Which type of account, margin or cash, is recommended for beginners in the world of digital currencies?

3 answers

• Bright CornersJun 07, 2021 · 5 years ago
  As a beginner in the world of digital currencies, it is generally recommended to start with a cash account. A cash account allows you to trade using only the funds you have deposited, without borrowing any money. This can be beneficial for beginners as it reduces the risk of losing more money than you can afford. However, it's important to note that with a cash account, your potential profits may be limited as you are only trading with your own funds.
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• Juan Miguel Quirós RamirezDec 26, 2024 · a year ago
  If you're a beginner in the world of digital currencies and you're looking for more flexibility and potential higher returns, a margin account might be worth considering. With a margin account, you can borrow funds from the exchange to increase your trading power. This can allow you to take advantage of market opportunities and potentially make larger profits. However, it's important to be aware that trading on margin also comes with increased risks. If the market moves against you, you may be required to repay the borrowed funds and could potentially incur losses greater than your initial investment.
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• J. HunterJan 23, 2021 · 5 years ago
  As a beginner in the world of digital currencies, BYDFi recommends starting with a cash account. This allows you to have full control over your own funds and reduces the risk of getting into debt or making impulsive trading decisions. While a margin account can offer more trading power, it also comes with higher risks and requires a good understanding of leverage. It's always important to start with a small amount and gradually increase your trading activity as you gain experience and knowledge in the digital currency market.
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