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I bought 1500 XRP back when it was around $0.20 each; since then I've been margin trading it against Bitcoin. This has allowed me to trade, but consistently hodl my XRPs, using them as collateral instead of actually selling them. I now have nearly 30,000 XRP, acting as collateral for 60,000 XRP margined against Bitcoin. I zigged when I should have zagged this time, though, and i've been stuck for weeks. . . I made my margin buy at 0.00007666 BC per XRP, and at the moment the Bitcoin price of XRP is only 0.00007114. Is anyone else using this strategy of hodling XRP but building up the hodl by using them as collateral for margin trading?
I was so tempted being the most ardent follower of xrp into the future, sure why not use leverage to buy more xrp. wrongo. unless you are an experienced day trader who deeply understands the other players in the system and how they operate, then stay the hell away from margin. crypto markets are the most transparent in the world and you are going to bat against the fastest best big league pitchers in the business when you go to the margin side of things. Do not do it it is not worth losing your seat on the spaceship just because you wanted a seat two rows up. stay put. hodl.
Margin allows you to control a higher buying power with the same asset value. Certain Assets are non marginable and others are. Some exchanges allow for margin and other do not. This topic is to discuss margin and any questions to go along with it such as Pros and Cons or advice.