Crypto Academy Week 12 - Homework Post for @stream4u

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Hello community. This is my homework post of week 12 for @stream4u. Let’s get started.

Question 1. What Is Crypto Margin Trading?

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Asking for a loan from someone (ideally Any exchange) is called margin trading. It is to increase your investment and hence getting more profit in return. For example you have 1000$ to invest and you want to take leverage loan x5 and now you’ll have 6000$ for the trading. There’s a specific percentage of the commission on the loan. Let’s say you got 5000$ loan and when you’re done with the trading and are ready to leave, you have to payback those 5000 and the interest set in the start at the time of getting loan. There’s one big condition while doing margin trading and that is “analysis”. If you’ve done the analysis of the market only then you’ll be successful otherwise you’ll lose all your money.

Question 2. How To Plan For Trading In Crypto Margin Trading?

There are few basic tips that I learned from the lecture of @stream4u. I’ll write them below in bullet points.

• Enter with an exit strategy in mind.
• Try to go for small profits. Don’t try to be greedy hence loose all the money.
• Most importantly, technical study is very much needed for trading.
• Don’t take decisions on sentiments. Control your emotions.

If one follows all the steps given above, I believe he/she can make good profit.

Question 3. Crypto Exchanges Name That Provide Margin Trading Service and What Margin They Provide?

1. Binance provides margin trading with leverage upto 10x.

2. Kraken exchange provides margin trading with a leverage of 5x.

3. Houbi Exchange provides margin trading with leverage up to 5x

4. Poloneix exchange provides margin trading with a leverage of 2.5x.

Question 4. What Is Leveraged Tokens Trading?

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Leveraged token trading can only be done on the exchanges and these token cannot be withdrawn in your wallet.

Different crypto exchanges have different margin on the leveraged tokens. These tokens can give you a margin of 3x or more depending on the exchange.

You can find leveraged tokens for different different assets and they will be labelled as UP OR BULL and DOWN OR BEAR. For example, Leveraged Tokens for Bitcoin(BTH) will be listed as BTHUP OR BTHBULL, BTHDOWN OR BTHBEAR.

Question 5. How To Plan For Trading In Leveraged Tokens?

There are a few steps that you have to take care.

• Put in small amount when you invest. There will be less to lose like this and with time you can make good profit.
• Again, Technical study is very important so you must do that.
• You must have a target set when you enter the market.
• There must also be a strategy in your mind to make profits.
• No decisions must be taking on the basis of emotions and sentiments.
• Check Crypto exchanges, fees, intrest and go with the one which charges less.
• Never be a victim of greed. It will do nothing but harm you.
• Always have an exit strategy in mind.

Question 6. Crypto Exchanges Name That Provide Leveraged Tokens Service and What Margin They Provide In Leveraged Tokens?

1. Bitmax provides 3x leveraged token.

2. Kucoin gives 10x leverage.

3. Kraken gives 5x leverage.

4. Huobit Exchange provides 5x leveraged tokens.

Question 7. 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.).

If we look at the screenshot from binance, we can see that the price of ethereum (ETH) is on continuous rise. There was a decline inbetween but that was very minor and price is one the hike. On 02/01 it was ar its lowest in the week which is 1421.69 but if we see the price on 05/03, it has touched to 3500!

Here is another screenshot of ETH from tradingview.com, we can see that from 26 april to 5th may, the lowest that ETH touched was 2500 but from that point it is on continuous rise. So my prediction is that in the next week the lowest it can go is on 3400 and the maximum it can go in next week only is 3600 or something near that.

Conclusion

In everything, analysis is a must thing to do. Without that you go in continuous loss. Another thing which is important is, price forecasting. Without that you won’t be able to predict the price of the assets in the future. In margin trading, go with the exchange which provides with less interest rate. Always develop strategies of trading and also have an exit strategy in mind.

That’s all from my side. Thank you.

This post is plagiarism free. The 2 screenshots given were taken for price forecasting as mentioned in the question and I’ve also given the name of the websites that I’ve taken the pictures from.