Three reasons to invest in leaveraged tokens

Within the existing trading options, as you may already know, there is the possibility of multiplying profits using the tools provided by the markets suchleverageage.

Leverage allows you to acquire much larger positions than you could with your money in exchange for a greater risk of losing it all.

For those of you who don't know what I'm talking about I'll give you an example:
I buy $100 worth of BTC, but with x5 leverage the market allows me to buy up to $500 worth of BTC with my $100.

If the BTC price goes up by 10% I will have earned $50 instead of $10 as I would have without using the leverage.

What happens if the BTC price drops 20%, as 20% of $500 is $100 it would be all the amount I had and therefore I would be liquidated and left with 0.

Leveraged tokens attempt to address this problem by retaining some of the advantages of trading with leverage.

What are leaverage tokens?

Leaverage token are products designed by Binance 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 pleveragehe cryptocLeverage
If we read into the help page of binance we can find this explanation about this tokens.

In practice this means that we manage to have a leverage of up to x4, although this is variable depending on the price change that occurs. Here the truth is that I get a little lost in the formulation, but the main advantage is that for each token is broken down into 2, one UP and one DOWN, so that one represents the LONG position and another the SHORT position.

Why listen to me and trade in these tokens?

Well, obviously the advantages are clear as long as they fit your strategy.

Multiply your profits: These tokens have an identical behaviour to the token they come from, but applying a multiplier that varies between 1.5x and 3x. and therefore multiply your earnings.
No risk of liquidation: When representing the short position with a token that changes in value, liquidation is not possible, although it is true that with the large fluctuations that these assets already have, it is very risky to use them.
The interest is quite low: In spite of acquiring a much larger position in the market than you could have, the interest charged is low, in the order of 3.5% per year plus commissions.

An example

This is the XRPUPUSDT chart. As you can see the graph is very similar to XRP only the proportions change which are much higher in this case.

In tradingview you can find these tokens and use all the trading tools available to trade them in the most profitable way.

In this particular case I have tried my luck buying a few tokens, I hope that XRP will recover from the big stick suffered this week by the SEC ruling.

XRPUPUSDT Cotization

As a last piece of advice just comment that I am not a financial advisor and that this is not financial advice. These tokens undergo enormous changes that can cause us to lose a very high percentage of our capital in a very short time, do not invest anything that you cannot afford to lose.

LeoFinance is a blockchain-based social media community for Crypto & Finance content creators. Our tokenized app allows users and creators to engage and share content on the blockchain while earning cryptocurrency rewards.

Track Hive Data	New Interface!	About Us
Hivestats	LeoFinance ^Beta	Learn More

Trade Hive Tokens	Twitter	Hive Witness
LeoDex	@financeleo	Vote

_{Follow @leofinance for official updates}