Introduction
When it comes to trading leverage and margin, people get more fascinated with the tremendous profits they make and want to get from it and at the same time, they can be hit by great losses from it. I have a friend who has lost over $30k in leverage trading withn the last 30 days and this was as a result of trying to gamble with the market instead of properly understanding the market. Thanks to @stream4u for the class on "Crypto Margin Trading & Crypto Leveraged Tokens Trading". After reading through the class, I will be participating in the assignment.
What Is Crypto Margin Trading?
Crypto margin trading requires the increase of trading funds with borrowed funds on an exchange. These funds are provided by third parties to allow traders with greater capital so as to allow them leverage their positions.
The leveraging can vary from 2x, 5x, 10x, 20x, 50x, 75x, 100x, 120x, and so on. Margin trade can be done for both long and short position trading.
How To Plan For Trading In Crypto Margin Trading.
I will be answering this question with respect to the mistakes my friend made while trading with leverage. There are plans which should be before trading leverage and they include;
- Getting the mind together. (My friend mostly doesn't trade when he is psychologically ready, some times, he trade leverage/futures while driving or while sleeping only to see that he has lost a lot of money).
- Have the capital you want to trade with available. Do not trade wit money you cannot afford to lose.
- Have a strategy. This is very important as getting into the market without knowing what to do means losing before trading.
- Trade with the Trend, Never go against the market (Dow's Theory)
- Never trade when you have the odds against you amd do not trade when you are emotionally unstable as the market deals with demand and supply and not emotions.
Crypto Exchanges Name That Provide Margin Trading Service and What Margin They Provide?
Not all exchanges trade with leverage and the few that trades leverage, trade at different percentage.
Exchanges | Margin |
---|---|
Binance | Up to 125x |
Huobi | 3x |
Bybit | Up to 1000x |
Bitmex | Up to 100x |
Kraken | 5X |
Poloniex | Up to 100X |
What Is Leveraged Tokens Trading?
Leveraged tokens trading are similar to margin trading but they are different. These are tokens that are used for trading leverage specifically.
The names of the tokens can vary depending on the exchanges, while some give suffixes such as up and down, others give surfixes such as Bull and Bear. Unlike margin trading where you are provided with more liquidity, with Leverage trading, you have designated tokens representing the tokens.
How To Plan For Trading In Leveraged Tokens?
With leverage trading, it is important to do both fundamental and technical analysis as it is trade that depends solely on trends between a period of time.
Understand that your funds can be lost and should trade with only spare funds.
Crypto Exchanges Name That Provide Leveraged Tokens Service and What Margin They Provide In Leveraged Tokens?
Just like there are percentages to margin trading, there is a limit to leverage tokens trading. Here are the exchanges and their leverages
Exchanges | Leverages percentages |
---|---|
Binance | 4x |
Bittrex | 3x |
Poloniex | 3x |
Price Forcast For Crypto Assets (BTC/USDT)
Using ascending triangle and an Inverse head and shoulder, and a hour chart, it shows that the price of BTC/USDT will go up once it breaks out of the triangle to hit the previous resistant but once it breaks the support, it should see another ATH.
Summary
It is really a great deal to be a part of this lecture and to partake in the assignment. Trading can look very simple but the fact remains that it is difficult and requires a lot of knowledge and gut to get results.
Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task.
need more explantion in this area LEVERAGED TOKEN TRADING and also Plan For Trading In Leveraged Tokens
need more detail to explore your view about about price forecast about crypto
look homework fine
Thank you very much for taking interest in this class
Grade : 6
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