Review on BTCDOWN by Stephen Toluwani
Leveraged token trading on Bitcoin movements
The BTCDOWN token is a leverage ETF token offered by Binance and has began to sip it's entry way to many exchanges. Many traders are beginning to understand and better prefer to trade Leverage tokens due to the risks associated with it which are less as compared to trading directly on the futures market. What makes BTCDOWN easy to be traded by any trader is the way its been treated, like a coin on the spot market. Traders can buy and sell BTCDOWN token in an open spot market and still get a relative amount of exposure to leveraged trading. The BTCDOWN token comes with an in-built leverage of x3 which means that, for every downward movement of bitcoin in the spot market, a price impact of x3 is appropriated to the token. Whereas, a positive movement of bitcoin results in losses multiplied by 3 to the token value. One major advantage of trading the BTCDOWN token is that there is no liquidation calls but it is also not suitable for long term Investment as rebalancing mechanism tend to shift the price at a specified time. There are hopes to see more of this tokens adopted In many major mainstream Exchange as they keep gaining grounds daily
Pros
- BTCDOWN offers a x3 leverage to traders and comes with no risk of liquidation calls
Cons
- BTCDOWN tokens should be held for a short time because of rebalancing mechanism
