Hello Steemit:
How are you all. Hope you all are doing well. So, today i am very thankful for professor @stream4u for teaching us a very important topic about Crypto Margin Trading and Leveraged Tokens Trading . After attending the lecture, i understand many important aspects of how to invest your money in cryptoworld and how to make profit from your money invested money.
Let's start with the answer of given questions,
What Is Crypto Margin Trading?
Crypto Margin trading is basically a method to boost up your money which is available for investment in cryptocurrencies capital. It means investor get loan or funds from third party which are exchanges platform or investment brokers. Margin trading helps traders to invest more money after taking loan or funds. This is useful because it helps traders to gain more profit from their investment money.
How Margin Trading Works:
This method of margin trading is easy. Lets take an example, John has a $10, which he wants to invest in any capital but he also want to invest more money but he didn't have them. Then he requested for a loan of 2x which means that its initial amount of money multiply by 2 after having loan, so it become $10 x 2 = 20$. It can be 2x, 3x or 5x. So, through margin trading, he boost up his money after taking loan from exchanges platform or investment brokers then invest that money in cryptocurrencies. In this way Margin trading works and it helps traders for boosting their invested money.
How To Plan For Trading In Crypto Margin Trading?
Every trader wants a good profit from his/her investment. For margin trading, some key points are helpful for gaining more profit which are given below.
First main thing is Technical Study. It is the most important thing which helps traders to make good use of cryptocurrencies. Technical study of coin in which you want to invest your money will helps you to understand the nature of coin.
You must know which time is good for investment and which time is good for holding and exit. Proper check and balance is required for knowing the behavior of that particular invested coin.
It is good practice to start your trading career from small investment. You must know pros and cons of margin trading before investment.
Prediction should be good then you will make a good profit if your prediction will be right.
Crypto Exchanges Name That Provide Margin Trading Service and What Margin They Provide?
There are many exchanges which provides margin trading. Some of them are given below with there margin.
- Huobi (up to 3x margin)
- Kraken (up to 5x margin)
- Bitmex (up to 100x margin)
- Poloniex (up to 5x margin)
- Okex (up to 3x margin)
What Is Leveraged Tokens Trading?
Leveraged Tokens are different from others because they aren't regular tokens. These tokens are not held and traders are not have to own it. These tokens are supported by some different exchanges platform. And the main thing is, you can't withdraw leveraged tokens in your wallet. If your prediction is strong then these tokens will give you profit by 3x in bearish market as well. But if your prediction goes wrong then you have to face loss of 3x.
How Leveraged Tokens Trading Works:
Lets take an example of ETHEREUM.
ETHEREUM have leveraged tokens which are ETHBEAR/ETHDOWN or ETHBULL/ETHUP.
- When ETHEREUM goes up then ETHBULL/ETHUP will go up.
- When ETHEREUM goes down then ETHBEAR/ETHDOWN will go up.
ETHBULL/USDT Chart
As you see in this chart of ETHBULL, Ethereum goes uptrend that's why ETHBULL also goes up.
So, trader just need to predict when ETHEREUM will go down or go up. Then invest in these leveraged tokens and it will makes a good profit in both of the uptrend and downtrend of ETHEREUM.
You trade these types of tokens without owning it. You just want to made a contract with exchangers to trade these tokens for you. You just need to predict the market of these tokens. If your prediction goes right then you will make profit of 3x, 5x or it depend on margin of your leveraged token has. Same for loss if your prediction goes wrong.
How To Plan For Trading In Leveraged Tokens?
Leveraged tokens are risky and traders should have to understand the graph and trend of any coin. The main thing which are helpful to plan trading in leveraged tokens are,
Graph of Asset: You should have to know how the trend of any asset tells about that coin. With the help of trend which graph shows, trader can predict when that coin will be pumped or when that coin will be dumped.
You must know exchanges and there transaction fees which they charged. And what types of leveraged they provided.
You must have extra money left after investing in these tokens. Because these tokens are risky.
Crypto Exchanges Name That Provide Leveraged Tokens Service and What Margin They Provide In Leveraged Tokens?
There are many exchanges which provides leveraged tokens service. Some of them are given below with there provided margin in leveraged tokens.
- FTX (up to 3x margin)
- Bittrex (up to 3x margin)
- Polinex (up to 5x margin)
- Bybit (up to 100x margin)
- BitMax (up to 100x margin)
Price Forecast 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 for next week.).
For Price forecasting of any crypto assets, i select BNB for this question.
So, this is the chart of the BNB coin of 1 day. As you clearly see, BNB starts a day with $626.09 then it goes uptrend and reached at $657.73 and at the end of the day it go downtrend. At the end of a day, It resist on $646.93.
For better understanding, lets see the graph of BNB of 1 week. BNB starts a week with a $602.95 and then follow the uptrend and reached it highest peak of a week of $677.30 but then it goes down and in the end of a week it resist on $464.97.
Conclusion:
Margin and leveraged token trading are helpful for you if you are good enough to learn technical chart pattern and you have enough patience for resist yourself when your trading gives you profit. Don't invest all your money in cryptocurrencies. You must have some extra money for your daily usage. You must know about exchanges platform before investing through them and there fees charges. And in the last, DON'T BE GREEDY.
This post is plagiarism free. Hope i answered all the questions correctly. And pictures i upload in this homework are mine which are screenshots taken by me. Thankyou for reading.
Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task.
need more detail to explore this answer How Leveraged Tokens Trading Works
homework look fine
thank you very much for taking interest in this class
Grade : 6.5
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