Tips and Tricks to Trade Leveraged Tokens

Technically, due to volatility decay and daily management fees, leveraged tokens are not a long-term investment tool for everyone. Cryptocurrency is very volatile, therefore if you are holding on to leveraged tokens for a long run, there's a strong chance of losing money.

These are primarily investments to make if you're confident the underlying cryptocurrency will rise or fall in price soon. By purchasing a leveraged token, you can dramatically boost your profits -- assuming you're correct on which direction the token goes. If leveraged tokens are something you're interested in, spend plenty of time researching them first and only put in money you'd be comfortable losing.

Further, we are going to talk about some tips and tricks to make best use of sideways movements in the market using the BTC token.

A) If you assume there is going to be a higher probability of upward movement after consolidation, then a buy loop bracket of bull tokens will be a good idea.

B) If you suppose there is a higher probability of downward movement after consolidation, then a buy combination of bear tokens will be a nice choice.

C) A combination of separate buy loop brackets of bull and bear tokens can also be created for hedging. For example, If you think BTC will consolidate between $38,700 to $42,400 range in a specific time, you can place your first buy loop bracket of bull tokens. It can be created when the price of BTC is hovering around $38,700 along with stop loss.


Similarly, buying bear tokens can be placed when BTC is hovering around $40,200 along with a stop loss.

2. During the downtrend market: If you think BTC is going to be a downtrend at a time, you could use trailing profits or trailing stop loss or combination of both by placing a multi exit order of bear tokens.

3. During uptrend market: If you think BTC is following an uptrend, in this case you can use trailing profits or trailing stop loss or combination of both by placing a multi exit order of bull tokens.

4. When you have no clear direction but the market is on a sideways movement: placing two separate conditional orders can be done in this scenario, one of BTC bull token if BTC breaks certain resistance of your choice and another of BTC bear tokens if BTC breaks a certain support of your choice. This will help you enter into either of the trades whichever direction is taken by BTC. In case BTC plays a trick of first pumping then dumping or first dumping then pumping, your stop loss and trail should be in place to help you exit from one of the positions later automatically.

Tips and tricks shared on the above are some of the many trading strategies, which can also be applied when using different Gate.io tools and features. We will highly recommend you to watch our tutorial videos or read blog articles here and on our telegram group.

All the content above is not investment advice. Leveraged tokens are high-risk products. Leveraged tokens can be very powerful for short-term trading but you need to be cautious when holding these tokens over a long period of time. Please make sure you have a good understanding of the risks before trading leveraged tokens.