⚖️ What is Leverage in Crypto?
Leverage is a tool that allows you to trade with an amount greater than your actual capital by borrowing from the platform.
🔹 Simple Example:
If you have 100 dollars and use a leverage of ×10, you can trade with 1,000 dollars.
🔸 Benefit:
If the price of the currency rises by 10%, your profit will be 100 dollars instead of 10.
🔸 Risk:
If the price drops by 10%, you could lose your entire capital (this is when a liquidation occurs).
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