Hello everyone...
How are you today ...
I hope you always in good condition.
Today I will make a post about "Crypto Margin Trading & Crypto Leveraged Tokens Trading". This is a topic discussed by professor @stream4u in his class this week. After reading the posts shared by the professor and getting new knowledge, I will try to complete the homework that the professor has given. Here is my homework and happy reading.
In the previous class I had studied price forecasting to predict the lowest and highest prices, esspecially based on support zone and resistance zone. I also managed to correctly predict the LTC price in the previous post. To get more profit in less time, we now need to learn about crypto margin trading.
Crypto margin trading is trading that is carried out to multiply profits within a certain timeframe (generally done in a short time, 5-15 minutes) by borrowing additional capital from a crypto exchange. By using margin trading, you can get multiple profits, starting from 2x, 3x, 5x and even more.
Usually every crypto exchange provides different margins, starting from 2x, 3x, 5x, 10x, 25x, 50x and even up to 100x and we have to return the additional capital along with the commission according to the agreement and applicable conditions. For example, if you currently only have a balance of $ 200 and then you borrow 3x to make margin trading. So now your capital is $ 200 + $ 600 and now you can make margin trading using as much as $ 800 in capital. After doing margin trading, you must return the $ 600 loan along with the agreed additional commission fees.
Please note that doing margin trading has a balanced reciprocal consequence because you can get a lot of profit or vice versa. Before deciding to use margin trading, you should first carry out various analyzes to confirm your choice because trading like this carries a high risk. Besides being able to get multiple profits, margin trading can also eliminate all your capital.
Here are 10 well-known crypto exchanges that provide margin trading services and I'm going to sort them from low to high based on the margins they provide.
Exchanges | Margin |
---|---|
Kraken | 5x |
Huobi | 5x |
Binance | 10x |
Bybit | 100x |
Poloniex | 100x |
BitMax | 100x |
Deribit | 100x |
FTX | 101x |
Bityard | 125x |
StormGain | 200x |
Leveraged tokens trading is trading that involves leveraged tokens on a crypto exchange. Each exchange has a different leveraged token system so that it cannot be traded on all exchanges because it is not the same as the cryptocurrency we are used to trading. Since they can only be traded in their respective exchange, for example, the leveraged token "A" can only be traded on the "A" exchange. In addition, leveraged tokens cannot be withdrawn to your wallet.
There are two types of leveraged tokens, namely UP or BULL and DOWN or BEAR. For example, on the BINANCE Exchange, for BNB coins there are leveraged tokens BNBUP or BNBBULL and BNBDOWN or BNBBEAR. We can use these laveraged tokens to gain profits in the market. Of course you need to observe market trends well in terms of analysis and consider the amount of margin you will use.
So what is the difference between the two types of leveraged tokens? This is a simple thing to understand, I will explain it with an example. If the BNB price goes up, the leveraged tokens BNBUP or BNBBULL will also go up and vice versa. Meanwhile, if the BNB price goes down, the leveraged tokens BNBDOWN or BNBBEAR will increase and vice versa. So to get a profit when the BNB price starts to fall, then you can buy BNBDOWN or BNBBEAR and sell it again when the BNB price is in the support zone because the BNB support zone is the BNBDOWN or BNBBEAR resistance zone. This is the advantage of leveraged tokens.
Here are 10 well-known crypto exchanges that provide leveraged tokens trading services and I'm going to sort them from low to high based on the margins they provide.
Exchanges | Margin |
---|---|
BitMex | 3x |
FTX | 3x |
Poloniex | 3x |
Bittrex | 3x |
Bybit | 3x |
Coinbase | 3x |
Binance | 4x |
Kraken | 5x |
Huobi | 5x |
KuCoin | 10x |
- To spot opportunities, do market analysis and see market trends before you enter the market and decide to use margin trading. As a suggestion, it is recommended that the analysis used is technical analysis because trading is carried out in a short time and focus on your targets based on the results of this technical analysis.
- Determine the right time to enter and exit the market because the market is always volatile. Always be careful!
- Do not use all your capital, you should only use 30%-40% because it is risky.
- Trade your capital for several assets, at least 3-5 assets. Never use all of your capital for just one asset because it is very risky.
- Understand the rules and conditions for margin trading and leveraged trading on a crypto exchange that you will choose because each exchange has different rules.
- Determine the amount of margin you want to use, 2x, 3x, 5x or even more. However, you should use a lower leverage at the beginning as an adaptation and see the developments that occur in the future before deciding to increase the amount of margin you will use because the higher margin ratio is the higher risk.
- Use a 5-15 minute chart to minimize risk. Even though it looks like it has made only a few changes, it provides a better chance of margin trading and leveraged trading.
- Think realistically and never be a greedy person. Keep in mind that you are better off earning a small profit than coming home with a loss.
- And don't forget to use the Stop Loss feature to stop the amount of losses so that you don't experience more losses.
Special note: keep in mind that in the case of DOWN or BEAR leveraged tokens trading you need to do reverse technical analysis because this trade is carried out when the market trend is down, but this is an option for you to profit when the market trend is down due to the token working mechanism this is the opposite of the other tokens that we often trade.
JST is one of my favorite cryptocurrencies. I have been collecting this coin for a long time, when it was still classified as a pennycryptocurrency because of its low price. I have also sold all of the JST that I have to get some profit because the price of JST has gone up significantly a while ago. But a week later I decided to buy back a number of JST at a lower price (during the support zone) so that I could collect a larger amount of JST into my wallet exchange. I keep a number of JST as one of the investment assets in my portfolio.
Caption:
A1: Support zone 1
A2: Support zone 2
B1: Resistance zone 1
C1: The same new support zone as support zone 1 and 2
D1: The next resistance zone (we'll just wait!)
I will try to make an JST price forecast for the next week using technical analysis based on chart patterns in the last month as shown in the picture. Please note that no one advises you to follow my fortune telling because every choice is yours!
Currently the JST price is $ 0.145 and is in a positive trend in the last two weeks. Based on the chart, it can be seen that the current JST price has managed to get back to the previous support zone (C1 = A1 & A2). If we look back, we can see that the previous resistance zone (B1) was around $ 0.175 and it happened when BTC was in a positive trend. In the last few days, I noticed that BTC is trying to get back on its positive trend path to hit a price of $ 64K. Because the influence of BTC on altcoins is still high and based on the support zone and resistance zone that I observed in the graphic image, I predict that next week's JST price will succeed in reaching its former resistance zone point (D1 = B1) along with the rise in BTC prices. . So I predict that the JST price next week or in the next 4 days will be around $ 0.17. Based on this prediction, now is the right time to buy JST and the next few days is the right time to sell JST, especially when it reaches the resistance zone at the price of $ 0.17.
Thankyou for reading and review my post.
See you...
Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task.
thank you very much for taking interest in this class
Grade : 6
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Sorry for the mistake and I really didn't realize it. Previously I thought that if an image had no watermark or logo in it, then it was not classified as copyright/plagiarism. I turned out to be wrong, thank you for reminding me and I will immediately replace the image.
As a lesson for me, please explain to me why the picture is not free. So that I can be more careful in choosing images on the internet for the future.
Thank you my Professor @yousafharoonkhan
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Done. I've edited it. I hope you have time to check again my homework post to make sure it.
Thank you my Professor @yousafharoonkhan @stream4u
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