My submission of homework task for @stream4u which is about margin trading , Crypto leveraged token trading etc.so let’s start:
What is Crypto margin trading?
It is the use of funds,provided by third party to help traders in making great profits and enhance their results.It actually helps the investors to buy more stocks than they can afford to and provides them higher capital for investment, thus helping them to leverage their position in the market,actually this whole process is carried out by margins and those are burrowed funds from brokers.
When a margin trade is initiated trader have to set a percentage order value. Here a burrower offers funds to broker and at the end of trade he charge some percentage of interest to burrower.
In case, if the trade does not go in favour ,of a trader he will get a margin call from exchange for deposition of extra funds. If trader not do so, then his collaterals are liquidate to compensate for the margin he offered.
How To Plan For Trading In Crypto Margin Trading. Crypto Exchanges Name That Provide Margin Trading Service and What Margin They Provide?
Firstly you should be familiar with the risks and benefits of margin trading.it is a risky so you should have enough knowledge to enter into a-trade otherwise you can end up losing more than you have invested. Investors should be careful and from borrowing the maximum amount allowed and should continue only if they are confident about making profit.
We should try short duration investment with small amounts first then after you find yourself stable,you can gradually raise your amount.
Earn less but safely,keep yourself away risks by investing huge amounts for long durations.
Crypto exchange margin services. Some of them are mentioned below:
| Name 1 | Margin 2 |
|---|---|
| Name | Margin |
| Binance | 5x |
| Poloniex | 5x |
| Kraken | 5x |
| Bitmex | 100x |
| Bybit | 100x |
What Is Leveraged Tokens Trading? How To Plan For Trading In Leveraged Tokens? Crypto Exchanges Name That Provide Leveraged Tokens Service and What Margin They Provide In Leveraged Tokens?
Crypto trading that is being carried out with the help of leveraged tokens=leveraged Trading.For exampe, BTCUP is leveraged token of BTC in bullish market and BTCDOWN is leveraged token of BTC in bearish market,prices of assets keep fluctuating but the tokens remain same..
Binance uses UP and DOWN for bull and bear tokens and offers upto 4x leverage on wide spectrum of tokens.it doesn't offer constant leverage rates. As it varies from 1.25 to 4 x.
Leveraged token trading vs Margin trading.
Leveraged token need collaterals for trading while as you can trade without collaterals in margin trading.
No risk of liquidation in leveraged token while as it is in margin trading.
No need to pay margin as well as compound intrest here which you have to pay in margin trading.
How to plan for leveraged token trading.
•Before trading survey should be done to avoid high risks.
••You should keep interest percentage in mind if you’re thinking of long term investment.
•••As I already mentioned above earn less but safely take all precautionary measures before trading..
••••Don’t invest the whole capital,use 40 to 50% of it strategically, and try to make profit by following all rules.
Some famous exchanges offering tokens are below:
| Header 1 | Header 2 |
|---|---|
| Name | leverage |
| Binance | 1.25-4x |
| Poloniex | 3x |
| Bittrex Global | 3x |
| Huobi | 3x |
| Bybit | 3x |
Price Forcast For Crypto Assets XXXXXX. (This is similar question from last course, take any Crypto Assets Chart graph, as per its current price and its market trend predict its future price for only next week, what will be its future price for next 1 week.You can predict for any direction up or down but explain it properly on what basis you have predicted the price. What will be the possible low level and high level fornext week.
BTC/USDT price chart from Apr 23 to May 1
BTC/USDT from May 1 till may 4
BTC price continuously rise from Apr 23 to May 1 making this mountain shaped graph( 30th april high was higher) ,and then price started falling.after analysing the graph i guess price will firstly go down slowly and then will try to touch heights.For next one week, i expect possible low level be around $ 58K within next 2 days, And possible high level $60k by this weekend.Recent graph fluctuations have make it difficult to understood exactly where will graph go next so that is it for now.
These observations are my own and i have make them on behalf of previous results by simply analysing the trend of the graph from last few weeks.
well you seem a hard worker
i appreciate #affable #india
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