The Risks and Rewards of 75x Leverage in Crypto Trading

What is the purpose of the AIXBTUSDT-M futures contract?

Bitget recently launched the AIXBTUSDT-M futures contract on its platform. The contract provides traders the ability to engage in perpetual futures trading with a staggering 75x leverage. The settlement asset is Tether (USDT), making it easier for traders to formulate their strategies while operating under a single account structure.

What is the impact of 75x leverage on crypto trading?

Leverage can amplify gains but it can also cause you to lose money at an accelerated pace. It is important to understand how serious a 75x leverage is. A 1% fall in the price of Bitcoin can lead to a loss of your entire account. Averse price movements may trigger rapid liquidations, exacerbating market downturns.

What are the pros and cons of trading with 75x leverage?

75x leverage can lead to significant profits if the market moves in your favor. However, if it moves against you, the potential losses can be catastrophic. Market volatility is already high in the cryptocurrency space and this only increases the chance that your account will be liquidated.

What do you think of Bitget's tokenomics overhaul?

Bitget announced significant changes to its BGB tokenomics, including the burning of 800 million tokens, which is 40% of the total supply. The exchange also plans to burn 20% of its trading fee profits every quarter. In the past, BGB has offered exclusive perks to its holders on the platform.

What impact does this have?

The move is designed to increase the token's scarcity and utility. Also, the platform is planning to integrate BGB into off-chain payment scenarios.

How will automated portfolio management tools help traders?

For beginners, AI-powered automated portfolio management tools can improve decision-making. These tools can help with risk management and can analyze market conditions without letting emotions run high. They also ensure diversification and optimal asset allocation.

What are the advantages?

AI-powered algorithms can run simulations to assess portfolio risk under different market scenarios and they provide education on the rationale behind investment decisions.