So unless your making over 12k a year in shares, its cool to use eToro and platforms like that?
If your making 12k a year on these investments, you must be doing pretty good no? Lol
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Yeah basically. However, all it takes is a couple of good trades and you could be over that £12k threshold quicker than you think haha
Also bear in mind that the government might significantly reduce that CGT allowance in the upcoming budget in March.
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To avoid this, I trade leverage the following way:
Isolated (so not cross margin, which would affect all your holdings).
I put a Stop Loss say 10-15% below the strike price. It avoids me being liquidated. I only leverage LONG positions. I never short, because shorting you can reck yourself even more. And on top of that, it is just better to call a long position in an uptrend market.
It works particularly well right now for bitcoin in this bullmarket.
Having said all that: yes, especially if you have got no idea what the fuck to do with leverage trading, stay away from it as it is high risk high reward.
I was just interested in seeing if there is anyone else on here who dabbles in it?
Those who are interested should try first with fake money - there are some websites that offer this. So you can practice and understand what it is about.
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Never done it for stocks, so don’t think i’ll try it for bitcoin.
Got a question mate, i’ve put in 200€ in binance to try it out, can i buy bitcoin directly with it or should i convert it to USDT first ?
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You can buy BTC/EUR - which would make sense to buy it that way. USDT is good to trade altcoins with, as most altcoins don’t offer a ALT/EUR pair. Good luck!
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I see, thanks for the info.
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Let me know if you got any questions, glad to help (if I know/can)
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Are you buying Bitcoin the same way you buy stocks/shares, and basically it’s an investment as the value is just increasing constantly? Are there other cryptos that make a bit more sense or is Bitcoin the way to go? (I know there’s a thread about it but fuck it while we’re here)
And what exactly is trading with leverage?
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Imagine you have £1,000 to trade with. Then you go to the bank and borrow £1,500 to trade with.
Now you have £2,500 to trade with! So you can buy more stocks than before increasing your returns.
However, if you lose money and don’t make any gains, you’re now in debt to the bank.
That’s a simplification of leveraging aka gearing. It’s what allows Investment Trusts and Hedge Funds to generate such high returns.
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It depends on what you want to do. If you actively want to trade it, you can buy any time (well on a dip, preferably). If you intend to hold it for the long term and see it grow, you can buy at any price point now as it is very likely in 2-5 years it till be much higher than where it is now. Same goes for traditional stocks.
Alt coins can get your bigger gains in the short term, but can also drop quicker and more than bitcoin in case of a market wide bearish trend. So that is something to keep in mind.
Right now we are in an uptrend market, all alt coins are making massive gains (some have done 2x, some 5x and even some 10x or more). There are wild predictions for BTC and all alt coins and some of them might come true and some won’t. Consensus amongst those who have experienced the previous bull cycles is that this uptrend will continue to more or less September, but it could be only till August, or could be till October, we don’t know exactly, otherwise we would all be millionaires.
So it is important to take profits along the way up as we don’t know when it all will come down. And down it will come, eventually, as nothing can only go up. Corrections and all that. But, the next bull cycle the strong coins will hit new all time highs - so it is a very interesting market to dabble into. Just be cautious, read a lot, watch videos and study the charts (www.tradingview.com is my favourite site for this).
Bitcoin is long term one of the most secure and solid investments. Alts, especially the lower caps one are a bit more of a risk, but higher reward.
When you trade with leverage, say 5x, it means that your $ 1000 is in fact worth 5000 and as such your potential profit is 5x worth what it otherwise would be.
You “borrow” this extra sum and for that you pay a small commission when you execute the position. On the downside, when the stock goes down, you can also lose more - that is why I personally put a stop loss order, which means that if I lose say 15% of where I stepped in, it automatically takes me out of the trade to avoid further losses and even liquidation - meaning you lose your entire position.
An example is:
Buy bitcoin at 45000 for 5x leverage at 1000 dollars. Take profit at 50000. My profit would be $ 500.
If I had done a normal trade, my profit would be $ 100.
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The flip side is if you trade with 5x and the price drops 20% you lose your entire holdings. With 10x it’s a 10% drop.
I only trade with leverage if I see very particular setups I like. Even in this bull market a lot of people can lose during chop. If your not disciplined with leverage you can make 100 great trades in a row then lose it all if you get complacent.
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This is true - that’s why practice first, risk real money later. For those who aren’t experienced in it.
I bought $50 worth of bitcoin in 2015 (i think) when its value was $300. I just wish I bought more now 
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Do you still have it? Because that would be worth quite a bit now!
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yeah gonna say, its gone up 10x in the last year, do you predict it will do similar again?
I remember hearing about bitcoin when that guy bought a pizza for 10,000 Bitcoin. It’s a pity I’m a fucking dope who couldn’t figure out how to get involved back then 
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Holy shit, most pizzas are regrettable comfort food but that’s something else entirely. Bet that dude can’t even look at Italian food anymore.
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He says he’s fine with it but c’mon…
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Yeaaah sure…
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I sold for 3k about 2/3 years ago
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