r/Bitcoin • u/Glass_Cherry5295 • 17m ago

Margin

Please enlighten me.

I want to DCA average $100 into btc every week at 3x margin. I would do this on Kraken. My plan is to do it for the next 24 months, I will not sell any btc during this time. Every trade will be with 3x margin. I’m told the fees could eat me alive.

Good idea or bad idea? To much margin or not enough? Thank you

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u/Forded_Fiction24 8m ago

All it takes is a 33% draw down using 3x margin and you're liquidated. That happens with Bitcoin or at least can and isn't rare. You can claim that you won't sell but it won't be up to you. 

Using margin Is one of the most reliable ways to blow up your account. Pretty terrible idea. 

Fees on top of that make it even less compelling. It's not something to play around with and isn't for amateurs. Margin should only even be considered if you have a large established account and you're using margin on a small portion of that account. 

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u/Glass_Cherry5295 5m ago

I believe btc will climb for the next 24 months. Why not magnify my earnings by using margin and never cash out until btc is over 150k?

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u/Forded_Fiction24 3m ago

Because you nor I can predict the future. 

Your choices are to stack Bitcoin but be dissatisfied with how much your accumulating and the rate of accumulation but there's little risk and a future. 

Or you can have the YOLO mentality and use 3X margin and potentially ruin your life to the point of contemplating suicide because financially you'll never recover. 

You can choose either but I wouldn't choose the latter that has extreme risk

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u/Glass_Cherry5295 1m ago

How so? WORST case we get 23 months in and I lose it all (10k) right?
Losing 10k will not ruin my life

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u/MassiveLuck4628 12m ago

Margin is dumb, no i will not elaborate

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u/Glass_Cherry5295 11m ago

I’m more curious how the fees will kill me. I understand I could be liquidated if price falls but if price stays flat I could also lose a big chunk?

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u/IndianaGeoff 1m ago

Margin products do not make money from the asset going up. They make money from bleeding the customer.

Dude, just DCA bitcoin. You're not smarter than people who do this all day, everyday, holding advanced degrees with the best tools and software.

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u/meccaleccahimeccahi 9m ago

Wtaf? Are you really that stupid?

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u/Glass_Cherry5295 8m ago

Enlighten me please

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u/meccaleccahimeccahi 8m ago

Just dca $100/wk, no margin. Just dca.

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u/Glass_Cherry5295 3m ago

Why DCA when I could DCA AND earn 3x more

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u/Charming-Designer944 8m ago

Make sure you completely understand margin trading before touching it. Most margin traders fails and loses most of their savings.

Margin trading is a form of aggressive gambling. Its not something you DCA in. When margin trading you absolutely must be an active trader and constantly enter and exit the trades as per your predictions. And a wrong prediction costs you a lot.

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u/Glass_Cherry5295 7m ago

I believe btc will climb for the next 24 months. Why not magnify my earnings by using margin and never cash out until btc is over 150k?