2 days ago

EasyA Co-founder Explains to XRP Holders How Leverage Works

Dominic Kwok, co-founder of the educational platform EasyA , recently provided an in-depth explanation of how leverage functions in cryptocurrency trading, offering clarity on a topic often misunderstood by new investors. His detailed breakdown outlined the core concept of leverage, how it amplifies both gains and losses, and why it is widely regarded as one of the riskiest trading tools in financial markets. Leverage, as Kwok described , allows traders to borrow funds from an exchange to take on a larger position than their actual capital would otherwise permit. For instance, an investor with $100 can use leverage to control a $1,000 position at a 10x ratio. This means that the trader contributes $100 as collateral and borrows $900 from the exchange. While the approach can significantly increase potential profits if the market moves in the trader’s favor, it equally magnifies losses if prices fall. since many have asked, here`s how leverage works: TLDR leverage is when investors borrow money to trade, allowing them to take out larger positions than otherwise possible. here`s how (and why it`s so risky): let`s say i have $100, but i want to buy more crypto than my $100… https://t.co/ARPaPBv9Yp — Dom | EasyA (@dom_kwok) October 13, 2025 How Leverage Amplifies Gains and Losses In his explanation, Kwok used a straightforward example to illustrate both sides of the equation. When a trader uses 10x leverage on a $100 investment, they are effectively controlling $1,000 worth of crypto assets. If the market moves upward by 10%, the position’s value increases to $1,100. After repaying the borrowed $900, the trader pockets $200, effectively doubling their original capital. However, the same mechanism that allows for such high returns can quickly erase the trader’s capital. If the market drops by 10%, the $1,000 position falls to $900, equaling the borrowed amount. At that point, the exchange automatically closes the position to recover its funds, leaving the trader with a total loss of their $100 collateral. This automatic liquidation is a safeguard for exchanges to prevent borrowers from losing more than their own capital. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Clarification on Losses and Liquidation Following Kwok’s initial breakdown, another X user known as Legendary Hamster posed a question to clarify further. They asked whether a trader would owe money to the exchange if the price of the asset continued to drop more than 10%, such as in a 20% decline scenario. Kwok clarified that exchanges typically close out leveraged positions automatically before further losses accumulate. As soon as the asset’s value decreases enough to eliminate the trader’s margin, the position is liquidated immediately. This process ensures that traders do not go into debt and that exchanges recover the borrowed funds in full. Kwok emphasized that this mechanism is precisely what makes leverage so risky, as even a small market movement in the wrong direction can wipe out an investor’s entire position almost instantly. Leverage and Investor Caution Kwok’s explanation emphasizes a key principle in financial trading: leverage should only be used by those who fully understand its implications. While it offers the potential for significant returns, it is a double-edged tool that can easily lead to complete capital loss when the market turns unexpectedly. He pointed out that many traders underestimate how quickly leveraged positions can unravel in volatile markets, such as cryptocurrency. Because digital assets often experience sharp and unpredictable price movements, the risk of liquidation remains high even over short periods. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post EasyA Co-founder Explains to XRP Holders How Leverage Works appeared first on Times Tabloid .

TimesTabloid

You can visit the page to read the article.
Source: TimesTabloid

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

CryptoAppsy Empowers Your Crypto Journey with Unmatched Features!

CryptoAppsy offers real-time cryptocurrency data in multiple languages. Users benefit from smart alerts, multi-currency support, and curated news. Continue Reading: CryptoAppsy Empowers Your Crypto Journey with Unmatched Features! The post CryptoAppsy Empowers Your Crypto Journey with Unmatched Features! appeared first on COINTURK NEWS . TimesTabloid

Technical Analyst: XRP Is a Ticking Time Bomb. Here’s What Is Forming

The crypto market is on edge, and XRP appears to be sitting at the heart of the tension. Volatility has been steadily increasing, liquidity pockets are tightening, and traders are starting to notice a powerful setup forming beneath the surface. While some investors remain uncertain, leading technical analyst ChartNerd believes XRP’s structure is far from ordinary—describing it as a “ticking time bomb” that’s poised for an explosive move. The Growing Tension Around XRP Over the past week, XRP’s market behavior has mirrored a classic “coiling spring” — long periods of sideways movement followed by bursts of volume and price expansion. This type of compression signals that momentum is building, even when the price action seems stagnant. As Bitcoin and Ethereum experience volatile swings, XRP has quietly formed one of the most technically loaded structures on the charts. $XRP is a ticking time bomb https://t.co/XlOv0sGxbk — ChartNerd (@ChartNerdTA) October 16, 2025 XRP has maintained strong support near its mid-range levels while repeatedly testing upper resistance zones. This repeated test of resistance often precedes a major breakout, especially when supported by volume increases, suggesting smart money may be positioning ahead of a larger move. What ChartNerd’s Analysis Reveals In a detailed chart series shared on X, ChartNerd showcased XRP’s multi-timeframe setup, comparing previous cycle structures to the current one. Each chart points toward a recurring pattern: prolonged consolidation phases followed by vertical price expansions. The analyst highlights several technical formations — including symmetrical wedges and breakout continuations — which historically preceded XRP’s major rallies. These patterns are now aligning again, implying that XRP could be approaching a similar inflection point. ChartNerd’s caption, “It’s all about the bigger picture,” underscores the long-term nature of this setup. According to the analysis, XRP’s current structure mirrors earlier consolidation patterns that ultimately led to explosive surges . We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 The Implications: Explosive Move Incoming The term “ticking time bomb” doesn’t necessarily imply a guaranteed upward explosion — it reflects a state of compressed volatility that can erupt in either direction. If XRP breaks above its long-standing resistance levels with sustained volume, the next leg higher could be swift and significant, potentially revisiting major Fibonacci extension targets. However, the same energy can reverse downward if XRP fails to hold its key moving averages or slips below critical support zones. Traders should remain cautious, as such setups often trigger liquidity hunts before the true trend emerges. Strategic Takeaway for Traders For short-term traders, the focus should be on breakout confirmation and volume validation. A clean daily close above resistance would likely confirm bullish continuation, while failure to maintain key levels could invite sharp retracements. For long-term holders, this phase represents a potential accumulation opportunity — but only with clear risk management. With the broader crypto market showing signs of recovery, XRP’s upcoming move could either mark the start of a new bull leg or a retest of long-term supports. The Bigger Picture ChartNerd’s analysis reiterates that XRP’s technical outlook is about timing and patience. The compression visible on multiple timeframes means a decisive move is imminent — not a matter of if, but when. In the coming weeks, XRP traders may witness one of the most critical breakout attempts since 2021. Whether it detonates upward or downward, the setup confirms one thing: XRP is indeed a ticking time bomb — and the countdown has already begun. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Technical Analyst: XRP Is a Ticking Time Bomb. Here’s What Is Forming appeared first on Times Tabloid . TimesTabloid