The Homework Task Steemit Crypto Academy Week 12 - Homework Post for @stream4u
CRYPTO MARGIN TRADING
This is a trading skill that allows users borrow funds to trade on cryptocurrency in order to increase their buying power and open positions far bigger than their genuine account.
This Crypto Margin Trading is many times known as Leverage Trading. A leverage is better off seen as the use of a borrowed money to increase the trading position beyond the available funds in one's real account.
HOW TO PLAN FOR CRYPTO MARGIN TRADING.
When new readers finally decrypts the complex world of Crypto Margin Trading they become quickly overwhelmed. Crypto Margin Trading is a very fast BUT difficult way to multiply your investments in a short period of time.
Trading with borrowed money or margins may seem like a pretty good way to boost your returns but, it's not as easy or simple as it sounds because trading with margins drastically increases the risk of your trading.
However, being a lucrative crypto margin trader isn't an easy task without having the right strategies or game plan. Here is a tip for trading crypto on margins that are used by successful traders in this field.
It's All About Managing Your Risks : This is no new thing to us all. In fact, this is the best advice you will ever get before indulging in any form of business, marketing or trade. The odds are that you are not ready to leave your account prone to heavy losses and possible liquidations.
You need to understand that every or any margin trading strategy is concern about adequate risk management, therefore you have understand and learn when and how to take risks and also when to de-risk them also.
CRYPTO EXCHANGE NAME THAT PROVIDE MARGIN TRADING SERVICE & WHAT MARGIN THEY PROVIDE.
Selecting the best crypto margin trading platform could be a difficult process, due to the numerous exchanges online present that offer leverage trading. It's crucial that traders make use of a good margin trading platform that ticks all our checkboxes.
1.BYBIT: This is so far the best overall crypto margin trading platform, due to their fastness, safeness, transparency and user friendliness. Margin traders searching for a powerful, durable and reliable margin trading platform will love Bybit, since it also comes with a leverage of 100X for trading Ethereum, Bitcoin, Litecoin and lots of other trading cryptocurrency pairs. They also offer an insurance fund for risk management to ensure the position of their customers or clients are always safe.
They are quite similar to the BitMEX margin trading platform, but Bybit offers more additional features that crypto user will love.
2.FTX: FTX was created by Sam Bankman - Fried of Alameda Research. This Crypto Margin Trading platform took the spot for being the best trading platform for advanced users or traders.They also offer leverage tokens of different varieties and they have an exchange that provides leverage up to 101X trading.
WHAT IS LEVERAGED TOKENS TRADING?
Firstly we need to understand what Leverage tokens are.
LEVERAGED TOKENS:
This are tokens (such as the BULL & BEAR) with leveraged exposure with watching out for the requirements, managements, margins and liquidation risk.
LEVERAGED TOKEN TRADING:
This is simply trading with leveraged tokens.
Leverage tokens offer both fixed and variable leverages; the are not designed to be kept, buy and sell them quickly, don't make the mistake of keeping them
HOW TO PLAN FOR TRADING IN LEVERAGED TOKENS?
1.Know Your Leverage Token: Making your own researches and understanding the basics concerning the crypto assets that makes up the leverage tokens will do you more good.
A factor like volatiity greatly affects the performance of the leveraged tokens. As such you need to be conscious of the historical performances; some crypto assets are more volatile compared to others, so ignoring the volatility can affec your trading funds.
- Leverage Tokens are not buy and hold investments. As such investors are not encouraged to hold leverage tokens for a long-term investment as volatility has a huge impact on its performances.
CRYPTO EXCHANGE NAMES THAT PROVIDE LEVERAGED TOKENS SERVICE AND WHAT MARGIN THEY PROVIDE IN LEVERAGED TOKENS
In BitMEX crypto exchange, the provide margin trading for 6 cryptocurrencies in which bitcoin is the biggest . Here is the fee, margins as well as the leverage.
MARGINS
COINS
LEVERAGE
Marker Fee
Taker Fee
-0.05%
.25%
Ethereum
50times
-0.05
.25%
Litecoin
33.33times
-0.05%
.25%
Ripple
20 times
-0.05%
.25%
Cardano
20 times
-0.05%
. 25%
Bitcoin Cash
20 times
-0.025%
.075%
Bitcoin
100 times
PRICE FORCASTING FOR THE BNB TOKEN
PRICE FORECASTING
Price forecasting is the act of predicting the future price of a particular coin or token. This can be done either Technically or Fundamentally.
Technical analysis is the analysis based on the performance history of a particular coin such as its highs and lows , its volume ,etc. while the fundamental analysis is based on real life events regarding that particular cryptocurrency project such as industrial adoptions , etc. Considering the candle graph above ( analyzing technically ) what will be the , low level, high level , and price of the token for the next one week?
HIGH AND LOW VALUES : From the candle chart above the and reading from the previous weeks , and judging fron the trade indicators; the RSI has a value of 85.85% taking into account the trade pattern for 14 weeks, which means that the market is in a clear bullish and stable trend .Also , considering the current high and low value which are 644.02% and 613.58% respectively, I predict a high value around $7500 and a low of around $650.
BNB PRICE: The BNB coin has a current value of $640.95 and considering the forth coming sallah celebration worldwide, there may be a slight increase in the price and prom all of the indicators I would predict a price of about $ 720
Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task.
need more explantion in this area LEVERAGED TOKEN TRADING:
look homework fine
Thank you very much for taking interest in this class
Grade : 6