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$10,000 HUB – Deposit and trading competition

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We would like to support our latest listing of Human Trust Protocol so we are thrilled to announce that we are hosting a HUB deposit and trading competition with a prize of $10,000 HUB.

How to enter the $10,000 HUB deposit and trading competition?

Head to our trading competitions page and click on “Apply now” for the competition. When trading HUB/BTC, you will automatically be entering the pool of winners!

Apply now!

$3,000 Deposit Competition

Traders who deposit a minimum of 1,000 HUB or more during the activity period (24 hours) will receive 10% of the deposited amount for deposits up to 100,000 HUB.

We would like to bring to your attention that the deposit competition offer is only valid as long as the supply lasts or during the activity period, 24 hours.

Activity period: 24 hours

Start date: Friday, December 4th 12:00 UTC

End date: Saturday, December 5th 12:00 UTC

$7,000 Trading Competition

All traders will be ranked in terms of the total HUB/BTC trading volume traded on their Bitcoin.com Exchange account (including both Buys and Sells) across the HUB/BTC trading pair during the competition period.

Please note that anyone found to be breaking the rules will be disqualified. Traders who try any form of market manipulation in which a user simultaneously sells and buys the same financial instruments (wash trade) to create misleading, artificial activity in the marketplace, will be disqualified.

What and how can I win?

The top 5 traders with the highest trading volumes on our exchange will share $7,000 worth of HUB.

  1. $2,500 HUB
  2. $2,000 HUB
  3. $1,250 HUB
  4. $ 750 HUB
  5. $ 500 HUB

How long will the trading competition run for?

The competition runs for 9 days from Saturday, December 5th 00:01 UTC until Sunday, December 13th, 23:59 UTC.

What is the Human Trust Protocol?

Human Trust Protocol solves endemic trust problems and provides verifiable and portable trust. The vision of the Human Trust Protocol, and that of its HUB token is to encode identity and reputation on the blockchain, to become the next digital identity protocol interoperable across multiple platforms. The platform focuses on 3 factors: Identity, Reputation, and Trust. Each account will reference an identity using decentralized digital identities, having the capability to capture rich and raw reputation data by which applications can enable users to make the best interpretation of trustworthiness. After all, the solution the platform is providing is the ability to evaluate a user’s capability and intent on a new interaction via a Decentralized Trust Network.

Terms and Conditions of HUB deposit competition

  1. Traders who participate in the deposit competition must NET deposit HUB to the Bitcoin.com Exchange during the activity period. Any other NET deposit of any amount of HUB will not be counted.
  2. The deposit competition prizes will be paid out to the Bitcoin.com Exchange HUB wallets within 3 weeks after the end of the promotion period.
  3. Please note that there is no specific time for traders to keep/have HUB in the Bitcoin.com Exchange wallet after the 24 hr activity period.
  4. The deposit competition has a prize pool of $3,000. Traders who NET deposit a minimum of 1000 HUB or more during the activity period (24hours) will receive 10% of the deposited amount for deposits up to 100,000 HUB.
  5. Traders who have a net deposited the minimum amount of 1000 HUB or more are eligible to receive the 10% of the deposited amount.
  6. Please note that the supply is finite, and a trader who has deposited HUB during the activity period will not be eligible for the 10% if there is no more supply.
  7. The deposit competition starts on Friday, December 4th at 12:00 UTC, and ends Saturday, December 5th at 12:00 UTC.

Terms and Conditions of HUB trading competition

  1. “Trading Volume” is defined as the sum of a trader’s total buys and sells (excluding wash trades) of HUB pair on Bitcoin.com Exchange. We calculate Trading Volume in the following way: Trading Volume = Sum (executed buys of HUB pair ) + Sum (executed sells of HUB pair).
  2. The competition period is from Saturday, December 5th 00:01 UTC until Sunday, December 13th, 23:59 UTC.
  3. Winning traders will be notified by email and rewards will be deposited to their Bitcoin.com Exchange HUB wallets within 3 weeks after the end of the promotion period.
  4. Participation in the $7,000 HUB Deposit and Trading Competition is limited to one trader account per legal or natural person. Persons found to have competed with more than one trader account will be disqualified from the competition.
  5. Please note in the event of disqualification of any participants due to a breach of the terms and conditions of the trading competition, the leaderboard ranking might not be adjusted.
  6. Please note that prizes will be allocated at the listing price of the HUB token: $0.11.
  7. The $7,000 HUB Deposit and Trading Competition is hosted by FMFW Ltd (the “Bitcoin.com Exchange”) and the terms and conditions of this competition form part of the User Agreement. The Bitcoin.com Exchange reserves the right to cancel it or amend its terms or conditions unilaterally without prior notification.
  8. By participating you confirm the following: “I accept that any fictitious transactions aimed at artificially increasing the trading volume (wash trades, arbitrage trading between two or more exchanges, trading from multiple accounts, as well as an unfair use of multiple trading pairs aimed at increasing the trading volume of a participant), will lead to my being excluded from the competition. Bitcoin.com Exchanges´s decision is final and binding”.

Filed Under: Announcements, Exchange, Trading Tagged With: , , ,

$10,000 AMUN leverage BTC/ETH Trading Competition

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With the recent market surge, we are making it possible for you to take even more advantage of ETH and BTC volatility. We are happy to announce that we are hosting another 3x leverage token trading competition to reward our traders with a great project listing. 🎉

How can you participate?

Simply head to our trading competitions page and click on “Apply Now” for each competition, then when trading the 3x leverage BTC/ETH pairs you will automatically be entering the pool of possible winners. At the end of the competition, the top 3 traders with the highest trading volume across all pairs (BTC3L/USDT, BTC3S/USDT, ETH3L/USDT, ETH3S/USDT) will be sharing a prize pool of up to 10,000 USDT.

Please note that we have four separate competitions on Bitcoin.com Exchange for BTC3L, BTC3S, ETH3L, and ETH3S, click the button “Apply Now” to enter the competition.

What and how can I win?

Ranking and prize calculation process:

  1. All participants will be ranked in terms of the total (BTC3L, BTC3S, ETH3L, ETH3S) trading volume traded on their Bitcoin.com Exchange account (including both Buys and Sells) across the BTC3L/USDT, BTC3S/USDT, ETH3L/USDT, and ETH3S/USDT pairs. This sets the prize that each trader per ranking could be eligible for.
  2. Calculating the PnL, the prize will be matched to the profit made during the activity period. The top 3 winners will receive up to the prize amount, based on their ranking and profit.
  3. Example: Within the activity period, if you have made the equivalent of 5,100 USDT in profit for the BTC3L/USDT pair and you were ranked 1st place in volume, then you will receive 1,500 USDT. If you entered another competition for example ETH3L/USDT and ranked 1st place in volume as well, you will receive 3,000 USDT in total.
  4. If no profit was made and the trader is in the top 3, they will receive 50 USDT.

Please note that anyone found to be breaking the rules will be disqualified. Traders who try any form of market manipulation in which a user simultaneously sells and buys the same financial instruments (wash trade) to create misleading, artificial activity in the marketplace, will be disqualified.

What are the trading pairs?

  • BTC3L/USDT (Bitcoin 3x Daily Long)
  • BTC3S/USDT (Bitcoin 3x Daily Short)
  • ETH3L/USDT (Ether 3x Daily Long)
  • ETH3S/USDT (Ether 3x Daily Short)

How long will the competition last?

The trading competition will last for 10 days. It starts on Saturday 01/08/2020 00:00 AM (UTC) and ends 10 days later on Monday 10/08/2020 23:59 AM (UTC).

Terms & Conditions:

  1. “Trading Volume” is defined as the sum of a trader’s total buys and sells (excluding wash trades) of BTC3L/USDT, BTC3S/USDT, ETH3L/USDT and ETH3S/USDT pairs on Bitcoin.com Exchange. We calculate Trading Volume in the following way: Trading Volume = Sum (executed buys of BTC3L/USDT, BTC3S/USDT, ETH3L/USDT, and ETH3S/USDT  pairs ) + Sum (executed sells of BTC3L/USDT, BTC3S/USDT, ETH3L/USDT, and ETH3S/USDT pairs). 
  2. If no profit was made and the trader is in the top 3, they will receive 50 USDT.
  3. Winning traders will be notified by email and rewards will be deposited to their Bitcoin.com Exchange USDT wallets within 3 weeks after the end of the promotion period.
  4. Participation in the $10,000 AMUN 3x Leverage Trading Competition is limited to one trader account per legal or natural person. Persons found to have competed with more than one trader account will be disqualified from the competition. 
  5. The $10,000 AMUN 3x Leverage Trading Competition is hosted by FMFW Ltd (the “Bitcoin.com Exchange”) and the terms and conditions of this competition form part of the User Agreement. The Bitcoin.com Exchange reserves the right to cancel the AMUN 3x Leverage Trading Competition or amend its terms or conditions unilaterally without prior notification.

Q&A:

What are Amun’s leveraged tokens?

Leveraged tokens are on a blockchain, they allow similar functionality as other tokens. You can buy, store, and transfer them like any other tokens.

Leveraged tokens are innovative ERC20 assets that can give you leveraged exposure to cryptocurrency markets, without having to deal with margin trade, liquidation, collateral, funding rates. With these tokens, you have the chance to take advantage of market volatility without having to risk your market margin!

What is the recommended holding time for leveraged tokens?

Amun’s leveraged tokens are best held for a maximum of one day as they only provide 3x or -3x notional exposure to the daily performance of Bitcoin/Ether. Over multiple days the tokens are subject to compounding and will not exactly track 3x or -3x of Bitcoin’s multi-day returns. You can learn more about compounding on Amun’s education page.

What are the benefits of leveraged tokens?

The tokens intend to provide a more convenient and cheaper way of obtaining various types of exposures to crypto. The leveraged tokens aim to remove the hassle associated with taking margin positions on crypto exchanges.

What are the risks associated with leveraged tokens?

These tokens may not be suited for the novice user. It should be said that leverage tokens can lose significant value in a sideways market, and are not intended for long term holding. Before exposing yourself to any financial risks, make sure you understand the mechanisms of these tokens. You must read our articles about leveraged tokens and Amun’s educational section to fully understand how leverage works, especially in terms of rebalancing and compounding.

How do these leveraged tokens work?

Leveraged tokens maintain a notional exposure to 3x or -3x of the daily returns of a crypto asset like Bitcoin. For example, if Bitcoin were to rise by 3% on a single day then BTC3L (Bitcoin 3x Daily Long) would aim to rise by 9% on the same day. However, if Bitcoin were to fall by 3% then BTC3L would aim to fall by 9%.

Learn more about the mechanism and trading of leveraged tokens here.

Filed Under: Announcements, Bitcoin.com, Exchange, Trading Tagged With: , , ,

Fee-free trading on all Velas pairs on our exchange

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To celebrate the launch of our new coin listing, enjoy fee-free trading* on all Velas pairs for a limited time only on the Bitcoin.com Exchange.

What is Velas?

Velas is a self-learning and self-optimizing blockchain platform for secure, interoperable, extremely scalable transactions, and smart contracts. 

Velas states that it can deliver up to 30,000 transactions per second by only creating blocks when they are needed, while at the same time keeping the network safe from the threats and malicious activity. This amounts to a block per/second speed of anywhere from 1 second to 2 minutes.

What pairs are included in the fee-free trading promotion?

  • VLX/BTC
  • VLX/USDT

How long can you trade Velas pairs fee-free?

The Velas (VLX) fee-free trading will last for 48 hours.

Start date: Monday, July 20th, 2020 3:00 pm UTC
End date: Wednesday, July 22th, 2020 3:00 pm UTC

If you want to learn more about the Velas coin, find the information here.

*Promotional VLX fees – 0.00% Maker fee and 0.01% Taker fee during the promotional period only

fee free trading

Filed Under: Announcements, Bitcoin.com, Exchange, Listing, Trading Tagged With: , ,

The self-learning and self-optimizing blockchain network is soon available on our exchange!

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The blockchain network that is self-learning and self-optimizing and claims to be able to deliver up to 30,000 transactions per second with a speed of anywhere from 1 second to 2 minutes.

We are excited to announce the listing of Velas (VLX) for Bitcoin.com Exchange users! Deposits and trading are enabled, and the VLX/BTC and VLX/USDT markets will be open for trading on Monday, July 20th, at 10:00 am UTC.

Velas is a blockchain ecosystem that implements an AI-powered Delegated Proof-of-Stake (AIDPOS) consensus mechanism for dramatically improved scalability, high security, and interoperability.

What is Velas?

Velas Network AG was founded in 2019 in Switzerland by Alex Alexandrov, the CEO of CoinPayments.

The Velas blockchain uses neural networks optimized by artificial intelligence to enhance its consensus algorithm, which maintains decentralization, stability, and security.

What is the concept of Velas?

The Velas blockchain allows for the creation of public and private containers for all coins supported. These containers will allow for the creation of an on-chain/off-chain scalability solution for all other coins as needed and serve as one ecosystem wallet for all Velas’ smart contracts.

How does it work?

Velas utilizes Artificial Intuition Delegated Proof of Stake (AIDPOS), which sits at the core of the Velas blockchain, insofar that it is supported by a theoretical process.

The company claims that it can deliver up to 30,000 transactions per second by only creating blocks when they are needed, while at the same time keeping the network safe from the threats and malicious activity. This amounts to a block per/second speed of anywhere from 1 second to 2 minutes.

What pairs can you trade?

VLX/BTC
VLX/USDT

Filed Under: Announcements, Crypto Communication, Exchange, Listing Tagged With: , , ,

DigiByte listing and 50,000 DGB giveaway

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Have you ever felt that coins like Bitcoin, Ethereum or Litecoin are not secure and scalable enough? If you have, then DigiByte is something for you!

DigiByte is a community-driven project that has no single point of failure, no ICO, no centralized company behind it, and the founder, developers, and the community are unpaid volunteers that eliminate the bankrupt risk. DigiByte is more than a faster digital currency. It is an innovative blockchain that can be used for digital assets, smart contracts, decentralized applications, and secure authentication.

The Bitcoin.com Exchange is happy to announce that we are listing DGB on our platform and available for trading from tomorrow!

What is DigiByte?

It is the longest Proof of Work UTXO based blockchain with three layers. The three layers are for smart contracts, decentralized applications, and digital assets. The public ledger is the middle layer where the DGB coin can serve as its base digital asset.

DigiByte was founded by Jared Tate, who is the founder and creator of the DigiByte blockchain. Jared dedicated full-time development towards DigiByte since October 2013. He has been invited by MIT, Harvard, and the US Capitol to speak on blockchain tech. He is also the co-author of the book “Blockchain 2035 The Digital DNA of Internet 3.0”, which is the first book written by a blockchain founder. DigiByte (DGB) is like any other cryptocurrency suitable for payments or transferring value.

Why DigiByte is different?

DigiByte has been working for years thus it managed to prove its security as a blockchain network. Originally, it was launched as a single proof-of-work algorithm but the most unique feature of the project is something else. It was made to prevent mining centralization and to make the network more secure and decentralized therefore it uses five mining algorithms while other networks only use one.

In addition, DigiByte claims to have the “most advanced difficulty stability” of any blockchain through DigiShield, which is being used in Ethereum, Bitcoin Cash, Zcash, Dogecoin, and many other blockchains. DigiShield re-targets DigiBytes ‘ difficulty in realtime to protect against multi-pools and an over-inflation of easily mined new coins.

DigiByte is 40x faster than Bitcoin because of its 15-second block time compared to BTC 10 minutes blocktime. DigiByte was also the first major Altcoin to implement Segregated Witness technology to improve scalability. From a security and scalability perspective, DigiByte unarguably is ahead of Bitcoin and Litecoin.

How is it produced?

DGB has a fixed supply and a schedule for distribution. There will only be a total of 21 billion DigiBytes created within 21 years. Since there was no ICO, new DigiBytes are always created through mining. The last DGB will be mined approximately in 2035.

Where can DGB be purchased?

It can be purchased and traded on the Bitcoin.com Exchange. 

If you want to get your hands on some free DGB, trade a minimum volume of $100 on our exchange during the promotional period.
All eligible traders will be sharing a pool of 50,000 DGB.

How long will the promotion last?

The giveaway will last for 6 days starting on Wednesday, July 8th 10:00 AM UTC, and ending on Sunday, July 12th 23:59 UTC.

Terms & Conditions:

  1. Participants must have a Bitcoin.com Exchange account.
  2. One airdrop per person only.
  3. Participants must trade a minimum of $100 in DGB in total trading volume during the promotion period to participate in the airdrop.
  4. Bots and fake users are not eligible for the airdrop.
  5. Rewards will be distributed within 3 weeks from the end of the promotion. All rewards will be distributed directly to the eligible Bitcoin.com Exchange accounts and may not be confirmed in a further announcement. You will be able to log in and see your rewards via Reports > Deposits and Withdrawal History.
  6. The 50,000 DGB Giveaway is hosted by FMFW Ltd (the “Bitcoin.com Exchange”). The Bitcoin.com Exchange reserves the right to cancel the promotion or amend its terms or conditions unilaterally without prior notification.

Filed Under: Announcements, Bitcoin.com, Exchange Tagged With: , , ,

$10,000 AMUN 3x leverage ETH Trading Competition

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Last week we listed four new 3x leveraged tokens (BTC3L, BTC3S, ETH3L, ETH3S) by AMUN. We are happy to announce that we are hosting a leverage ETH trading competition to support our new listing. 🎉

How can I participate?

Head to the trading competitions page and click on “Apply now” for each competition, then when trading the 3x leverage ETH pairs you will automatically be entering the pool of possible winners. At the end of the competition, the top 5 traders with the highest trading volume across all pairs (ETH3L/USDT, ETH3S/USDT) will be sharing a prize pool of up to $10,000 USDT.

Please note that we have two separate competitions on our exchange for ETH3L and ETH3S, click the button “Apply now” to enter the competition.

What and how can I win?

Ranking and prize calculation process:

  1. All participants will be ranked in terms of the total ETH3L and ETH3S trading volume traded on their Bitcoin.com Exchange account (including both Buys and Sells) across the ETH3L/USDT and ETH3S/USDT pairs. This sets the prize that each trader per ranking could be eligible for.
  2. Calculating the PnL, the prize will be matched to the profit made during the activity period.
  3. The top 5 winners will receive up to the prize amount, based on their ranking and profit.

Example:
Within the competition period, if you have made the equivalent of $5,100 in profit for the ETH3L/USDT pair and you were ranked 1st place in volume, then you will receive 2,500USDT.

However, if you have made the equivalent of $1,500 in profit for the ETH3L/USDT pair and you were ranked 1st place in volume, then you will receive 1,500 in USDT.

1st Place qualifies you for the biggest prize, and the full prize will be awarded if the matching profit was made. If the profit made was less than the full prize amount, then you will receive less.

Please note that if you made no profit and you are in the top 5, you will still receive 50 USDT!

For how long will the competition last?

The trading competition will last for 9 days. It starts on Friday 03/07/2020 00:00 AM (UTC) and ends 9 days later on Sunday 12/07/2020 23:59 AM (UTC).

Q&A

What are Amun’s leveraged tokens?
Leveraged tokens are on a blockchain, they allow similar functionality as other tokens. You can buy, store, and transfer them like any other tokens.

Leveraged tokens are innovative ERC20 assets that can give you leveraged exposure to cryptocurrency markets, without having to deal with margin trade, liquidation, collateral, funding rates. With these tokens, you have the chance to take advantage of market volatility without having to risk your market margin!

What is the recommended holding time for leveraged tokens?
Amun’s leveraged tokens are best held for a maximum of one day as they only provide 3x or -3x notional exposure to the daily performance of Bitcoin or Ethereum. Over multiple days the tokens are subject to compounding and will not exactly track 3x or -3x of Bitcoin or Ethereum’s multi-day returns.

How can I purchase leveraged tokens?
You can purchase these tokens on the Bitcoin.com Exchange.

What are the benefits of leveraged tokens?
The tokens intend to provide a more convenient and cheaper way of obtaining various types of exposures to crypto. The aim of the leveraged tokens is to remove the hassle associated with taking margin positions on crypto exchanges.

What are the risks associated with leveraged tokens?
These tokens may not be suited for the novice user. It should be said that leverage tokens can lose significant value in a sideways market, and are not intended for long term holding. Before exposing yourself to any financial risks, make sure you understand the mechanisms of these tokens. It’s important that you read our articles about leveraged tokens and Amun’s educational section to fully understand how leverage works, especially in terms of rebalancing and compounding.

How do leveraged tokens work?
The BTC3L and ETH3L tokens maintain notional exposure to 3x of the daily returns of Bitcoin/Ether and the BTC3S and ETH3S tokens maintain notional exposure to -3x of the daily returns of Bitcoin and Ether.

For example, for every 1% BTC goes up in a day, BTC3L (Bitcoin 3x Daily Long) goes up 3%; for every 1% BTC goes down, BTC3L goes down 3%.
The inverse of the BTC3L token is the BTC3S token, which represents a 3x short exposure to the price of Bitcoin and the same for ETH3L and ETH3S which represent the price of Ether.

As such, if the price of Bitcoin goes down 1%, the BTC3S token goes up 3%, while if Bitcoin goes up 1%, BTC3S goes down 3%.

At what time exactly do they reset back to BTC/ETH’s price?
Leveraged tokens do not “reset” they rebalance at 5 PM CET. It means they adjust their exposure to ensure that they always track 3x or -3x of BTC or ETH’s DAILY returns.
For example, if ETH goes up 5% then ETH3L will go up 15% on day 1, but then it will need to be rebalanced as the increase in price would mean the token is overexposed to ETH’s movement.

What are the fees associated with leveraged tokens?
There are two categories of fees associated with these tokens
– For users minting or burning tokens: 0.1% fee associated with every transaction or a 5 USDC minimum
– For users holding tokens: 0.03% daily fee

So could I sell my tokens and buy new ones before 5pm CET when it rebalances? Or would the rebalancing still affect it somehow?
A day is defined by 5 pm CET – 5 pm CET the next day. There are trading strategies you could do where you sell at the end of the day (5 PM) and the buy after the rebalance. The best way to do this is probably through Bitcoin.com Exchange or tokens.amun.com

Terms and Conditions

  1. “Trading Volume” is defined as the sum of a trader’s total buys and sells (excluding wash trades) of ETH3L/USDT and ETH3S/USDT pairs on Bitcoin.com Exchange. We calculate Trading Volume in the following way: Trading Volume = Sum (executed buys of ETH3L/USDT and ETH3S/USDT pairs ) + Sum (executed sells of ETH3L/USDT and ETH3S/USDT pairs).
  2. The trading competition runs from Friday 03/07/2020 00:00 AM (UTC) until Sunday 12/07/2020 23:59 (UTC).
  3. If no profit was made and the trader is in the top 5, they will receive 50 USDT.
  4. Winning traders will be notified by email and rewards will be deposited to their Bitcoin.com Exchange USDTwallets within 3 weeks after the end of the promotion period.
  5. Participation in the $10,000 AMUN 3x Leverage ETH Trading Competition is limited to one trader account per legal or natural person. Persons found to have competed with more than one trader account will be disqualified from the competition.
  6. The $10,000 AMUN 3x Leverage ETH Trading Competition is hosted by FMFW Ltd (the “Bitcoin.com Exchange”) and the terms and conditions of this competition form part of the User Agreement. The Bitcoin.com Exchange reserves the right to cancel the AMUN 3x Leverage ETH Trading Competition or amend its terms or conditions unilaterally without prior notification.

Filed Under: Announcements, Bitcoin.com, Exchange Tagged With: , , ,

Trade 3x Leveraged Tokens by Amun on our exchange

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We’re excited to share that the Bitcoin.com Exchange is listing four new leveraged tokens (BTC3L, BTC3S, ETH3L, ETH3S) by Amun on June 25th, 10:00 UTC. To celebrate the launch of the new Amun 3x Leveraged Tokens, enjoy fee-free trading in the leveraged tokens for a limited time starting on Thursday, June 25th 10:00 UTC ending on Sunday, June 28th, 2020 23:59 UTC. Find more details about the fee-free trading here.

The pairs that we are launching which allow you to enjoy increased leverage without risk of liquidation: 

  • BTC3L/USDT (Bitcoin 3x Daily Long)
  • BTC3S/USDT (Bitcoin 3x Daily Short)
  • ETH3L/USDT (Ether 3x Daily Long)
  • ETH3S/USDT (Ether 3x Daily Short)

Let’s learn a bit more about leveraged tokens, shall we?

What are leveraged tokens?

Leveraged tokens are innovative ERC20 assets that can give you leveraged exposure to cryptocurrency markets, without having to deal with margin trade, liquidation, collateral, funding rates. With these tokens, you have the chance to take advantage of market volatility without having to risk your market margin!

It should be said that leverage tokens can lose significant value in a sideways market, and are not intended for long term holding. Before exposing yourself to any financial risks, make sure you understand the mechanisms of these tokens.

Since leveraged tokens are on a blockchain, they allow similar functionality as other tokens. Meaning that you can buy, store, and transfer them like any other token.

How do leveraged tokens work?

The BTC3L and ETH3L tokens maintain notional exposure to 3x of the daily returns of Bitcoin/Ether and the BTC3S and ETH3S tokens maintain notional exposure to -3x of the daily returns of Bitcoin and Ether. 

For example, for every 1% BTC goes up in a day, BTC3L (Bitcoin 3x Daily Long) goes up 3%; for every 1% BTC goes down, BTC3L goes down 3%. 

The inverse of the BTC3L token is the BTC3S token, which represents a 3x short exposure to the price of Bitcoin and the same for ETH3L and ETH3S which represent the price of Ether. 

As such, if the price of Bitcoin goes down 1%, the BTC3S token goes up 3%, while if Bitcoin goes up 1%, BTC3S goes down 3%.

Why should you use leveraged tokens?

Leveraged tokens are managing risks and margins at the same time. These ERC20 tokens will automatically reinvest profits into Bitcoin or Ether. If your leveraged token position makes money, the tokens will automatically put on 3x leveraged positions with that.

On the other hand, leveraged tokens will automatically reduce risk if they lose money. If you put on a 3x long BTC position and over the course of a month BTC falls 33%, your position when margin will be liquidated and you will have nothing left.

Although, if you buy BTC3L, the leveraged token will automatically sell off some of its BTC as markets go down, avoiding liquidation so that it still has assets left even after a 33% down move.

Leveraged tokens can provide some peace of mind if a trader doesn’t want to worry about liquidation on positions so stay tuned and get ready to trade these tokens fee-free from Thursday, June 25th, 10:00 AM. Learn more about the fee-free trading here.

Q & A

Why BTC3L has different price on Bitcoin.com Exchange and other exchanges?
It means there’s an arbitrage opportunity. You can buy it on the exchange which is cheaper and then sell on the more expensive exchange.

At what time exactly do they reset back to BTC/ETH’s price?
They don’t “reset” they rebalance at 5 PM CET. This means they adjust their exposure to ensure that they always track 3x or -3x of BTC or ETH’s DAILY returns. For example, if BTC goes up 5% then BTC3L will go up 15% on day 1, but then it will need to be rebalanced as the increase in price would mean the token is overexposed to BTC’s movement.

So if BTC is 100 and it becomes 20 over 7 days. Would BTC3S become 500?
No, it gets complicated over multiple days and the tokens should only be held for a maximum of one day. So if BTC is 100 and goes to 50, that’s a 50% decrease so BTC3S should increase by 150%. Since on the backend, the platform uses perpetual swap futures to maintain 3x daily exposure.

What exactly does rebalancing do though?
The rebalancing changes how much the backend is exposed to perpetual swaps. In order to adjust the exposure of each token. Since if BTC3S increases by 150% and there’s no rebalance it would mean that the token would be more than 3x exposed to BTC’s daily returns on day 2. A bit like how with a compounding bank account the interest is applied to a larger amount each day. If there was no rebalancing then the returns of BTC3L would be exposed to the incorrect amount on day 2.

So could I sell my tokens and buy new ones before 5pm CET when it rebalances? Or would the rebalancing still affect it somehow?
A day is defined by 5 pm CET – 5 pm CET the next day. There are trading strategies you could do where you sell at the end of the day (5 PM) and the buy after the rebalance. The best way to do this is probably through Bitcoin.com Exchange or tokens.amun.com

Disclaimers:

  1. This article is not investment advice.
  2. Users of Bitcoin.com Exchange should trade leveraged tokens at their own risk.

Filed Under: Announcements, Bitcoin.com, Exchange, Uncategorized