Margin’s Role In Cryptocurrency Trading

Those with even a passing knowledge of the history of bitcoin or the broader cryptocurrency market understand that the value of the digital currencies like bitcoin and litecoin have been on a rollercoaster throughout the previous few years.

Although valuations have become more modest, cryptocurrencies circa 2019 remain just as volatile as ever, sometimes experiencing 20% changes in a matter of hours. This volatility and the myriad unknowns that still orbit cryptocurrencies have turned some traders off of the digital assets. But others have recognized opportunity in these price swings and have attempted to adapt advanced trading techniques from other assets to the cryptocurrency market.

Catering to this contingent, cryptocurrency and trading platforms like CryptoRocket began offering traders up to 100:1 leverage on cryptocurrency trades. Coupled with the historic volatility that has characterized cryptocurrencies, this level of margin might off traders unfamiliar with how digital…