Why traders rush to KuCoin
For a trader, using leverage is a powerful facility in the hunt for pips. Leverage gives access to more exposure than a trader’s bankroll would normally allow. A feature that KuCoin is addressing with their latest product, leveraged tokens. Meet the first collection of tradable leveraged assets to hit the crypto arena, by way of BTC3L, BTC3S, ETH3L and ETH3S.
The way it works is simple. BTC3L for instance, means 3 x leverage on a BTC trade. So for example, for every 1% price gain BTC makes, the user enjoys 3 times the profit potential. Alternatively, when trading BTC3S, the user is speculating that the price of BTC will drop. Every 1% drop in BTC, gives the users 3 times more profit.
Much like spot trading, when trading Leveraged Tokens with IDG Capital-backed exchange KuCoin, the trader need not wait for a contract expiry. He can trade in both bullish and bearish markets, eg. when the markets are moving either up or down.
Bitcoin and the other assets are highly volatile, which can be desirable for a trader. The higher the price spikes, the greater the profit potential. Multiplying this spike by 3 times or more allows the investor to come in and out of trades throughout the day, and is perfect for short-term day traders. KuCoin Leveraged Tokens other benefits include, no margin fees and no risk of liquidation.
What’s coming on the horizon
KuCoin has a lot planned for the near future including supporting more leading coins with Leveraged Tokens including LTC and other popular trending coins that are already making a splash in DEFi and via the Polkadot ecosystem.
KuCoin is growing fast as the no. 1 leading exchange in terms of globalization and client acquisition, with over 739 million trades executed since its inception in 2017 and an accumulated transaction volume of over $135 trillion – a true force majeure in the digital exchange arena.