In the dynamic world of cryptocurrency trading, Bitpanda is bringing an exciting innovation to the market: leveraged trading, also known as Bitpanda Leverage.
This innovation opens doors to new trading strategies and offers investors the opportunity to optimize their investments in ways that were not previously possible. In this blog post, we take a closer look at this innovation, explain how it works, and discuss the potential benefits and risks associated with it.
Read more about Bitpanda Leverage and find other important finance news of the day with our companion app Born2Invest.
What is Bitpanda Leverage?
Bitpanda Leverage is an advanced trading option that allows investors to trade with 0% buying fees in the short term. Through the targeted use of this option, risks can be better managed. This feature provides access to over 10 leveraged positions that allow investors to speculate on the price movements of BTC, ETH and other leading crypto assets. You have the opportunity to take both long and short positions.
How does trading with leverage work?
The principle behind Bitpanda Leverage is simple, but the impact can be significant. Here are some examples to illustrate how it works:
Scenario A : Suppose you buy €1,000 worth of Bitcoin on January 4th and sell it on January 9th. Your winnings would be €90. However, if you had invested the same amount in Bitcoin 2x Long (BTC2L), your profit could have been up to double: €180. Scenario B : If you had bought €1,000 worth of Bitcoin on January 19th and sold it on January 24th, you would have lost €50. However, by trading the same amount in Bitcoin 1x Short (BTC1S), your result could have been positive: a profit of €50.
It is important to note that trading with leverage also involves risks. In scenario A, you could have lost €90 if you invested €1,000 in BTC1S, and in scenario B, you could have lost even €100 if you invested €1,000 in BTC2L.
How can you start?
Trading with leverage on Bitpanda is not much different than trading other assets. The platform offers an intuitive interface and tools that enable both experienced and new investors to effectively use this new trading mechanism.
Bitpanda Leverage offers an exciting opportunity for investors who are ready to explore the mechanics of leveraged trading. It opens up new ways to profit from price fluctuations, but also requires a good understanding of the risks involved. As with any investment, it is crucial to do your research and, if necessary, seek professional advice before diving into leveraged trading.
Bitpanda Leverage adds a dimension to crypto trading, but also offers learning opportunities and potential rewards for those willing to take on the challenge.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us
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