CryptoAcademy week 12 homework post for @stream4u | Crypto Margin Tradings and leverage token tradings.

in SteemitCryptoAcademy3 years ago

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Hello steemians, this is another wonderful episode from @stream4u on another wonderful topic. Last week we learnt about price forecasting, but this week, we are tackling something more. Margins tradings and leverage token tradingsl. We should be able to apply our knowledge in price forecasting in the tradings for effective trade results.

Without wasting much time, I would Answer my homework systematically. According to the questions.

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1. What Is Crypto Margin Trading?

Basically, Margin tradings offers a trader or an investor more capital to be used in tradings. Margin tradings Is just like borrowing money to be used in the investments. Some platforms offers the users opportunity to do margin tradings. However, aside the opportunity granted to trader's, the risk involved in the type of trade is very huge.

In crypto margin tradings, is either you earn big ( 2x 3x or even 5x) of your initial capital or your lose all in some few minutes. That is why a good price forecaste is very necessary in margin tradings.

In crypto margin tradings, the money money borrowed or the money used on the platform is from the 3rd party to the trader. Im other words, the brokers to the traders.

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2. How To Plan For Trading In Crypto Margin Trading

As in any other tradings, the trader must have some laid down principles to follow. Its serves as a guide in the tradings. All traders must know how to plan for effective tradings results.

In crypto margin tradings, both beginners and experts have targets and strategies to use in thier tradings.

here are some guides to plan for margin tradings

  • Make sure you have knowledge about margin tradings leverages and you know the risk involved as well.

  • Make sure you have knowledge about price forecasting, know the charts if possible consult an expert. ( as a beginner ).

  • Make sure to start sure to start with little capital. do no use any amount you are not willing to lose. Margin tradings could be very risky.

  • set a limit or a target profit before you invest. most investors do not set limit in tradings which makes them lose a lot of profit.

  • know your level of experience and strategize your level of risk. Usually the trades that involves lesser time are riskier than the one with enough time.

  • know the platform you are using to trade : understand the meanings of everything on the platform you are using. To avoid unnecessary errors.

Above all, dont let greed or the fear of losing take over you.

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

As we all know, not all crypto exchange platforms provide margin tradings. Not all the exchange platform have the means to offer margin tradings. Even with those who provide margin tradings, they all have thier limits in the margin they provide.

below are some of the exchange platforms that provides margin tradings

  • BINANCE : this is one of the most popular exchange platforms. They Provide margin limit of 5X.

  • POLONIEX : They Provide a margin limit of 2.5X

  • BITHOVEN : They provide a margin limit of 20X

  • STORMGAIN : They Provide very large margin limit of 200X

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4. What Is Leveraged Tokens Trading?

In simple words, Leverage tokens are ERC-20 token that have Leverage exposure to cryptos. The leverage tokens are purposely used in tradings but not holding. Like the margin tradings, traders who are able to analyse the chart very well earn more profits.

When we say 20X leverage, it mean your balance size could be multiplied by 20. It doesn't mean it would certainly be times 20. It means your maximum would be 20X.

5. How To Plan For Trading In Leveraged Tokens?

In planning to trade in leveraged tokens, traders must consider these precautions.

  • In any trade, knowing what the trade is about is very necessary. Hence, trader must jace fore knowledge about leveraged tokens tradings.

  • An investor involved in Leveraged tokens tradings must choose a less riskier margin. As a beginner.

  • Do not invest capital you are no willing to lose . This is the most common mistakes involved in tradings.

  • set a a limit profit target most traders trade without setting limit target.

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

Just like the Margin tradings, not all the crypto exchange provides leveraged tokens services.

Here are some crypto exchanges that provides leveraged tokens services

  • KRAKEN : provides leveraged margin limit of 5X

  • ETORO : provides a leveraged margin limit of 2X

  • BITHOVEN : provides a leveraged margin limit of 20X

  • BINANCE provides leveraged margin limit of 3X

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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 for next week.)

STEEM DOLLARS (SBD)

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Looking at the chart of SBD on the coinsmarket app, the price of sbd has decreased by about 10% over the week now. But however, steem and Bitcoin has increase from the past week now. Sbd and steem usually moves simultaneously. Therefore i think sbd would rise in the next week to come.

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Looking at the chart from the 24 hours, sbd has gone down drastically within this 24 hours. 7% reduction of sbd in just 24hours. SBD is at the range of its lowest point for this month. Which suggests a possible rise in a week to come.

Conclusion

Margin Trading and leveraged tokens tradings could be the best way to invest if mastered. Because the profit yield could be very massive. However, because of the risk involved, precautions should be taken seriously when using such methods.

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

  • steem and sbd will cross its high peak in coming weeks

  • steem will be equal $10 and sbd $50 , time is coming

  • home work look fine
    thank you very much for taking interest in this class

Grade : 6

 3 years ago 

Thanks for the feedback

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