Crypto Academy Week 12 - Homework Post for [@stream4u]-Crypto Margin Trading & Crypto Leveraged Tokens Trading by @ellipsebd

Source

---

Thanks to professor @stream4u for sharing this important Crypto Margin Trading & Crypto Leveraged Tokens Trading lesson with us. I learned a lot of new important information about margin trading and leveraged tokens. Now I will complete my homework task by answering your questions one by one. Let's get started:

What Is Crypto Margin Trading?

---

Crypto Margin Trading is a trading system where traders can increase capital by borrowing from an exchange site. In this case, traders get the opportunity to trade with more capital than their capital. So there is an opportunity to generate good profit.

Different exchange sites provide different proportions of margin. Suppose, someone has $100 but he can trade at $300 with a 3x margin if he wants. Again if he takes 5x margin then he will get the benefit of trading up to $500. We hope you understand Crypto Margin Trading better. Now I will share with you some of its advantages and disadvantages.

Advantages of Crypto Margin Trading:

If someone has less capital then margin trading will be helpful for him.
There is an opportunity to make more profit by increasing the capital.

---

Disadvantages of Crypto Margin Trading:

The cryptocurrency market is volatile so margin trading risk
If you trade unknowingly, your capital of margin trading can become liquidation.

How To Plan For Trading In Crypto Margin Trading.

---

• Since there is a lot of risks involved in crypto margin trading, it is important to plan ahead. Here are some plans that can be followed by crypto margin trading:

• First of all the trader has to do market trend analysis. Then you have to pick a coin.

• After selecting the coins, you have to decide in advance when to take entry and when to take exit.

• You need to know in advance about the interest rate of the exchange site.

• In the first case, you have to start with small capital. Later, the capital will have to be increased gradually as the awkwardness increases.

• You have to think in advance how long you will hold. Because the interest rate of the exchange site will increase with time, so this issue must be kept in mind.

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

---

• Binance Exchange: Binance exchange offers cross and isolated margin trading with leverage up to 10x

• Poloneix Exchange: Poloneix exchange offers margin trading with a leverage of 2.5x.

• Kraken Exchange: Kraken exchange offers margin trading with a leverage of 5x.

• Huobi Exchange: Huobi exchange offers both cross and isolated margin trading with leverage up to 5x

What Is Leveraged Tokens Trading?

---

Leveraged Tokens are the tokens given by the exchange which have many benefits while trading. Here you don't have to buy the asset, you just have to take any position. The position can be any buy/sell. Leveraged Tokens may very exchange to exchange for example UP OR BULL and DOWN OR BEAR. Leveraged Tokens can give a margin of up to 3x and maybe more it depends on the crypto exchange you used.

When Ripple goes up the Leveraged Token XRPBULL / XRPUP will also go up, but at the same time, XRPBEAR / XRPDOWN will go down. Similar to this whenever Ripple goes down the Leveraged Token XRPBEAR / XRPDOWN will go up, but at the same time XRPBULL / XRPUP will go down.

If you predict that Ripple will now go up so you can buy XRPBULL / XRPUP, after your buying and as per prediction when Ripple up, the price for XRPBULL / XRPUP will go up and your profit will be increased by 3x, according to what margin is given by crypto exchange.

How To Plan For Trading In Leveraged Tokens?

---

Now I will try to explain all the points needed to plan for trading in leveraged tokens:

• You have to do good research on the asset that will be invested. Learning from the previous lesson should be used in technical, fundamental and sentimental analysis.

• You have to invest money which is a loss so that there is no problem.

• Not all money can be invested in one coin.

• You have to make a plan in advance

• If the market suddenly falls, you have to think in advance what action to take.

• You have to find coins that are less risky but more profitable.

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

---

• Bitmax Exchange: It offers 3x leveraged tokens.

• KuCoin Exchange: It offers 10x leveraged tokens.

• Huobit Exchange: It offers 5x leveraged tokens.

• Deribit Exchange: It offers 100x leveraged tokens.

Price Forcast For Crypto Assets XXXXXX. (This is a similar question from the 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.).

---

In the previous lesson, we learned price forecasting. Today I will show the price forecasting of LCT/USDT. I can see two lines in the screenshot. By 1-line I mean resistance and 2-line is our support line. Here we could not take entry in the support line for the first time but later that opportunity came. Then our entry price is 165$. And since our resistance is 224$, we take the 1st target price of our sell price as 220, the 2nd target as 250$, and the 3rd target as 280$. We saw that our 1st target was hit and we were lucky so the rest of the target was also hit.

This time I drew two lines again. The line that was our support before is now acting as resistance which I have shown with 4-line and the price there is 224$. And our resistance is 3-line 335$. So now that the market price is very high so we have to wait. Price near our support line, in fact, we can take entry.

Conclusion:

Crypto margin trading is very important for all the traders who are involved in cryptocurrency trading. During completing this task I research on the internet and learned many new things that I didn't know. I also learn about different crypto exchange sites that were awesome.

---

Thanks for reading my post.