Steemit Crypto Academy | Crypto Margin Trading & Crypto Leverage Tokens Trading |To Professor @stream4u
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What is Crypto Margin Trading?
Margin trading is a method of trading assets using funds provided by third parties. When compared to regular trading accounts, margin accounts allow traders more access to capital, allowing them to leverage their positions. Margin trading is often referred to as leverage trading. Leverage is the amount by which a trader can multiply their position. A margin trader who opens a trade with 100x leverage, for example, will multiply their potential profit by 100 times.
Let's give a example, If you want to trade a portion of Bitcoin using $20 and choose margin trading by taking a 5x margin, it means you are am going to trade on 100$, so that in any case the price of Bitcoin increases or decreases the amount of your trading balance also decreases or increases 5x times. Briefly you will loosen all your assets in a certain way or make more money but it depends on your analysis and market strategies.
Margin trading can be used to open long and short positions.
Margin trading is a high-risk, high-reward method. There are a number of unique risks in the cryptocurrency market that should be identified as a leveraged crypto trading risk strategy. This trading method is not for unskilled traders.
How To Plan For Trading In Crypto Margin Trading?
Since this is a high risk trading strategy, it is important to plan properly. From how to prepare to when to go out to trading.
- It is almost mandatory for a trader to get the time set and outline right before taking a trade. And the outline will remind you how you need to work.
Traders always knows what assets need to be engaged. So the fundamental aspect of this is that market analysis needs to be done to determine sensitive and technical analysis. This will prepare and assist the trader to raise a level of confidence before taking any action.
You need to have a time frame in mind for how long you will trade.
Making the right decision is crucial. Changing the decision could result in the loss of all funds.
If you are a beginner than trying to start with small trading, this will help you gain experience and confidence for future.
Crypto Exchange Name that provide margin trading service and what margin they provide
Binance is currently the most popular crypto exchange. They offer up to 10x leverage in both isolated and cross margin trading.
Poloneix offers 2.5x margin trading.
KuCoin is another reputable exchange site offering 10X levarage in margin trading.
Kraken in the cross margin trading with offers upto 5x.
What is Leveraged Tokens Trading?
Leveraged tokens ERC20 tokens with leveraged exposure without taking care of margins, requirements and liquidity risk. Leveraged tokens are the easiest way to trade in leverage. These tokens are not designed for future trade purposes because they buy and sell tokens quickly, so not to hold.
However, different exchanges follow different strategies to balance their leveraged tokens.
Risk:
These are high risk products. If you do not have sufficient knowledge before investing in leveraged tokens, you may fall into loss. This is not recommended for early traders.
Leverage token transparency is available, depending on the exchange you are using.
Benefits:
This will allow you to take advantage of market volatility.
They will automatically invest the profits and sell some of them to avoid market liquidity risk.
How to plan for Trading in Leveraged Tokens?
The following are the things to keep in mind before Trading Leveraged Tokens.
If you are new or have no previous experience in Leveraged Tokens trading then don't invest more money in it.
The entry and exit positions must be confirmed before taking trade in leveraged tokens.
A good idea is to analyze the resource well. It will help to know the basic, sensitive and technical aspects of this assets which in turn gives a better direction.
Avoid trade with emotions.
Crypto Exchanges Name That Provide Leveraged Tokens Service and What Margin They Provide In Leveraged Tokens?
FTX offers 101x leverage on leveraged tokens.
Bitmex offers upto 100x leverage.
Binance exchange offers leveraged tokens service with variable 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 fornext week.).
I have a reef coin that I just bought. Having done a technical analysis of it, I decided to hold it until next week. Because the technical analysis showed me its one week price forecast. Its good pump can be expected if the market is so stable. If BTC has low price movement, it will touch 0.06 this week.
My entry into this coin is at 0.038 I expect it will go above 0.06 in a week.
Thanks to Professor @stream4u