I never traded crypto before but I heard BTC was going to end high this year so I bought BTC with 5x leverage on Kraken. Are there any caveats I should look out for? Auto liquidate if margin level falls too low Market conditions don't allow you to liquidate before the crash Hackers? Hidden terms and conditions Taxes Misleading information Appreciate any advice :) #blockchain #bitcoin #crypto #investing #kraken #BTC #advice
Ignore the noise. I heard BTC going to 300k by September. Ignore the noise. Do not trade in Bull Market. Do not leverage. Take profits.
Leveraged longs being squeezed out in this 20% correction Edit - ambitious bulls like op pick up several long positions with leverage. Then, a small price decrease triggers an avalanche of stop losses to cover. If you don't understand these comments, you're not fit to be taking leverage. That's why Kraken warns you when you first start leverage trading. You wrongly agreed to be a high net individual with an excess of 10m.
wtf does that mean
The bear has eaten the leverage that the bull had put to his curve. Look out for a decrease in delta and enter a position before the implied volatility picks up. And of course remember to squeeze the gamma to the left if the market closes on a cup shaped V² curve. All the best!
I wouldn’t be taking any leveraged positions until the market settles down a bit. Particularly if you’re a new trader. Market is super choppy right now and TA is going to be relatively unreliable. If you’re currently up, I would consider taking profit soon and closing most or all of that 5x position. And definitely set a stop loss asap if you haven’t already. To answer your questions: - Yes, you will definitely get auto liquidated if your debt ratio exceeds the exchange’s limit (97% for KuCoin, not sure what it is for Kraken). You should be setting stop losses that keep you from getting close to that. - Market conditions wouldn’t prevent you from getting liquidated before/during a crash; quite the opposite actually. If you are asking if market conditions would prevent your sell orders (or buy orders if you’re short) from executing during periods of high volatility, the answer is: possible, but very unlikely if you are setting appropriate SLs, and even less likely if you are only trading BTC and ETH (which have very dense order books) - Hackers probably aren’t much of an issue/risk with more reputable exchanges (I think Kraken is one of the largest, and presumably most secure, exchanges). Scammers and market manipulation are more of a concern in this space. - Taxes. You’ll definitely have to do your research on this topic. Way too much to summarize here. One word of caution - just swapping one crypto for another (e.g., trading BTC for USDT) can trigger taxable gains; you don’t need to sell for USD to realize a gain/loss. - Misleading information? Yes. Everywhere.
Thank you so much!
"Never traded crypto before" "I heard BTC was going to end high this year so I bought BTC with 5x leverage" What an idiot "Are there any caveats I should look out for?" Yeah, how about the fact that the whales are literally manufacturing price action to liquidate noob positions like yours. That's what we just saw a couple of days ago. Don't use leverage if you're new. Don't be greedy. You're taking a huge amount of risk to make it this late in the bull run. Just buy spot and be happy with 2-3x gains. You're asking to get rekt. This is financial advice. Sell your position and convert to spot
So you decided, without any prior experience, to lever up 5x in order to buy a pseudo-asset with a fundamental value of $0 just because you heard that “it will end the year high?” Man, if this isn’t a sign of a huge bubble, I don’t know what is.
All of the degenerates who were smoking weed and playing LoL while you were attending Harvard are going to be richer than you
Not for long… Paper profits made in a bubble have a tendency to vanish rather quickly.
Don't over leverage. It got me loosing about 5k.. I was lucky I recovered from that loss by more than 500% gain
It's completely standard for trading firms to crash the market by 20% just to liquidate everyone who went 5x long. They just repeat this all the time,.
5x leverage = 15% below current level liquidation. I hope you’d be ok to lose your money if you don’t make it. Always be careful with leverage