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What happens to instruments if Tether (USDT) crashes next?
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The closest comparison to traditional stock trading are warrants. It's similar to margin trading, when it comes to the leverage, but different in execution. Instead of taking out a short term loan to buy an asset, you are buying a warrant that's rated at 1/100 or 1/1000 of the asset's value, but the price changes are same as the asset. If your asset (or coin) is at say 69,000 you could buy that warrant (BTCUP) for just 1/1000 that is $69. If BTC goes up +1,000 to 70,000, your warrant would go up 1,000 too. Whereas the underlying asset that is BTC would only go up 1.449%, you'd make 1449% (paid $69 get back $1069). That is 1:1 the leverage of 1:1000. However, since you are trading a warrant that is tradable on the market just like any other asset, you may or may not get the exact price when selling, due to various factors. Supply and demand, people may not want to buy it, and the lifetime of it and the chance that it'll reach the goal in the remaining time. If people think that's not going to happen, then you won't find anyone who buys your warrant. In such a case, you'd wait for the termination date and receive 1 BTC you bought for $69 instead of $69000. Therefore the warrant has got a time value which goes to zero when it approaches the execution date. if by that time you haven't reached the goal, but your position hasn't been completely closed, you may buy BTC for the price difference, or just call it a $69 loss. However, it's a unbacked warrant, unlike options and futures (margin trading) there's no call for backing your losses. That means, if the price goes down from 69K to 68,99931 (-0.001% or - 1/1000%), your position is closed and you the $69 are lost.
I label my drug vials BTCUP and BTCDOWN.
Is it a leveraged token you buy? Like BTCUP or BTCDOWN?
Well, right now I am stuck with BTCUP, ETHUP and BNBUP, which is a bad situation I got into "unintetionally" when my limit buys got triggered over the weekend. Usually weekend pump/dumps are non-sensical and a good opportunity, that time ... it was the LUNA crash. Down ~70% since then (the *UP tokens are leveraged). I did so well because I was taking profits around ATH and shorting a good amount in Feb/Mar.
Maybe I'm slow but what does that imply? For the sake of argument if either BTCUP or BTCDOWN is trading at 30 USDT and USDT/USD crashes to 0.5 $ would BTCUP or BTCDOWN then trade at 60 USDT, keeping the intrinsic value of 30 $ ?
If USDT is the next in line for slaughter what would realistically happen to instruments like BTCUP/USDT and BTCDOWN/USDT? Would they "correct" like BTCUSDT did when it hit "100k"? I.e. keep the intrinsic dollar value or would it actually crash?
I bought some BTCUP and BTCDOWN from binance (these don't liquidate you) but finally I didn't like it. Now I'm just holding.
Thank you also my mind exploding with this: > you take advantage of purchasing a 1x margin future and leverage token at the same price point from margins and futures for huge gains. you mean you buy for example the token BTCUP and at the same time you short BTC? since the token is 3x i guess you short it at 3x leverage? How do you calculate the spread since the levarage token have a very different price with the perpetual or spot price? ​ Thank you!
I'm pretty new to crypto so this might be a stupid question. If I believe in BTC will go up, should I buy BTCUP instead of BTC?
It's not futures, it's leveraged coins like BTCUP or ETHUP
Because i cant afford losses if it keeps dipping😂, better to cut my losses on leverage positions. I had BTCUP on binance so.....
The 40% left is probably leveraged ×10 into BTCUP
its time to buy BTCUP in Binance waiting for a weekly high close?
I use leveraged tokens, for example BTCUP on Binance. Works a charm for me with no risk of liquidation.
I bought BTCUP on Binance at the weekend as I didn't like not having any Bitcoin position at the moment. Slightly leveraged but no more than 3X, and no chance of liquidation. Really happy with leveraged tokens and will probably use some of the Down tokens to ride the market back down if we reach silly figures
Do any of your portfolio trackers include the Binance leveraged tokens? I'm getting some BTCUP but coin gecko doesn't have them.
$5000 on BTCUP $5000 on BTCDOWN Hedge mastery.
Could you theoretically buy USDT on 10x margin on Binance, and then use that USDT to trade BTCUP (which is also leveraged again?)
Anyone else use the Binance leveraged tokens? I've had a great run on BTCUP the past few weeks, no risk of being liquidated with these either
If you'd have bought BTCUP on Binance three weeks ago you'd have trebled your money by today 😯
If you're new to it, try BTCUP or BTCDOWN on Binance. You can't get liquidated this way
The fact BTC has held above 60k this long is really bullish. Just bagged myself a few BTCUP tokens on Binance
Hahaha so much credits to the maker of this epic BTCUP video!!!
A safe and easy way to try using leverage is by using leveraged tokens. These are on exchanges such as Binance. You can buy BTCUP and BTCDOWN. There are fees built in for buying the tokens but you don't risk being liquidated like with normal longs and shorts. I'd still recommend setting fairly tight stop losses if the market doesn't go the way you expect.
What are the pros and cons of using Binance's ETF? BTCUP/USDT and such.
If I buy BTCUP on Binance. What am I doing there?? Leverage?
There is a DOWN and UP tokens for each token. BTCDOWN, BTCUP. I know you can buy those on BSC at least. They are on binance charts too.
I heard that Binances BTCUP /BTCDOWN coins ware a good alternative
They are called leveraged tokens, they are basically related (not tied) to a cryptos value. For example, if the price of BTC goes up 1%, BTCUP goes un 1% times the leverage (for example x2). If BTC goes down, then the BTCDOWN token goes up. It's similar to shorting/longing the coin. The advantadge is that they have is that they offer leveraged gains without the risk of liquidation. The disadvantadge Is that leverage varies so the exchange (for example binance) can take profit. I can explain more math behind them if you want in another comment.
The leverage is variable and tends to be higher when the price is rising than it is when it is going down. It's really not suitable for holding any longer than a few days, a week at the very most. Zoom out one year on the BTCDOWN chart and you'll see what I mean. I just used the information available to me on Binance, but I'm personally backing away from it, at least for the time being, until this UK Binance stuff becomes more clear as BTCDOWN is a derivative and therefore liable to be banned in the coming days. It's a big, big shame, because BTCUP and BTCDOWN have been my golden ticket to recovering my losses since the tank in May.
BTCUP during a crash anyone?
Leveraged tokens have very high volatility and your holdings value can dramatically changes. For a 4x leveraged token, if BTC drops 25% in a day, BTCUP would effectively drop 99%. In short, it's usually a bad idea to hold leveraged token for long term. (For day trading sure, but no, please don't day trade.) Read this: https://www.binance.com/en/blog/421499824684901079/Why-you-shouldnt-hold-leveraged-tokens-longterm-
It’s a multi pair option (idk the name things like BTCUP BTCDOWN on binance) agressive USDT bot (start a new order ASAP) ,with a profit target of 3% and a stop loss it works pretty well I am not good at trading myself so it’s a bot made by someone else that I edited a little bit.
instructions unclear bought BTCUP on spot
Rate my portfolio: 20% BTCUP 20% ETHUP 20% ADAUP 10% DOTUP 10% Short ICP (Futures) 5% BNB 5% Cumrocket 5% Fantom Shiba + some FTM for fees 5% Cash (USDT + some leftover euro)
Why does BTCUP not decay in such an intense fashion? That one appears to have more or less followed the market, relative to DOWN. Sorry you really are getting questions from a n00b here, I tend to steer clear of anything besides plain old bagholding.
I was considering a short-term hold anticipating another bloodbath on Sunday and/or Monday but something in my gut was suggesting we might see a change in momentum. Sadly, I didn't expand any of my bags last weekend as I didn't feel confident about where the market might be headed. Oh well, looks like the future is bright. RE: what you said, sure, that makes sense but if it has nosedived so severely over the course of a year it suggests a lot of people are getting wrecked even when their intuition about the market was correct. The BTCUP token does not appear to have done this, only BTCDOWN.
Anyone had much luck using binance leveraged tokens BTCUP/BTCDOWN etc. Has a look back over the charts and there's some serious gains to be made (or lost!)
In binance BTCDOWN etf has 52m volume. While BTCUP has 25m. Does this mean anything
A quick question about Binance leveraged tokens, more specifically BTCUP. Since they set the leverage, is the leverage deliberately decreased in the up direction and increased in the down direction reducing overall gains? The yields I seem to be getting aren’t as good as I might have hoped and was wondering whether it just makes more sense to move to standard BTC. Any info would be much appreciated, thanks.
Just gna have a small punt stack, I know about leveraging and 2x leverage getting triggered at 50% drop etc but what about those BTCUP/DOWN and ETHUP/DOWN?
Thinking abt doing some 2x leverage when BTC hits a certain level, can someone ELI5 between leveraging and the binance variants of BTCUP/BTCDOWN?
My sisters work associate had 120 grand disappear on him today. I'm not the only one, people killed themselves because of this. https://www.independent.co.uk/life-style/gadgets-and-tech/coinbase-down-binance-revolut-broken-b1850149.html https://finance.yahoo.com/amphtml/news/coinbase-other-major-crypto-exchanges-see-service-disruptions-as-crypto-sell-off-intensifies-144447584.html "It added in a separate statement that it had temporarily suspended trading for all Binance Leveraged Tokens, with some exceptions including for BTCUP, BTCDOWN and ETHUP." So if you owned any tokens except for btcup btcdown and ethup you lost all your money. Which we all know is impossible as the funds backing these can't disappear, so binance stole from everyone because their terms and conditions allow them.
This is exactly why I would buy BTCUP / ETHUP if I wanted to trade using leverage. At least it doesn't force me to sell.
https://www.independent.co.uk/life-style/gadgets-and-tech/coinbase-down-binance-revolut-broken-b1850149.html https://finance.yahoo.com/amphtml/news/coinbase-other-major-crypto-exchanges-see-service-disruptions-as-crypto-sell-off-intensifies-144447584.html "It added in a separate statement that it had temporarily suspended trading for all Binance Leveraged Tokens, with some exceptions including for BTCUP, BTCDOWN and ETHUP." So if you owned any tokens except for btcup btcdown and ethup you lost all your money. Which we all know is impossible as the funds backing these can't disappear, so binance stole from everyone because their terms and conditions allow them.
https://mobile.twitter.com/DeItaone/status/1395016764040306690?s=20 Binance suspends trading on all Binance leveraged tokens except for BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, BNBDOWN.
Binance has temporarily suspended trading for all Binance Leveraged Tokens except for: BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP and BNBDOWN. Subscription and redemption for all Binance Leveraged Tokens has been temporarily suspended. Oh Boy!! Carnage
BTCUP hodl is like playing on expert difficulty
BTCUP on Binance is really a vibe right now 😆
Someone bought 1.1 million USD of the leveraged token $BTCUP which is basically leveraged long position for Bitcoin. Bullish!
If you are genuinely interested calculate them returns - ( Amount * Sale Price - Amount * Purchase Price - fees - leverage costs) x (1 - tax rate) You’ll probably find that with the short term risks it’s better just to hold long term as it’s not worth the small after tax gains. You could leverage (or buy a leveraged token like BTCUP) but you’ll probably find the same (better to hold) Your call though. Your risk
So i'm not a trader at all (long time hodler) But I took a small leveraged position last two weeks because I'm so damn bullish using BTCUP. Closed it last night because of the holding costs... damn. Sticking to my hodling game I guess.
Liqudation of a position means that all the money you put into that position (ie BTCDOWN) is lost (and cant be regained even if the price moves in the direction you want). That cant happen with binance leveraged tokens: they move more strongly than the underlying asset (ie BTCUP goes up ~30% if BTC goes up 10%) but thats only
Related question: Why do I keep getting free "BTCUP" coins? I've never done that "leverage" thing.
This is so true. I bought in with 2k when bitcoin was at around 20k late last year. As a result I had over 0.1 BTC at the time. It wasn't enough though, especially when I'm watching youtubers throwing around 1+ BTC. Instead, I started buying and selling leveraged funds (BTCUP/BTCDOWN). I got greedy, took losses, ended up with <0.01 BTC now. That would have been worth 6k+ now if I had just stacked. Don't be me!
Discount if you make swap from BTC to BTCUP token on binance🤘😁 thats my short term fix for stuff like this
BTCUP is leveraged to make money when BTC goes up. BTCDOWN is leveraged to make money when BTC goes down. Same for ETH. They are basically tokenized Futures positions. Their variable leverage determines how quickly you achieve gains/loss from price movement. My advice: If you didn't know what they are, you should stay very far away.
Could someone please ELI5 BLVT(binance leveraged value tokens) ? For example- BTCUP, BTCDOWN, ETHUP, ETHDOWN.
If you are on Binance, take a look at the derivatives (e.g BTCUP, BTCDOWN). You don't need to borrow, there is no risk of liquidation and the leverage ratio is determined by an algorithm between 1.25X and 4X. For me it looks like a much safer play - i'm trying it out with a tiny investment with a viewing to shorting some alts when i think we've past the peak later this year or early 2022.
Where can you find your derivative holdings on Binance? E.g. BTCUP, XRPDOWN
Anyone buying leverage BTC products, e.g BTCUP at Binance?
big brains bought leveraged tokens (BTCUP especially)
Leveraged tokens are coins like BTCUP, BTCDOWN, ETHUP, ETHDOWN etc. It's (more or less) like opening a leveraged long/short with 2-3x leverage.
Thanks for this. I’ve been using BNB and investing in the coin for 3 months and have loved it. No problems. And the new launches are great and thanks to your post I’ll look into getting in early on the next one. One thing to add, is they make margin trading Easy! BTCUP, ETHUP, BNBUP, AaveUP, DOTUP and more or DOWN with leverage. Minimal fee. I am bullish on a number of these coins and don’t really want to do leverage at ByBit as it feels too risky for me so this makes it easy.
Leveraged tokens are a possibility. It's important to understand these tokens properly, they are amazing if the market is only moving in one direction but any volatility or dips will significantly reduce the profit. The leverage going up is normally half that of going down (if you bought BTCUP), e.g. 2x up and 4x down, therefore if it only goes up then you'll get 2x what you would have (assuming it stays 2x, it adjusts daily), however, every time it goes down its 4x each percentage down so it needs to go up even more to increase in price relative to before. Hopefully that makes sense. I think the tokens are great but they're meant to be used for short term gains, however, if the dips to 100k are minimal then the profit would be huge.
It's important to understand these tokens properly, they are amazing if the market is only moving in one direction but any volatility or dips will significantly reduce the profit. The leverage going up is normally half that of going down (if you bought BTCUP), e.g. 2x up and 4x down, therefore if it only goes up then you'll get 2x what you would have (assuming it stays 2x, it adjusts daily), however, every time it goes down its 4x each percentage down so it needs to go up even more to increase in price relative to before. Hopefully that makes sense. I think the tokens are great but they're meant to be used for short term gains, however, if the dips to 100k are minimal then the profit would be huge.
In my head it was going to touch $60k, have a little drop down to $58k or so, consolidate, then push through the $60k sell wall a few hours later. In this fantasy I was going to ride BTCDOWN briefly and then switch to BTCUP. I was also ravishingly handsome and a globally recognised genius. Women wanted to be with me, men wanted to be me, bitcoin went wherever I predicted. Reality is basically the same except for the part about bitcoin.
They also have BTCUP, ETHUP and Down tokens that provide 3x profits. Less risky than regular margin trading for those who are interested.
Binance has BTCDOWN and BTCUP; which are effectively short and long calls.
Either BTCUP or BTCDOWN lol
What are your thoughts on BTCUP? Or every other UP market in Binance. Like UNIUP, BNBUP.
BTCUP or down is ONLY to be used in VERRY short term trades. i found this out the hard way when i first started trading i played with the leveraged tokens and made the HUGE mistake of leaving a BTCUP overnight. with what i considdered a small stoploss. what happened was the price bounced up and down over the stoploss for a few hours before finaly hitting it. the problem with that is the constant reajustment during volitility (small ammounts of up and down) caused a MASSIVE loss, im talking 40%!!! i still havent recovered from it.. always trial with small ammounts over a extended period before trying anything new.