3 SUPER Crypto Trading Tips to MINIMIZE RISK | Binance Margin Trading Tutorial

Have you ever wanted to learn how to Margin trade but found that it all seems Very overwhelming with all these signs And symbols and numbers everywhere if so Today's ultimate binance tutorial is for You we're going to go over all the major Topics related to margin trading but We're also going to go over the three Pro tips which will put you ahead of 99 Of all amateur traders because these are The three tips which professionals apply To their trading strategies at least Most of them and these are the three Tips which will help you minimize your Losses because of course margin trading Does involve much higher risk than spot Trading and also maximize your profits So stick around until the end of the Video to find out what those three pro Tips are [Music] Welcome to the channel my name is frank And this is altcoin buzz As a friendly reminder please be Informed that this is a volatile space And there is a corresponding risk in Cryptocurrency this video is informative In nature so please do not take it to be Official financial or investment advice Also be sure to check out the link in The description below to see more Information about our 600 Exclusive altcoin buzz offer here if you Sign up with finance today you get a

Whole bunch of unlockables as well as a 20 Lifetime trading fee discount and to top It off we have an extra trading Competition on binance so stick around Until the end of the video to find out More information about that trading Competition [Music] So these are all the topics we'll be Covering in the video feel free to skip To any of the chapters which interest You the most in the video these are the Topics that we will be covering so let's Start off with funding a margin account Well the first thing you want to do is Go over here to finance i'm assuming That you've already signed up for Binance and that you've deposited some Funds onto binance so to get to this Page you want to go to wallet and margin And this will give you your wallet Overview of your margin but it is also The dashboard for all the margin related Information which will be useful to you And then since you won't yet have any Funds click transfer From fiat and spot to cross margin you Can use any of the assets that you have On your account simply pick your asset From this drop down menu and then you Will have some funds on your cross Margin account now note that there are Two types of margin accounts there's

Cross 3x and isolated currently i have 100 on the cross 3x account and the Isolated account has only 10 dollars but I will tell you more about what the Difference is between cross 3x and Isolated later on now margin trading of Course means borrowing money from the Broker in this case finance is the Broker so when you have a trade active Or when you're borrowing funds you will See the total debt here in other words That's the amount of money that you owe Back to binance and your account equity Is equal to your balance minus the debt Okay That basically means all the money that You have after you've paid back your Debts and then of course the p l will Give you the profit and loss for today Or the past seven days or of all time so That can be quite useful and you can Even toggle it between bitcoin and Tether to see how much profit you've Made in both of those assets Now scrolling Now another interesting thing you can do On this page is to go to borrow repay on Bitcoin here and here you will see the Hourly interest rate so currently it's 0.000033750 But this number is different for Different assets so that's what it is For bitcoin let's go to a smaller cap Coin like eos and here you will see that

Actually is significantly larger so note That you will usually pay larger Interest rates when you're trading alt Coins especially lower cap alt coins Compared to the higher cap alt coins or Bitcoin okay so next we will go over 3x Cross margin versus 10x isolated margin So to access that go to trade above here And then click margin in the drop down Menu now as mentioned i already Transferred money into here you can also Transfer money into here over here using This option you don't actually have to Go to your dashboard to do it which is Quite handy i currently put 100 dollars Into the account and as you can see We're currently in normal mode so it Says cross 3x but we're in normal so What does this mean this means that i Can use almost a hundred dollars that's Basically what i have in the account to Buy bitcoin but if you want to actually Borrow money then you click borrow over Here and now you will note that the Maximum is almost 300 why because we Have 3x the Account balance available to us in other Words we can borrow an extra 200 To enter this trade and then we have a 300 trade a 300 position instead of a 100 position and let's say that we enter At this level and then the price goes up To 21 000 and we decide that we want to Sell well in that case we put in our 300

That we want to sell and we click repay Over here and this means that it will Repay our debt all right It's important to repay your debts Because otherwise of course you will be Paying interest on the money that you Borrow now the main difference between Cross and isolated is that on cross Margin you risk all the funds in your Margin account okay so if you have Multiple positions open on your account You can get your whole margin account Wiped out and that is why i personally Prefer to use isolated because it gives Me more control over the positions that I'm in by limiting the risk to other Positions and and if i do get liquidated Then i only get liquidated for one Position as opposed to multiple Positions at the same time and more Information about that is found here on The binance blog on the official binance Blog so in isolated margin mode the Margin is independent in each trading Pair okay so you have an independent Isolated margin account as in other Words it's not dependent on other Positions it has got nothing to do with Other positions It means that even if you have enough Assets in other isolated margins account Or in the cross margin account the Margin will not be added automatically And you may have to replenish manually

But as i mentioned before once you get Liquid if you get liquidated It will not affect other isolated Margins so you don't risk losing the Other positions that you had open now in Cross margin mode assets in a Cross-margin account are shared by all Positions and once liquidation happens All positions will be liquidated so note That this is the most important Distinction between margin and cross That margin uses all the positions as Collateral whereas isolated margin uses Only what's in that isolated margin Account for that trading pair okay so Let's enter an example trade to show you What it looks like currently we are in Cross 3x so if you click on any of these Bitcoin prices here you will see that it Shows automatically here for you which Is a quick pro tip there okay let's Enter an example trade here to show you What this looks like so here we're going To enter a short as a demonstration so You can see that if i'm in the normal Mode i actually can't short anything why Because when you short you by definition Are borrowing assets to be able to sell Them later so to short you have to click Borrow and when i click this you will See that the maximum is now an actual Number which is not zero so i am able to Short so let's just say i want to use 10 Of my accounts here to short bitcoin

That will be a total of 20 So i could wait patiently for the price To reach this level but for efficiency's Sake i will create a market order again I'm using 10 of the account balance We can see here that this means i will Be shorting 0.001 bitcoin so i'll go ahead and click Margin sell bitcoin over here and here Of course they remind us that the loans Bear interest once the order is Successfully placed filled or not this Means that if you create a limit order And it is not filled you will be paying Interest on that limit order so Something very important to note of Course with a market position it doesn't Matter because the order will be placed Immediately so i'll go ahead and confirm That And now You'll see that there is this Notification from binance Telling us about our accounts risk from The margin level and all of these things So if you don't have a stop loss in Place then all of this will be very Important but i personally always have a Stop loss in place so i don't risk Getting liquidated and then here of Course they're letting us know all the Information about open orders order History and trade history these are all Found down here so i'll explain these to

You right now so currently we have The order history which shows us that we Market sold bitcoin at twenty thousand Thirty one dollars for zero point zero Zero one bitcoin which was the Equivalent of about twenty dollars worth Of bitcoin and that the position was Filled and then if we go over to our Positions tab over here you can see that We have this bitcoin minus 0.001 And this is of course a debt that we Have so we could potentially repay this But of course if we repay this then we Will be taken out of the trade and this Figure above here this is 100 plus 20 in Other words the hundred dollars that we Had on the account plus the 20 that we Used that we borrowed to short bitcoin Okay next we will look at trade history So trade history shows us the Trade that we entered here this short It's actually almost identical to what You see in order history but the order History means that you've placed an Order and you have not necessarily Entered this trade but trade history Shows you the trades that you have Already entered and then finally funds Shows you how many funds you have on Your cross account and now coming back To our margin trading dashboard we can See that our total debt is twenty Dollars remember we shorted bitcoin for Twenty dollars worth our total balance

Has now gone up by twenty dollars but That's not because we transferred more Money to the account that's because we Shorted twenty dollars worth of bitcoin So of course our account equity is still The hundred dollars that we put into the Account at the beginning and the risk is Currently low risk but of course if we Get to a level of 1.3 then you will see that it will send Us a liquidation warning notification so That's obviously not something that we Want and that is why we are going to of Course Enter a stop loss so for that we will go Ahead to the buy section here and let's Just say that if the price goes above 2 200 then we want to close the position Well in that case we go to a stop limit Order click on that and the stop will be The price of 20 200. and the limit will just be a price Well above that to ensure that our trade Gets filled so what this means is that We will have our trade be filled Anywhere between twenty thousand two Hundred and twenty thousand four hundred But of course it's going to be much Closer to 20 200 and then the amount Will be 0.001 Bitcoin because that is how much we Shorted and then we will click repay Right because we want to repay our debt When we are closing this trade and now

I'll go ahead and click that and again It will give us this order confirmation Everything looks fine over here Confirm and now you can see that we have An open order to buy 0.001 bitcoin if the price goes over 20 200 up to a price up to a maximum price Of 20 400 So the next topic is borrow and repay so What does this mean as we already talked About in the example if you want to Borrow money to enter a position which Is larger than the amount that you have On the account then you can borrow money And when you close that position in Other words if we enter along here we Want to close that position then we Repay when we sell over here and then it Will Cancel out our debt and of course don't Forget you can always see how big your Debt is on the margin dashboard over Here okay next is the margin trading Calculator so this is useful if you want To make calculations about your Potential profit and loss so for the Sake of this example let's assume that We're entering at a price of twenty Thousand dollars and we're exiting at a Price of twenty two thousand dollars And let's say we are have an original Amount in other words what we have on The account is one hundred dollars but We are borrowing

Nine hundred dollars and we are using Cross margin margin by calculate Here you can see that we will have a Profit of 100 And a return on investment of plus 100 So what does this mean this means that Although you only had 100 on the account Your return on investment was plus 100 Because you borrowed 900 so this is the P l so you can calculate the potential Profit that you will make given how much You're borrowing now when it comes to Target price Here you can see what your target price Is if you know what percentage profit That you want so let's say you want to Have at least three percent profit on This trade and again let's say you have 100 on the account and you're borrowing 900 Then if you click calculate here it will Calculate a price of 20 091 dollars so you will notice that 20 091 dollars is not even close to 3 above Our entry price and why is that that's Because we're borrowing the majority of The funds for this trade all right if You borrow just one dollar and calculate Then you will see that the Three percent is more or less accurate With twenty thousand and thirty one Dollars plus three percent is Approximately twenty thousand six Hundred and twenty six but if you borrow

Nine hundred then you only need to reach This price to generate three percent Return on investment and then finally if You go ahead to liquidation price here You can calculate at what price you will Be liquidated given how much you're Borrowing so let's assume that we want To short one bitcoin and we have 20 000 On the account so if we calculate that You can see that the liquidation price Is extremely small bitcoin would have to Reach 64. 64.37 For our position to be liquidated why is This it's because we have almost the Exact amount as collateral on the Account but of course most of the time You'll have a much smaller amount as Collateral so let's say we have two Thousand five hundred dollars on the Account instead of one hundred dollars Here you can see the borrow amount is Seventeen and a half thousand if you Click calculate you will see that here We will be liquidated if the price falls Below 19 314 so much closer to the original price So we can margin buy at this price but If we get to this level the whole Position will be liquidated that being Said you really want to aim to never Ever get liquidated because when you get Liquidated you pay an extra fee for Being liquidated and of course it's not

Comfortable being liquidated so it's Really much much better to always have a Stop loss in place okay so we've covered The margin trading calculator and Finally i will go over using the Technical indicators so Technical indicators for that go over to The trading view option over here before We were in the original trading view is The more advanced more professional Chart viewing platform and here go over To technical indicator and here you can Enter any technical indicator you want You have a very very wide range if i'm Not mistaken the same range of Indicators that you had on Tradingview.com Apart from maybe some of the pro Features on tradingview.com but Basically you have everything that you Could want here And also i find this very handy that Here you can see open or if you click Open orders here here you will see the Open order is 0.001 Bitcoin In other words that is my stop loss Which we entered before and you can see At which price that will get triggered So you can see that currently the price Is at 2 20 087 and if we reach that Level this order will get Activated and you can also cancel this Order by pressing the x over here then

We have order history this is probably Less interesting but this will tell you The history of orders which you have Over the past six months and then over Here you can use different Types of candles i personally like the Classic candles but some people like to Use hiking ashy the japanese style Candles and then of course you can take A snapshot this will just take a picture Of your trading account And finally on this row you can also Compare bitcoin to for example etherusdt And then you will see a comparison of These two charts and of course here you Need to Edit it if you want to get the right Color this is the purple one represents The ethersdt so you can go to style here And maybe you want it to be a step line Instead of a normal line but basically You can compare bitcoin to ethereum Using this compare Feature so i'm just going to get rid of That by going over here and clicking the X and then of course on this trading View you can also check out different Time frames like the 15 minute one hour Four hour one day and one week time Frame and you can even select much Smaller time frames and higher time Frames by clicking this drop down menu Over here okay now finally the three pro Tips so these three pro tips

Are number one have a stop loss okay i Can't emphasize this enough people are Always talking about getting liquidated And why margin trading is risky because You can get liquidated i think it's Ridiculous because if you have a stop Loss in place you will never get Liquidated you only get liquidated if You don't have a plan if you don't have A stop loss in place for every trade That is why when we entered this trade We had a stop loss immediately after so I can go about my day and i never have To worry about this trade getting Liquidated okay that's number one number Two Is to create and fill out a trading Document okay so a basic just a very Basic trading document could look like This where you have the trade number Your trading pair how much you're Risking on each trade your reasons for Entering the trade this is very very Important because you want to have Several reasons for entering every trade You can enter your targets here for that Trade i just entered a trade recently Here on ethereum where i have several Targets And then you can have your total Bankroll here And you can calculate that two percent Of that bankroll is thirty dollars and Why is this very important i'll tell you

In just a second why this two percent is Very very important but finally yeah you Can calculate your profit and loss for Each trade and thoughts or lessons Learned this is what the professionals Do all right if you want to learn to Trade like a professional you have to Put in the work you have to understand Why you're entering a trade you have to Understand why a trade didn't work out And you have to learn from your mistakes Now finally the third pro tip is never Risk more than Two percent of your Trading bankroll Now i can't emphasize this enough i used To be a professional poker player and This exact same principle applied never Risk more than a very very small Percentage of your entire role on every Trade that you make because that is Exactly the way that you get discouraged And demotivated and disillusioned by Trading is by losing more than you're Comfortable losing and not having a plan For how much you're willing to lose on Each trade again that brings us back to The stop loss know how much you're going To lose on that trade and Be very disciplined about ensuring that You have a stop loss in place every time All right that's been it from me for Today i hope you learned something i Hope you will remember these three pro

Tips because really i do believe that You will be ahead of 99 of amateur Traders if you apply these three pro Tips and don't forget that we have an Exclusive offer with finance up to 600 Dollars to be won And we also have a trading competition a New trading competition which makes this Deal even sweeter we have up to one Thousand dollars which can be earned on That trading competition And it's valid for all people who trade Between the 14th and 18th of september All of you will be eligible for winning Some of this 1 000 so feel free to check Out our link down in the description Below for more information about that And if you enjoyed this video feel free To subscribe to our channel or check out Other videos on our channel from matt And natalie we post about Crypto news Technical analysis on chain analysis and More so feel free to check out those Videos and with that being said I'll see you in the next one [Music] You