverage, you can borrow another 20,000 USDT from the trading platform, so the principal is now 30,000 USDT; if it is 5 times leverage, you can borrow 40,000 USDT, and 10 times leverage is 90,000 USDT. .....and so on.

Use 30,000 USDT to buy 3 Bitcoins and sell them when the Bitcoin reaches 20,000 USDT. You will get 60,000 USD in Bitcoins. After deducting the 10,000 principal and 20,000 loans, you will make a profit of 30,000 USD.

If you don't use leverage trading and go directly to spot trading (currency trading) to buy 1 Bitcoin for 10,000 USDT, you can only make a profit of 10,000 USDT.

Of course, if the judgment is wrong and Bitcoin drops to 5,000 USDT, the currency trading will only lose 5,000 USDT, while the leverage transaction will lose 15,000 USDT.

2. Short selling (buy or sell)

Still using BTC/USDT
Take 3x leverage trading as an example. The current price of Bitcoin is 20,000 USDT each. If you think the price of Bitcoin will drop to 10,000 USDT, and you have a principal of 10,000 USDT in your hand, you can borrow 1 bit from the platform. currency (short selling can only borrow the currency selected for shorting), sell when the Bitcoin price is 20,000 USDT, and then buy it when the Bitcoin price is 10,000 USDT and return it to the platform, so that you can make a profit of 10,000 USDT .

## How to play Bitcoin leverage trading

Leverage is a common financial tool, which uses a margin system to magnify assets for investment. When using leverage, risks and returns will be magnified simultaneously, because investors' profits and losses after using leverage are not based on the size of the margin invested, but based on the magnified value. The amount of funds is calculated.

For example, when the price of BTC is US$5,000 per coin, Xiao Ming uses 1 BTC as a deposit and uses 10 times leverage to obtain a contract worth 10 BTC (i.e., 500 contracts with a face value of US$100 per contract).

If the price of BTC increases by 1%, from US$5,000 per coin to US$5,050 per coin, the profit of this contract will be 0.099 BTC.

Xiao Ming used 10 times leverage and made $500 in the contract market with $5,000.

If it is 1x leverage, Xiao Ming also uses 1 BTC as a deposit and gets a value of 1
For BTC contracts (that is, 50 contracts, the face value of the contract is US$100/contract), when BTC rises to US$5,050/contract, Xiao Ming’s profit is 0.0099 BTC (that is, he earns US$50).

Comparing the use of 10 times leverage and 1 times leverage, Xiao Ming's actual income differed by 10 times.

It should be noted that when using leverage, gains are doubled and losses are doubled. Through the margin system, investors can use small capital costs to complete large transactions.

In short, Bitcoin leverage trading actually plays a role in amplifying returns, but while amplifying returns, it also amplifies risks. The editor of Coin Circle reminds investors that actual operations will be affected by some uncertain factors and the risks will further increase. Therefore, investors should operate with caution and do not try rashly without understanding. If you want to know more relevant knowledge, you can follow the currency circle. The editor of the currency circle will continue to report relevant knowledge in the future!