![bitcoin-leverage-primeXBT.png](https://cdn.steemitimages.com/DQmTiapiDqMWydNLgYkjatDHkm7bNmgxm7UvsXnM7ZkWqtw/bitcoin-leverage-primeXBT.png)

<a href="https://stadivm.com/blog/bitcoin-guide/">Bitcoin</a> and cryptocurrencies are known to be highly volatile, with up to 10X ups and downs in price versus the U.S dollar in a relatively short period of time.  While some shy away from this, many see it as a tremendous opportunity to make a large amount of money fast.  

It’s completely true that rapid price fluctuations increase the risk when trading, but it’s also true that they also increase the reward relative to that risk.  For this reason, there are only a very small number of cryptocurrency trading platforms and exchanges that offer the ability to trade with margin and leverage, yet the industry is now evolving.

We find ourselves now in a significant period of time, where cryptocurrency is becoming more widely accepted and considered a legitimate means of currency.  With this shift in perspective the cryptocurrency market is drawing more and more influence from traditional financial markets and adopting its most successful and advanced trading techniques and services.  

This can be seen with the introduction of new crypto trading platforms like <a href="https://primexbt.com">PrimeXBT</a>, that apply the most respected and popular trading capabilities leveraged over decades of use in conventional foreign exchange and equity markets.  

Unlike the majority of existing crypto trading platforms, Prime XBT offers margin trading with up to 1:100 leverage on all positions.  By using a leverage of 1:100, every $1 you invest is worth $100, so with a $1000 margin you can open a $100,000 deal.  So for this example, a profit that would have been $10 is magnified to $1000.

Another way to think about leverage is as a loan. If you have $1000 and take a ‘loan’ that equates to $100 for every one of your dollars, you have $100,000 to trade with. Once your trade has concluded, you return the ‘loan’ amount ($1000) and keep the resulting profit.  
 
Leverage is often considered a double-edge sword since the market can turn opposite to what you predicted, which means losses can also multiplied by up to 100.  However, another incredibly valuable feature that Prime XBT applies is the use of “stop-loss” orders, which allows traders to predetermine at which point they wish to exit a position.  The platform automatically executes the order and the trader cuts their losses, meaning that they risk no more than they can afford to lose.  
 
It’s important to note that trading with high leverage may increase the risk of triggering a stop-loss order in the instance of large price swings, which is why it’s recommended that less experienced traders start off with smaller margins while they developing their risk management skills.  PrimeXBT provides a number of <a href="https://medium.com/primexbt/5-rules-of-successful-cryptocurrency-margin-trading-ce2a1e614134">informative guides</a> for beginner traders and how best to use the features of the platform.  
 
Leverage can also be applied to “shorting” crypto-assets, which pretty much means banking on a crypto’s price to go down.  So a trader will take out a margin to sell high, buy low and keep the difference (minus your margin). You would then multiply the difference by the amount of leverage taken, e.g. by 100X to get your profit total.   

With these advanced features offered by platforms like Prime XBT, traders can multiply their profit potential in both market highs and market lows, while simultaneously limiting their loss potential. 
  
PrimeXBT offers aggregated liquidity and instant order execution from 12 cryptocurrency exchanges, with bitcoin, litecoin, ripple, EOS, ethereum, and bitcoin cash available immediately upon launch to trade; due to launch January 2019 and is offering the first month free of any trading or commission fees.  

Head to <a href="https://primexbt.com">PrimeXBT.com</a> for more information.