Steemit Crypto Academy Season 2 Week 4|| homework post for @stream4u|| Crypto Margin Trading & Crypto Leveraged Tokens Trading

Question No 1:

Trading What Is Crypto Margin?

Best-Crypto-Margin-Trading-Exchanges.jpgp

Crypto Margin trading is a form of trading that helps traders to increase their contribution to a certain commodity by borrowing money from other traders or the exchange itself. Unlike traditional trading, where traders use their own money to fund trades, margin trading enables investors to increase the amount of money they can trade.

Margin investing is also known as leverage trading because it allows an investor to multiply their position by a certain number. If a margin trader uses 100X leverage, for example, their exposure and future benefit would be multiplied by 100.

At first glance, margin trading appears to be a great idea: the ability to multiply profits by 100X would pique any trader's interest. However, there is a disadvantage to margin trading Bitcoin. As it comes to Bitcoin investing, using leverage to amplify the position comes with a higher danger.
Fortunately, the danger associated with margin crypto trading is not proportional to leverage. Trading for 100X leverage, for example, would not multiply the risks by 100X; in most cases, you will not be able to risk more than the amount you initially invested. However, in some cases, losses may potentially outweigh invested investments.

Margin trading is commonplace in slower-moving, low-volatility environments like the Forex market, but it has also gained a lot of traction in the fast-moving crypto sector.

How Does It Work?

At the most basic stage, leverage trading Bitcoin is very easy. A dealer offers the exchange a small amount of money in exchange for a large amount of money to trade for, risking everything for the opportunity to make a large profit.
To margin exchange, a broker must make an initial investment to open a position, known as the "initial margin," and maintain the position with a certain sum of money in their account, known as the "maintenance margin."
Different cryptocurrency exchanges have different levels of leverage. Some exchanges offer 200X leverage, allowing traders to open a position worth 200 times their original investment, whilst others offer 20X, 50X, or 100X leverage.

The language used to describe leverage varies depending on the medium. For eg, in the Forex sector, 100X leverage is often referred to as 100:1. In the crypto trading context, leverage is commonly referred to by the former "X" terms. Leverage of 100X is the same as leverage of 100:1.

When you start a margin trade with a crypto exchange, the exchange holds the sum of money you invest as collateral. The sum of leverage you will use while margin trading is determined by the laws of the market you sell on as well as your original margin.

Question NO 2:

How To Plan For Trading In Crypto Margin Trading?

Crypto margin trading is no exception to the rule that planning is necessary in cryptocurrency trading. It is recommended that an investor be certain of the pattern of an asset's market behaviour before joining such a deal. Note that crypto margin trading is a high-risk bet, and traders should avoid opening several positions that give them fast profits rather than being greedy and opening a place with a high profit margin, since this will result in a loss over time.Here are some basic points we should keep in mind before starting crypto margin trading:

  • You must first determine the objectives, such as when to join or leave the sector.

  • You should have a time period in mind for how long you want to keep the role.

  • Before you join, make sure you've completed all of your technical, fundamental, and nostalgic market research. If you don't, you risk losing anything in an instant.

  • The most important risk to be mindful of is that, while margin trading has a high potential for benefit, it often has a high potential for failure. This is something you can bear in mind long when you start worrying about Margin Trading.

  • Until you undertake margin trading, keep in mind that it raises the risk of making both gains and losses. On the one side, you can win most if the demand swings in your favour, but you will still lose a lot of money if the price moves in the opposite direction of your prediction. Anyone that is new to investing or bitcoin should be well-informed of the potential outcomes.

  • Traders should therefore be mindful that they must keep a share of the worth of their spot on the market at all times. Enough that the spot is still accessible. Your order would be immediately closed if you suffer a failure of your status that crosses a certain threshold.

Question No 3:

Crypto Exchanges Name That Provide Margin Trading Service and What Margin They Provide?
I have found these margins:

  1. Poloneix offers 2.5x margin in 11 different cryptocurrencies for BTC.
  2. Bybit offers upto 100x margin in trading for only 5 coins BTC
    XRP
    ETH
    EOS
  3. Binance x5 for large cap
  4. kraken 5x for large cap
  5. stormgain 200x large capDT

Question No 4;

What Is Leveraged Tokens Trading?

Leveraged tokens provide you with leveraged exposure to a cryptocurrency's valuation without the possibility of liquidation. This way, you will benefit from the higher returns that a leveraged product will provide while avoiding the hassles of handling a leveraged role. This ensures you won't have to worry about managing collateral or meeting margin criteria, because there's almost no chance of liquidation.

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The trader just has to predict whether the commodity is in an uptrend or downtrend and open a spot in this form of trading. For eg, if a trader invests $10 in a leveraged tokens trading account with a 3x margin and the asset moves uptrend as expected, the trader's initial investment becomes $30.

Question No 5:

How To Plan For Trading In Leveraged Tokens?

Until engaging in leveraged tokens trading, the dealer should be certain of the asset's pattern before taking a place.You must seek all of these points in leverage trading, just as you must in margin trading:

  • Often do a fundamental review of the sector we'll be trading.
  • Implement a plan that will enable us to increase our profit margins
    *Save capital that you won't use in the future.
    *Plan your entrance and exit points and perform them at the appropriate times; don't let feelings get the best of you.

Question No 6:

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

There have been four exchanges that sell leveraged tokens.
1- Bitmex provides upto 100x leverage 6 different crypto currencies.
2- FTX provides 101x leverage on dealings on BTC and further tokens.
3- Huobi Pro provides upto 5x leverage on BTC and Alt coins.
4- Deribit provides 100x leverage only on BTC and only deal in BTC.

  1. 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.).
    Consider that in the crypto ecosystem, market forecasting refers to the calculation of an asset's price in the immediate future based on the asset's price background. And it is for this purpose that I will be examining the BTC/USD pair in order to make a price prediction for the asset in the coming week. See below graph:

Screenshot_20210506-133355_Chrome.jpg

The screenshot showed a recurrent resistance of the commodity BTC/USD at the price of 123.75 USD, with the possibility of a price breakout currently. The market breakout isn't obvious yet, but there's a good chance it could happen.

Screenshot_20210506-132925_Chrome (1).jpg
As can be seen in the screenshot above, two supports were found earlier at about 123.75 and 134.18, indicating that if the current situation of Bitcoin experiences trend reversal and crosses 128USD, that will be a good help for buying as the commodity would experience trend reversal (uptrend).

Screenshot_20210506-133134_Chrome.jpg
At 134 USD we can stop trade and get asset.which was Bitcoin's all-time peak, and a price breakout could occur over the next week, potentially establishing a new all-time high for Bitcoin.

Conclusion:

The value of margin trading, margin trading tokens, and the new exchanges that deal for leverage loans is discussed in the following course. The overall experience of this subject would help us grasp the complexities of both words and the key points about investment and other platform interests. . We have highlighted the tactics we use in order to benefit from proposal submissions.

Cc
@stream4u
@steemcurator01
@steemcurator02
@steemitblog

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

  • you explained well but need more detail about Leveraged Tokens Trading and also plan Trading In Leveraged Tokens

  • look good

thank you very much for taking participate in this class

Grade : 6

Thank you Soo much sir . Next time I will do my best

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