Margin trading is an option that differs from spot trading in many ways, both in terms of the funds with which it is carried out, as well as in the risk aspect, and the internal policies of each exchange.

Preferring spot trading or margin trading is just a matter of taste; But you must know yourself very well and your way of dealing with risks so that you responsibly choose one option over another.

Knowing this is how today we are going to consider many things around this issue of the margin trading and more specifically, crypto margin trading.

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What Is Crypto Margin Trading?

Crypto Margin Trading is that form of trading in which cryptocurrencies and crypto assets in general are traded through funds of others (I mean borrowed from third parts) made available to the trader by the exchange in which it operates. Therefore, in crypto margin trading, you do not own the funds with which you are trading, you are simply analyzing the probable fluctuation that the price will have and issuing buy or sell orders in relation to it.

In crypto margin trading, buy orders are called "long" and sell orders are called "short." If we hit on the estimate with our orders, we win, otherwise, of course, we lose.

How To Plan For Trading In Crypto Margin Trading.

I believe, based on my own knowledge of the subject, that as a first action, we must carefully examine the crypto assets that we decide to operate. We must choose a specific cryptoactive, in some main timeframe and start the analysis (which we will then extrapolate to the two timeframes immediately above and below the one we are mainly analyzing).

We must determine what trend cryptoasset is in and how strong the movement is. We must also know how to locate and recognize the most probable levels of resistance and price support.

With this in mind, we only have to define whether to go long or short, and the size of the position we want to open. And with that done, simply open it, determining a stop loss at a level that, if it occurs, does not affect our capital or operations too much.

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

There are many options for this, that is, there are many exchanges that offer the Margin Trading Service. Some of them are:
Poloniex --->>>with up to 5%
eToro---->>> with up to 30%
Binance----->>>> with up to 10%

What Is Leveraged Tokens Trading?

It is a form of trading that some exchanges have, in which through specific tokens that they have created for specific movements in price, the trader must choose to define the trend of the token in question and win or lose with it depending on whether it rises or falls; I mean, depending of its perfomance.

It can be for any asset we want (of course, also depending on the options offered by the exchange in question), but basically there are the options "BEAR", "BULL", "HEDGE" and "HALF".

The "BULL" is the token in whose market those who expect a bull run invest. For its part, "BEAR" is exactly the opposite, used by those who see a downtrend. The other two options (HEDGE and HALF) work for negative or positive cutoff ranges, respectively; when there are no trends.

How To Plan For Trading In Leveraged Tokens?

We must define what we are going to invest and know the percentages of commissions charged by the exchange. We must determine before anything else, the trend. We must also define the level of leverage that we will use. There is no more than that. Knowing that the trend of some crypto asset is bullish and being sure of it, we look for its UP or BULL token, and if it is bearish, then the DOWN or BULL option. If it is about ranges, then the other two options depending on the nature of it (if it is negative or positive).

As wise advice, it is advisable to operate in short periods of time and not be greedy so that the operation gives us the best possible profitability and experience.

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

There are many options or exchanges that provide the leveraged token service; below you will appreciate only three of the best that exist:
Kraken ---->offers up to 5X leverage.
Binance>>>> also makes up to 5X available.
FTX------> offers up to 3X

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).

So I am now going to estimate and predict the likely price that the COSMOS (ATOM) cryptocurrency will have next week.

I go to my tradingview account and select the pair whose chart I want to analyze. In this case it will then be that of the ATOM / USDT pair.

At this precise moment, ATOM is worth approximately $ 28.62. I must journal the timing of the chart, since I want to know the possible price action in a week. Then I put on the chart the indicators that I use, which are moving averages of 200 periods, 50 periods and 20 periods. I configure them to display them in red, green and blue colors respectively.

_{View of ATOM chart in TradingView (from my own account)}

The first thing that can be seen at a glance is that the trend is bullish because both averages (50 and 20 periods) are above the 200 period (and with a difference). In addition, it is appreciated by the crossing of the two lower averages (that of 20 over that of 50) that the upward directionality has been practically bullish since the beginning of this 2021; and that it will continue like this.

Given the strength of the movement and its general intensity seen on the chart, I estimate that ATOM's price for the week will be approximately $ 35 and if it were to fall, the approximate maximum support would be at $ 22 more or less.

Conclusion

Many people do not like margin trading (and much less crypto margin trading), because they consider it extremely risky; In other words, they believe that they risk totally losing their capital.

The reality is that margin trading can be profitable or more profitable than its spot trading counterpart, and it's just depend for different ways to trade, and different perspectives on the markets what we use.

And we must bear in mind that all investment options, no matter how extraordinary they may seem, have a percentage of risk, which will vary depending on our own vision and our own actions in this regard. Don't forget it!

Well, this is my participation in the Crypto Academy, in this week 11, and doing this task for @stream4u (India). Until next time!