Trading cryptocurrencies with leverage involves borrowing funds to amplify the potential returns on your trades. Leverage allows traders to control larger positions with a smaller amount of capital. For example, with 10x leverage, a trader can control $10,000 worth of cryptocurrency with just $1,000 of their own funds. While leverage can magnify profits, it also increases the risk of losses. Crypto markets are highly volatile, and leveraged positions can lead to significant losses if the market moves against the trader. It is important to understand the risks involved and use risk management strategies like stop-loss orders to limit potential losses when trading with leverage.