Why do crypto traders enjoy using leverage? Quite simply, it increases their exposure to a particular asset or market. For KuCoin, it is a way to bring the popular world of Spot FX trading a step closer to the online crypto trading arena.
Clients of KuCoin are now able to start trading a new selection of assets known as Leveraged Tokens. These include BTC3L, BTC3S, ETH3L and ETH3S. ETH3L represents Ethereum and 3L means 3 X leverage. This means that a trader’s bullish $100 trade, for example, gives him exposure to a $300 trade. On the other hand, ETH3S, amplifies a trader’s bearish trade potential by 3 times. This allows a trader to take advantage of both rising and falling markets, by going long or going short on a trade.
Why Leverage Tokens?
As well as enhanced exposure, this gives the trader the ability to engage in the markets with more powerful tools at his disposal. He can benefit from trading tools like Stop Loss and Take Profit to help him employ risk management within his portfolio.
It also means that Leveraged Tokens can never be liquidated, as this is a form of speculative trading, rather than necessitating the investor to buy the underlying asset. So unlike buying cryptos outright, the trader can start with less funding and still have a relatively wide exposure to the assets of his choice.
KuCoin is moving fast in the world of crypto. As well as being the foremost digital exchange to offer the buying, selling and storage of cryptos, it also boasts the ability for investors to stake their holdings, to lend them and to engage in futures and margin trading through the platform.
The KuCoin approach
Investors can engage in all of these features on a 24/7 basis and unlike the majority of its peer exchanges, KuCoin offers its clients a support service that is always on hand and available to help. This really stands out in a marketplace where traders must normally deal with anonymous entities and have no recourse for questions or support issues they may have.
KuCoin is backed by IDG Global, a leading investor in huge brands like TenCent and Ripple. A show of confidence that may well lend encouragement to assure investors of its strength as a brand.