Introduction
What Is Crypto Margin Trading?
Margin trading is an act of getting loan from exchange platform. The main purpose of margin trading/getting loan is increasing the capital. This capital is then invested to get high profit. You can only get the loan from exchange house according to your own investment. The exchange house offer loan with the margin of investor's investment. The margin start from x1 and it can be up to x100. You can ask only for as much loan as you can afford to lose. Because crypto world change every second. If the market is in your favor at a time the next time it will not. Market goes up and down every time. If you get loan and earn profit of 2x on your investment then there are also chances of losing it with the same ratio.
The exchange houses give you loan. When you get profit out of your investment or even lose your money, you have to give back the amount with commission to the exchange houses which you have borrowed. It is not the game of beginners. You should do the margin trading only when you have proper knowledge and a long experience of crypto currency. If you know that when market goes up and when it fall, only then you should do the margin trading and make an investment. Margin trading is a type of trading. It further categories into two types.
A) Cross margin trading
B) Isolated margin trading
EXAMPLE
Let's suppose, i have 20000 and i want loan of 5000 in order to increase my investment so that i can get more profit. After a specific time, i have to return that 5000 with commission to exchange house. Doesn't matter whether i have profit or i lose my money with that investment. but i have to return the loan with commission at any cost.
KEY POINTS
1- The margin trading is little bit risky. You should be very careful about rise and fall timing of market.
2- The exchange houses give you loan. You have to pay back that loan to exchange houses with a specific amount as commission.
3- There are some requirements or conditions to fulfil for getting the loan.
4- The crypto world is volatile. If there are chances of getting the double of your investment as profit, you can lose it with same margin too. So Be very careful and patience in the trading world.
5- Do not invest more than you can afford to lose.
How To Plan For Trading In Crypto Margin Trading
Everyone who want to make good profit within short time is familiar the word "Crypto". Everyone is here to earn more and more. Beginners and experienced traders adopt different strategies to invest their money in order to get high profit. All those strategies have some common key points.
1- If you are newbie in crypto world, then you should conduct a proper research and study the coin in which you want to invest.
2- Choose your strategy which you will follow throughout your investment period.
3- Make a solid plan and set some rules and try to follow those rules for becoming successful investor. For example, if you have planned to invest money for 15 days, and after just five days, you see that the market going down and you decide to sale all your coin to save yourself from a higher risk. Don't do this. Set rules and follow them till end. Don't be panic.
4- Always do the price forcasting of the coin in which you want to invest. You will get to know the future of the coin in market and you will be able to decide whether or not you should invest there.
5- Do analytical and sentimental analysis before investing.
6- Do not do the margin trading if you are beginner and don't have the proper knowledge, guideline and experience.
7- You should be very clear with how much money you should invest. Do not invest more than you can afford to lose.
8- Clear yourself that either you want to do the margin trading for short period or for long period.
9- Before going for long period investment, invest for short time in order to get experience. The profit will be small but you will get an experience of margin trading and will be able next to invest for long period successfully.
10- Don't be greedy
Crypto Exchanges Name That Provide Margin Trading Service and What Margin They Provide?
There are mainly four exchange houses which offer you the margin trading. They provide margin of different rate. You have to fulfil the certain conditions which have been set by those exchange houses to get the loan.
Binance: Binance is world largest exchange house which offer you trading on multiple coins. Binance also offer the margin trading. It provide margin up to 125%.
POLONIEX: Poloniex also offer you the margin trading. It offer the margin up to 5x.
Stormgain: This exchange platform also provide the margin trading with margin up to 200x.
Bybit. This exchange platform provides margin up to 100x.
Kraken: kraken is also a platform which offer you the facility of margin trading. It offer the margin of 5x.
FTX: Provides margin up to 3x.
What Is Leveraged Tokens Trading?
Leverage tokens are the ERC-20 tokens. The investors can get the more and more leveraged without considering the risk of management and liquidation.
The investors don't care about the margin in leveraged token trading. So the profit rate become higher because of it. The leverage tokens are best for leverage trading and you can get more and more profit out of it but they are not introduce for HOLDING purpose as they buy and sale rapidly. Many exchange like BULL, BEAR exchange house offer you the facility of leverage token trading by equating the leverage of value margin. Even in leverage token trading, you can get profit or even lose your money. SO do not invest more than the money you can afford to lose. It all depend on the experience of investor in crypto world. So start with small amount and get experience first. After that invest and earn more and more profit.
How To Plan For Trading In Leveraged Tokens?
If you are newbie in crypto world, then you should conduct a proper research and study the coin in which you want to invest. You need to invest your money in multiple coin instead of one. So that if market price of one coin goes down then you will have margin of other. Always Choose your strategy which you will follow throughout your investment period. Before investing money, Make a solid plan and set some rules and try to follow those rules for becoming successful investor.
Always do the price forcasting of the coin in which you want to invest. Doing the analytical and sentimental analysis before investing will help you to decide where you should invest. Do not do the margin trading if you are beginner and don't have the proper knowledge, guideline and experience. Always start from a small investment to get experience. You also should avoid the revenge trading. If you invested your money in some coin and you have lost there, then don't be panic and invest again your money in some other coin quickly in order to cover your lose. It will return into another lose if you invest again with adopting a proper strategy. It is the revenge trading and it always result in your money lose.
S have some patience and always do the technical and sentimental analysis before investing. You should be very clear with how much money you should invest. Do not invest more than you can afford to lose. The most important thing in crypto world is Don't be greedy
Crypto Exchanges Name That Provide Leveraged Tokens Service and What Margin They Provide In Leveraged Tokens?
Huobi: Huobi is an exchange platform which allow you the leveraged token trading with margin up to 5x.
Binance: Binance is the world largest crypto exchange platform which allow you to do the trading in many coins and token. It also offer you the facility of Leveraged token trading with the margin up to 4x leverage.
Kraken: Kraken is an exchange platform which offer you the leveraged token trading with margin up to 5x.
Coinbase: Provide margin up to 3x.
FTX: Provide margin up to 3x
Price Forcast 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 fornext week.).
PRICE FORCASTING USING BTC-USDT
This is the first time, i am doing the price forcasting. It can bee seen in the following graph that the market was down at the end of April. But after that, the market start rising up again. On second May the market again start felling. But Now it is seeing that the market is rising up day by day to some extent. There is a lightest fall seen in graph on 8th april, nut it will go upward again.
I Think that the price of BTC is rising again after a fall in April. The price is fall slightly today but it is continuously going upward from the end of April. By the 12 of May, the price will range between 54000.00 - 64000.0. If it market start falling again, the price may goes down to 53000.00 and after that it will rise again to break the resistance of 58000.00.
In the following graph, we can see that the BTC price is rising slowly after a great fall in April. By the 20th of MAy, it will rise again to the 64000.00 and if my prediction is wrong, it will move toword downward and price may be fell to the 54000.00 and after that, it will rise again to break the resistance of 64000.00
Conclusion
The fall and rise are the change which occur every second in crypto world. Crypto world is volatile. So, we should be very careful before investing our money here. We should first do the price forcasting to determine whether or not we should invest our money. Second thing we learn in this class is margin trading is not a game for beginners. We need to have a great experience in crypto world to do the margin trading successfully. We should not invest as much money as we cannot afford to lose. The next thing is leveraged token trading. It is good for getting high profit but here we also need some planning and rules to follow in order to get reward. Doesn't matter where we are going to invest, we should always need to have some strategy and rules to follow, control on our emotions, shouldn't be greedy and always should do the price forcasting before investing.
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