From the LBank blog.
There are several ways cryptocurrency traders can utilise the plethora of opportunities in the markets to build a sustainable portfolio for themselves. One of the great ways is through crypto ETFs trading.
Cryptocurrency Exchange-traded funds (ETFs) offer users a wider spectrum of diversifying their funds. It is one of the most popular derivatives trading among traders due to how simple, transparent and cost-efficient it is.
Just like stock, crypto ETFs fluctuate daily and are also traded daily. There are two kinds of crypto ETFs: the first type is backed by physical cryptocurrencies, whereas the second type is a synthetic ETF that monitors crypto derivatives such as crypto exchange-traded products (ETPs) and futures contracts.
Understanding Leveraged ETF
Leveraged ETF is a perpetual product or financial derivative that its fund in shares is pegged with the return rate of an underlying asset. It is important to note that leveraged ETFs can increase your potential investment gains or increase your losses.
No Margin, No Risk of Liquidation On LBank
On LBank, users can trade leveraged ETFs, which are designed to provide amplified exposure (2x, 3x, etc) to the underlying market.
LBank offers ETF trading with no need for margin and no risk of liquidation. The rebalancing mechanism created by LBank’s fund management team ensures that no trader is forced to liquidate.
However, if a trader fails to pay attention to the deviation between the actual net value of the product and the latest transaction price before placing an order, there is a possibility that the price will approach zero in extreme conditions.
In essence, the leveraged ETF product is a fund managed by LBank’s qualified financial team. Investors can easily create their own leveraged investment portfolio without having to be familiar with the precise mechanism because the management and upkeep of the investment portfolio are handled by LBank’s professional staff.
More so, a Bitcoin ETF is a better choice than buying Bitcoin directly if you don’t want to actively manage your cryptocurrency investments but still want to diversify your portfolio with a high-risk, high-reward asset.
To buy or sell an ETF, you need to create an account with an exchange such as LBank. The top crypto exchange offers users the most secure and easy-to-use platform with a low entry barrier.
How to Trade ETFs on LBank
ETF trading is simple and easy to start on LBank when you follow these steps:
2. Fund your wallet
3. Head to ‘Derivatives on the homepage and then select ETFs
4. A notice will appear directing you to ‘please click here to read the ETF product description: ETF Product FAQ.’ After carefully reading, click [ I Agree]
5. Select any ETF trading pair on the left to trade
6. Enter the price of the order, click [Limit order], then select buy order
7. After an order is confirmed, the completed order will be displayed below
Please Note: Like every other investment, you should invest according to your risk threshold. You should trade with a clear sense of direction and carefully consider which approach appeals to you the most.
Disclaimer: The opinions expressed in this blog are solely those of the writer and not of this platform.
This article came directly from the LBank blog, found on https://medium.com/lbank/lbank-offers-users-leveraged-etfs-with-no-margin-and-no-risk-of-liquidation-76f307dde32e?source=rss—-69b5b1a654b1—4