Investors with leveraged tokens can experience gains at a higher rate and a less-complex environment. Not only do you not have to handle collateral, but you can also handle margin requirements.
In addition, there are multiple top-leveraged token exchanges available that provide high-quality token options with high-value potential. However, we’d suggest a beginner stay away from margin trading as it can incur significant losses.
| Binance | Pionex | |
| Founded On | 2017 | 2019 |
| Support | Business Hours | Online |
| Training | Documentation | Documentation, Live Online |
| Fee, | Undisclosed | Free |
| Free trial | None | Yes |
Table of Contents
What are Leveraged Tokens?
Leveraged tokens are essentially ERC20 tokens with leveraged exposure, irrespective of margin requirements, liquidation risk, or strict management responsibilities. For leveraged trading, this is highly useful. However, it is essential to note that they hold variable or fixed leverage. To learn more, read An Ultimate Guide To Leveraged Token [Bull Token]
In the context of conventional leverages tokens, the rebalancing of the leverage rate occurs at 2:00 AM each day. This happens after there is a 10% change in the price of the spot market. All leverage token exchanges like Pionex, Binance, and FTX follow their personalized techniques for leverage token rebalancing.
Why should you invest in them?
There are multiple benefits and risks attached to leverage token-related investment.
In the trade-centric world, you can use Contract of Differences or opt for conventional leveraged positions over some digital asset for margin trading. However, if you want to target intraday price rates, you would get better results with leveraged tokens.
They are easier to handle, monitor, and trade in the context of cryptocurrencies. However, you should avoid trading with leverage tokens for the best results if you are new to crypto investment. You can have a look at the pros and cons of trading leveraged tokens below:
Pros
- You can make use of the volatility of the crypto market.
- Investors do not need to worry about margin trade management, collateral, liquidation, or funding rates with leverage tokens. One would still get leverage exposure.
- Your profits would be up for automatic reinvestment. In addition, the system would sell some of the profits to reduce the potential of liquidation risk in case of a market crisis.
Cons
- These are high-risk products so that you might end up with high losses or zero knowledge of without an understanding of leverage token trading. Beginners should avoid this entirely.
- Transparency is not a guarantee. It depends on the type of leverage token exchange you utilise for the trade.
- Long-term holding is not possible with leverage tokens since they rebalance each day.
Take the time to understand the ebbs and flows of price rates in the market first. Then, you can figure out how much of the capital is okay to invest and at what point. Additionally, starting small would allow you to perform better, trade safe, and avoid higher risks.
Now, let’s move on to talk about the top three leverage token exchanges.
Also Read: How to Short Bitcoin using Leveraged Tokens?
Leveraged Token Exchanges: Pionex
What is Pionex?
Pionex is a leverage token exchange that comes with integrated and free trading bots. The automated crypto trading structure is the first of its kind and began its operations in 2019.
The company has a USA-centric MSB (Money Services Business) license and works with Huobi Global and Binance for the automated bots system. These match the orders 24×7 for the users in crypto trading. To know more, read our Pionex review.
The Leverage Coins They Offer
Pionex leveraged tokens work with a high-level rebalancing mechanism and focus on flexible target leverage for margin trading exposure. There are three types of token names here:
- Leverage
- Coin
- Long/Short
The coin names depend on these pointers. For example, BTC3L stands for BTC 3 times Long and BTC3S stands for BTC 3 times Short. The primary tokens investors trade with include:
- BTC3S
- BTC3L
- BTC1C
- ETH3S
- ETC3L
- ETC1S
Features of Pionex
The following are the main features of the platform of Pionex.
- Interactive structure– With the built-in Live Chat feature, users can easily access and interact with the support staff.
- Market data– Via Pionex, users, get information like coin ranking and market capital live reading for trading.
- Manual trading- Traders can easily buy or sell their tokens and assets across Pionex without additional steps.
- Custom Interface– The interface of Pionex platforms is customisable as per the needs of the users. All features are available through the dashboard and easily accessible. Plus, they can personalise matters like time filters through the navigable interface.
- Trade market details– Learn about the market condition of the assets in the crypto market via real-time TradingView charts. Also, the trading order history is available through this platform as well.
- Technical indicators– Users would get access to multiple technical indicators here, like MACD, RSI, Bollinger Bands, and Price Oscillator.
How to buy leverage coins via Pionex?
To buy Pionex Leverage coins, you can download the application or directly visit the official website.
- Register or log into your Pionex account.
- Complete the steps for registration and select confirmation afterwards.
- Check the box for standard terms and conditions details to confirm your age and eligibility agreement.
- Begin trading with automated bots on Pionex.
Pros and Cons
Pros
- Intuitive and responsive mobile application version.
- Customised interface
- Support of 40+ crypto funding coins
- 12 free as well as integrated trading bots available; no programming/coding necessary to activate
- US-FinCEN-authorized Money Services Business or MSB licensing
- Low trading costs
Cons
- No phone support for customer care
- Demo account unavailable
- The withdrawal fee amount and options are limited
Also Read: Pionex vs Binance
Leveraged Token Exchanges: Binance
What is Binance?
Binance is one of the top leverage token exchange platforms that allow efficient and scalable crypto trading. It has its standardised tradable assets called Binance leveraged tokens of BLVTs, applicable in the Binance spot market only.
Every BLVT displays a host of open trade positions in the perpetual future trade market. In other words, the BLVTs are leverage future trade positions in tokenised form.
Investors cannot withdraw the BLVTs into their private digital wallets and must directly trade them on the Binance spot market. They are listed but not on-chain issued.
For more details, check out our review Binance Review.
Binance Leveraged Token Limitations, What’s the alternative now?
The Leverage Coins They Offer
There are two specified types of leverage coins under Binance.
- BTCUP– This centres on leveraged gains after the Bitcoin prices rise in the market.
- BTCDOWN– Generation of leveraged gains occurs during the fall of Bitcoin prices.
Overall, the two leverage coin types gain at a rate of 1.25x – 4x.
Features of Binance
The following are the main features of the Binance leverage platform.
- eWallets– Most of the Binance operations occur digitally so that traders can store and withdraw BLVTs from the electronic wallets. The Binance app supports multiple e-Wallet integrations, and users get long-term deposit/interest rate earning benefits.
- Trading account– Binance offers multiple trading account types, including the main ones- Advanced and Basic. Users get customisation benefits here. Plus, professional trading experts get P2P, Margin, and OTC trading account options as well.
- Mobile trading- The mobile application of Binance is compatible with both iOS and Android devices and includes multiple user-friendly features for faster trading.
- Analytical charts– With TradingView integration, Binance users get real-time information on market data through technical market indicators, graphs, and charts.
- Customer support– At Binance, users would access a wide range of crypto trading related content for research, learn section for additional guidelines, and 24×7 access to the customer service team for support.
How to buy leveraged tokens via Binance?
For investing in Binance leverage coins, you have to follow the given steps.
- Go to the Binance official website and click on the Leveraged Tokens page on the home page, hovering your cursor over the Derivatives tab.
- Log in to your Binance account.
- Choose the BLVT trading pair you would trade.
- This would bring you to the BLVT landing page.
- Select on “Buy”. Finally, you would reach the Advanced trading page interface.
- Read through the Risk Disclaimer information.
- Individuals over the age of 18 years can apply. Agree with the T&C details and select “Confirm”.
- You can begin trading with Binance leverage tokens via the platform.
Pros
- Support of over 50 cryptocurrencies.
- Low trading fees on Binance.US.
- The transactional fee is 0.1% standardised and lower in case traders use BNB.
- Top-notch security benefits.
Cons
- Low amount of sets of crypto-to-crypto currency.
- Many areas like Alaska, North Carolina, New York, Louisiana, and others cannot use Binance.
Leveraged Token Exchanges: Conclusion
All things considered, you can expect high profits from trading leveraged tokens. However, the systems are different for each leverage platform type. Accordingly, properly research about them, practice on other versions, and with small trading amounts initially. This would help you learn more about it, eventually leading to earning higher profits with time. Further, we feel that Pionex would be the best choice to trade with leveraged tokens as you can easily automate your trading with their free trading bots and automate your trading.
Frequently Asked Questions
What is the most prominent digital currency exchange available globally?
Binance is one of the most popular cryptocurrency exchange platforms present worldwide. Traders get access to over 200 cryptocurrencies, and the platform records approximately 1.4 million transactions/second.
Do I need to put in a minimum deposit for trading via Pionex?
There is no need for any minimum deposit, funding fee, or even balance-level trading with Pionex. However, traders have to follow the minimum investment requirement for order volume.
What type of trading bot is available on Pionex?
Pionex works with built-in automated bots for crypto trading.
Is it essential to register into Binance Chain for trading?
You do not have to register into Binance Chain; you would only require the Binance Chain address for wallet integration. With that, you can begin trading assets via the platform.
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