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

Hi fellow steemitcryptoacademy students, hope we are all participating and learning just as I'm doing down here. I'm here again to participate on homework task posted by Prof @stream4u on crypto Margin Trading and Crypto Leverage tokens Trading. I will be attending to them as presented accordingly.

What is Crypto Margin Trading?

Each time I hear the about the word Margin Trading, what first comes to my mind is access to bigger capital without necessarily having such huge tradable capital. Therefore, Crypto Margin Trading is an investment type that allows users of the platform to access much bigger capitals/assets from third party sources like the exchanges and/or brokers for more marginal positions tailored towards investment purposes. Users of the Crypto marginal trading type have access to much bigger capitals which positions them to have a bigger stakes on trades and hence more Return On Investments (ROI)

Just as the potentials of making more is seen, so is the potential loss occurrence should incase trade goes south. Percentage margin offerings varies from exchanges and the asset type in question, some are seen to offer 3%, 5%, 10%, 100% respectively. For example, a user with just $10 and applies for 10x leverage for margin trading, he gets extra $90 but with a sum total of $100 to engage the trade. This now exposes him to a large market investment of $100 which also ensures either more profits or loss. Lets remember that Crypto margin Trading is a double edge that either exposes the users on both sides of the divide.

It is necessary that a user selects an exchange or broker that best gives him good percentage margin and also runs both types of crypto margin trading which includes the isolated and cross margin trading.

• Isolated Margin Trading: This is a less risky kind of margin trading when compared to the cross margin trading. Here, the user or investor is seen to have opened positions been linked to sub-accounts without necessarily affecting the main margin trading account. That is to say that, if a particular position goes south, it remains within it without affecting every other positions opened. This reduces the general risk incurred by the user while exposed during trading.
• Cross Margin Trading: All positions opened here are directly linked to the main marginal account, hence losses seen in any opened positions affects the complete user assets. It is highly risky and always advised for a professionals.

In summary, Margin Trading allow users to access more capitals they wont ordinary have on their own to trade, gives them more opportunity to make more enlarged entries/positions in a trade and gives users better stay in profiteering in the course of trading.

How to plan for Trading in Crypto Margin Trading

Every cryptocurrency trading needs planning and Crypto Margin Trading is not an exception. For any plan to be guided and successful, there must rules of engagement. Here, the trader or investor needs to outline all rules and strategy to be adopted by him before, during and after trading. Thereafter there should be an all encompassing approach that involves the Fundamental, Technical and sentimental analysis.

The platform for engagement should also be considered; for centralized exchanges, we all know that the Binance stands out in all aspects. When this have been selected, the trader/investor should be able to determine and specify the amount of risk level to be attained either daily or cumulatively. This would help to guide against over indulging in trade activities which resultant effect is Overtrading, Revenge trading , Emotional trading which all bad vices geared toward loss of assets.

Crypto Exchange Name that provide margin Trading and what Margin they Provide.

• Binance : offering both cross margin and Isolated margin trading up to 10x
• ByBit : Offering both cross margin and isolated margin trading up to 100x
• Poloniex : An exchanged with headquarters in Seychelles, offers up to 5x (for both cross and isolated margin trading)
• BitMex : Offers both cross and isolated margin trading with majors in Bitcoin margin trading. offers up to 100x
• Kraken: Majors more on cross margin trading and offers up to 5x
• Huobi : A great exchange platform, offers cross and isolated margin trading with up to 5x

What is Leveraged Tokens Trading?

Unlike the Crypto Margin trading where a trader apply for extra capital for investment trading from third parties like the brokers and exchange, the Leveraged Token trading requires that the trader/investor does not need to apply for any additional capital rather he enters into a contract that allow him open positions of trade on their (third party platforms) leveraged Tokens. In this case, the trader does not request for extra cash from the exchange platform or broker, instead he leverages on its services to trade on assets that ordinarily may not purchase out rightly.

Leverage Token trading allows the trader to open several positions on different assets, hence have variety to invest on various assets. The cost in buying a single assets may be exorbitant, hence the advantage in leveraged token trading. Traders now have the opportunity to invest on different assets, with different positions opened that gives the trader more tendencies of making profits.

For example, a trader that entered into a contract on a $50 leveraged token with 3x margin offering with positions opened for either downtrend or uptrends is likely to make $150 extra returns if the trade goes his way. These are the key highlights of the Leveraged token trading that makes it more interesting for traders;

• It allows traders to make several investment on other assets instead of putting all their in vestment on one asset.
• It allows traders/investors to trade on assets they may not have ordinarily have opportunity to trade on.
• It allows for multiple Return On Investment with ability to open for several positions.

But traders should not forget that this kind of investment is also risky, just as it has high potentials of ROI, so is the loss when trade goes south. With high volume of risk involved, trend, there is an ability of possible liquidation.

How to Plan for Trading in Leveraged Token?

Planning for the Leveraged Token trading is very important given to its high risky pattern. A trader who wants to engage the market using this type of trading should be able first of all do a market analysis on the asset in view and be sure of the current market scenarios before taking any position as the case may be. Just like how lucrative we may see it to be, it is also risky which should put the trader on more advantageous positions to make profits from it no matter small and void of greed.

Moreso , trader should also consider the exchanges to engage with that offers Leveraged Token with lesser fees. This would allow more profits at hand to avoid been largely taken away by fees/commissions. On the other hand, the risk aversion level should be determined to help guide and minimize loss of assets during trade.

Crypto Exchange Name that provide Leverage Tokens Service and What Margin they provide in Leverage Tokens?

There are few Exchanges seen that offer Leveraged Token Services;

• Binance Exchange : Fantastic Exchange that offers leveraged token up to 4x
• Pionex : Offers Leveraged Tokens up to 3x
• Coinbase : Offers leveraged token up to #x
• FTX : Offers up to 3x on leveraged token for Bull and -3x for Bear.

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.).

For the image above we have the ETH/BTC pairnofncoin being tracked for price forecasting. The value of this pairnisnvakuee at $0.062320 at the moment and with potentials bull trend. With he support seen just before the lower Bollinger line at $0.061213 and resistance just immediately after the $0.062320 upper bollinger line.

From the resistance level, we can see that the market is already turning bearish but this market will likely correct it self and belreak this resistance.

From the second image above, we can see the both support level gained by the market and possible bullish trend it has taken. At &0.040, there was a resistance seen their before a breakout from the resistance level. The market has attended a higher high trend which means that the next high is always higher than the previous high.

For me, the price of ETah/BTC would rise in the next one week from its $0.062320 value at the moment.

Thank you Prof @stream4u, this is my entry for this homework.