Steemit Crypto Academy Season 2: Week4 |Homework Post for @stream4u - Crypto Margin Trading & Crypto Leveraged Tokens Trading.

in SteemitCryptoAcademy3 years ago

What is crypto margin trading?

Crypto Margin trading can be seen. As a process that allowers traders gain access to special assets through an exchange or allow them borrow capital from other traders also through an exchange.

Marginal trading allows for the capital fund used by the traders to to trade to multiply sufficiently. Margin trading convers a higher profit capital than traditional trading but at a very high risk which might also lead to liquidation of assets.

Margin Trading which could also be called leverage trading is the amount of money invested by a trader that is being able to multiply. A margin trader who opens a trade account with 200x leverage for instance, would get the attention of different traders.

How to plan for trading in crypto margin?

Leverage trading works actually in a systematic way by risking little of their capital for trade for other traders capitals with high expectancy of gaining the chance to make huge profits.

In other to do margin trading, traders must have an initial deposit balance to start a trade, initial deposit which could also be referred to as “initial margin”. And the traders must hold a situated amount of capital to have a balance in the trade society this can be called “maintenance margin”.

In the trading market different crypto offers are being placed, they might offer exchanges of 200x but then it allows traders to be open to 200x their value in initial deposit . While some others leverages are limited to 20x ,50x or 100x maybe.

The term used to explain leverage will be different from various platforms. For example some exchanges in the forex world will refer 200x leverage to 200:1 leverage. If a margin trade account is opened with a crypto exchange the initial amount deposited to begin the trade is said to be the collateral received as an exchange. The amount then being able to be leveraged when margin trading depends on the rules traded on and the initial margin or deposit.

When opening a crypto margin trading two options of positions are being given to choose from which are either “going long” or “going short”

The long position is said to be for traders who think the price of a digital asset will rise while the other which says going short is the opposite as the name implies traders open short positions for they believe the digital asset will fall in value in a short period of time.the phrase “shorting” is said to be used by traders who seek for profit from falling crypto prices.

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Platform that provide margin trading and their provided margin

One of the most popular platform that performs is Bybit it provides leverage up to 100x and not like other platforms it supports other coins for margin trading like ETH, BTC, USDT, EOS and XRP.

They all each provide a $90 free joining capital bonus which can be used for trading, their fee is also one of the cheapest and it is also a no KYC exchange. The Bybit android or apple mobile application is something launched for easy access for trading which makes it one of the fastest trading platform for crypto exchange.

Bybit made it easier for new leverage traders by offering a 24hours on 7days customer support which makes it one of the best.

What is leverage token?

Leverage tokens are also called ERC20 tokens with exposure without taking care of the margin, management and liquidation risk. The leverage tokens are not designed to be held but to be sold out immediately after being bought to get returns on capital invested the also offer fixed and variable leverages.

How to plan for trading in leverage token?

It is said that in planning to trade leverage tokens traders should try being business incentive of now owning multiple accounts because in terms of when the market are all yielding to the same direction he might loose focus and get distracted which will eventually lead to loss of tokens.The token coins are said not to be held for a short period of time but to be sold or traded for after being purchased so as to get desired bonus before it looses price or worth in market.

For example if a trader creates an account of $10,000 of ETHBULL to do so he sends $10,000 and the account on FTX buys $30,000 worth of ETH, therefore the ETHBULL is not 3x long ETH.

The leverage token can also be redeemed for their net value to do that the trader could send $10,000 worth of ETHBULL back to the FTX and redeem it, this will redeem the token and cause the ETHBULL account to sell the $30,000 back and credit the account with $10,000. These process empower the leverage tokens to worth what they are supposed to be.

Binance coin prediction for a week is as follows:

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The Binance Coin price prediction from Wednesday, May, 5th min price $684, max $786 which at the end of the day price 735 dollars a coin. BNB to USD predictions on Thursday, May, 6: min price $686, max $790 and at the end of the day price 738 dollars a coin. Binance Coin price prediction on Friday, May, 7: min price $684, max $786 and at the end of the day price 735 dollars a coin. BNB to USD predictions on Monday, May, 10: min price $710, max $816 and at the end of the day price 763 dollars a coin Binance Coin price prediction on Tuesday, May, 11: min price $756, max $870 and at the end of the day price 813 dollars a coin. Binance BNB to USD price predictions for Wednesday, May, 12: min price $748, max $860 and at end of the day price 804 dollars per coin. Binance Coin price prediction on Thursday, May, 13: min price $795, max $915 and at the end of the day price 855 dollars a coin.

Thank you @stream4u for the lesson and @steemcurator02

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