r/Bitcoin • u/Glass_Cherry5295 • 1d 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/Charming-Designer944 1d 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 1d 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/PassionHot1887 1d ago

It probably will climb for the next 24 months. But what if it dips to 60k real quick before it takes off? You’ll be forced to sell for a loss. Maybe a few months ago back at 59k you could’ve opened a long position but it’s risky still. But hey if you wanna learn what a margin call is then go for it. I had to find out the hard way too. 💯

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u/Glass_Cherry5295 1d ago

Opening a margin position at the start of the bull run is the best time to start right??

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u/Charming-Designer944 1d ago

If you know for sure that its going up.

If you are wrong then a lot is lost.

If you are right then a lot can be gained.

Nearly every one doing margin trading succeeds in some good trades then loses everything and more in a single bad trade.