Homework Task-Steemit Crypto Academy | Course By @stream4u - Crypto Margin Trading & Crypto Leveraged Tokens Trading.

in hive-108451 •  4 years ago 

Hello, friend's this is my 1st Homework post for Steemit Crypto academy season 2, given by our crypto professor @stream4u.

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This image is taken from the @stream4u course post and later on edited in Paint.

So let's start with the Questions.

1. What Is Crypto Margin Trading?

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In crypto margin trading exchange gives you money on your money to perform trading. you can say it's one type of loan. For Example, as a professor, @stream4u said there is some exchange that gives a 3x or 5X margin. if you have 1$ and the exchange gives you a 3x margin, that means you can perform a trade of 3$, or if it provides 5x margin then you can perform a 5$ trade.

2. How To Plan For Trading In Crypto Margin Trading

If you did trade with 1$ and suppose in next few days you make 50% profit and now you have 1.5$ but you did 3x margin trade so you invested 3$ and again your profit is 50% so you have a 3$ + 1.5$ i.e total 4.5$ now you need to give 2$ to the exchange which you borrow from exchange adding the fee. if suppose you give 0.5$ as a fee(fee is not this high in the term of % of your margin. I take It just for a round of calculation) and return the borrowed 2$ then also you have 2$ remain with you. now, in this case, your profit is 100% instead of 50%.

We get an idea about the prons of the margin trade now let's see another side of the coin. you did the same 3x margin trade and the next day you are in 50% loss so your trade value is now 1.5$ but you need to give 2$ to the exchange and a 0.5$ fee. so your trade value is -1$. now you have a 200% loss. you loos your 1$ and also give more 1$ to exchange.

So it is very important to be very cautious while doing margin trading. some of the points to note while doing margin trading.
a) Have very confidence about your stop loss. you may be flexible about your target but should be fixed with the stop loss. For example, if your target is of 15-20% profit and you reach your target price as well but you see that market in an uptrend so you thought I will wait for some more time and make more profit but suddenly market goes down and now you have only 10% profit. So this is not a bad deal for you. But if you set your loss at 3% or 4% and you thought that after some data market will recover and I will cover my loss but it goes more down so it will not a good deal for you.

b) instead of going to one big trade you can select the different-different crypto asset and perform small trades so in that case if some of your trades are in -ve and some are in +ve, so the trade which is in +ve they will recover you less or loss.

3. Crypto Exchanges Name That Provides Margin Trading Service

There is various crypto exchange who provides margin trading and the top of the list are follows:

  1. Binance
  2. Bityard
  3. Bybit
  4. Huobi
  5. PrimeXBT

I didn't go for much exchange I preferred Binance which is one of the largest crypto exchanges and the Houbi. In the begging, I go for Huobi for some time but now I'm preferred to go with the Binance only.

Binance gives 3x,5x, and 10x margin depend on the different user & margin categories on the Binance. like master account or regular account. whereas Houbi decides the amount of loan or margin depends on the account level and your holdings.

4. What Is Leveraged Tokens Trading?

Leveraged token trading is trading of leveraged tokens on the respective exchanges only. You can't deposit/withdraw the Leveragd tokens. As we know there are 2 type of leverage token for the each crypto coin ends with bull & bear.

Now from the name only you can assume how it works. if buy bull leveraged token and the coin in bull run then you are making profit same for the bear leveraged token and vise versa if you buy bull token and main coin inbear trend then you are in loss.

5. How To Plan For Trading In Leveraged Tokens?

In my point of few both the margin and leveraged tradings are should be done for the small time period and the planing for the both the trading are almost same like have a stop loss, do a proper study on a particular asset or coin.

#6 . Crypto Exchanges Name That Provide Leveraged Tokens Service
I think the exchanges who provide margine trading all supports leveraged as well. I mostly use binance exchange for any trade and finance provides 152x leverage.
The following Image will give you an better idea on the some of the exchanges who provide leverage tradng.

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7. Price Forcast For Crypto Assets DogeCoin

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The resion behind I choose dogecoin is is one of the most trading crypto coin in past few weeks. that's why I selected this coin for pice forecasting.

Let's first talk about the current scenario of the coin. coin almost gives more than 112% return from the month staring but today only it falls by more than 30%.

If you see for the fundamental view of the Doge is nit that much strong. The most of coin are in few peoples control so if those peoples dump all there coin then doge goes from sky to insite of the earth.

but we need to forecast next 1 week only so let's go for the technical side.

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this is chart of 4hr. from the chart you can say if it crosses the it's target hen it will go up and if it cross the bottom support then go to down but looking at the past it's now totally depend on the how elon Musk behaves that's it nothing else factore will not affect the price of doge coin.

After yesterday responce of elon musk it already goes down more than 30% so we can say it recover from here. So from my side it may go 5-6% up not more than that. it may be go even more down because it's give so much return in a few less time so it will correct it self. but the correction happened when it goes down by 8-10% not by 30%. so it's clearly indicate down trend.

Thank You @stream4u to provide this valuable knowledge to us and helping us to do a good and safe trading with the trading knowledge.

So this is all from my end.
Note: All the images are Screenshort of tradingview and later on it edited into paint.

Thank you
@akkibadbboy
Admin: Steeming India Community

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Hi @akkibadboy

Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task.

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Provided information is explained well but expecting more details in LEVERAGE TOKENS TRADING like their price behavior movement when BULL, BEAR can go up and down. Price Forcast, you could try to be more informative with Technical Point Of view, here you can use Support Line, Resistance Line and Trend Line to show the market Trend and explained accordingly, Support Line, Resistance Line, and Trend Line are the part of earlier Course. Regarding elon musk so you can try to show some posts from him and then market movement.
Looks fine. Try to be more informative with Technical and just a suggestion While using images from your own charts study, try to put your name in free space.
Not Applicable dut to Late Submission. Homework posts should be submitted no later than 11.59pm UTC, on Saturday, May 8th 2021.
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Your Homework Task verification has been done by @Stream4u, hope you have enjoyed and learned something new.

Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
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