- Bitcoin
$101,214.9136
-1.36% - Ethereum
$3,151.7704
-5.03% - XRP
$2.9434
-3.65% - Tether USDt
$1.0000
0.02% - Solana
$217.5482
-6.66% - BNB
$662.2703
-2.56% - USDC
$1.0001
0.00% - Dogecoin
$0.3133
-5.34% - Cardano
$0.9077
-4.69% - TRON
$0.2458
-3.63% - Chainlink
$23.1348
-9.79% - Avalanche
$32.5058
-6.52% - Stellar
$0.3998
-3.90% - Sui
$3.8307
-6.22% - Toncoin
$4.6679
-3.85% - Hedera
$0.2920
-5.24% - Shiba Inu
$0.0...01786
-6.61% - Polkadot
$5.9802
-6.12% - Litecoin
$121.0100
-5.00% - UNUS SED LEO
$9.6569
-1.23% - Bitget Token
$6.8232
-2.02% - Bitcoin Cash
$409.4226
-4.14% - Hyperliquid
$24.0807
-11.29% - Uniswap
$11.0543
-6.65% - Ethena USDe
$1.0006
-0.03% - Dai
$1.0000
0.00% - Pepe
$0.0...01243
-12.50% - NEAR Protocol
$4.3139
-7.46% - MANTRA
$5.2123
-1.63% - Aave
$301.6502
-8.84%
Which BingX contract or leverage is suitable for novices?
For beginners with low risk tolerance and a desire to trade without leverage, spot trading on BingX offers a starting point with lower risks and potential profits.
Nov 29, 2024 at 10:26 pm
BingX Contract or Leverage: Which One is Best for Beginners?
BingX offers both contract and leverage trading, but which one is best suited for beginners? Here's a comprehensive comparison to help you make an informed decision.
Understanding BingX Contract and Leverage Trading
1. BingX Contract Trading
- Contract trading on BingX involves buying and selling futures contracts that represent the underlying asset, such as cryptocurrency.
- Futures contracts expire on a specific date, and you can either close your position before the expiry or let it expire and receive or deliver the underlying asset.
- Contract trading offers high leverage, but it also carries higher risks due to price fluctuations and potential losses.
2. BingX Leverage Trading
- Leverage trading on BingX allows you to borrow funds from the platform to increase your trading capital.
- You can use leverage to trade spot markets and margin trading pairs, which offer higher potential profits but also higher risks.
- Unlike contract trading, leverage trading does not have an expiration date, but it accumulates interest over time, and you need to maintain a sufficient margin level to avoid liquidation.
Choosing the Right Option for Beginners
1. For Beginners with Low Risk Tolerance: Spot Trading without Leverage
- Beginners with low risk tolerance should consider spot trading without leverage.
- This involves buying and selling cryptocurrencies directly, without borrowing funds or using futures contracts.
- Spot trading offers lower risks but also lower potential profits compared to contract or leverage trading.
2. For Beginners with Moderate Risk Tolerance: Margin Trading with Low Leverage
- For beginners with moderate risk tolerance, margin trading with low leverage can be a good starting point.
- Margin trading allows you to borrow a small amount of funds from BingX to increase your trading capital.
- Using low leverage (e.g., 2x or 5x) reduces the risks involved while still providing the potential for higher profits than spot trading.
3. For Beginners with High Risk Tolerance: Contract Trading with Low Leverage
- For beginners with high risk tolerance, contract trading with low leverage (e.g., 5x or 10x) can offer the potential for significant profits.
- However, it's crucial to understand the risks involved and to manage your positions carefully to avoid losses.
- Contract trading requires a higher level of knowledge and trading skills, and it's advisable for beginners to start with low leverage and gradually increase it as they gain experience.
Tips for Beginners Trading on BingX
- Start with a small trading capital and trade with only what you can afford to lose.
- Familiarize yourself with the trading platform and try demo trading before using real funds.
- Use stop-loss orders and take-profit orders to manage your risks and protect your profits.
- Continuously educate yourself about cryptocurrency trading and market dynamics.
- Seek guidance from experienced traders or join trading groups and forums to learn from others.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
- 1FUEL Emerges as a Formidable Competitor to BONK, Sparking FOMO Among Investors
- 2025-02-02 09:10:56
- PlutoChain ($PLUTO) Aims to Reshape Bitcoin's Role in the Market By Introducing Smart Contracts and EVM Compatibility
- 2025-02-02 09:00:57
- XRP (XRP) Price Analysis and Prediction: Despite a Recent Intra-Week Dip, XRP Closed Off in January at Its Highest Monthly Close in History
- 2025-02-02 09:00:57
- Bitcoin (BTC) Price May Be in Trouble as Bearish Pattern Returns
- 2025-02-02 09:00:57
- Is Bitcoin Poised for a Major Breakthrough? Discover What You Need to Know!
- 2025-02-02 09:00:57
- Purpose Investments Files Prospectus to Launch the First Spot XRP Exchange-Traded Fund (ETF)
- 2025-02-02 09:00:57
Related knowledge
What are the impacts of different contract leverage multiples?
Dec 16,2024 at 12:46pm
Impacts of Different Contract Leverage MultiplesLeverage, a tool leveraged in the financial realm, amplifies trading activities and enhances potential returns while simultaneously magnifying risks. Understanding the implications of varying leverage multiples is paramount for savvy traders. This article delves into the impacts of different contract lever...
Which is more suitable for novices, contract trading or margin trading on Huobi.com?
Dec 16,2024 at 12:44pm
Which is More Suitable for Novices: Contract Trading or Margin Trading on Huobi.com?As a novice trader venturing into the world of cryptocurrency trading, the choice between contract trading and margin trading on Huobi.com can be a daunting one. Both instruments offer unique advantages and drawbacks, making it crucial to understand their key differences...
What does the leverage ratio of contract trading mean?
Dec 16,2024 at 12:43pm
What does the leverage ratio of contract trading mean?IntroductionLeverage ratio is a key concept in contract trading, allowing traders to gain exposure to a larger position than their initial capital would allow. This can potentially amplify both profits and losses, making it crucial for traders to understand its implications.Understanding Leverage Rat...
What scams exist in leveraged trading of virtual currency contracts?
Dec 16,2024 at 12:42pm
What Scams Exist in Leveraged Trading of Virtual Currency Contracts?Leveraged trading of virtual currency contracts, also known as margin trading, can be a lucrative way to increase your profits. However, it is important to be aware of the various scams that exist in this market so that you can protect yourself from losing your money.Pump-and-dump scams...
What is 20x leverage on Bitcoin contracts?
Dec 16,2024 at 12:40pm
What is 20x Leverage on Bitcoin Contracts?IntroductionLeverage is a powerful tool in the world of trading that can magnify both profits and losses. However, it's essential to understand the risks involved before using leverage, especially when trading volatile assets like Bitcoin. In this comprehensive guide, we will delve into the concept of 20x levera...
What is the difference between Huobi’s margin trading and contract trading?
Dec 16,2024 at 12:39pm
Understanding the Distinctions between Huobi Margin Trading and Contract TradingIntroductionHuobi, a leading cryptocurrency exchange, offers diverse trading options to cater to traders' varying risk tolerance and investment goals. Among these options are Margin Trading and Contract Trading, each with distinct features and trading mechanisms. This compre...
What are the impacts of different contract leverage multiples?
Dec 16,2024 at 12:46pm
Impacts of Different Contract Leverage MultiplesLeverage, a tool leveraged in the financial realm, amplifies trading activities and enhances potential returns while simultaneously magnifying risks. Understanding the implications of varying leverage multiples is paramount for savvy traders. This article delves into the impacts of different contract lever...
Which is more suitable for novices, contract trading or margin trading on Huobi.com?
Dec 16,2024 at 12:44pm
Which is More Suitable for Novices: Contract Trading or Margin Trading on Huobi.com?As a novice trader venturing into the world of cryptocurrency trading, the choice between contract trading and margin trading on Huobi.com can be a daunting one. Both instruments offer unique advantages and drawbacks, making it crucial to understand their key differences...
What does the leverage ratio of contract trading mean?
Dec 16,2024 at 12:43pm
What does the leverage ratio of contract trading mean?IntroductionLeverage ratio is a key concept in contract trading, allowing traders to gain exposure to a larger position than their initial capital would allow. This can potentially amplify both profits and losses, making it crucial for traders to understand its implications.Understanding Leverage Rat...
What scams exist in leveraged trading of virtual currency contracts?
Dec 16,2024 at 12:42pm
What Scams Exist in Leveraged Trading of Virtual Currency Contracts?Leveraged trading of virtual currency contracts, also known as margin trading, can be a lucrative way to increase your profits. However, it is important to be aware of the various scams that exist in this market so that you can protect yourself from losing your money.Pump-and-dump scams...
What is 20x leverage on Bitcoin contracts?
Dec 16,2024 at 12:40pm
What is 20x Leverage on Bitcoin Contracts?IntroductionLeverage is a powerful tool in the world of trading that can magnify both profits and losses. However, it's essential to understand the risks involved before using leverage, especially when trading volatile assets like Bitcoin. In this comprehensive guide, we will delve into the concept of 20x levera...
What is the difference between Huobi’s margin trading and contract trading?
Dec 16,2024 at 12:39pm
Understanding the Distinctions between Huobi Margin Trading and Contract TradingIntroductionHuobi, a leading cryptocurrency exchange, offers diverse trading options to cater to traders' varying risk tolerance and investment goals. Among these options are Margin Trading and Contract Trading, each with distinct features and trading mechanisms. This compre...
See all articles