In our latest Learn 101 livestream session, crypto experts shared insights on the shifting dynamics of the stablecoin ecosystem.

 are making a comeback, but this time, the competition is heating up. While 

 continues to dominate the market, a new wave of 

 is emerging, each with its own proposition. From institutional-backed tokens to 

, the race is on to determine which stablecoin will take the lead. What sets these newcomers apart — and could any of them realistically challenge USDT’s throne?

, we tackle the big question: Newcomers vs. USDT: Who Will Win?

, provides a recap of our Learn 101 livestreams, offering you comprehensive expertise and insights from leading figures in the crypto industry in case you miss the livestream.

Joining the livestream on Apr 24, 2025, were two distinguished guests: Paz Gonzalez, trader and founder of 

magazine, and Jip Molenaar, full-time trader and co-founder of Tribe Capital. Under the moderation of Sabrina Chua, Crypto Evangelist and Senior Content Strategist at Bybit, this episode takes a deep dive into the shifting dynamics of the stablecoin ecosystem.

Why the world is suddenly crazy about stablecoins

Stablecoins are once again making headlines — but what’s driving this renewed momentum? Several key developments have pushed stablecoins into the mainstream conversation, including Donald Trump’s recent proposal for a 

. According to Paz Gonzalez, these announcements signal a broader shift tied to the weakening influence of the US dollar. In times like these, stablecoins could gain mass adoption, giving governments a way to reassert monetary control through a digital proxy.

Jip Molenaar agrees with Gonzalez, adding that Bitcoin is unlikely to become the world’s primary currency, despite what many once believed. Instead, Molenaar sees Bitcoin’s future role as that of a store of value — 

 — while stablecoins will take on the role of everyday money, used for payments, bill settlements and daily transactions. 

, Molenaar argues, has helped bring digital assets into the political mainstream, making the concept of crypto usage more palatable to the general public than ever before.

Molenaar also shares his personal experience transitioning from euros to USDT, a process he describes as challenging and significant. Living in Europe, switching to a US dollar–pegged stablecoin wasn’t easy — and that’s precisely why he believes most users won’t readily jump to new alternatives. For many, USDT and 

Paz sees Fidelity’s entry into stablecoins as a bullish signal for the industry. As a well-established and trusted financial institution, Fidelity’s involvement could sway skeptics who have traditionally avoided crypto. Its participation brings credibility — and potentially, a new wave of adoption.

He also emphasizes that the legitimacy of any currency, fiat or crypto, depends upon being backed by a clear source of value. Historically, 

. For stablecoins to earn that trust, the same principle applies — they must be transparently backed. Today, more investors recognize that leading stablecoins are supported by reserves, and are subject to increasing regulatory oversight.

However, despite this progress, Molenaar remains cautious. He warns that another event like the 

 is still possible if stablecoins aren’t properly backed and transparently managed. Without clear support mechanisms, he believes trust will erode — and widespread adoption will stall.

USDT currently holds the largest market share among all stablecoins and is the most actively traded. Molenaar attributes this dominance to the convenience and wide acceptance of USDT across trading platforms. He points out that the infrastructure for USDT is already deeply entrenched in the crypto ecosystem, making it far easier to execute trades and move funds. Because of this strong foundation, he believes it will be extremely difficult for any competing stablecoin to unseat USDT.

Gonzalez agrees: while she personally holds some USDC, she says that when people ask her to send a stablecoin, it’s almost always USDT. Even though USDC has made efforts to challenge USDT’s dominance, Gonzalez doesn’t see that happening anytime soon — if ever. She also underscores the fact that stablecoins like USDT aren't meant to be investments in the way Bitcoin or altcoins are. Instead, they serve more practical purposes, facilitating transactions and providing stable on-chain alternatives to fiat.

Molenaar adds that older generations, particularly baby boomers, tend to wait until new markets are validated by trusted institutions before getting involved. With firms like Fidelity now backing crypto through 

 (ETFs) and exploring stablecoin adoption, that validation is underway. Because Fidelity has integrated USDT into its ecosystem, Molenaar believes that conservative investors will naturally gravitate toward it over less familiar alternatives.

Gonzalez also shares her approach to risk management. Rather than going all-in on one asset, she diversifies and experiments cautiously — allocating small amounts to new opportunities. 

, for example, is one method she uses to generate passive income while testing out new protocols or tokens.

When it comes to adoption, Gonzalez sees real-world use cases driving interest in stablecoins. She mentions the new Wyoming stablecoin, which offers local taxpayers a slight reduction on their annual tax bills. While its benefits may currently apply to a small group, she believes this kind of practical utility is crucial. To achieve broader adoption, stablecoins — including smaller, emerging ones — need meaningful use cases tied to local economies. 

Still, for global accessibility and widespread usage, she maintains that a well-established option such as USDT is essential.

Stablecoins and trading — what really matters to traders

Molenaar is all-in on USDT, choosing to avoid the risks that come with lesser-known stablecoins. For him, USDT offers the highest liquidity and the lowest risk, due to its widespread adoption. While he's open to switching if a new, dominant stablecoin emerges, he’s not willing to gamble on smaller or less established options at this time.

Gonzalez adds an important perspective: stablecoins don’t just enable transactions — they also reflect the health and movement of the broader crypto market. Since stablecoins support liquidity within cryptocurrency networks, their flows can signal shifts in underlying asset trends. Traders are beginning to pay more attention to this relationship.

While most stablecoins are backed by USD, some stablecoin creators are now exploring alternative pegs, such as gold. But for Gonzalez, the backing isn't the main concern: usability is. She prioritizes the ease with which a stablecoin can be used for trading. In her view, investors today care more about functionality and integration with platforms than the specific assets backing the coin. 

Molenaar agrees, adding that ease of use often comes down to habit — knowing the ins and outs of how to trade with a particular coin saves time and effort. He also points out that staking stablecoins typically yields higher returns than do traditional bank savings accounts. That’s one reason he keeps minimal funds in banks — in addition to his distrust of the traditional banking system. He prefers to let his funds work for him through stablecoin staking.

Gonzalez also sticks with USDT because of its simplicity and reliability. She takes a cautious, thoughtful approach to her finances, due to her awareness of how hard she works to earn her money. When trading with USDT, she invests time in researching opportunities. Therefore, she believes that having a deep understanding of stablecoins is crucial in order to make smart financial decisions.

Both Molenaar and Gonzalez highlight the importance of using a trusted platform when holding and trading stablecoins. Molenaar uses Bybit because he feels confident his funds are secure there, and Gonzalez echoes this sentiment — rather than spreading her assets across multiple exchanges, she sticks with Bybit for its reliability and trustworthiness.

This episode of Learn 101 offers a thought-provoking look at the battle between emerging stablecoins and the reigning stablecoin leader, USDT. While newer stablecoins may bring niche advantages and localized utility, USDT’s deep liquidity, global reach and entrenched usage continue to give it a clear edge. For now, USDT remains the go-to choice. But as the ecosystem continues to evolve, the race is far from over.

Intermediate

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Learn Live ICYMI: Can the upcoming stablecoins beat USDT?

Bybit Megadrop is a token launch platform that lets users earn free airdrops by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

The crypto world never sleeps — and neither do opportunities to earn. One of the most exciting ways to get in early on promising projects is through token launches, whereby new cryptocurrencies are introduced to the market. Traditionally, early participation comes with barriers: you might need to stake, trade heavily or rely on luck in oversubscribed launchpads.

Bybit Megadrop changes the game by offering a more rewarding and accessible way to earn free tokens before they hit the market — all while growing your savings.

In this article, we’ll explain what Bybit Megadrop is, how it works, the benefits of joining, how to participate and whether it’s the right fit for your crypto strategy.

 is a token launch platform that lets users earn free 

 by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

This new platform integrates Bybit Earn with early-stage 

 projects, giving users exclusive access to rewards before tokens go live on the Bybit Spot market. Think of it as a smarter, more educational and risk-free way to “airdrop farm” — but with real structure and substance.

Bybit Megadrop combines savings, learning and rewards into a unified experience. Here's how the flow works.

1. Subscribe to a Fixed-Term Bybit Savings plan

To participate, users must first subscribe to a Fixed-Term Bybit Savings plan using eligible tokens specified on the event page. These tokens could include MNT, USDT, USDC or BBSOL. This isn't just a gateway to Megadrop — it's also a way to grow your holdings. While your funds are locked for a fixed period, you earn interest through Bybit Earn.

This subscription acts as your entry ticket to Megadrop.

Once you’ve subscribed, you’re entitled to a portion of the airdrop rewards from the featured token’s project. These airdrops are typically distributed before the token is publicly listed on Bybit, giving you early exposure and the potential for upside if the token gains traction post-listing.

The amount of airdrop you receive depends upon your subscription amount, the total amount subscribed by all participants and whether you complete additional side tasks.

Please note that you will need to claim your airdrop rewards manually once the event ends.

3. Complete side tasks for bonus airdrops

To boost your airdrop share, you can complete optional side tasks. These tasks are simple, and are meant to educate users about the project and keep them engaged on the Bybit platform. Examples include:

Completing more tasks will grant you more points, which essentially results in a larger share of the token airdrop pool.

Bybit Megadrop isn’t just another airdrop campaign — it’s a win-win experience for users looking to maximize value with minimal risk.

The best thing about Bybit Megadrop is that when you subscribe to a Fixed-Term Bybit Savings plan, you don’t just earn the plan's regular APR — you also get free airdrop tokens. It's passive income layered with passive rewards.

Taking part in Bybit Megadrop will enable you to obtain tokens before they hit the Spot market, which could offer potential upside if the token rallies post-listing.

The barrier to entry is low, and there’s no need to buy or stake new tokens. You simply use what you already have in savings, and get rewarded on top of your fixed return — with no strings attached.

Looking to upsize your earnings? Simply complete more side tasks to earn more points. This way, you’ll be able to increase your chance of getting more tokens airdropped to your account.

Now that you have a better understanding of what Bybit Megadrop is, let’s explore how you can get started. If you don’t already have a Bybit account, you’ll need to create one. You can also check out our 

: Log in to your Bybit account and hover your cursor over the 

Select the event you would like to participate in. You will then need to subscribe to a Fixed-Term Savings plan on Bybit Earn to accumulate points. The eligible plans will be listed under the corresponding project on the Megadrop page. 

You may also complete tasks with point multipliers to earn points faster.

Once the event ends, the airdrop you receive will be based on your share of points earned in each pool.

Bybit Megadrop is designed for all types of crypto users, from beginners to veterans, and offers a compelling, low-risk way to access new token launches.

If you're someone who’s already using Bybit Earn, then Bybit Megadrop is a natural next step. It enhances the value of your fixed-term savings by layering on free token airdrops from promising web3 projects. You get to earn both APR and tokens, without having to take on additional investment risk.

Even if you’re new to Bybit, Megadrop makes participating in token launches easier and more rewarding. There’s no need to buy new or volatile assets — just deposit what you already have into a Fixed-Term Savings plan. That’s it — and you’re now eligible for airdrops.

For users who enjoy completing tasks or learning about new projects, the optional side missions are a fun way to earn additional tokens while becoming more familiar with the web3 ecosystem. If you're a retail user looking to stretch your capital, these tasks give you a chance to unlock a much larger share of rewards.

In short, if you're looking for a safe, flexible and engaging way to access new tokens early (without spending more or risking your funds), then you’ll absolutely want to consider joining Bybit Megadrop.

Bybit Megadrop combines the best of both worlds: steady earnings from savings and exciting token rewards from new projects. It’s a win for long-term holders, risk-averse users and web3 explorers alike.

Ready to try it? Subscribe, complete a few tasks and claim your share of the next big token — before anyone else!

Beginner

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Bybit Megadrop: A smarter way to earn airdrops from new tokens

Tezos’ Rio upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). 

The S&P 500 futures rose after news of US-China trade talks, rebounding from Tuesday’s 0.77% decline as investors await the Fed’s rate decision and Powell’s guidance. Gold climbed above $3,400, buoyed by a weaker US dollar and risk-off sentiment, and is technically bullish with momentum targeting a retest of the $3,500 record high ahead of the Fed’s policy decision. The Coindesk Indices, which tracks the broader crypto market, rose 1.64%, with Bitcoin up 0.69% and Ether down 1.87%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is KAITO, which surged 39.2% after Kaito AI announced $71M in distributed rewards and unveiled upcoming products.

Kaito (KAITO), founded in 2022, is a $1,099/month AI-powered crypto search engine that aggregates data from web3 sources like Twitter, Discord, and forums, using advanced AI to deliver context-rich, sentiment-filtered insights. Kaito AI has 

 over $71M in rewards to users within 5 months of launching Yaps, excluding the upcoming $KAITO airdrop, with more products like Kaito Earn, Connect v2, and Capital Launchpad on the way.

Check out the latest prices, charts, and data of 

 upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). It reduces staking cycle times from 3 days to 1, tightens baker inactivity rules for better network resili`ence, and strengthens Tezos’ position for L2 scalability and user experience improvements.

Yesterday, BTC spot ETFs saw total outflows of $122.4M, with $89.9M from GBTC and $32.5M from non-GBTC funds.

, a decentralized bandwidth marketplace, launched its node for users to earn points and qualify for a future airdrop by sharing unused internet. Users can run a free node, earn 1 point every 10 minutes, and boost earnings via quests and referral codes.

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Tezos Rio upgrade boosts staking speed and L2 incentives with improved network resilience

In this article, we’ll look into Bybit Pay, how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a next-generation payment solution that enables users to send and receive crypto or fiat with just a few taps via QR code or internal transfer. Whether you're settling bills, splitting payments with friends or running a global business, Bybit Pay simplifies cross-border transactions within a secure and intuitive environment.

In this article, we’ll walk you through Bybit Pay, show you how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a powerful payment service designed to connect your crypto wallet to real-world financial needs. Whether you're sending money to friends or making payments to merchants, Bybit Pay allows seamless transactions conducted in both crypto and fiat — all from within the Bybit platform.

Its mission is to bridge the gap between digital assets and traditional finance by enabling users to spend their crypto effortlessly, just like they do with cash. With support for currencies like BTC, ETH and USDT (and even fiat such as BRL), Bybit Pay turns your crypto into a practical tool for everyday payments.

Bybit Pay makes it easier than ever to use your crypto. Whether you're paying online, transferring funds to a friend or scanning a QR code in-store, Bybit Pay supports seamless payments in both crypto and fiat funds.

Bybit Pay simplifies spending both locally and globally.

Bybit Pay operates through two main methods: QR code payments and internal transfers. Users can scan a QR code to pay merchants or friends, or send funds directly using a phone number, email or Bybit UID. It supports both crypto and fiat, with seamless access via the Bybit app or website.

: While the Bybit Card functions like a debit card for in-store purchases, Bybit Pay enables direct wallet-to-wallet transfers and merchant payments, without any need for physical hardware. It’s faster, flexible and perfect for global digital transactions.

How to send crypto and fiat with Bybit Pay

Bybit Pay makes it easy to send crypto or fiat to other users or merchants. You can pay by scanning a QR code, or via internal transfer using a phone number, email or UID.

2. Choose your payment method, and enter the recipient’s email, phone number or Bybit UID.

Enter the amount you wish to send. Tap on the 

 to convert from fiat to crypto, if needed. Add a note (optional), avoiding special characters.

5. Review the details, and confirm your payment after completing two-factor authentication (2FA).

Once your funds are sent, your payment history is viewable at the bottom of the Bybit Pay screen or by tapping on the 

Bybit Pay makes sending crypto as easy as sending a message.

How to receive crypto and fiat on Bybit Pay

Receiving payments on Bybit Pay is simple and flexible. Users can receive crypto or fiat via either internal transfer or QR code, depending upon the sender’s preference.

The sender can use any of these details to transfer funds directly from their Bybit Pay interface.

Bybit Pay makes receiving crypto fast, flexible and borderless. The following is a step-by-step guide for requesting a payment using a personalized QR code — right from the Bybit app.

. This opens your personalized payment interface.

 to enter a fiat amount, and the amount will automatically convert to crypto.

: Your QR code updates in real time in order to reflect the specified details. Simply show it on-screen or use the 

: After the sender has completed the transfer, go to 

 to confirm receipt and track incoming funds.

Bybit Pay bridges crypto and traditional finance, offering seamless, secure and instant payments — all from one place. Whether you're sending or receiving crypto, or spending it globally, it’s never been easier to do. 

 today to experience secure, borderless crypto and fiat payments — right from your app or browser.

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How to send and receive payment using Bybit Pay

Trading

Explainers

Are you new to crypto derivatives trading? Not sure how you can use leverage to your advantage? Or how to avoid the nasty shock of being liquidated at

Do you dream of amplifying your profits in the world of 

 trading? What is margin trading, you may ask? Margin trading may be your answer! But beware, as it comes with its share of risks. In this comprehensive guide, we’ll explore the ins and outs of margin trading to help you navigate the world of leverage in crypto trading.

Margin trading is an alluring yet perilous strategy that allows investors to leverage their capital to potentially magnify gains and losses. In finance, margin is the collateral that a trader must provide to their broker or exchange. It serves as a cover for credit risk created by the holder for the broker or exchange. Margin trading in traditional financial markets and cryptocurrency markets like 

 margin trading involves borrowing funds to speculate on price movements, thus increasing the potential for both profits and losses.

Grasping the concept of margin trading entails familiarizing oneself with two significant ideas: margin accounts and leverage. Margin accounts are specialized brokerage accounts that enable investors to borrow money for trading, using their own funds as collateral. 

, on the other hand, is the ratio of borrowed funds to an investor’s own capital, allowing for increased exposure to market movements and potentially higher returns.

Margin trading allows investors to tap into the power of leverage, which can amplify returns when market movements are in their favor. However, it is essential to remember that margin trading also comes with the risk of magnified losses in a highly volatile market. Thus, gaining insight into the mechanics and risks of margin trading accounts is key for successful navigation in the realm of margin trading.

Leverage is the key to unlocking the potential of margin trading, as it enables investors to control larger positions than they could with their own capital alone. In leveraged trading, also known as margin trading, leverage is calculated as a ratio or multiple, such as 30:1, which signifies that for every unit of available margin, one can trade positions that are 30 times larger. By using leverage, traders can open positions that exceed the size of their cash balance, amplifying potential gains and enabling higher returns on their investments.

However, leveraging also carries inherent risks. In the case of cryptocurrency trading, for example, a leverage ratio of 100:1 would necessitate a small collateral of just 1% of the position size. While this may seem enticing, it also means that if the market moves against the investor, they could be exposed to significant losses. Hence, comprehending the notion of leverage and its potential fallout is indispensable for margin traders maneuvering through the unstable landscape of crypto trading.

Mastering margin trading involves getting well-versed with its fundamental aspects: initial margin, maintenance margin, and margin calls. The initial margin is the percentage of the purchase price that must be paid with cash when utilizing a margin account. This fundamental component determines the amount of leverage and risk associated with a trade.

Maintenance margin, on the other hand, is the minimum amount of equity that must be maintained in the margin account after the purchase has been executed. Margin calls are another vital aspect of margin trading. They occur when a broker or exchange requests an investor to provide additional funds or securities to their margin account. If the investor fails to meet the margin call, the broker or exchange may be forced to liquidate the investor’s position to cover the margin call.

Grasping these fundamental elements is paramount for efficient maneuvering through the realm of margin trading and controlling the accompanying risks.

The initial margin is the minimum amount of collateral required to open a leveraged position in margin trading. When a stock is sold in a margin account, the proceeds are applied to the broker in repayment of the margin loan until it is completely settled. It is permissible to borrow less than 50% of the purchase price in a margin account, and the customary initial margin requirement for most brokerages is 50%.

Comprehending the function of the initial margin in margin trading is vital, as it impacts the degree of leverage and risk related to a trade. By carefully considering the initial margin requirement, investors can better manage the risks involved and make informed decisions when entering into leveraged positions.

The maintenance margin is the minimum account balance needed to keep a leveraged position open, preventing excessive losses. It can be calculated using the formula: Margin Account Value multiplied by Maintenance Margin %. The purpose of the maintenance margin is to prevent a margin call by ensuring that the equity in the account does not decline below the maintenance margin requirement.

Should the maintenance margin level not be maintained, a margin call may be issued, requiring the trader to deposit additional funds or sell securities to restore the account to the obligatory maintenance margin level. If neglected, the broker may liquidate the trader’s positions to cover the margin deficit.

Keeping a close watch and sustaining the maintenance margin is crucial for successful margin trading and mitigating the associated risks.

Margin calls are notifications informing the trader that their margin trading account is deficient in funds and the 

 is in danger of being liquidated. Investors are apprehensive about margin calls due to the potential for them to compel the sale of positions at unfavorable prices. If an investor fails to satisfy a margin call, the brokerage firm can liquidate any open positions to restore the account to the minimum value, and the investor is accountable for any losses incurred during this procedure.

Forced liquidation is the compulsory sale of the investor’s security (the funds supplied for margin) to compensate for the loss. The liquidation price is the point at which a position is subject to liquidation and collateral is utilized to reduce losses. Comprehending the ramifications of margin calls and forced liquidation is essential for risk management and making educated decisions in margin trading.

Advantages and Disadvantages of Margin Trading

Margin trading can be a double-edged sword, offering both advantages and disadvantages to investors. On the one hand, margin trading can provide potential benefits such as increased buying power, higher returns, and the ability to short assets. On the other hand, it comes with inherent risks, including amplified losses, interest and fees, and the possibility of forced liquidation. The suitability of margin trading for an investor ultimately depends on their risk tolerance and trading strategy.

While spot trading may be more appropriate for those just starting out and seeking lower-risk investments, margin trading could be a viable option for more experienced traders willing to take on greater risk. Through meticulous evaluation of the advantages and disadvantages of margin trading, investors can make educated choices on whether this trading tactic aligns with their investment objectives and risk tolerance.

Margin trading offers several advantages, including:

Another advantage of margin trading is the ability to short assets, which involves selling an asset the trader does not own in anticipation of a decrease in price. This allows the trader to profit from the decline in price, adding another layer of diversification and potential profit to their trading strategy.

While margin trading can offer substantial benefits, it is not without its drawbacks. One of the principal disadvantages of margin trading is the potential for amplified losses. As investors are borrowing money to trade, a loss in value of their investments could result in larger losses than their initial investment. Moreover, margin trading incurs interest and fees, such as interest on the borrowed funds and service fees from the brokerage.

Another drawback of margin trading is the risk of forced liquidation, which occurs when an investor is unable to meet their margin requirements. In such cases, the broker may be forced to sell the investor’s assets to cover the margin shortfall, potentially resulting in significant losses. It is imperative for investors to fully comprehend the risks involved in margin trading and to employ suitable risk management strategies to minimize possible losses.

Margin trading has gained popularity in the world of cryptocurrency, as it allows traders to capitalize on the highly volatile market movements and price fluctuations of digital assets like Bitcoin and Ethereum. Crypto margin trading can be highly rewarding for those who are well-versed in the risks associated with it and are willing to take on the higher level of risk for potentially larger gains.

Nonetheless, investors must grasp that the risks associated with crypto margin trading can be considerable, given the market’s high volatility and potential for massive losses. To navigate the world of crypto margin trading successfully, investors must implement effective risk management strategies, such as setting stop-loss orders, diversifying their portfolio, and monitoring margin levels.

To participate in crypto margin trading, investors can turn to popular platforms such as Bybit. It offer various leverage options, allowing traders to choose the level of risk they are comfortable with. Additionally, they provide risk management tools to help traders manage their positions effectively and minimize potential losses.

When opting for a crypto margin trading platform, investors should take into account aspects like:

By choosing a reputable platform with a range of risk management tools, investors can increase their chances of success in the highly volatile world of cryptocurrency margin trading.

Long vs. Short Positions in Crypto Margin Trading

In crypto margin trading, investors can take long or short positions in order to bet on the direction of cryptocurrency prices. A 

 is taken when an investor believes the price of a cryptocurrency will rise, while a short position is taken when the investor believes the price will fall. By utilizing margin trading, investors can magnify their potential profits (or losses) from these price movements.

Comprehending the distinctions between long and short stances in crypto margin trading is essential for investors aiming to capitalize on market trends and price fluctuations. By carefully assessing the market conditions and employing effective risk management strategies, investors can increase their chances of success in the high-risk, high-reward world of crypto margin trading.

Risk Management Strategies for Margin Trading

Efficient risk management tactics are pivotal for successful margin trading as they aid in reducing losses and safeguarding investments. Some of the key risk management trading strategies that investors should implement in margin trading include:

By utilizing these risk management tactics, investors can more effectively control the inherent risks tied to margin trading and enhance their probability of success in this high-risk investment sphere.

Setting stop-loss orders is a crucial risk management strategy in margin trading, as it can limit potential losses by automatically closing a position when a predetermined price level is reached. To establish a stop-loss order, investors must determine an acceptable risk threshold and the price at which they wish to limit their loss. By placing a stop-loss order with their broker, investors can ensure their position will be terminated automatically if the price reaches the determined level, helping to protect against substantial losses.

Stop-loss orders can be particularly beneficial in volatile markets, such as the cryptocurrency market, where prices can fluctuate rapidly and unpredictably. Through the use of stop-loss orders, investors can curtail their possible losses and retain more control over their margin trading positions.

Diversifying your portfolio across different assets and markets is another essential risk management strategy in margin trading. By allocating investments across various asset classes, such as stocks, bonds, and commodities, investors can lower the volatility of their portfolio over time and mitigate risk. Additionally, investing in different sectors of the economy and assets from different countries and regions can help reduce exposure to any single market or economy.

The application of diversification strategies in margin trading aids in risk management and also ensures a more balanced and sturdy portfolio. This can aid in the protection against potential losses, as well as the likelihood of generating consistent returns in margin trading.

Regularly monitoring margin levels and adjusting positions accordingly is vital for managing risk in margin trading. By keeping a close eye on their margin levels, investors can ensure they maintain the minimum required balance to avoid margin calls and forced liquidation. Investors should monitor their margin levels on a regular basis, at least once a week, and can calculate their margin levels using the formula Margin Level = (Equity / Used Margin) x 100.

Through constant vigilance and timely adjustment of positions, investors can avert margin calls and forced liquidation, facilitating a more stable and successful margin trading journey.

In conclusion, margin trading can be a powerful tool for investors looking to amplify their potential returns in both traditional financial markets and the rapidly evolving world of cryptocurrency trading. However, it also comes with significant risks and requires a solid understanding of key concepts, such as margin accounts, leverage, and risk management strategies. By carefully considering the advantages and disadvantages of margin trading and implementing effective risk management techniques, investors can navigate the high-stakes world of margin trading with greater confidence and success. #Bybit #CryptoArk

What Is Margin Trading? (Definitive Guide to Trading on Margin)

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