What is bitcoin leverage trading?

Cryptocurrency trading is often associated with margin. It is a type of speculation in the stock or cryptocurrency market when a trader uses borrowed funds for his activities. These funds are provided by the exchange or a brokerage company.

As in any other situation with obtaining credit loans, the trader must provide collateral. In this case, the trader makes a deposit to the amount that guarantees the payment of debts under the rules established by the site. Own funds allocated for the opening of such an agreement is a margin (hence the name of this type of speculation).

Different brokers trading in Malaysia offer different leverage options - from the smallest 1:10 to very aggressive 1: 1000. High leverage allows you to open transactions in large lots with small amounts in the account, but this, in turn, involves great risks. However, the leverage mechanism is structured in such a way that a trader cannot lose more than he has in his account. To minimize the risks of bitcoin trading with leverage, it is necessary to strictly follow the rules of finance management.

Bitcoin leverage trading
Bitcoin leverage trading

Cryptocurrency can help e-commerce reach more people. It is true for those regions of third world countries where opening a bank account can be burdensome. When the Internet becomes available to everyone, cryptocurrency will gain even more significant status in trading.

 How does bitcoin margin trading work?

All positions that can be opened on a trading platform are divided into two types:

  • Long term positions - when the trader expects the asset price to rise;
  • Short positions - when you expect the lowering of the price.

Suppose the value of the cryptocurrency moves in the direction predicted by the trader, then the income that he can record under the agreement increases in proportion to the chosen leverage. At the moment of closing such a position, the body of the loan is returned to the broker together with the commission fees if they are applied. And the balance of the received profit is credited to the user's account.

How to trade bitcoin with leverage online?

For example, if your deposit is $ 100 and the broker offers a margin of 10x (1:10), the amount of the trade will be $ 1000 (the amount available to the trader has increased tenfold). If the price increases by 1%, the user's profit will be deducted from the total amount of the transaction, it will make $ 100. Therefore, when closing a position at this point on the balance of the trader will be $ 1100 (minus fees to the site and other payments determined by its rules). Without this loan, the profit would be only $ 10.

Bitcoin leverage trading platform 

Almost all crypto exchanges and brokerage companies offer their clients to use leverage for trading. Though, crypto exchanges can hardly provide traders with a comfortable environment for full-fledged trading, suitable conditions and a user interface that experienced market players are used to. In short, unlike crypto exchanges, Forex brokers have more than 20 years of experience in online trading, providing the following benefits:

  • advanced user interfaces;
  • round-the-clock and timely support;
  • a high level of security;
  • the ability to trade from charts or through mobile applications;
  • attractive leverage.
Bitcoin leverage trading platform
Bitcoin leverage trading platform

What is bitcoin trading platform with leverage?

The IQ Option broker offers CFDs for all popular digital money including BTC. The list of coins available on the market is constantly growing. You do not need to buy crypto assets. You only need to make a deposit with any currency and buy crypto CFDs. This type of trading allows traders to use a leverage option.

The leverage size is different for cryptocurrency. For example, you can get 1:10 leverage for Bitcoin, 1:5 for Ripple, and only 1:3 for Zcash.

The leverage sizes for different coins
The leverage sizes for different coins

How to start bitcoin trading with leverage 

A general algorithm for a beginner who wants to try bitcoin leverage trading in Malaysia.

  • Study the theory of marginal crypto trading. It is important to look through the FAQ section on the chosen platform that offers to trade with leverage.
  • Select a trading platform based on its reputation, reviews, list of tradable cryptocurrencies, types of leveraged positions and trading instruments, minimum deposit, etc.
  • Get acquainted with the rules of providing services by the selected broker, paying special attention to the sections on commissions, debt payments, conditions of liquidation of transactions and other financial issues.
  • Open a trading account on the platform and replenish your deposit.
  • For trial transactions, allocate a small part of the deposit (up to 5%) to protect yourself from bankruptcy due to lack of experience.
  • When opening the first positions, choose a small leverage, for example, 2x or 3x. In this case, the level of liquidation will be relatively far from the entrance price, which means that the risk of losing funds is not so great.
  • Use stop loss at the rate of fixation of not more than 20-30% of the damage.
  • Trade only those cryptocurrencies that you know well. It will provide you with a higher probability to predict further price movements.
  • Avoid opening deals during periods of excessive volatility and uncertainty in the market.

If you are looking for the best bitcoin leverage trading platform, we advise you to pay attention to IQ Option. This broker started its activity in 2013 and since that time attracted almost 50 million users from different countries.  It is an excellent bitcoin leverage trading platform for online trading in Malaysia. The traders admit that this broker is equally good for beginners and experts. Besides, you can easily choose mobile trading in real time by installing a trading application.

How to register? 

To sign up on the platform, you need to enter your name, email, and password. It is recommended to pass the verification procedure at this stage as you will have to go through it anyway to be approved for money withdrawals. Be ready to provide your personal details and scans of identification documents proving your personality.

Registration on the platform
Registration on the platform

How to open a demo account?

Once you are registered on the IQ Option platform you will be offered two types of accounts – demo and free. You can pass on to a demo account in just one click. The winning feature of this broker is that there are no restrictions for the use of the training account. You can hone your skills here as long as you need it. Moreover, you are offered a refundable virtual sum of $10,000. A demo account is a perfect opportunity to learn how this market works and test trading strategies.

How to open a real account? 

It is a matter of seconds to switch from a demo account to a real trading account. This account type makes you a full-fledged participant of the Forex market. But to start trading, you will need to top up your account with the required sum to be allowed to make the transactions.

How to open a demo or real account
How to open a demo or real account

How to fund a deposit? 

There are plenty of options to send money to your account. The easiest and the fastest way is via the bank card. Such transfers are usually instant. If you chose to send money via a bank transfer, it may take up to two days. You can replenish your account with any currency and the platform will convert the money to the preferred currency.

Deposit replenishment
Deposit replenishment

Minimum deposit amount 

IQ Option allows you to activate a real account with a small investment of only $10. Very few brokers allow this attractive trading condition.

How to withdraw money? 

The broker offers a number of options for money withdrawal. You need to be a verified platform user for your transaction to be approved by the platform.

Safety of online bitcoin leverage trading 

It may look that margin trading is created for beginners who do not have sufficient finances. But novice traders should not go ashore and trade with maximum leverage. Take small loans and it will gradually increase capital and prevent its loss. You should also not avoid bitcoin trading with leverage. It is quite normal when a young businessman takes a loan from a bank and develops his business. And the same story is with online trading. If used wisely, leverage is an effective trading tool.

How safe is it to trade online? 

It is crucial to remember that you are always exposed to risk when trading online.

The main risks of margin trading:

  • Credit is given only for high-liquid assets. And bitcoin price jumps make this asset very liquid as well as other digital coins.
  •  The margin can be both very small and very large. It all depends on the specific asset and the requirements of the broker
  • Risk of losing investment. The more you invest, the more you can lose. Much also depends on the transaction itself: the characteristics of the asset, strategy and market situation. Stop loss helps to minimize losses.

Benefits of bitcoin trading with leverage:

  •  Ease of receipt. No documents or additional legal procedures are needed.
  •  Any assets are suitable as collateral. You can use not only currency, but also securities.
  •  By increasing capital, you can make effective deals. Even without funds, a trader has a chance to make a significant profit.
  • There are no loan fees. The broker takes back only the amount provided to the trader.

My online trading is protected 

Experts have developed risk management rules that allow you to succeed in bitcoin margin trading in Malaysia.

It is recommended to pay special attention to the following tips:

  • You need to choose with care digital money for bitcoin trading with leverage. You can use many coins - btc, bitcoin cash, tether, ethereum and ripple. They are characterized by a significant level of volatility in addition to bitcoin price.
  • Never bring the situation to a margin call. Learn to stop a series of losing trades in time. As a rule, professional traders complete trading operations when they lose 27-31% of their existing deposit. When there is reasonable confidence in the imminent rise in the price of purchased cryptocoins, you can additionally replenish the trade balance to prevent the case of a margin call.
  • To use the possibility of margin trading, you need to analyze in detail the nuances of the broker's commissions. Some brokers charge daily payment for the use of borrowed funds.
  • You also need to master the secrets of technical analysis to identify the best moments for buy or sell trades.

A margin call is a forced closure of a position. It can happen when using margin trading. Actually, the margin call is the amount of money on your account required to secure the collateral amount of all current positions is approaching the critical mark.


How does leverage trading work?

Trading bitcoin requires large investments. Therefore, Forex brokers provide their clients with leverage - the ability to conduct transactions in the market with larger amounts than available. For example, a trader, having a deposit of 10 thousand dollars and a leverage of 1: 100, in fact operates with the amount of 1 million dollars.

As a result, the trader receives more profit, and, unlike the loan, he does not have to pay interest on the margin. All the profits from trading on margin belong to him. However, if the deal fails, the trader's loss is limited to the amount of own funds, and he will never have a debt to the broker.

Brokers give a high leverage for small amounts, and vice versa. It is standard practice, but beginners should be more careful with significant investments in bitcoin leverage trading Malaysia. The more money, the higher the risks. Imagine that you bought BTC/USD for $ 100 per lot. If the value of each lot falls by $ 1, you will lose $ 10. If you have 20 lots, the loss will be already $ 20. So such fluctuations can lead to serious losses.

Leverage is a type of a multiplier that increases the invested amount per trade. For example, if you are ready to invest $1,000 and trade using x10 leverage, the value of your transaction will grow to $10,000.

If you decide to use 100x leverage, you need to increase the initial sum by 100 times. A deal of $ 100 will become $ 100 000 in this case.

Online trading in Malaysia allows you to trade Bitcoin with leverage through various Forex brokers.You will not become an owner of digital money but will be able to trade CFDs with this underlying asset.

Various margin offers can be found on the majority of the platforms that include cryptocurrency as one of their trading assets.

RHB Bank
Hong Leong Bank
Public Bank
The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose