How to use leverage on Crypto.com

Crypto.com empowers users with leveraged trading options, offering both leveraged tokens and margin trading facilities to enhance profit potential while emphasizing risk management.

Nov 23, 2024 at 08:26 pm

How to Use Leverage on Crypto.com

Crypto.com is a popular cryptocurrency exchange that offers a variety of features, including the ability to trade cryptocurrencies with leverage. Leverage is a tool that can be used to increase the potential profits of a trade, but it also comes with the potential for increased losses.

This guide will explain how to use leverage on Crypto.com.

Step 1: Open a Crypto.com Account

The first step is to open a Crypto.com account. You can do this by visiting the Crypto.com website and clicking on the "Sign Up" button.

Step 2: Verify Your Identity

Once you have opened an account, you will need to verify your identity. This is done by providing Crypto.com with your personal information and a government-issued ID.

Step 3: Fund Your Account

Once your identity has been verified, you can fund your account with cryptocurrency. You can do this by depositing cryptocurrency from another wallet or by purchasing cryptocurrency through Crypto.com.

Using Crypto.com App

Step 1: Find the "Derivatives" tab

Step 2: Choose "Leveraged Tokens"

Step 3: Select a token

Step 4: Choose your leverage

Step 5: Place your order

Using Desktop/Web Version

Step 1: Go to "Derivatives - Leveraged Tokens" page

Step 2: Search for a token

Step 3: Choose your leverage

Step 4: Choose your order type

Step 5: Enter the amount

Step 6: Place your order

Step 4: Margin Trading

Leveraged tokens are a type of derivative that allows you to trade cryptocurrencies with leverage without having to borrow funds. They are available on Crypto.com for a variety of cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin.

Margin trading, on the other hand, allows you to borrow funds from Crypto.com to trade cryptocurrencies. This can be a more powerful way to trade with leverage, but it also comes with the potential for greater losses.

To use margin trading on Crypto.com, you will need to:

Step 1: Create a margin trading account

Step 2: Fund your account

Step 3: Open a trading position

Step 4: Close your trading position

Step 5: Monitoring Your Positions

Once you have opened a position, it is important to monitor it closely. You can do this by using the "Positions" tab in the Crypto.com app.

The "Positions" tab will show you the following information:

• The current price of the cryptocurrency you are trading
• The amount of leverage you are using
• The amount of profit or loss you are currently experiencing
• The liquidation price

The liquidation price is the price at which your position will be automatically closed. If the price of the cryptocurrency you are trading falls below the liquidation price, you will lose all of your invested funds.

Step 6: Closing Your Positions

You can close your positions at any time by clicking on the "Close" button in the "Positions" tab.

When you close a position, you will be able to take profit or loss. If you are taking profit, you will be able to withdraw your funds from Crypto.com. If you are taking a loss, you will need to deposit more funds into your account to cover the loss.

Here are some additional tips for using leverage on Crypto.com:

• Only use leverage if you understand the risks involved.
• Start with a small amount of leverage.
• Monitor your positions closely.
• Be prepared to lose money.

In summary, using leverage on Crypto.com can be a powerful way to increase your potential profits, but it also comes with the potential for increased losses. If you are not comfortable with the risks involved, you should not use leverage.