Hello everyone. Our world has been fighting a big epidemic for more than a year. I hope all of you are in good health. Stay healthy! Thanks for reading.

Today I will share with you the my homework given by the professor @stream4u

1-)What Is Crypto Margin Trading?

Margin trade is a type of trade where we can profit from the decrease or increase of a coin. In Margin Trade, we can make our crypto trading orders by borrowing from crypto exchanges. In Margin trade, you do not receive any coins in your wallet as in Spot. You buy the future ups and downs of that coin. So, you buy your expectations for the coin you choose. If your expectations come true, you will make a loss if no profit.

In Margin Trade, you open orders with long and short positions. Long and Short are the types of positions related to the up and down movement of the coin. You need to know these 2 terms. To explain briefly:

Long: It is the name of the position you will open with the expectation that the coin will rise.
Short: It is the name of the position you will open with the expectation that the coin will down.

In Margin trade, you can also profit from the bearish of a coin and the crypto exchanges allows you to trade with leverage such as 3x 5x 10x 20x. These are the biggest differences that distinguish Margin Trade from Spot. To give an example of leveraged orders in the simplest way:

You have $100 in your wallet. You wanted to enter an ETH order using 10x leverage. Thanks to the leverage, you can open an ETH order of $1000. ETH raised 20% and let's assume you open a long position. The value of your ETH is 1200 $. Our $ 900 debt to the exchange will be deducted and $ 300 will be added to our wallet. The $ 100 in our wallet became $ 300 after this trades. 200% profit!

2-)How To Plan For Trading In Crypto Margin Trading?

Planned and programmed progress makes us achieve success in all areas of life. If we want to make a profit at Margin Trade, we need to draw a road map for ourselves on how to act.

• We must choose a good and reliable exchange that offers margin trading. We must choose the interest and commission rates to be the most profitable for us.

• It would be best for us not to enter into margin trading with all of our capital. It ensures that you do not go into liquidation immediately.

• We must determine our goals regarding the coin that we will trade. We must examine the chart thoroughly, draw the support and resistance zones, determine the points where we will open the order and the points we will exit.

• In order to minimize our loss, we must DEFINITELY set a stop-loss price.

3-)Crypto Exchanges Name That Provide Margin Trading Service and What Margin They Provide?

Binance | Cross: 3x Isolated: 10x

FTX | up to 101x (I think the best.)

Poloniex | 2.5x

Bitmex | up to 100x

4-)What Is Leveraged Tokens Trading?

It was created by the first FTX exchange. It allows us to make leveraged orders without creating a Margin account. It allows us to enter leveraged orders without having to deal with the technical details of Margin. These tokens are called up-down or bull-bear. UP and BULL represent long position, DOWN and BEAR represent short position.

5-)How To Plan For Trading In Leveraged Tokens?

• We should not be greedy just because there is no liquidation.

• We must learn to read short term charts. We must examine it thoroughly. As with margin trade, we must determine the points where we will open the order and the points we will exit.

• We have to invest amounts of capital that we cannot worry about when we lose.

6-)Crypto Exchanges Name That Provide Leveraged Tokens Service and What Margin They Provide In Leveraged Tokens?

Binance | 1.25x-4x

FTX | HEDGE 1x - BULL/BEAR 3x

Poloniex | BULL/BEAR 3x

BTC Price Forecast

I will analyze the price of bitcoin step by step on the chart.

1-)As of 12 December 2020, BTC has made high peaks and constantly renewed the ATH level. Despite some intermediate corrections, the uptrend continued.

2-)On 14 April 2021, BTC hit $ 65,178 and started its downtrend.

3-)On April 17, BTC's 61,960 support was broken and a sharp 19% down started.

4-)With the break of this support, the uptrend of BTC that has been going on since 12 December 2020 has been disrupted. Later, BTC's re-testing into this point failed and the downtrend was confirmed.

5-)When BTC's retest on April 19 failed, the sharp downs in BTC continued until April 23. With the break of 55,457 support, BTC down another 14%.

6-)BTC received 2 times response on the support of $47,000 and made an upward bounce.

7-) With the RSHS structure working, BTC reached the level of $59.000 again in a few days.

8-)BTC failed to break the $59.000 resistance and a downtrend started again. Interest rate decisions and the increase of the Doge also affected these decreases. BTC got a reaction again at the $52,804 support. The downtrend, which has been continuing since $65.000, tried to break for the first time but failed. Now it is retesting again to break that downtrend again. If BTC fails to break the downtrend between $56.000 and $57.000, it will try to get a reaction from the $52.000 to which it reacted before, then the $47.000, if it does not succeed BTC will try to get a reaction from the $42.000.

9-) If BTC breaks the downtrend and the retest is successful, the resistance ahead is $59.000. If the $59.000 breakdown is successful, the first resistance will be the $62.000 and the $59.000 resistance will now become support.

10-)While the dominance level of BTC was around 73 since January 3, it has dropped to 45 today. Despite the reaction from intermediate supports, the down continues. The first support ahead is 44 levels. If that support is broken, the dominance can drop to 38 levels. If bitcoin gets a strong reaction from these supports, the btc dominance can go up to 57 levels. After this reaction, there may be a down in altcoins.

11-)If Bitcoin breaks the 59.000 and 62.000 resistances after breaking the possible downtrend, it can try to break the 65.000 ATH level it previously reached and reach $70.000

Conclusion

Leveraged trades are a very risky investment type. We have to be very careful. It is true that we can earn very good profits, but we can lose at the same rate. That's why we should never enter with all of our capital. If we enter leveraged orders in the margin trade with all our capital, we will be more likely to liquidate. Once you have enough information and experience, it would be most logical to enter leveraged trading with low capitals(exemple with 10% of the capital).

CC:
@stream4u