Homework Task-Steemit Crypto Academy | Week 12 | Course By @stream4u

in SteemitCryptoAcademy3 years ago

(A). What Is Crypto Margin Trading?

A crypto margin trading is a way in which a crypto trader is allowed to borrow from another trader in the exchange of assets.

This enable the trader to multiply the investment capital, increase the buying potential and laverage on a larger positions more than what is existing of funds in the traders account balance.

Crypto margin trading increase the outcome results of trading, giving the trader a chance to realize more Profit thus there is a higher risk as well, but that doesn't mean risking the entire capital.

Crypto margin trading is very essential in crypto market because it facilitate fast movement of the market

(B). How To Plan For Trading In Crypto Margin Trading.

Planning for trading in crypto margin trading is not something complicated, after making some market analysis, understand that trading in crypto is all about risk taking and management, always be on the guard that anything can happen, because crypto market moves in circle on different trend, try to understand the technical analysis and keep updated to the crypto news.

All a trader have to do is to open and register on a crypto account/ wallet make an investment as the initial deposit and open a position in the crypto. Also a certain amount of funds should be available in the trader's account to maintain a position.

(C). Crypto Exchanges Name That Provide Margin Trading Service and What Margin They Provide?

ByBit
ByBit offers leverage of up to 100x, and it also adopts two margin systems which are crossed margin system as the default mode and isolated margin.

Binance
Binance is one of the world’s best cryptocurrency exchange platform having a maximum trading volume. Margin trading was recently launched on their platform which offers a leverage of 3x and 5x on a regular and a master account of cross margin respectively. And up to 10x laverage on isolated margin trading.

FTX
Established in May 2019 with a quite numbers of exciting features, tends to be a cutting edge crypto exchange platform. Having all positions to use the same collateral pool where each sub account has a collateral wallet and cross margin trading is used for every account with an open option to use a certain isolated margin trading. It offers a leverage of up to 50x, 100x and 101x on its products and also a laveraged token as an alternative to margin trading.

Deribit
This is becoming high stage margin trading platform that offers 100x leverage. Deribit provide a portfolio margin trading platform which is calculated by using a theoretical pricing option models to determine a loss in a real time at a certain point of price.

BitMEX
BitMEX became trader's favorite margin trading in the cryptosphere, as it's facilitates margin trading offering a 100x laverage on its products. BitMEX support the two methods of margining cross margin trading that avoids liquidation by using the full funds available in the balance and isolated margin trading that maintain the liquidation.

(D). What Is Leveraged Tokens Trading?

Leveraged tokens are ERC20 tokens that were innovated with leveraged exposure to Cryptocurrencies market without managing the marginal position, or taking care of the liquidation.

It's is just the simplest form of laverage trading, maintaining either a fix or variable laverage and rebalancing at every 2 am of each day and also the changes of the spot market by 10%.

(E).How To Plan For Trading In Leveraged Tokens?

As mentioned that leveraged token trading gives exposure to the Cryptocurrencies market, so also it uses the leverage to minimize and maximize the exposure to the market depending on the market direction. Below are some points to consider on planning to trade in leveraged token

Try and do some market analysis to know and understand the underlying assets of what your leveraged token is, know it's volatility and how it will affect the the performance of the leveraged token.

Use a breakout strategy to get the short term trend with leveraged token
Leveraged token are normally use for a short period of time so trade with the trending leveraged token
Never invest your whole or have too many markets in leveraged token trading
Don't buy and hold the leveraged token for too long, the longest time you can hold it is within a day.

(F). Crypto Exchanges Name That Provide Leveraged Tokens Service and What Margin They Provide In Leveraged Tokens?

Pionex provide the leveraged tokens that have some specific rules designed to trigger rebalancing mechanism.

Binance offers the Binance Leveraged Tokens known as BLVT which have a number of variable leverage between 1.25x and up to 4x. They are not oftenly public and don't have the rebalancing mechanism.

FTX Provide the leveraged tokens namely Bull Token and Bear Token with the leverage of up to 3X. They have the rebalancing mechanism with some certain rules to trigger it.

(G). 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.).

In this case, I will be picking the Rari Governance Token (RGT) which the screenshot I picked from coingecko.

Screenshot_20210508-173658.png

Screenshot_20210508-173647.png

Currently looking at it, it is wit a price stats of $11.39 and looking at the chart as you can see, it is moving down which means there is a high probability it can still go more down and down if the trend continues

If this trend continues and the charts continued to be facing downward trend, we can say soon in the next one week, I am seeing the RGT token falling to 5-6$ in the next one week

@stream4u

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Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task.

  • Price Forcast For Crypto Assets need to explore more to make review
  • need mored detail explantion in this area Leveraged Tokens Trading
  • homework is explained well and also look homework fine

Thank you very much for taking interest in this class

Grade : 6

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