Leveraged Bitcoin Trading: This is THE REAL TRUTH!!🔪

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- TIMESTAMPS -
0:00 Intro
1:40 What is Leveraged Trading?
3:10 History of Futures
5:20 Intro into BTC Futures
7:10 Bitcoin Futures Today
9:10 Do's & Dont's
13:00 How Exchanges Make Money
15:34 Using Leverage Responsibly
17:44 Conclusion

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⛓️ 🔗 Helpful Links & Sources 🔗 ⛓️

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🤔 What is Leveraged Trading? 🤔

It is trading with more money than you have. To expand on that a bit more, it is entering positions on the market that are many multiples of what you are putting down as collateral.

This collateral is more commonly called your "margin" and it is usually measured as a percentage of the amount that you can trade with. Gains and losses are magnified by said factor.

📉 History of Futures 📉

They were initially used centuries ago as a method for farmers to hedge the risk out of foreward prices for commodities. They would sell their product into the future in order to secure a price for it when it came to market.

Futures markets eventually rolled out to the currency markets in the early 1970s, interest rate markets in 1975 and stock indexes in the 1980s. Eventually, by the 2000's you had futures instruments on single stocks as well.

These did make their way into the retail markets through the numerous online brokerage accounts offered to US traders.

₿ Futures in Bitcoin ₿

One of the first exchanges to offer Leveraged Bitcoin trading through futures was of BitMEX. Registered in the Seychelles and run out of Hong Kong, this was one of the predominant Bitcoin futures exchanges for a number of years.

They gave Bitcoin traders the opportunity to trade their perpetual futures instruments of up to 100 times.

🖥 Current Shape of Market 🖥

There is a lot more compeition from leveraged exchanges now. Something else also happened back in 2017. The CME and CBOE both released their own regulated and exchange listed Bitcoin futures. Demand for these products has steadily been increasing over the past 3 years.

This was mainly driven by a surge in institutional interest in Bitcoin futures. So much so that other providers like Bakkt also listed their own physically settled Bitcoin futures

💸 How Exchnages Make Money 💸

An exchange is just a centralised trading engine that matches buyers and sellers of futures contracts. They will charge commission on all of the trades that they match.

Apart from facilitating the exchange, they also make sure that the trading pool is kept solvent. They have to make sure that in the event of extreme market moves, those that are close to depleting their margin will have their position closed. This is to protect what is called "bankruptcy" in the position.

In order to do this, the exchanges will operate a liquidation engine. These are designed to execute trades and de-risk a position. Every time that they do this they will earn commission on the trades that are met and executions that are done.

They also operate what is called an "insurance pool". These are funded by trader's margin and are used in order to reduce risk to the trading pool and prevent socialised losses.

✅ Using Leveraged Responsibly ✅

You should consider if you even want to do it. Have you traded in the spot market before and have you developed a trading strategy? This could be a fundamental one based on price action or a more technical one that is shaped by the charts. Do you have a money management strategy?

This should be viewed as a completely separate component from your Hodl portfolio. It should also be funds that you should comfortably be able to lose without breaking the bank. You should then decide on what exchange you want to trade on

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📜 Disclaimer 📜

The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.

#Bitcoin #BTC #Trading #Rekt #cryptocurrency #bitmex #bybit #leverage #futures

[PeterLiska]

I'd like to see video on Whales. How do they make profits. How do they move the market. What are aome of the strategies Whales use. Can we spot and identify when will whales make a move etc. =)

Thank you for great content. I really love your channel. It really helps me to become a better trader and learn more about crypto.

[oceancaldera]

Leverage using margin on exchanges is actually a really complicated affair and I think people would do well to avoid it unless you really really know what you're doing as a trader as far as quickly calculating and managing risk. You really have to understand concepts like the amount of loss that you can take before margin call/liquidation in order to properly understand the risk of leveraged trades. I think the best use of margin leverage for an active trader is just using it for positions that are reasonable relative to your account size, (as in less than) in order to leave more of your capital free for other things. Trying to use it to multiply your account in to one position in anything with even a little volatility is like trying to drive drunk in rush hour traffic. In other words, if you don't fully understand it and you're not ready to use it in a responsible manner, stay away!

[RickLomas]

I'd like to see some content such as "What is my typical trading week like?". Thanks Guy.

[who]

1. NOTHING beats videos that actually show you how to use a platform.
2. New promising under the radar projects
3. A 2-5min section where you explain a new coin and what it does, starting from top 100-200 without any order. This segment also has huge potential ..
All of these require huge research effort and determination, but if you can pull it off, there will be tons and tons of followers and benefits coming along.
P.S. I've been here since 2016 have seen all the YouTubers come and go. This 3 segments even if they're not present in every episode will be explosive, I promise you!
I have also entered, and this is true, more than 1000 giveaways since then and haven't won even once, so please let this be it so I can get my coins off of the exchange...

[marleydawkins]

Suggestion - can we have all or one of the following:
* a video of top 5 over hyped crypto projects
* a video of top 5 potential groundbreaking crypto projects for the next 5 years.

And a video highlighting a potential strategy if government regulations makes majority of crypto illegal? Perhaps using certain blockchains as a hedge against this?

[MichailIat]

Another video suggestion:
Best Crypto projects with real-life application that can be adopted by mainstream/retail in the next few years!

[mahousin]

Hi m8, good content, nice channel. How to DYOR.
I got few ideas for videos, here I go for the ledger ^^
1- Metrics to analyze Alts.
2- Tutorials; Wallets, Exchanges, DeFis, crypto tools, etc…
3- All passive inc. PoW-PoS-Mn-Staking-Bots-etc
4- Why Bitcoin matters
5- Emotions and Markets.
6- Bitcoin and the World total money map
7- Documental about bitcoin Runs
8- Why you should spread the word.
9- Live bybit trading show.
10- All Coin with dividends like KCs, Kyber...etc.
11- List of all crypto tools. (it's big)
12- Why XRp and BNB and TRON and etc are bullshit.
13- Why Privacy coin matter.
14- How to use Block explorer`s
15- Biggest scams, how they did it, and what to learn.
16- Types of Coins, Types of token-
17- Big picture Cryptocurrency map and explication.
18- How to use BTC to send money to Africa
19- How to sell my creations/content for cryptos
20- How to create your own Coin/token free*
21- Smart contracts and the non visualized impact.
22- Finally money is evolving
23- Who to follow in social media for trading tips
24- Is copy trading worth it?
25- How to use MakerDao lending/borrowing platform.
/ +others. and why it could be a free loan.
25- I lost my Private Key, what can I do?
26- how to safely buy bitcoins in an anonymously way
27- 10 things anyone in crypto should know.
28- Best real-world use cases of crowdfunding with ICO
29- Bounties, is it the final solution to global collaboration?
30- The world, this big spaceship. when will we finally be united?
How decentralization helps.
31- Red Flags to be aware of while in the DeFi ecosystem.
32- BTC dominance dropping. Alts exploding like gaisers. what does it mean?
33- The stage of seeing the world decentral in a decentral manner. A new way of thinking. BNB/UBER/Gloovo and many more examples...
34- How to get a job in the crypto space
35- What is a 3D block explorer? And uses cases.
36- How to patent an idea in the bitcoin blockchain.
37- How to start switching to live without cash.
38- Whats the possible TOP`s in the bull run.
39- What are the benefits of leaving the Fiat ecosystem.
40- Okay, I want to be 100% crypto. What do I need?
41- Coins in any smart crypto portfolio.

Have a good one.

[ticleadrian]

I will like to hear about exit strategies in case of bullruns! And congratz on 50k subs

[touringtrader]

Hi Guy!

A few suggestions that may be worth exploring:

1) Retiring with Crypto e.g. building a passive income portfolio to fund the retirement lifestyle.
2) Pool.Together - an interesting savings approach similar to UK Premium Bonds - More people should be using it.
3) Alternatives to MetaMask
4) Avoiding Gas fees / reducing transaction fees. I'm not sure if it is possible - but I know that I'm personally very conscious of fees as they can quickly eat up any gains if one isn't careful, I've also had a few failed transactions (double fees! - how frustrating!).

Anyhow, I'm obviously desperate for a Ledger :) But your channel has been a big turning point in my relationship with Crypto! Thank you for all your hard work. Using your content I'm working very hard at building a passive portfolio to fund an early retirement or at least partial retirement in the near future!

[ligneusbc.]

Nice one on the 50k subscribers Guido! Keep up the good work. We are all this amazing journey together and it good to have guys like you teaching and bringing awareness to us all. Well done!!

[RabbiCamdenPace]

Fantastic video Guy. I have been a trader for a while and I can tell you that the house definitely has the edge. What a lot of people innocently do not realize is that the exchanges completely cheat those who are not in their inner circle. I caught this early in the game when a bot on a very large quantity constantly cut me by one one-thousandth of the value simultaneously on every one of my sell bids. When I cancelled the order it would shoot back up to a much profitable position. Point being it prevented me from selling period and just ground me down. Then I had a vibrant discussion with the exchange. :)

I would like to hear about DIVI and the opportunities of great monthly returns they are promising with their node investments.

[saarherman]

Great simplification of a complex topic, thank you for that.
Would love to see some examples of long term strategies, combining hodling, staking, trading etc.

[mesres]

Congrats Guy on surpassing 50K subs, simply awesome mate!!

[soheilmousavi]

Proper informative channel, enjoying every one of your videos 👌

[marianoviloria]

More content about trading, please!
Algorithmic trading and technical analysis will be great.
(I'm a beginner)

[prazertv]

Congrats on hitting 50K. Like one of the commenters below said, there's no need to change your format. You're firing on all cylinders.

Some interesting cryto topics:
1. Top 10 defi projects to watch out for.
2. What will the top 10 coins list look like by year end?
3. Oracle projects: Competitors to Chainlink
4. How to create your own stablecoin
5. Update/Follow up video on Nimiq
6. Consider doing Top 10 reviews of projects in different categories.
7. How to create your own defi crypto project
8. Why is the U.S. government so against crypto?
9. How to invest in crypto in bull markets and down markets
10. Must Bitcoin suffer a massive crash before the start of the next bull run?

[mattbradley]

Congrats on 50K. Well deserved. The best info on youtube.

[julienblanchon]

My video format suggestion: *Practical Crypto*. A serie of video talking about some usefull blockchain usecases. Explaining the technical aspect of a project/dapps. Benefith and disadvantages. And finaly a setup tutorial of the project. For example you can do video about Orchid (OXT) vpn and another about Sia (SC) + Skynet storage solution (with pratical test for sure). I'd think many people get involve with crypto because of the underlying philosophy. To get rid of centralize bank, centralize big tech company ... And actually the crypto universe in a big financial market without any philosophical aspect :(

[HenG]

Idea: How do you make your videos? The leg work the articles you read. "How the Sauce is made" so to speak kind of a behind the scenes video. This would be fresh and maybe we'd get to see a more personal view on who Guy is and his team. Keep up the great work! ❤️

[augustosj]

consider that DeFi literally is decentralized banking with fractional reserves. this is not what satoshi nakamoto would have wanted