What is BTCdown?
BTCdown leveraged token (BTCdown) Binance exchange It is designed so that you can trade Bitcoin digital currency at a leveraged or leveraged price without the risk of liquidation in the market. In this case, without any worry or stress for management Lourage deals, you can earn a good profit through the opportunities that this digital currency provides. With the help of this cryptocurrency, you no longer need to manage collateral, margin trading requirements, and also the risk of liquidation. In this article from Valx magazine, we answer the question of what is BTCdown and explain the points that must be observed during its transactions. Join us.
What is Binance btcdown digital currency?
Binance Leverage Token (BLVT) is a tradable asset on the Binance Spot market. Each of these tokens represents a basket of open positions in the market Futures transactions are. For this reason, BLVT tokens are a type of leveraged positions in the futures market. The first tokens introduced by Binance Leverage Token are BTCdown and BTCup currencies. BTCup currency is profitable when the price of bitcoin is increasing and btcdown currency is profitable when the price of bitcoin is decreasing.
But what is Lorridge? Transactions with a multiplier, with the help of which you can increase the deposit amount in the transaction, are called leverage transactions.
BTC Down digital currency leverage is profitable between 1.25 and 4 times the decline in the price of Bitcoin. Currently, this leveraged token is listed only on Binance exchange and to some extent on Tokocrypto exchange, and it is possible to trade it. Currently, it is not possible to transfer this token to a personal wallet. It is better to know that leveraged Binance tokens are not issued on the blockchain. If you intend to invest in this token, it is better to observe the beta coefficient in your portfolio.
How does the digital currency BTCdown (BTCdown) work?
In general, one of the most important differences between the BTC Down token and other leveraged tokens is that the amount of leverage in it is not fixed. This means that it fluctuates over a certain range of variable leverages. In btcdown digital currency, this range changes between 1.25 and 4 times, which is actually the permanent goal of these tokens. In general, the main idea of using BTCUP and BTCDOWN tokens is to minimize profitability as the price of Bitcoin increases, and to minimize the risk of liquidation of the transaction as the price of Bitcoin decreases.
In the meantime, there is an important point, the leverage of these currencies is not fixed and is not publicly known. The main reason is to prevent the abuse of some people who get the information before everyone else. For this reason, since the goal of leverage is not fixed, BTCDOWN digital currency also does not need to be rebalanced until market conditions require it. This is why the concealment of the leverage target makes these strategies work, because traders cannot predict when the price will drop in advance.
For a better understanding of this section, we suggest you read the article What is Bitcoin in the Wallex blog.
What is the advantage of buying BTCdown digital currency for us?
Leveraged tokens have problems such as Volatility tension (volatility drag). Volatility elasticity is the destructive effect that price fluctuations have on your investment over time. In this regard, the higher the price fluctuation and the time period, the greater the effect of the volatility on the performance of the leveraged token.
When the trend is strong and the market momentum is high, the token is leveraged; It works as we expected, but in a volatile market, that doesn’t happen. Binance also introduced BTCdown variable leverage token to solve this problem. This token only rebalances when the Bitcoin price fluctuates wildly and is not forced to rebalance over time. Although this solution does not completely solve the problems; But it offsets the long-term effects of volatility traction on BTCdown token performance.
What is the transaction fee of BTC Down token?
Before investing and buying BTCdown currency, it is better to know more about its payment fees. You have to pay a transaction fee to do these transactions. Since the BTCdown token, like Bitcoin, Ethereum (ETH) and Binance Coin (BNB) in Spot market It is traded, we have to pay the same transaction fee. BTCdown token transaction fees are:
BTCdown tokens represent open positions in the futures market. Because these positions remain open, you have to pay a management fee of 0.01% daily and 3.5% annually.
If you intend to hold btcdown token, you have only two ways to exit the position. One way is to sell that token on the spot market. This method is very convenient and on the other hand you have the option of redeeming them based on their value. When you use this method for redemption, you will receive the token equivalent of Tether digital currency. In these cases, you must pay a redemption fee of 0.1% of the value of that token.
When the market conditions are normal, it is better to exit the position in the spot market. This redemption mechanism exists because it gives you an additional way to exit the position when conditions are unusual.
As we said, btcdown token represents futures positions. This means that the futures fee is also applied to these positions. These fees are not paid between traders holding leveraged tokens and are only paid to traders in the futures market. But since the funding fee is paid to the futures accounts, it also affects the value of the btcdown token currency.
What is the difference between Bitcoin and BTCdown?
Leveraged tokens such as BTC Down are used when a trader wants to buy digital currency on the spot and is not interested in futures and wants to get more profit from spot trading. Here’s how you do it, when you feel that Bitcoin is in a downtrend, you buy BTC Down to make a better profit.
The advantage of this method over futures is that you have zero possibility of liquidation and you cannot hold the token until your analysis is correct and you get a profit. That is, if Bitcoin drops by 10%, you can make a 40% profit by buying the BTC Don token.
BTCdown cryptocurrency price history
BTCdown digital currency is ranked 2861 in the market. Each unit of this digital currency is traded at the price of 0.043 dollars in the market and its daily trading volume is 419.73 thousand dollars. The historical ceiling and the highest price of the BTCdown currency on September 12, 2020 was equal to $7.17, which is currently 99.39% lower than the price at that time.
How to buy and sell BTCdown (BTCdown)
Currently, it is possible to buy and sell BTCdown token only on Binance exchange and this digital currency can be traded directly. BTCdown currency can be traded on the Binance spot market page. You can also redeem this token based on its value. In this case, you only need to pay the redemption fee.
The best wallet for cryptocurrency BTC Down
After buying BTCdown digital currency, you must think of saving this digital currency and installing a suitable digital wallet. It is not possible to store BTCdown digital currency in a personal wallet and you cannot transfer this currency to another address. In general, leveraged Binance tokens are not issued on the blockchain and you can only store them in the Binance wallet.
Investigating the future of the BTC Down token
The price of BTC Down digital currency is updated regularly. The price of this token is currently $0.043, but the price can go higher or lower. Your capital may be lost or doubled, because digital assets are risky and you should be careful to invest. In general, the future of this digital currency depends on the fluctuations of the Bitcoin digital currency.
BTC Down; Binance leveraged token
In this article, we got acquainted with the BTC Down token and introduced all the trading features with this digital currency. Leveraged tokens such as BTC Down are tradable assets on the Binance spot market that allow you to profit conveniently and worry-free without having to manage a leveraged position. Considering the advantages of these types of tokens, keep in mind that the Binance Leverage token is not free from possible risks and dangers. However, in case of any necessary changes or corrections, Binance does not accept any responsibility and it is the trader’s responsibility to be aware of the market conditions.
Have you ever invested in BTCdown cryptocurrency? Share your experience with us.
What is BTCdown? The first time in the blog Valx. appeared.