Steemit Crypto Academy | Course By @stream4u - Crypto Margin Trading & Crypto Leveraged Tokens Trading-season 2- week-4
Hi steemians. Hoping for your good health and life. May you have got much more and your happiness may be doubled.
@stream4u thankyou for your great and informative lecture which make us informable about margin trading and leveraged token trading. It is a great pleasure for us to learn from a good mentor like you.
Let's look upon my observations which I have made after understanding the dear professor's lecture.
Crypto Margin Trading:
It is very clear from its name 'Margin' which means some gap(above or below). Therefore, crypto margin trading gives an opportunity to its users that they may make a trade more than their investment. Here, one can make a big deal with a small investment because through margin trading, one's basic investment can be multiplied three, five or so on times for making a deal. In short, it allows or gives loan to their users for setting a gigantic deal. In margin trading terms, we call them 3x, 5x, 50x etc. These deals can be allowed by different exchanges to users keeping in view their basic investment and other cridentials.
If we look upon its bright side so it has following benefits for their users:
1 It can enhance your capacity of trade.
2 You can make a big deal with small capital.
3 Profit ratio can also be three, five or many times more than basic investment.
If we look upon the dark side, we may find the following consequences:
1 It is highly risky trade.
2 If one could fail to make right prediction so there are many chances to lose all the money.
Plan for Trading in Crypto Margin Trading:
It is said that planning is the soul of any project. Therefore, in margin trading, planning has very important place because good planning can bring more profit in less time while on the other hand, bad planning or trade without planning may be a reason of suffering huge loss.
Therefore, one should make a deal after analysing the previous trends of the specific crypto currency. Another important thing is that in the begging, the deal should be for short time as it may decrease your chances of losing money and may provide you more profit by small transactions. One should also make a demo practice before starting margin trading.
Crypto Exchanges Names that provide Margin Trading
1 Binance: It provides 5x but some how 125x for specific trades.
2 BitMEX: It provides an opportunity of 100x for Bitcoin and 50x for Ethereum.
3 Bybit: It allows trade margin from 50x to 100x.
4 Poloniex: It gives 2.5x margin.
Leveraged Token Trading:
Leveraged token allows its users to invest and make a trade without buying assets and converting money into your wallet rather it cannot be withdrawn. Before discussing further more about leverage token, you have to understand the two key terms, BULL and BEAR. BULL goes up with the upward trend of the leverage token while goes down with the downward trend. On the other hand, BEAR goes down with the upward trend and goes up with the downward trend.
If leverage token of any asset goes up then BULL will go up and BEAR will go down but if leverage token goes down then BEAR will go up and BULL will go down and vice versa.
Plan for trading in Leveraged Tokens:
For leverage tokens trading, planning must be based on deep and good analysis. The most important point is to know about when to enter and when to exit the market and to make a decision what would be choosen from BULL and BEAR. Because at every time, market is going down or up. So after predicting trend, you have to purchase BEAR or BULL, if market prediction is upward purchase BULL but if market prediction is downward then purchase BEAR and vice versa. New comer should make a practice demo and after good learning they would come toward leverage tokens trading becasue it is also very risky.
Crypto Exchanges names that provides Leveraged Tokens Trading:
1 Binance: It allows 4x leverage.
2 KRAKEN: It provides an opportunity of 5x leverage.
3 Coinbase: It gives 3x leverage.
4 Pionex: It allows 5x leverage.
Price forecast for Crypto Assest:
Following is the chart of ADA/USDT.
in the first picture, markets and currencies are shown from which I adopted ADA/USDT for price forecasting. As you can see the current price is $1.4800 and total volume is also highlighted in the picture.
Above pictures shows that in the previous days the market trend is consistence with slightly changes and now it is upward trending and it is expected that this will go up and up alongwith increase in the volume of trade. it crossed the resistence line at 1.5584 and then came down a little bit but now it is expected that again it would cross the resistence line. This analysis is made after keeping in view the technical analysis. For this purpose you may also use resistence and support lines.
At the end, I again want to say thankx dear professor @stream4u for such an infromative and outstanding lecture.
Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task.
every trade has risk, but always keep these point that try to invest with great research and always risk is in every trade, but good planing, skills , knowledge make some time impossible to possible
thank you very much for taking participate in this class
Grade ; 6
Thankyou sir for your review and valuable comment