Crypto Academy Week 12 - Homework Post for [@stream4u]

in SteemitCryptoAcademy4 years ago

Introduction

Hello Steemians,

Welcome to another week in the Steemit crypto academy. I attended the lecture by the crypto professor @stream4u as the professor based his teachings on "Crypto Margin Trading & Crypto Leveraged Tokens Trading." This blog is my homework task after the completion of the lesson. I am happy to present my homework task here, this is to prove or indicate my level of understanding concerning the class held by the professor. Please read through for your feedbacks will be seriously appreciated.

What Is Crypto Margin Trading?

Crypto Margin Trading is the act or the process by which a trader or a client or a customer acquires or gets loan from a third party agent or from an exchange platform with the aim of increasing his or her staking capital in other to expand his or her investment with the sole purpose of earning more profit, this loan gotten from the third party or exchange platform is usually used as leverage during the period of trading. This type of trading has many risk attached to it, this is so because the trading is not certain I.e to say when the price of tokens are rising the customer involved gains more profit and at the same time prices of tokens can drop leading to the customer losing a whole lot of money.

For the purpose of this homework task, I will be discussing basically the two most important basic types of Marging Trading. This is for your understanding and clarification. Below are the two basic type of Margin Trade

  • Isolated Margin Trading
  • Cross Margin Trading

Isolated Margin Trading:

In this type of trading, the account of the user or client or customer is splited I.e you as a user will have the main marking account and also have another account separate from the main marging account. This type of Margin trading is recommended for people who are newbies and have no much idea concerning the crypto world. The reason for this is not far fetched, since you have your asset separated in to two different account, you are only trading with one so that what ever lost may come will not cripple you completely. In other words what ever affect one of the account will not affect the other so therefore you will be in a safer side.

Cross Margin Trading:

This type of margin trading is mainly recommended for those who have some experience in the crypto currency world. Recall that I earlier said that the isolated is recommended for newbies, due to the fact that they are new to the crypto world and their account are separated but in this case the main margin account of the client or customer is use to trade. Here in this category the customers involved already know all the risk and they are ready to take it.

How To Plan For Trading In Crypto Margin Trading.

To plan for trading in crypto margin trading, one has to put the following into consideration so as to achieve a better result at the end of it all. The following are what I believe should be taken into consideration

  • set up a guide to aid you in all decision making in your journey in the crypto world.
  • Make a watchlist so as to monitor regularly the crypto you have interest in trading.
  • Be focus on particular type of asset you wish to trade or invest on. Don't go from one place to another.
  • Set up a time frame to monitor your profit or loss so that your progress will be monitored and documented.
  • Always be observant as to when to enter the trade and also when to leave or exit the trade.

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

For clear understanding, I will be presenting some of the crypto exchanges name that provide margin trading service and the margin the provide in a tabular form as shown below.

Exchange NameMargin Provided
Kraken5x
Binance10x
BitMEX100x
Poloniex100x

What Is Leveraged Tokens Trading?

Leverage tokens can be define as an ERC-20 tokens that enables a trader to gain what is known as Leverage position in the crypto currency market. Leverage tomens are form of tokens that are not meant for long time trading. Because it's not meant for long time trading because of the frequent buying and selling of the token, hence it is not a crypto meant for HODL.

Merit of Leveraged Tokens

  • fluctuations of the market are really an opportunity for trades to make a whole lot of money within shortest possible time.

Demerit of Leveraged Tokens

  • Since buying and selling occurs regularly, it's not always recommending for HODL

How To Plan For Trading In Leveraged Tokens?

To plan for trading in Leveraged tokens, the following should be taken into consideration.

  • Have a watchlist of the token involved
  • always be ready for anything that comes (risk)
  • exchange rate should be taken into consideration

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

For more explanation and clear picture of the crypto exchanges name that provide leveraged tokens services and the margin they provide in leveraged tokens I will be presenting it in a tabular form as shown below.

Exchange NameMargin Provided
BINANCE1.25x to 4x
FTX3x

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.).

Screenshot_2021-05-07-21-37-26-77.jpg

This is the ETH/USDT chart for this moment showing some price gain and re-bounce after some bearish trends last few hours. From the present chart, we can see an UPTREND with different supports as indicated.

Screenshot_2021-05-07-21-40-11-45.jpg

This chart shows the price tag for last week that is 7 days ago, and from the look of things in the first image above the price is rising and will continue in this manner till it gets to a certain level where it can not move again then it drops.

In conclusion, looking at both images I can confidently therefore predict that the price come next week will still be on an increase. And the prices of these tokens will be alarming come next week.

Conclusion

Finally, I want to sincerely appreciate the steemitblog for this wonderful opportunity, I have really gained a lot of knowledge via this excercise, more also, I sincerely want to appreciate in a more special way the professor @stream4u for this wonderful lecture, it's a great one and I look forward to learning more from the professor and other Steemit professors soonest. I have really learnt a whole lot from you sir.

Thank you for reading...

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Hi @simonnwigwe

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

Review Visit Level
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Guidance, Feedback, Suggestions
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Provided information are explained well but expecting more details in LEVERAGE TOKENS TRADING like their price behavior movement when BULL, BEAR can go up and down. Price Forcast, you could try to be more informative with Technical Point Of view.
Looks fine.Just a suggestion While using images from own charts study, try to put your name in free space.
7
Done

Your Homework Task verification has been done by @Stream4u, hope you have enjoyed and learned something new.

Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
#affable

 4 years ago 

Thank you sir. I will do more in our next lesson

Hi @simonnwigwe,

If the task did not curate in 7 days and expired without curation, then you can re-post the same and mention the older task link in the comment section of the new task post.

 4 years ago 

Ok sir. Thank you

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