First of all, Margin Trading can be both, risky as well as rewarding. One should know the basics properly and then decide to invest suitable amount of money in margin trading.
What is Margin Trading?
Margin Trading is known as borrowing extra money or cryptocurrency by leveraging the number of cryptocurrencies which you already own to buy additional cryptocurrencies.
Margin trading is active in the stock market for many years. However, it is introduced in the crypto market in the recent years. Also, rules of margin trading in crypto are simple as compared to the traditional stock market; however, the main principle of margin trading is the same.
Let's consider an example:
If you want to buy Ethereum worth $200 buy you only have $100 available. Using margin trading, you will be able to borrow an extra $100, in order to invest $200 in Ethereum.
If the value of $200 Ethereum increased to say $300, then you will be able to liquidate it and return $100, thus leaving you with a gross profit of $100.
However, in the case of cryptocurrencies, the value fluctuates a lot. Hence if the value of Ethereum goes down by 50%, then you have to give $100 to your lender and then get access to the remaining funds, which leaves you to nothing.
Do you want to start Margin Trading in Crypto?
If you are planning to start trading in Crypto, then delta exchange provides a wide number of options. Delta exchange provides trading in crypto futures. Firstly, these futures provide upto 100x leverage. Secondly, it allows you to go long or short. Crypto futures has similar features as margin trading, however, it provides higher liquidity and lowers trading fees.
Delta Exchange is mainly a derivatives exchange. Hence you will be able to trade on futures of cryptocurrencies but not on digital currencies directly. You can check crypto derivatives exchange by delta, to get detailed information about trading crypto futures.
How to do Cryptocurrency Margin Trading in India?
Follow the steps given below to do margin trading:
Firstly, you have to make an account on the Indian Exchange or portals.
Now, you have to invest some amount of Bitcoin, Ethereum or any other cryptocurrency in your portal.
Then, transfer your currency to any of International exchange. Don't get confused with BTC and USD.
Lastly, after making some profit in the global exchanges, transfer your BTC to any Indian portal where you have verified your KYC. Now, sell your BTC and get money in INR. Lastly, you will be able to withdraw money from your bank account.
What is best to trade on Delta Exchange?
It is highly recommended to trade Ethereum Futures on Delta Exchange. You may have a question, why?
Ethereum ranks in top 5 cryptocurrencies and it is also popular for service to execute smart contracts. It uses a protocol standard - ERC20 which sets out rules and standards for issuing tokens on Ethereum network. Also, a large number of developers are using Ethereum’s platform to develop decentralized applications.
Ether futures enables you to trade Ethereum with leverage and to double your returns. But, you should remember that leverage cuts both ways and so gains or losses will increase when you are trading using leverage.
Trading on Crypto futures is great for anyone who is looking for trading in the Crypto world. Moreover, Delta Exchange provides various wonderful options for Crypto Futures trading.