Crypto Margin Trading & Crypto Leverage Tokens Trading | Homework by @syedmraza01 | To Professor @stream4u

Hello steemians, I hope that you all are doing good in your respective lives.
This is my Homework post for professor @stream4u in which I have discussed about margin trading and leverage trading and discussed their prons and cons and their future aspects about trading.

What Is Crypto Margin Trading?

Margin trading in crypto industry uses to multiply the profit in less investment by taking loans from other traders.

We have to first look on to margin like on what margin in want to trade. There are different trading sites provides different margins from 5x, 3x to 100x. But the area of margin trading is very dense if you have not performed different analysis and dont know much about market then it is more likely that you will lose your money Not only lose but they reduce in the margin you have chosen.

If I want to trade on a part of ethereum by using my 20$ and chose margin trading by taking 5x margin that means I am going to trade on 100$ so that in any case ethereum hikes or drops then the amount also drops or increases by 5x times. In short you will loose all your assets in a certain or make more money but it all depends on your analysis and market strategies.

How To Plan For Trading In Crypto Margin Trading?

Before entering into the market first you must have analyzed all the aspects to save yourself from any sort of loss or potential endangerment, following things you must check before entering into the market,

• You have to set your goals i.e when to enter or exit the market.
• Should have a time frame in mind that for how long you will hold.
• Before entering make sure you have done all technical, fundamental and sentimental analysis of market. If not then you will have a chance to loose all in an instance.
• Firm decisioning i.e never change your decision like if you loose more than your capacity then leave the market instead of in hope that it will come back.
• If you are a beginner than try to start from small trading this will help gain experience and confidence for future trading.
• You have to first determine your range either long or short. In this way you can have clear understanding of your goals.

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

1- Poloneix offers 2.5x margin in 11 different cryptocurrencies for BTC.
2- Kraken offers 2x to 5x margin in 6 different cryptocurrencies with their 16 different pairs.
3- Binance offers 5x margin trading on its platform for cryptocurrencies.
4- Bybit offers upto 100x margin in trading for only 5 coins BTC
XRP
ETH
EOS
USDT

What Is Leveraged Tokens Trading?

There are so many trading companies offers leveraged tokens for trading in crypto currency. They gives their margin on tokens and have different trends for different crypto currencies.

• "BULL" this token is term for upward trend.
• "Bear" inverse of bull down trend.

Like on Binance if we buy ethereum of 3x exposure when Bitcoin drop 1% it means that ETHBULL will go up 3%, similarly when Bitcoin gain 1% then ETHBULL goes down by 3%. Same case applied on BEAR when Bitcoin drop 1% ETHBEAR will go 3% up and when Bitcoin increase 1% it will decrease 3%.

How To Plan For Trading In Leveraged Tokens?

In leverage trading you have to seek all those points same as margin trading,

• Examine market before entering
• knows about entering or exit points.
• If you are not experienced then never put all your money on it. Start from small investments to gain knowledge.
• If you are able to sustain through your assumptions then dont fall for more as market can change its shape in any minute.

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

1- Bitmex provides upto 100x leverage 6 different crypto currencies.
2- Huobi Pro provides upto 5x leverage on BTC and Alt coins.
3- Deribit provides 100x leverage only on BTC and only deal in BTC.
4- FTX provides 101x leverage on dealings on BTC and further tokens.

Price Forecast 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.)?

I have taken binance BNB coin to forecast its price about this week below is the chart attached which shows the recent prices of BNB from April to May. As you can see that on 12 of April BNB hit alltime high 600$ and then their is a resistance form which result in the fall of price but after 18 april it again started to rose up and again reached at 600 hallmark and again went down but it covers its downfall quickly and made its resistance to support and then in May its price goes beyond 600 and right that very moment it is on 659$.

Source

Right on news Binance smart chain has a fresh attack by hackers which also raise questions on security of platform.

Source

Considering all the figures here I must predict that Binance who has somehow managed to break its resistance and continuely going upward will may get it new height on 700$ probably in a week or out.

Conclusion

The overall learning of this topic will benefitted us in learning the complexity of both terms and help us understand the important points regarding investment and interests of other platform. I must say that it is a risky but a more profitable scenario if we invest in it after a complete study and putting in mind all the techniques and market evaluations. But if a beginner is willing to do he must start from very low level to avoid initial fatigues.

Thats all from my part I hope that you may like it and gave your precious opinion about my homework.
All thanks to @cryptoacademy to organize such knowledgeable programs.

CC

@stream4u
@steemcurator01
@steemcurator02