Today i am going to make this topic about leveraged token trading.. Because you know now a days mostly member of crypto world like to do trading as they think trading can give them only profit.. That is why i am going to explain today about leveraged token trading advantage and disadvantage..             

 In crypto trading  you can see different  kind of trading.. From those trading method "Leveraged token" trading  is one of them.. Many member still don't  know  what is leveraged token really but still they going to trade on this and later  become  frustrated.. 

For those member  i made this thread  who wish to trade on leveraged token but don't know what is leveraged  token and how to work here which lead them feel frustrated.. 

 

 

What is leveraged  token actually ?

 

The member who do margin trading  know well that in margin trading or futures trading   if we increase  the  margin in margin trading and  leverage in futures trading   then we can easily earn big profit  by small balance .

But you need to know that in leveraged  token trading there has no liquidation  problem like in futures trading.. 

Again all the coins you see in the leveraged token are connected with 3X leverage. It's  mean that   all the tokens in the leveraged token are pre-set 3X connected leverage..That is why we called those token as a leveraged token..

Normally  leveraged  token name look like this : ETHBULL, ETHBEAR, BTCBULL, BTCBEAR  and etc..

 

Explain about how  leveraged token work??

 

When  you going to trade  on leveraged  token then its necessary  for you to know a thing that how this token work?? Because  if you don't  know how this kind of token price  increase  and decrease  then you will be  frustrated .. 

I have said before that leveraged  token connected with 3x leverages.. And the price of these tokens is affected by the main token price of that token..Its mean if we buy ETHBULL or ETHBEAR token then those token price  pump  and dump depend  on the main token and its mean price depend  on ETH as well.. 

 

Supposed  you buy  ETHBULL token.. Now if the price of ETH increase  1% then the token you buy  price will Increase  3%.. It's  mean if you bought  ETH  and its price increase  1% then you will received  1% profit...again if you buy ETHBULL and the price increase  1% of ETH then you will received  3% profit  from the token you had bought.. 

Don't  feel happy  for the advantage  but also there has disadvantage...because if the ETH price down 1% then you need to accept  3% lose for buy that token.. While if you bought ETH then you will  have Only  1% lose.. 

maybe now this trading Won't  look more interesting but there has another  method  too that you need to know .. 

By the way if you bought ETHBEAR and the price  of ETH goes Down normally 1% then you will received  3% profit  from  ETHBEAR.. So Whenever  the ETH price go Down  then ETHBEAR token price  will increase and thus you will received profit..  ..So it's  mean those leveraged  token has BEAR name and their price increase  if the main token  price decrease.. That is why those token name save as BEAR..

Here is the short chart to understand  Leveraged  token price  increase  and decrease  system :

ETH 1% up = ETHBULL 3% up
ETH 1% down = ETHBULL 3% down

ETH 1% down = ETHBEAR 3% up
ETH 1% up = ETHBEAR 3% down


Where you can get the advantage  of leveraged  token trading??

 

You may dont know that recently  many exchange  site open the facilities  for leveraged token trading.. So if you want to find out a best exchange  site for leveraged  token trading  then i suggest  you Binance  exchange  site.. 

But its true that, first leveraged  token trading start  in FTX exchange  site..but you can do margin  trading , futures trading with leveraged  token  trading in Binance by using  one account.. So without any doubt  if you want to do leveraged  token trading  then Binance  exchange  site will be better.. 

 

So will it be legit to trade on leveraged  token??

 

If you have enough  experience  in margin trading  while futures  trading  then you can do leveraged  token trading easily... Now will you do trading  on leveraged  token or not, its depend  on your skills  of Trading..now its your fully decision  to do trade on leveraged  token by depend  on your trading skill.. 

 

Best of luck
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