Is it smart to use leverage on a longer position? And should I stick with spot?
Is it smart to use leverage on a longer position? And should I stick with spot?
I’m currently investing a lot of time and trying to learn how to swing trade BTC (mainly).
I asked myself if it is smart to use leverage on a long position? The timeframe I’m trading in is between a week and let’s say 2 months when opening and closing a position.
And my second question is if it is smarter to trade BTC futures or stick with spot/margin BTC/USD?
Thank you!
Ruban Lovelace Answered question October 29, 2024
stick to spot till you fully understand the different risks/costs of leverage. there is a massive difference in the expected return you’ll need holding a week vs two months due to funding costs.
Cinthia ETH Answered question October 29, 2024