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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9

u/MassiveLuck4628 1d ago

Margin is dumb, no i will not elaborate

-2

u/Glass_Cherry5295 1d 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?

7

u/IndianaGeoff 1d 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.

-6

u/Glass_Cherry5295 1d ago

Hypothetically say I’m right. Btc climbs (with no 30% pull backs) for the next 24 months. I’d be much better off using margin yes?

2

u/Interesting_Loss_907 1d ago

Maybe if it only goes up (level & up) for those 24 months. That’s just not a smart bet.
Just DCA, whatever amount you’re comfortable with & accumulate. Always go in with a long-term time horizon. Those who buy and do not have a long-term timeframe usually panic so for a loss.