What Is Crypto Leverage Trading and How Does It Work in 2025?
Leverage trading in crypto means borrowing funds from an exchange to open a larger position than your actual balance allows. It has become very popular in crypto perpetual futures contracts, where generally traders can use 5x, 10x, or even 100x leverage to trade assets in the crypto market.
The risks of leverage trading include liquidation, interest fees, and emotional stress, while the benefits include magnified gains, capital efficiency, and the ability to short the market even during volatile market conditions.
In this guide, we’ll break down what crypto leverage trading is and show you how leverage works in crypto trading step by step. You’ll learn how to open leveraged positions, manage margin effectively, and understand the…
