Crypto Academy Week 12 - Homework Post for [@stream4u]-Crypto Margin Trading & Crypto Leveraged Tokens Trading by masumrbd

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· @masumrbd ·
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Crypto Academy Week 12 - Homework Post for [@stream4u]-Crypto Margin Trading & Crypto Leveraged Tokens Trading
<div class="text-justify">

![Thumbnail.jpg](https://cdn.steemitimages.com/DQma9BsGhfp8vPLiqc4ppewUKrxSmE7i1upatj9a5hXLZeg/Thumbnail.jpg)

<center><sup>**Designed by @masumrbd**</sup></center>

<hr>

First of all, I would like to thank @stream4u for discussing this important lesson about **Crypto Margin Trading & Crypto Leveraged Tokens Trading**. I learned many new things from the lesson. Now in the light of my awkwardness, I will complete my homework task. Let's get started:

<hr>

> What Is Crypto Margin Trading?

<hr>

Crypto margin trading is borrowing from the exchange. By trading crypto margin we can increase our capital by 3x-10x. But there are also many risks. So we need to be aware before trading margin. Crypto margin trading can be understood more easily by the following example.

Suppose, my capital is $100 now if I trade with 5x leverage then more $500 will be added to my capital. So I can trade with $600. Now all my profit/loss will be over $600. There are two aspects involved in profit/loss. So in margin trading, just as there is a possibility of profit, there is also a possibility of loss.

![masumrbd_blue-line.png](https://cdn.steemitimages.com/DQma9YmHSb9t735MZxmNyQbGVaFYpWaweDaKhfRUvXg8CRK/masumrbd_blue-line.png)

> How To Plan For Trading In Crypto Margin Trading?

<hr>

One person's plan for crypto margin trading can be the same. Here are some points I will share my plan with you:

- First of all, if you want to do crypto margin trading, you have to be much more skilled You need more than luck to succeed in the affiliate business.

- Understand when to take entry and when to take the exit.

- Crypto margin trading cannot be done by overtaking one's own budget.

- You have to start with very little money at first. Then gradually increase the investment.

- You need to have a good plan before trading crypto margin.

![masumrbd_blue-line.png](https://cdn.steemitimages.com/DQma9YmHSb9t735MZxmNyQbGVaFYpWaweDaKhfRUvXg8CRK/masumrbd_blue-line.png)

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

<hr>

Below I will give the names of some exchanges that provide margin trading service and also what margin they provide:

**Binance:** World's top exchange site. Binance exchange provides a maximum of 5x margin trading. 

**Poloneix:** Poloneix exchange provides a 2.5x margin for trading.  

**Kraken:** Kraken exchange provides 2x to 5x margin for trading.  

**StormGain:** StormGain exchange provides a 200x margin for trading.  

![masumrbd_blue-line.png](https://cdn.steemitimages.com/DQma9YmHSb9t735MZxmNyQbGVaFYpWaweDaKhfRUvXg8CRK/masumrbd_blue-line.png)

> What Is Leveraged Tokens Trading?

<hr>

Leveraged Tokens are ERC-20 tokens that are provided by various exchange sites. These tokens are not good for future trade and holding because they are sold very quickly. The advantage of Leveraged Tokens is that it gives a leveraged position at a cryptocurrency price without necessarily taking the risk of liquidation and margin and resulting in higher profits. 

Let's suppose BNB, the Leveraged Token for Ethereum will be BNBBULL / BNBUP OR BNBBEAR / BNBDOWN.

If your prediction says that BNB will now go up then you can buy BNBUP/BNBBULL after your buying and as per prediction when BNB Down, the price of  BNBUP/BNBBULL will go up and your profit will be increased by 3x, according to what margin is given by the crypto exchange. Similarly, If your prediction goes the wrong direction your investment will decrease by 3x, according to what margin is given by the crypto exchange.

![masumrbd_blue-line.png](https://cdn.steemitimages.com/DQma9YmHSb9t735MZxmNyQbGVaFYpWaweDaKhfRUvXg8CRK/masumrbd_blue-line.png)

> How To Plan For Trading In Leveraged Tokens?

<hr>

- You have to invest money that you will not regret even if it is lost.

- Understand when to take entry and when to take exit.

- You have to make a proper strategy and trade.

- You need to select the best exchange site where trading and interest fee will be less.

![masumrbd_blue-line.png](https://cdn.steemitimages.com/DQma9YmHSb9t735MZxmNyQbGVaFYpWaweDaKhfRUvXg8CRK/masumrbd_blue-line.png)

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

<hr>

**Binance:** Binance exchange provides 1.25x to 4x leveraged tokens.

**KuCoin:**  KuCoin exchange provides 10x leveraged tokens.

**Bitmax:** Bitmax provides 3x leveraged tokens.

 **Huobi:** Huobi exchange provides 5x leveraged tokens.

![masumrbd_blue-line.png](https://cdn.steemitimages.com/DQma9YmHSb9t735MZxmNyQbGVaFYpWaweDaKhfRUvXg8CRK/masumrbd_blue-line.png)

> 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.).

<hr>

![Screenshot_1.png](https://cdn.steemitimages.com/DQmdQvcm4EF1JxjbDNuDGRaXop3eGsLwXRT71JrJLcuU4q8/Screenshot_1.png)

<center><sup>**Screenshot from my PC**</sup></center>

Price Forecasting This was done before the assignment. But since it has been asked again here, I will again show the price forecasting of a coin next week. In this case, I chose STEEM / BTC pair. When I am writing this post, the market price is 0.00001524. Now I will try to explain it with a screenshot. This is taken from my PC. Notice in the picture below I have tried to mean support with A-line which is at 0.00001524. That means there is less chance of going down than that. Again we can see in B-line resistance 0.00002180.

![Screenshot_2.png](https://cdn.steemitimages.com/DQmed3LoYtSHSXBM5naWsrUsCwNEPtLk5c9BGawdhwdxHFL/Screenshot_2.png)

<center><sup>**Screenshot from my PC**</sup></center>

Now I draw C-line which is my price forecasting for next week. I think the higher price will be in next week 0.00001800 and the lower price will be around 0.00001500. This is my price forecasting for the next week. Let's see what happens next. The price fluctuation in the crypto market is very high so risk management is very important in case you want to trade. 

![masumrbd_blue-line.png](https://cdn.steemitimages.com/DQma9YmHSb9t735MZxmNyQbGVaFYpWaweDaKhfRUvXg8CRK/masumrbd_blue-line.png)

#### Conclusion: 

The lesson was very helpful. From here I got a very good idea about margin trading, leverage tokens. Also, the crypto-related examples were very good and practical which made the lesson easier to understand. Since margin trading is a lot of risks, you must prepare yourself as an expert before doing it. Otherwise, there may be a big loss here. I have also learned a lot of new information by interacting with different marketplaces.

<hr>

##### <center>Thanks for patiently reading my post. I hope you enjoy it.</center>

<hr>

Best Regards, 
@masumrbd

</div>
👍  , , , , , ,
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vote details (7)
@stream4u ·
Hi @masumrbd

Thank you for joining [The Steemit Crypto Academy Courses](https://steemit.com/trending/hive-108451) and participated in the Homework Task.  

|<center>Review Visit Level</center>|<center>Task Remark</center>|<center>Comment </center>|<center>Guidance, Feedback, Suggestions</center>|<center>Grade</center>|<center>Verification (Done, Hold)</center>|
|--|--|--|--|--|--|
|<center>First</center>|<center>Completed</center>|<center>Provided information are explained well but in price prediction topic, you could have done better try to go for more detail. Also, you mentioned *I have tried to mean support with A-line which is at 0.00001524*, Support gets confirmed when the price previously came and touches the same level and then revert back to the upside, when it comes the second time then we can it will act as support, check below example. In your example the previous low point at the same level is missing.</center>|<center>Explore the topic in detail, try to explain the image with all details. </center>|<center>6</center>|<center>Done</center>|

Example:

![image.png](https://cdn.steemitimages.com/DQmUMBDBu1KrCXikrCxpzfUx9xsau7E1ZsvddY7sQvZ2uTB/image.png)


![image.png](https://cdn.steemitimages.com/DQmR3wXJE1NWKejPzkvWpvZ3qtNaUpoLazNC3LAh2LbsH5o/image.png)

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*](https://steemit.com/cryptoprofessor/@steemitblog/the-steemit-crypto-academy-the-first-crypto-professors)

<center>https://cdn.steemitimages.com/DQmdUh4X5gNtnPTAvgeu1Dvjvnh2zWk6KaqEKvzUYLqBnAf/image.png</center>
👍  
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vote details (1)
@masumrbd ·
Thanks for your comment. I will try to do better next time.
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