Steemit Crypto Academy | Course By @stream4u - Crypto Margin Trading & Crypto Leveraged Tokens Trading.

in hive-108451 •  4 years ago 

Hello steemians, I hope you are doing okay. This is my homework post for @stream4u Crypto Margin Trading & Crypto Leveraged Tokens Trading. The lecture was pretty much explained in the very simple and easiest way. Here take a look at my homework.

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Made it myself on Wix logo make paid website

What Is Crypto Margin Trading?

Margin trading is as easy as it sounds, you trade for more money than you have. Margin trading is a form of trading in which you borrow BTC, Ether, for the purpose of trading and repay it on a set date. To do so, you must have leverage in the form of funds that the market can keep in place, which you can do by depositing those funds into an exchange.
You can place them on a percentage basis or whatever you want as collateral to borrow more money than you have. You can use a laverage multiple of 1,5,10,20 times this way. Exchanges will sometimes sell up to 100% leverage. A higher leverage will result in a better outcome, but it will also increase the risk.Because of the leverage, margin trading carries a high risk. Traders who increase their leverage will sell more than they own, which means they can expect to make more money, but they can also expect to lose more money.
If the loss exceeds your investment, we will ask you to cover the difference.

How To Plan For Trading In Crypto Margin Trading?

So this is an important thing to keep in mind that before entering the crypto margin trading we have to first learn the technical analysis of the market. We have to study the market in order to gain from the investment also to avoid heavy loss. We have to keep in mind that we should not invest our savings. I have given below some following pieces of advice to keep in mind when entering into crypto margin trading.

  • As I have said earlier above you have to first do the technical analysis that when to invest or in other words when to enter and leave the market with margin profit.

  • Always start with a small amount never ever invest a large amount or you will regret it if the market went down.

  • If you are a beginner you should set parameters. You should invest 3 quarter of your balance in order to get 3x,5x or even 10x profit.

  • Another important thing to keep in mind is that you have to set goals. for example, you have to do the analysis if you want to keep it as a long-term investment or short-term.

  • You should look out for the type of exchanges which takes fewer fees in order to hold much on profit.

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

There are almost 5 to 6 margin trading services that are listed best in 2021. Some of them are given below :

  • Bybit has the lowest fees. It provides up to 100x leverage for 5 coins which are BTC, ETH, XRP, EOS, and USDT.

  • Huobi Pro is a cryptocurrency trading exchange based in Hong Kong that is renowned for its multilingual platform. In BTC, Huobi allows for a 5X leverage.

  • Binance is the most trusted and reliable exchange. It deals in multiple coins with a huge trading volume. It is blacklisted in some countries. It also provides up to 5x leverage.

  • Deribit is currently the trending margin trading exchange. it offers up to 100x leverage.

What Is Leveraged Tokens Trading?

ERC20 tokens that reflect a leveraged long or short position in a crypto asset are known as leverage tokens. The key benefit of these major crypto derivative tokens is that they allow you to take leveraged positions not worrying about collateral, margin management, or you can say liquidation. They've gotten a lot of attention after their release because of their simple structure. They have different patterns for different cryptocurrencies, such as Bull and Bear.

whereas Bull is known for upward trend and Bear is known for a downward trend.

How To Plan For Trading In Leveraged Tokens?

So here are some key points to keep in mind when planning for trading leveraged tokens :

  • The performance of leveraged tokens can be influenced by factors such as volatility. As a result, you must be mindful of the past performance of each leveraged token.

  • When trading conditions are favorable, we want to enter at the right time. When prices break out of a range, this is the perfect market movement.

  • For leveraged tokens, trending markets are ideal. Down tokens that strive for inverse or short results are likely to perform well in a bearish environment.

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

1- Deribit only offers 100x leverage on BTC.
2-Bitmex offers leverage of up to 100x.
3- KuCoin offers a 10x leverage ratio.
4-The Binance exchange offers leveraged tokens ranging from 1.25x to 4x.

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 for next week.).

I have taken Vet coin for prediction. It is a coin designed by Vechain blockchain. It is currently considered a long-term investment coin. So I have done my technical analysis on this coin trading view site

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You can see in the above graph that the candle touched the resistance between 18 to 21 May and then consolidated for a moment and then it went straight down to support and bounced back but again it consolidated. the resistance and support of this coin are weak. we can not expect much increase in value. According to my, it can go up to 0.28 in the next week it breaks its resistance. I have done my technical analysis on the page. according to me, these are my prediction. I know it's not perfect.

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Conclusion :

SO I conclude that the overall learning is very helpful for newcomers who want to step into the game of margin trading and leveraged token trading. The topic was well explained enough for someone to understand easily and it will also give them the confidence to step into the trading world. All the major precautions are explained in it for new ones whether to invest or not. Well, that's all from my side.

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Hi @yarhassan

Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task.

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Provided information are explained well.Price Forcast, you did well. However, expected more details in Leveraged Tokens Trading like their behaviour movement in a market with some examples.
Looks Fine.
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Done

Your Homework Task verification has been done by @Stream4u, hope you have enjoyed and learned something new.

Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
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