Crypto Academy ||Season-2||Week -4|| Homework Post for @stream4u | Crypto Margin Trading & Crypto Leveraged Tokens Trading
What is Crypto Margin Trading?
Crypto Margin Trading Is a trading in which users’ access to capital by borrowing from other traders, investors, exchanges that offers margin trading and brokers as well. They borrow capital they don’t have their own but they can make profit from this borrowed capital. In borrowing process, they can make bigger capital that they unable to produce their own.
Crypto margin Trading expose the trader to a huge market and enhance the profit form it. Crypto margin trading is given 3x, 5x, 10x or bigger ones thereby allowing a trader will basic and initial capital of $30 to touch the market that is up to $90, In another case of 3x allows to trader with in initial and basic investment of $30 to access the market of $150. In case of 5x margin trading we can access the $300 in market. In case of 10x margin trading it is only that offered by exchange itself.
| Advantages | Disadvantages |
|---|---|
| It allow trader to access the bigger capital in market which they don’t have to afford and make good profit from them | If the profit from margin trading is high then the losses is also high if the position gone wrong |
| Margin trading permits to borrow crypto asset that they cannot originally provide on their own. | Bigger loss face by the account if the account face liquidation. Loss is bigger than available asset balance of trader. |
| Margin trading allow users to buy multiple position with few amount of capital to make good profit in crypto market. | It’s consider as high risk investment in margin trading. |
How to make Plan for doing Margin Trading?
When we talk about crypto trading then planning factor is most important fact in crypto trading and margin trading. In planning trader must be sure about the trend of select asset and also know about the price behavior of the selected asset. As we see above the crypto margin trading is most risky trading in crypto market. Margin trading user can make multiple position in greedy sense then if the position goes wrong then it is caused as big loss as long run. For the purpose of planning trader should use the chart pattern of particular crypto asset.
This chart pattern time is 5 or 15 minutes. In this way they can plan in much better way to stay safe in margin trading. Here are the screenshots of BNB/USD pair. In this chart see the 15 minutes time frame chart to plan out the margin trading for making the good profit from it.
In the figure chart we see that the above two supports are marked at the $573. In this figure I use the second support for buy position. When the asset price hits the resistance line at the price of $602 which is caused as my first profit. In this graph we see that there are some fluctuations occurs but later uptrend to hit my second profit line which is $611 USD. By using this chart of 15 minutes we can plan margin trading.
Name of Crypto Exchange That provide Margin Trading.
| Exchange Name | Provide Margin |
|---|---|
| Poloniex | It provide Cross and Isolated Margin up to 5x |
| Huobi | It provide Cross and Isolated Margin maximum 10x |
| Bitmex | It provide Cross and Isolated Margin up to 100x |
| Bybit | It provide Cross and Isolated Margin up to 100x |
| Binance | It provide Cross and Isolated Margin up to 10x |
| Deribit | It provide Cross and Isolated Margin up to 100x |
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What Is Leveraged Token Trading is Crypto?
Token leverages trading is types of trading in which trader don’t have its own asset but rather he enters in contract with an exchange that provides Leveraged Token for buy trading position. And this position is may be long or short buy and sell to make profit from the trend if the entry that you insert is right. In crypto trading trader can only predict the down and uptrends of crypto asset to open a position. For instance if the trader enter in long position in a leveraged token trading with 10x for the margin of 3x and then asset moved uptrend we the prediction then the investment of turns to 10$ to $30.
| Advantages | Disadvantages |
|---|---|
| It allow users to make reasonable and good profit from the market. | If position of entry is about to fail then the account face liquidation. |
| In leveraged token trading trader can trade on underlying asset which they don’ t own before trading. | Investment in Leveraged token trading is also Risky. |
| In leveraged trading trader can take advantage form both bullish and bearish market. | If the is goes wrong at the beginning then it caused a huge loss. |
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How to make plan For Doing Leveraged Token Trading?
When we talk about the leveraged token trading then proper planning is required. We must know the asset trend before we get in to leveraged trading. We must know the risk involved in this type of trading. We should be contended with low profits to running in to loss because of greediness. In leveraged token we should consider the chart to utilized the proper supports and resistance to make a good decision regarding opening the position. Here are some screenshots that show the BNBUP/USDT analyses.
In the above char we can see that I marked the support at the point 1980 USDT. I do this for making the long position in leveraged token trading. In this chart we can see that the asset price behavior is bullish as predicted and it covers around 2000 USDT before it facing the resistance which is corrected in Short period. We can say that this is the exact and perfects long position if entered.
Name of Crypto Exchange That provide Margin Trading.
| Exchange Name | Provide Leverage Token |
|---|---|
| Coinbase | It provide up to 3x leveraged Token |
| Pionex | It Provide Up to 4.8x Leveraged Token |
| Binance | It Provide up to 4x leveraged Token |
| FTX | It Provide 3x for BULL and Up to 3x Leverages Token for Bear |
Question 4:
As we learn in the previous lecture, price forecasting means that make a prediction about the future price of crypto asset. We learned about to do price forecasting by using three method include fundamental analyses, technical analyses and other method. Using these methods, we will predict the nearest future price of an asset. For this purpose, I use the BTC/USD pair for predicting the price of next week.
In the above figure we see that that the resistance of an asset BTC and USDT is reoccurring at the price of 57,500 USD. At the moment the price breakout in not clear but there is a chance of breakout.
In the above screenshot we can that two supports are taken at around about 47000 USD and may be 48000 USD. In the currency situation the BTC experience the trend reversal, at the point of 48000 USD, it is strong point of support for the buy crypto asset.
We can see the condition of bitcoin and US Dollar. I am full of Hope that price breakout of currency price 57,500.58 USD and the Next stop of BTC is project marked at the resistance around 63000 USD. I can say that bitcoin reaches its highest price limit after price breakout next week.
In today’s world only trading is at its peak. Everyone wants to make profit by doing online trading. In this context this lecture helps me the most to learn how to do Margin trading and Leveraged token trading. I lean how to plan to do margin as well as Leveraged token trading. I learn about how to make good profit by doing margin and leveraged token trading. In this lecture and the previous lecture of season 2 week 1 I learn about how to do price forecasting. I learn about how to do price forecasting by play with resistance and supports in give asset chart.
THANK YOU