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How to invest in Bitcoin with leverage?


With the great rise that we are witnessing in the crypto market, more and more people are interested in knowing how to invest in Bitcoin (BTC).

However, at today’s high price of Bitcoin, it may be unremarkable for some to buy coins on the spot market. But there is nothing to worry about, this has a solution, and we show it to you below.

How to invest in Bitcoin using leverage

For a beginner investor it may seem that investing $ 100 in Bitcoin is really little due to the high price of the asset, and although it is partly true, the important thing is to take the first step, and start adding money periodically.

But if what you want is to start taking advantage of the fluctuations of Bitcoin, no matter how small, then the leverage is what you need to use.

This tool is a service offered by brokers, with which they allow you to increase your purchasing power.

For example, if you deposit the same $ 100 in a broker, and it allows you a leverage of up to 5x or 1: 5, you will have the ability to open operations that require an initial capital of $ 500.

In this way, while with a purchase of $ 100 in Bitcoin you would earn $ 10 with a price increase of 10%, with the same capital, but using 5x leverage you would earn $ 50 with the same increase of 10%.

Interesting, right? Undoubtedly.

But since not everything is pink, using this tool also has an intrinsic risk, and it is the possibility that all your capital is lost in a shorter time.

Just as with the example you win $ 50 with a rise of 10%, it means that in a fall of 20% you lose your capital of $ 100.

However, this can be avoided, and it is by using the risk management tool known as: stop loss.

If you are interested in knowing exactly how to invest in Bitcoin with 5x leverage, then I will explain it to you with a detailed tutorial.

Buy Bitcoin with leverage on XTB

The first thing we need is a broker, being one of the most reliable XTB, which we will be using to exemplify how to buy BTC with leverage.

To get started, you need to register and create a demo account or a real one.

In the case of being a real account, you will have to perform a quick data verification procedure.

Later, you can choose whether to use XTB’s own Metatrader trading platform, called XStation 5, available in both desktop and mobile versions.

In this tutorial we use the desktop version of XStation 5, let’s get started …

Asset selection

On the main screen of XStation 5 we will find a window on the left, with a list of all the assets available in XTB, organized into sections depending on the market to which they belong.

Using the search bar you can more easily find the asset you want to trade.

In this case, with placing Bitcoin, the specific derivative contract appears, and some pairs against BTC.

Choice of Bitcoin (BTC) with leverage. Source: XStation 5
Choice of Bitcoin (BTC) with leverage. Source: XStation 5

We choose the option BITCOIN, and it will immediately be selected in the lower list. There we click on the button Open chart, an icon identified with Japanese candles.

Open Bitcoin (BTC) chart. Source: XStation 5
Open Bitcoin (BTC) chart. Source: XStation 5

Although this step can be skipped, and make the purchase or sale directly on the buttons that appear in the same list, it is preferable to do it on the graph, and it is as we show below.

Setting stop loss and take profit parameters

In Spanish, stop loss and take profit, they are probably the best friends of an investor.

Used to set prices, both for exits with losses and thus manage risk with precision, as well as to exit with profits exactly where you want without having to watch the screen.

When we take advantage of the leverage to obtain faster profits, knowing how to use the stop loss is of vital importance, since you can put only a fraction of your capital at risk.

At the top left of the Charts window, there is the button SL / TP.

By clicking on it, a small menu is displayed where you can modify the number of points for the stop loss order to be executed, and how many for the take profit to be executed. From here it is modified before the order is opened.

SL / TP button to use Bitcoin (BTC) with leverage. Source: XStation 5
SL / TP button to use Bitcoin (BTC) with leverage. Source: XStation 5
SL / TP button menu
SL / TP button menu

Measure distance in pips to set SL and TP

To know how many pips you want to put at risk, and how many you want to take as profits, you must use the tool cross, available in the toolbar located on the left side of the Graphics window.

Tool "Cross"
Tool “Cross”

When selecting it, go with it to the chart and keep the click pressed from where the price is, to the place where you want to place either the stop loss or the take profit.

When you do, a data window is displayed, which indicates the amount of pips there is between the current price, and where we want the order to close.

In the example below the exit point is the stop loss, in this case it is approximately 90,000 pips.

Example of using the Cross tool
Example of using the Cross tool

We insert the data in the displayed menu of the SL / TP button, and we can now execute the order.

Modification of SL / TP parameters
Modification of SL / TP parameters

Opening of the order

At the top left of the window Graphics, there are the buy (green color) and sale (red color) buttons.

In the middle of both is the size o lotage of the operation you are going to open. 1 lot is equal to 1 Bitcoin.

Bitcoin buy and sell buttons with leverage
Bitcoin buy and sell buttons with leverage

Once the operation is open, you will be able to see how the parameters appear above the graph.

How to invest in Bitcoin with leverage
How to invest in Bitcoin with leverage

When the operation is already open, the easiest way to modify the parameters is to release the tool cross, and click the parameter and drag it to the place you want.

Modifying parameters in the Graphics window
Modifying parameters in the window Graphics

And those were all the steps in this tutorial on how to invest in Bitcoin (BTC) using leverage.

If you liked it and think that others can benefit from this information, do not hesitate to share it on your social networks.

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