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Leverage

By CoinGecko | Updated on Mar 03, 2020
It is an investment strategy to gain potential return of the investment by borrowing the money. For example, you could loan from an exchange to conduct a margin trading, where you leverage your positions by buying asset at a low price (with the borrowed money) and sell them at a higher price.

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Related Terms

Consensus
Consensus is achieved in a blockchain system when all participants agree on the content of the next block that will be added onto the blockchain.
Custody
Protective care or guardianship of an asset.
Cryptocurrency
A form of digital currency that utilizes cryptographic protocols to record ownership and prevent counterfeiting
Cold Storage
Offline storage of cryptocurrencies which is arguably safer as they also require physical access (eg. hardware wallet, paper wallets)
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