What is leverage in cryptocurrency trading?

Leverage is a method of acquiring access to huge sums of cryptocurrencies without having to pay the entire worth of your trade up front. Instead, you make a tiny down payment known as margin. When you terminate a leveraged position, the full magnitude of the trade determines your profit or loss.

While leverage increases your profits, it also increases your risk of losses, potentially losses that surpass your margin on a single trade. As a result, learning how to manage risk is critical when using leveraged trading.