One of the hottest trends in the blockchain universe is the application of decentralized finance (DeFi) solutions. Today we will impartially review for our readers the Silicon Finance project, a new DeFi initiative aiming to solve a series of industry issues. The project’s team aims to achieve an increase in the safety of DeFi, with obvious benefits for the whole blockchain community. Furthermore, the initiative will look into a way to introduce more democracy and equality on Initial Dex Offerings…
Trading cryptos is likened to a minefield, especially for beginners; one wrong move could mean a terrible outcome. Crypto investors can gain or lose a substantial amount of money in a flash if they do not have the best strategies at hand. Enough background diligence, online security, and a healthy dose of suspicion can help make your investment safe.
All traders inevitably use the terms margin and leveraged trading in cryptos, and while these terms are related, there is a difference between them. Nevertheless, they are regarded as ideal strategies that help achieve dreams and grow capital exponentially.
However, these strategies have their share of risks; hence you may need to find some handy tips that can help you improve your safety, experience, and transparency in trading. This guide will focus on different cryptos that offer greater rewards at a lower risk of losing your investment.
Leverage Trading Overview
Leverage trading allows traders to take more significant risks while aiming to gain more rewards in a market. Traders can invest only a part of an entire position they desire in any asset. A broker gives the remaining part in the form of investment. Typically, leverage is expressed as a ratio that shows the amount you have versus what you want to trade.
The leverage ratio differs with the market, asset, and type of exchange. Different brokers have unique leverage options. However, a common fallacy about leverage trading is that it is similar to acquiring a loan. The difference is, leveraging does not impose any interest on traders for borrowed funds. However, a fee is charged for these services.
Bitcoin leveraging allows traders to control a larger position in the market and generate more profits. BTC leverage trading will enable one to achieve more with less. However, the vice-versa is also true if a trader enters a position and it does not go in their favor.
Depending on the type of broker, leverage varies from 1:5 up to 1:1000. Low leverage brokers make it impossible for traders, especially beginners, to expose themselves to excessive risk. For bitcoins, the leverage should not exceed 1:5 due to its high volatility.
As a currency that introduced and made smart contracts part of the crypto market, Eth has gained massively since its launch in 2015. It is one of the most widely and adopted discussed cryptos in the world. A variety of the biggest names in business, such as Intel, Microsoft, Chase, have business-ready versions of the software that support Eth.
With a lot of market enthusiasm behind Ethereum, there is every reason to consider Ethereum as a viable investment opportunity. The enhanced security and low volatility risk make it suitable for crypto leverage trading.
EOS, like Ethereum, has smart contracts and is also gaining popularity each day. It has been credited with having the inaugural blockchain operating system that promotes seamless transactions and enhanced scalability than its competitors. All transactions in EOS are free.
Also, the YTD performance for EOS is flat. It has lower volatility rates than some of its competitors. EOS crypto is considered one of the most promising and actively traded cryptos in the market. The project’s enthusiasm is high, and thus it is promising to advance without a dramatic run-up or sudden crash like some cryptos once they are launched.
LTC is presently accepted as a form of payment at Overstock.com. It also has a promising future, and long-term investors have been awarded even 20x returns, though, in December 2017, a spike sent LTC coins to over $350. Today, LTC trades at about $84, and it is constantly among the top ten cryptocurrencies in terms of market capitalization.
However, it shows signs of consolidation from time to time. Litecoin’s primary assertion is a faster transaction time when compared to Bitcoin, caused mainly by its use of a different algorithm that adds transactions to a blockchain. Its enhanced transaction speed also improves the scalability of the coin.
Currently valued at about $35, LINK is an Ethereum token that controls Chainlink’s decentralized oracle network. It allows smart contracts in its network to connect to APIs, payment systems, and external data sources.
Chainlink was introduced in 2014 as SmartContract, but its name soon after changed to its present name. It partnered with Google in 2019. This relationship secured LINK’s protocol inside Google’s smart contract tactic.
Bitcoin Cash (BCH) is a branch of the original Bitcoin, and it is one of the best cryptocurrencies to watch. By market cap, it ranks fourth. It was designed with a modified Bitcoin project code that promotes enhanced scalability, faster transactions, and larger block sizes. It may not yet be widely adopted or popular like its parent Bitcoin, but BCH seems promising.
Cryptocurrencies are still in their developmental years. For novice traders, it might be better for you to invest only in low-risk cryptos and to build a portfolio for widely adopted cryptocurrencies. The more developed coins offer some volatility proof and better liquidity compared to newer cryptos.
It is vital to find out where it can best trade each cryptocurrency. Also, knowing the market capitalization for the same cryptocurrency helps in making better investment decisions. If cryptos are here for good, some amazing opportunities among the most popular and traded coins reduce risk due to lack of liquidity or abandoned projects.