Read on Twitter
Fine i'll write up another thread on leveraged perps. Make sure you actually read it this time around and probably share it
Let go
Let go
With the rise in perps through platforms such as FTX and Binance Futures, leverage trading alts has exploded in popularity. This also increased the amount of people charting their favorite alt in USD.
And this is your first mistake
And this is your first mistake
ALTUSD pairs are based off of two charts. Its BTC pairing AND BTCUSD. BTCUSD is the driving factor in most cases when it comes to the $ value of your alt.
Thus an exhausted BTCUSD can have your alt come crashing down in USD value, destroying your entire position and wiping out your portfolio in one swoop.
This is what you want to look for instead:
A sign of reversal or exponential growth in the ALTBTC pair and an uptrending or a stable BTCUSD.
However if BTC is significantly outperforming your ALTBTC pair, just go with BTC. Less risk/more reward.
A sign of reversal or exponential growth in the ALTBTC pair and an uptrending or a stable BTCUSD.
However if BTC is significantly outperforming your ALTBTC pair, just go with BTC. Less risk/more reward.
When an ALTBTC pair is showing signs of parabola or reversal than yes you can leverage trade it.
The reason for this is that ALTS just like Bitcoin are SPOT driven and your leverage perps have about 0 impact on its actual price
The reason for this is that ALTS just like Bitcoin are SPOT driven and your leverage perps have about 0 impact on its actual price
Pinned this to my profile because it is more important than a price prediction of 2021
