Been trading spot for a while but want to try leverage trading with crypto. Most platforms seem overwhelming with their interface and margin requirements.
Looking for something that won’t liquidate me instantly while I’m learning the ropes.
Bybit with 2x leverage and isolated margin only.
The Problem: You’re looking to start leverage trading with crypto but find most platforms overwhelming and fear instant liquidation while learning.
TL;DR: The Quick Fix: Use ByBit with 2x leverage and isolated margin. Their partial liquidation feature helps prevent complete account wipeouts. Use their demo account first!
Understanding the “Why” (The Root Cause):
Leverage trading magnifies both profits and losses. Starting with high leverage significantly increases your risk of liquidation (losing your entire invested capital). Many platforms use “cross margin,” where losses from one trade can impact your other positions, leading to cascading liquidations. By contrast, “isolated margin” keeps each trade separate, limiting the damage of any single losing position. ByBit’s partial liquidation is a crucial safety net; instead of instantly liquidating your entire position when it hits a certain threshold, it reduces your position size, giving you a chance to recover.
Step-by-Step Guide:
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Sign up for a ByBit account: Create an account on the ByBit platform. They offer a demo account with virtual funds—highly recommended before using real money. Familiarize yourself with the interface and features without risking your actual capital.
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Choose Isolated Margin: When setting up a trade, explicitly select “Isolated Margin.” This crucial setting prevents losses from one trade from affecting your other positions.
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Start with Low Leverage: Begin with 2x leverage. Gradually increase leverage only after gaining experience and understanding the market dynamics. Even experienced traders rarely exceed 5x or 10x leverage.
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Utilize Stop-Loss Orders: Always set stop-loss orders to limit potential losses. This automatically closes your position if the price moves against you by a predetermined amount, preventing larger losses.
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Master Position Sizing: Before entering any trade, determine how much you’re willing to lose. Never risk more than 1-2% of your total account balance on a single trade. This is critical for long-term survival in leverage trading.
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Use ByBit’s Liquidation Calculator: Before each trade, use ByBit’s built-in liquidation calculator. This tool will show you precisely the price at which your position will be partially or completely liquidated, allowing you to adjust your position or leverage accordingly.
Common Pitfalls & What to Check Next:
- Ignoring Funding Rates: Be aware of overnight funding rates, especially if holding positions for extended periods. These fees can significantly eat into your profits.
- Emotional Trading: Avoid impulsive decisions driven by fear or greed. Leverage trading can be volatile; a calm and disciplined approach is crucial.
- Over-Leveraging: Resist the temptation to use excessively high leverage. The higher the leverage, the faster you can lose your capital.
Still running into issues? Share your (sanitized) config files, the exact command you ran, and any other relevant details. The community is here to help!
OKX is decent too. Their risk calculator shows exactly when you’ll get liquidated before you enter.
Start with Binance or Bybit. They are beginner-friendly and show your liquidation price upfront. You can easily adjust leverage too. Stick to 2x or 3x max when you begin. Higher leverage means faster liquidation when the market turns against you. Always use stop losses and never risk more than 1-2% of your account per trade. The most important thing is to master position sizing first. You need to know how much you can afford to lose before entering any leveraged position.
KuCoin Futures works well for beginners. You can start tiny and the interface isn’t a mess like other platforms. Isolated margin is clutch because it keeps trades separate. One bad position won’t nuke your entire account, which matters when you’re learning. Stay away from cross margin until you actually know what you’re doing.