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Crypto asset trades are emerging one after the other, and leveraged ETFs are becoming the next star product after futures. MEXC, the cryptocurrency exchange with the highest futures trading liquidity on the Internet, again takes the lead in the cryptocurrency market with a leveraged ETF.
Comparing the leveraged ETF depth indicators of trading platforms such as Binance, MEXC, Kucoin, Gate, and Huobi and analyzing their leveraged ETF transactions of the mainstream cryptocurrencies with the highest market caps, it was found that the top three in depth performance The platforms are MEXC. , Binance, and Kucoin. The data shows that in terms of trading depth for BTC 3L, ETH 3L, LTC 3L and EOS 3L, MEXC ranks first in terms of liquidity.
Taking BTC 3L as an example, the 1% depth on MEXC is 14,403,439USDT; 1% depth on Binance, which ranks second, is 87,359.56USDT; And the 1% depth on the third ranked Kucoin is only 48,479.6USDT. At this depth, MEXC has surpassed the totals of Binance and Kucoin, and the gap widens.
Compared to ETH, LTC, EOS and other mainstream cryptocurrencies, it can also be seen that leveraged ETF trading from MEXC has the best liquidity, and the depth of other trading platforms is much less than that of MEXC. Meanwhile, according to CryptoRank data, Binance’s 24-hour leveraged ETF trading volume was USD $23.67 million, accounting for 63.5% of the market; MEXC’s 24-hour leveraged ETF trading volume was $9.25 million USD, with a market share of 24.8%, ranking second.
The leveraged ETF was first launched by MEXC in November 2019. It is a permanent leveraged product that enhances the price movement of a benchmarked asset, with the goal of providing leveraged returns on benchmarked perpetual futures. It can be understood as an exchange-traded fund with leverage multiples.
The trading rules for leveraged ETF products are as simple as those of spot products. It is not necessary to use part of the margin to hold positions such as futures. Plus, it can yield many of the same benefits and returns as futures, so it is favored by some investors with less risk.
Currently, each token on MEXC supports 3x long (3L) and 3x short (3S) leveraged ETF trading, and some mainstream cryptocurrencies also support 2x, 4x or 5x leverage and risk is controlled. For example, when you want to go 3x long for BTC, all you need to do is buy BTC3L/USDT; When you want to go 3x less for BTC, all you need to do is buy BTC3S/USDT; And when you want to clear the position, you only need to sell this position. Leveraged ETFs do not use margin to hold positions and do not have liquidation rules, so there is no need to worry about the risk of liquidation.
Leveraged ETFs have a rebalancing mechanism, and the compound interest effect is obvious. In a constantly rising/falling market, the daily profit will be automatically transferred to the position and reinvested to realize compound interest, and the profit will be higher than margin or futures products of the same multiplier. Currently, MEXC supports leveraged ETF trading for over 300 cryptocurrencies such as BTC, ETH, DOT, ATOM, SHIB, DOGE, AAVE, CRV, etc. It offers the most cryptocurrencies on the internet, giving traders a wide variety of different options. Trend or one-sided market conditions.
About the MEX
MEXC is the world’s leading cryptocurrency trading platform, providing one-stop cryptocurrency trading services for spot, ETF, futures, staking, NFT indices, etc., and serves over 10 million users worldwide. The core team has a solid background in traditional finance, and professional financial product logic and technical security guarantees in the context of cryptocurrency products and services. In October 2021, MEXC Global won the title of “Best Cryptocurrency Exchange in Asia”. Currently, it supports the trading of over 1,500 cryptocurrencies, and is the trading platform with the fastest launch speeds for new projects and the most tradable categories. For more information visit the website and blog and follow MEXC Global and M-Ventures & Labs.
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