KuCoin is ranked among the top 5 crypto trading exchanges. The KuCoin platform has listed more than 700 Altcoins. KuCoin also provides different promotional offers to make money. The referral program is one of the best in these offers and provides more advantages. KuCoin also offers a different types of trading on its platform, including fiat, spot, and future. In these trades, different features are present to give more benefits to traders or investors. This article also discusses the advanced feature and explains how you can get KuCoin leveraged tokens.
KuCoin Leveraged Token
These coins and tokens on KuCoin contain a feature of leverage. Like during spot trading, you see some BTC prices, and Shib prices show a 3x written in front of them, which means they already include a 3x leverage when you trade them.
Benefits Of Leveraged Token
No matter how many leverages are attached to the coin, you don’t see any liquidation in spot trading. This is one of the biggest benefits of these leveraged coins. For margin trading, you don’t have to pay to borrow or lend money to leverage tokens. You can leverage coins and take benefits because of the dynamic rebalancing mechanism. The operations of leverage coins are also similar to spot trading. You have to hold it and sell it when you want. There is no extra thing you have to worry about.
Make Money With Leverage Tokens
Investors should keep their eyes on the market and take entry at the right time. For example, if you are confident about BTC rise, buy BTC3L. A rise in 1% of BTC price will give you a benefit of 3% in BTC3L. On the other hand, if you know the market trend will go down, then buy BTC3S. The decrease in 1% of BTC will give you a rise in 3% of BTC3S. KuCoin is also considered the best Bitcoin exchange because of this feature.
A Fee Of Leveraged Token
The trading fee is similar to spot trading, while the subscription and redemption fee is about 0.1%. The management fee is about 0.045%. KuCoin always offers several promotions helpful in reduction of fees. If you hold a KTC and native coin of KuCoin for more than 30 days, you will get a discount on your trading fee and enjoy several other rewards.
Role Of Rebalancing Mechanism In Leverage Tokens
The main role of the rebalancing mechanism is to take care of the contract of leveraged tokens to maintain their rate. Every day position adjustment is required against the profits or loss occur during trading.
KuCoin always provides many opportunities to its users in their best interest. Therefore, they offer a new feature on their platform. With these features, traders can make the maximum amount of money while trading. One of them is Leveraged Tokens. Before jumping into this trading method, you must understand the risk factor first. Otherwise, the maximum profit also leads to maximum loss if the risk is not managed properly. In the best interest of their users, KuCoin offers a guide related to risk management on their site and always signs an agreement with their users. This agreement also includes the precautions related to risk.