Discover the difference between Cross Margin and Isolated Margin (and choose the best one for you!)

If you are just starting out in the world of cryptocurrencies and hearing terms like cross margin and isolated margin, don't worry! It sounds complicated, but I'll explain it to you as if it were a game, very simple.

Imagine that you are at an amusement park with your friends. You have a pocket full of tokens for the rides, but you need to decide:

1. Cross Margin: It's like you put all your tokens together in a pot and can use them for any ride. If you lose tokens on a ride, the rest of the pot will be used to cover the loss. This gives you more flexibility, but it can also be risky, because you can lose all the tokens at once.

2. Isolated Margin: Now, imagine that you separate a part of the tokens for each ride. If you lose on one, you only lose those separate tokens. The rest is safe!

Which one should you choose?

• Cross Margin is cool if you want to take a little more risk and make the most of all the tokens.

• Isolated Margin is perfect for those who like more control and want to avoid losing everything at once.

See how easy it is? Knowing this can make all the difference in taking good care of your cryptos. Now that you understand the basics, how about exploring more strategies to protect your investments?