Everything you need to invest in leveraged Binance tokens

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Trading is one of the main options to generate profits within the crypto market. However, to be able to invest safely and not end up ruined when trying to trade cryptosystems, knowledge is key. Therefore, it is important that we know which financial instruments are available to us to acquire crypto assets. That’s why today we tell you everything you need to know to invest in leveraged Binance tokens.

How to invest in leveraged tokens with Binance

What is a leveraged Binance token?
Of course, before we start giving details about the multiple benefits that leveraged Binance tokens have, we must know what these financial assets consist of, and why they should be an essential part of your investment portfolio in the crypto market.

Binance’s leveraged tokens are a product designed by this exchange to allow its users to obtain all the profits that leverage in the financial markets allows. While eliminating the concern of a position liquidation in the face of a sudden change in the price of crypto currency.

Thus, instead of holding a position in a specific crypt-currency, you can acquire a leveraged token whose value will vary in proportion to the price movements in the crypto asset it represents. So you can acquire a BTCUP token for a leverage of 1.5X, and each time the price of Bitcoin increases, the value of your token will increase by a ratio of 1.5X to BTC.

If you buy a BTCDOWN token, its value will change in inverse proportion to the Bitcoin token. If the Bitcoin price decreases, the value of your token will increase by 1.5X, while if BTC increases, the value of your token will fall. So you have all the advantages of leverage on a token.

Binance: How to invest in tokens with the rebalancing strategy?

Why invest in these tokens?
There are several reasons why purchasing leveraged Binance tokens is an excellent complement to your portfolio. Starting with the variable leverage in these financial instruments. Well, unlike other tokens of this type, or common leverage, the leverage of Binance tokens will vary according to the market situation.

This is because, although leveraged tokens offer a more than proportional increase in their value when the crypt-currency they represent rises in price. They also suffer a more acute fall when the cryptomone currency starts to decrease its price. Therefore, Bitcoin Loophole tokens will automatically adapt their leverage between 1.5X and 3.0X to reduce the potential losses of users.

In addition to this, Binance guarantees market liquidity. Since the exchange is the only one capable of issuing these leveraged tokens, it ensures that there will always be enough supply and demand for us to buy and sell our tokens whenever we need them.

Finally, Binance’s leveraged tokens also have an extremely competitive commission. You will only have to pay 0.01% per day maintenance fee, equivalent to 3.5% per year. And a redemption fee of 0.1% if you want to exchange your tokens for their net market value.

Therefore, there is no doubt that Binance’s leveraged tokens should be part of the portfolio of any trader who wants to expand his investment options with low risk. Because, thanks to its liquidity, its variable leverage and its low commissions, trading with Binance’s leveraged tokens is extremely simple and profitable.

Plutselig stup på Cryptocurrency Market forårsaker avvikling av mer enn $ 1 milliard verdt fremtidsstillinger

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Etter en periode med rekordlave volatiliteter i Bitcoin Trader og mer enn en uke med en jevn, bullish, følelse, har cryptocurrency-markedene gitt en annen påminnelse om hvor ustabile og uforutsigbare de kan få. Bitcoin falt for nesten 1500 dollar (12%) i løpet av 6 minutter, mens den nest største cryptocurrency, Ethereum , så en dukkert på $ 80 (20%) i samme tidsrom.

The Sudden Drop klokka 4:33 UTC

I de tidlige timene av 2. august så kryptomarkedene en plutselig dukkert. Bitcoin falt fra 11 429 dollar til 10 550 dollar på bare noen få minutter. Prisen på BTC kom nesten fullstendig tilbake i løpet av de neste 30 minuttene, ettersom etterspørselen drev prisene opp igjen til 11 236 dollar.

Som det ofte skjer, lignet prisbevegelsen på andre cryptocurrencies nær BTC. Ethereum led for eksempel et enda større tap. Den nest største cryptocurrency etter markedsstort krasjet fra $ 408 til $ 326, og kom snart tilbake til $ 380.

De plutselige prisendringene fikk mange handelsmenn til å huske den 12. mars “Svart torsdag, da Bitcoin-prisene plutselig falt over 45% over to påfølgende fall.

1,1 milliarder dollar i Futures Positions Liquidated

Ettersom prisene var relativt raske å komme seg, forårsaket dukkert ikke mange grå hår for langtidsholdere. Men etter hvert som kryptoderivater blir mer og mer populære, førte den plutselige prisutviklingen til at mer enn 70 000 lange stillinger ble likvidert over alle cryptocurrency-børser . Den totale verdien av alle likviderte stillinger oversteg 1,1 milliarder dollar.

Larry Cermak, forskningsdirektør i The Block , twitret:

„De fleste av likvidasjonene, omtrent 647 millioner dollar, kom fra Bitcoin’s futures, etterfulgt av Ethereum med $ 165 millioner av likvidasjoner.“

Som det kan sees på diagrammet nedenfor, så også EOS , Bitcoin Cash og Bitcoin SV en bemerkelsesverdig mengde av likvidert stilling.

De fleste likvidasjoner på OKEx og Huobi

I følge markedsdataside Bybt ble stillinger i verdi på 400 millioner dollar likvidert på OKEx- børsen. Huobi , som så omtrent like mye likvidasjoner som OKEx, ble fulgt av BitMEX og Binance med henholdsvis 164 millioner dollar og 86 millioner dollar i likviderte posisjoner.

Cermak avslørte også at den største største avviklingsordren fra 2. august-markedet var en BitMex Bitcoin Perpetual Swap-stilling til en verdi av omtrent 10 millioner dollar.