What are the risks associated with using Oanda leverage for investing in digital assets?

3 answers

• May 03, 2022 · 3 years ago
  Using Oanda leverage for investing in digital assets can be risky. While leverage can amplify your potential gains, it can also magnify your losses. If the market moves against your position, you could end up losing more than your initial investment. It's important to carefully consider your risk tolerance and only use leverage if you fully understand the potential consequences.
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• May 03, 2022 · 3 years ago
  Investing in digital assets with Oanda leverage carries the risk of liquidation. If the value of your assets drops significantly, Oanda may liquidate your position to cover the losses. This can result in a loss of your entire investment. It's crucial to closely monitor the market and set appropriate stop-loss orders to manage the risk of liquidation.
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• May 03, 2022 · 3 years ago
  When using Oanda leverage for investing in digital assets, it's important to note that Oanda is a centralized exchange. This means that your funds are held by a third party, which introduces counterparty risk. If Oanda were to experience financial difficulties or get hacked, your funds could be at risk. It's advisable to diversify your holdings across multiple exchanges and consider using cold storage wallets for long-term storage of your digital assets.
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