The post [The $425 Million Bitcoin Bet – A Free Kraken Webinar w/ Dan Held & Michael Saylor – October 30 @ 14:00 UTC](https://blog.kraken.com/post/6689/the-425-million-bitcoin-bet-a-free-kraken-webinar-w-dan-held-michael-saylor-october-30-1400-utc/) appeared first on [Kraken Blog](https://blog.kraken.com).

https://cdn.cryptohopper.com/images/news/uploads/1603892140-the-425-million-bitcoin-bet-a-free-kraken-webinar-w-dan-held-michael-saylor-october-30-14-00-utc.png

The $425 Million Bitcoin Bet  – A Free Kraken Webinar w/ Dan Held & Michael Saylor – October 30 @ 14:00 UTC

He’s making a BIG bet on Bitcoin.  Square, JP Morgan, Bloomberg – there have been major macro tailwinds for Bitcoin of late, but none quite like MicroStrategy CEO Michael Saylor’s $425 million buy with no intention to sell.  To unpack this news and what it means…

The $425 Million Bitcoin Bet  – A Free Kraken Webinar w/ Dan Held & Michael Saylor – October 30 @ 14:00 UTC - Cryptohopper

Crypto markets remained bearish in June after May’s broad market sell off. All crypto sectors reported negative returns month-over-month; even the best performers posted losses exceeding -18%. Meme and metaverse coins performed only slightly better than ETH (-47%), privacy coins (-43%) and BTC (-40%). Have…

The post  appeared first on [Kraken Blog](https://blog.kraken.com).

https://cdn.cryptohopper.com/images/news/uploads/1657201019-uphill-battle.png

Crypto markets remained bearish in June after May’s broad market sell off. All crypto sectors reported negative returns month-over-month; even the best performers posted losses exceeding -18%. Meme and metaverse coins performed only slightly better than ETH (-47%), privacy coins (-43%) and BTC (-40%). Have…

The post appeared first on Kraken Blog.

Uphill Battle

The main market players continue negative dynamics.

But some projects with moderate capitalization, positive dynamics were shown: Chia ( [XCH](https://hitbtc.com/xch-to-usdt?ref_id=7ad700ccea8366d8)), Stratis ( [STRAT](https://hitbtc.com/strat-to-btc?ref_id=7ad700ccea8366d8)).

**What's new on HitBTC**:

We burned a total of 43,746,182 HIT tokens (about 5.1 million USDT). [Transaction Link](https://etherscan.io/tx/0xb830d55ba5298884e4f12a4e9736987e4571fe7c46d2f5ad45c87db3b9185375)

Added a new asset for [Staking](https://hitbtc.com/staking?ref_id=7ad700ccea8366d8) \-  [USDD](https://hitbtc.com/btc-to-usdd?ref_id=7ad700ccea8366d8) with 19% APY.

**New tokens are here:**

renBTC ( [RENBTC](https://hitbtc.com/renbtc-to-usdt?ref_id=7ad700ccea8366d8)) is an ERC-20 token built on the Ethereum network, pegged to Bitcoin.

MXC ( [MXC](https://hitbtc.com/mxc-to-usdt?ref_id=7ad700ccea8366d8)) is a utility token allowing for the increased frequency of data transactions and idiosyncratic data flows within the AI and blockchain markets.

Privateum ( [PRI](https://hitbtc.com/pri-to-usdt?ref_id=7ad700ccea8366d8)) is backed by the stable coin on a public blockchain to ensure low volatility and the funds back guarantee.

Green Satoshi Token ( [GST](https://hitbtc.com/gst-to-btc?ref_id=7ad700ccea8366d8)) is the game token of [STEPN](https://coinmarketcap.com/currencies/green-metaverse-token/) — a [Web 3.0](https://coinmarketcap.com/alexandria/article/what-is-web-3-0) lifestyle app with in-built fun social elements and gamification design.

Elrond ( [EGLD](https://hitbtc.com/egld-to-btc?ref_id=7ad700ccea8366d8)) is a blockchain protocol that seeks to offer extremely fast transaction speeds by using sharding.

Celsius ( [CEL](https://hitbtc.com/cel-to-btc?ref_id=7ad700ccea8366d8)) is an all-in-one banking and financial services platform for cryptocurrency users.

**Сrypto wallet App**

The HitBTC crypto wallet is a free and simple solution for beginners.

App on [Android](https://play.google.com/store/apps/details?id=com.hitbtc.wallet) and [iOS](https://apps.apple.com/us/app/hitbtc-crypto-wallet/id1580572986).

**Fees and Limits update**

We have recently updated our fees and limits. For the latest updates, please visit the fees and limits section on our website [here.](https://hitbtc.com/fees-and-limits?ref_id=7ad700ccea8366d8)

**HitBTC Mobile App**

Don’t forget that you can trade on our platform from your mobile device. Start today by downloading the HitBTC App on [Android](https://play.google.com/store/apps/details?id=com.hittechsexpertlimited.hitbtc) and [iOS](https://apps.apple.com/gb/app/hitbtc-cryptocurrency-exchange/id1472411000).

https://cdn.cryptohopper.com/images/news/uploads/1657198155-hitbtc-digest-june-2022-news-of-the-crypto-market-and-hitbtc-platform.png

HitBTC Digest June 2022: news of the crypto market and HitBTC platform!

**Cryptocurrency Market:**

BTC’s price on 30th June was $20 033

ETH’s price on 30th June was $1 088

HitBTC Digest June 2022: news of the crypto market and HitBTC platform! - Cryptohopper

This week, we take a brief look at Reserve, a stablecoin protocol that allows users to create stablecoins backed by a basket of tokenized assets. We also look into RPay,  the upcoming token unlock, and its future roadmap.

## **State of the Stablecoin Market**

In recent months, the crypto market has seen great volatility and selling pressure due to global macroeconomic conditions, leading to various stablecoins de-pegging and in the case of Terra USD (UST), even failing completely due to a [death spiral](https://blog.bybit.com/en-US/post/terra-ust-loses-peg-luna-goes-to-zero-community-takes-over--blt27a99811516c51dd/).

![](https://static.cryptohopper.com/images/news/uploads/1657203900-reserve-bringing-stable-currency-to-the-world-1.jpg)

_Source: blockchaincenter.net_

The fall of UST arguably set off a domino of events, from insolvent CeFi lending protocols such as [Celsius](https://www.bloomberg.com/news/articles/2022-06-30/celsius-says-looking-at-transactions-liabilities-restructuring), [BlockFi](https://blockworks.co/ftx-reaches-deal-to-acquire-blockfi-for-up-to-240m/), and [Voyager](https://dailyhodl.com/2022/07/03/crypto-exchange-voyager-halts-trading-deposits-and-withdrawals-citing-debt-failure-from-three-arrows-capital/), to one of the most prominent crypto hedge funds in the world, [Three Arrows Capital](https://www.bloomberg.com/news/articles/2022-07-01/crypto-hedge-fund-three-arrows-files-for-chapter-15-bankruptcy#xj4y7vzkg) (3AC), filing for bankruptcy just days ago, as we saw the overall market cap of stablecoins drop from a high of $188 billion to $154 billion as of the time of writing.

These turn of events have sparked debate on the risks of algorithmic and semi-collateralized stablecoins, and have catalyzed regulatory bodies to accelerate regulation of cryptocurrencies and in particular, stablecoins. Just last week, the Biden administration [met](https://finance.yahoo.com/news/stablecoin-regulation-banks-biden-administration-194925029.html) to discuss stablecoin regulations while the EU [announced](https://www.coindesk.com/policy/2022/06/30/eu-agrees-on-landmark-crypto-authorization-law-mica/) an agreement to regulate stablecoins across all 27 member countries.

The question remains — can stablecoins remain stable and risk-free for investors?

Nevin Freeman, founder of Reserve, concludes that fully and overcollateralized stablecoins are economically sensible, while algorithmic stablecoins are not. To this point, Reserve Protocol is built around the Reserve Token (RSV), and soon the RToken, which is a fully collateralized stablecoin pegged to the U.S. dollar.

## **Reserve**

For the uninitiated, Reserve is a protocol built with the mission of bringing unrestricted access to alternatives to fiat money. By aggregating a basket of tokenized assets, the protocol would be able to create a stable currency without being dependent on centralized currencies or tokens.

Initially releasing its protocol whitepaper in 2018 (now deprecated), the team proceeded in 2020 to launch RSV, a stablecoin backed by ⅓ [USDC](https://learn.bybit.com/altcoins/a-beginners-guide-what-is-usd-coin-and-how-does-it-work/), ⅓ [TUSD](https://learn.bybit.com/stablecoin/trueusd-tusd/), and ⅓ [PAX](https://www.coingecko.com/en/coins/pax-dollar) before beginning to work on the Reserve App (RPay) whilst placing the protocol launch on hold.

### **RPay**

RPay focuses on building real-world utility for RSV by facilitating conversion of local currencies to RSV in order to facilitate transactions between local banking facilities and the cryptocurrency world. RPay is currently in use across five countries, namely, Venezuela, Argentina, Colombia, Panama, and Peru. The team is also taking steps to expand operations to [Mexico](https://twitter.com/reserveprotocol/status/1505143041463574529?s=20&t=idLenLZxgwROcb4oQh-sqw).

![](https://static.cryptohopper.com/images/news/uploads/1657203901-reserve-bringing-stable-currency-to-the-world-2.jpg)

_Source: tradingeconomics_

A common theme among most of the countries where RPay is active is the high rate of inflation, with Venezuela having been experiencing hyperinflation since 2017. RPay helps users to convert their local currency into RSV in order to save, pay for goods and services, and most importantly, to combat inflation.

Rpay has achieved more than [$100M](https://medium.com/reserve-currency/the-handy-one-page-guide-to-reserve-bb076584e22b) in transaction value each month, with 650K users and 25K merchants on its app. However, the goal of Reserve is to eventually launch the Reserve Protocol, which will run as a decentralized protocol under the governance of Reserve Rights (RSR) holders.

### **Reserve Protocol**

Reserve Protocol will allow anyone to create stablecoins (RTokens) backed by baskets of tokenized assets on Ethereum, which will be further insured and collateralized by RSR holders.

![](https://static.cryptohopper.com/images/news/uploads/1657203901-reserve-bringing-stable-currency-to-the-world-3.jpg)

_Source: Reserve_

RSR holders are incentivized to insure RTokens by staking RSR, earning a share of revenue from transaction fees, or yield from lending collateral tokens, essentially making RSR a fail-safe should the underlying assets fail.

Incentivization increases or decreases depending on how much an RToken is insured, as shown in the illustration above.

Reserve intends to release two different RTokens upon launch of the new protocol:

1. **Pure USD Stablecoin:** This stablecoin will be backed by USD stablecoins, much like RSV, and will be governed by the core-team via timelock and multisig.
2. **Yield-Bearing USD Stablecoin:** this stablecoin will be backed by yield-bearing stablecoins such as cUSDC, aUSDC, cDAI, aDAI, etc, and will be governed by RSR stakers whereby 1 RSR is equal to 1 vote.

## **Tokenomics, July 2022 Unlocking**

![](https://static.cryptohopper.com/images/news/uploads/1657203901-reserve-bringing-stable-currency-to-the-world-4.jpg)

Reserve Rights (RSR) is the governance token of Reserve, and has a fixed supply of 100 billion tokens, with a circulating supply of around 18.6 billion tokens (18.6%). Of the remainder, 49.4% is allocated to the “Slow Wallet”, which is a locked wallet controlled by the team used to fund adoption initiatives.

This wallet is restricted by a 4-week delay after each withdrawal, during which RSR holders are able to sell their RSR tokens in the event they do not agree with the purpose of the team’s withdrawal from the “Slow Wallet”.

The remaining allocation of Investors/Partners (15.3%) and Team and Advisors (16.6%) are progressively unlocked via one of two options as discussed below.

![](https://static.cryptohopper.com/images/news/uploads/1657203901-reserve-bringing-stable-currency-to-the-world-5.jpg)

_Source: Reserve_

**Option 1**

- Tokens begin “unlocking” linearly from January 2022 for 6 months.

- “Unlocked” tokens are held in Reserve’s custody.

- RSR holders may only sell upon request. Sale is done via OTC.

- OTC desk sells on exchanges up to 3% of real daily trading volume.

- After six months (end of July 2022), holders receive the full amount of unlocked tokens that were not sold.

- Under the contract, should there be significant selling volume via OTC by the end of July 2022, time in custody can be extended indefinitely until the selling demand is little to none.


**Option 2**

- 10% of locked tokens are unlocked upon mainnet launch.

- Remaining 90% to be vested linearly over a period of six months.


![](https://static.cryptohopper.com/images/news/uploads/1657203902-reserve-bringing-stable-currency-to-the-world-6.jpg)

_Source: Reserve_

Since Option 2 (the original unlocking schedule) would cause the current circulating supply inflate by around 2.7 times over a period of six months after the launch of the mainnet, Option 1 was proposed by the team in order to facilitate a controlled emission of tokens, which reduces sell pressure and negative impact on token price.

As seen from the table above, an overwhelming majority of RSR holders chose Option 1 as their preferred unlocking mechanism (RSR holders are bound by contract).

This shows that both the Reserve team and RSR token holders are aligned in terms of their long-term vision for the project as they attempt to mitigate the large unlock. However, with around 32% of the total supply set to be unlocked at the end July 2022, this still represents a significant unlock.

## **Reserve Team**

The [Reserve team](https://reserve.org/about/ourteam/) is composed of around 200 team members, organized into various working groups, 95% of which are working under the RPay “Tribe”, while the RToken “Tribe” consists of 10 people. Unlike other DeFi protocols which typically function as decentralized organizations without needing extensive customer support (CS), the bulk of the RPay team are in the CS department, indicating a large focus on bringing their app to consumers.

![](https://static.cryptohopper.com/images/news/uploads/1657203902-reserve-bringing-stable-currency-to-the-world-7.jpg)

_Source: Statista_

Regardless, the large number of employees for such a small outfit does raise questions of the sustainability of Reserve. According to a study by Casaleggio Associati (via Statista), the average market value per employee (MVPE) in the financial services industry in the S&P500 is $1.8 million.

At a current market cap of $127 million, this puts the MVPE of Reserve at $0.635 million, well below the average for the financial services industry. Furthermore, Nevin Freeman, co-founder of Reserve, recently [tweeted](https://twitter.com/nnevvinn/status/1536436553001472000), “We have a long cash runway, so everything normal (sic) with recruiting, no downsizing.”.

This indicates the team’s confidence in its runway to sustain them, independent of any protocol revenue that’s brought in.

## **Future Plans**

## ![](https://static.cryptohopper.com/images/news/uploads/1657203902-reserve-bringing-stable-currency-to-the-world-8.jpg)

_Source: Reserve_

Reserve Protocol’s mainnet launch is imminent, however with no particular date set in stone yet. According to their mainnet [dashboard](https://docs.google.com/spreadsheets/u/1/d/e/2PACX-1vRWHADzA4rXVEk-vSXUxiwbuxrdk4_0WERVhifJmfKb71kftD1YjXjR2wONaRSL6Wd3qebF7pBftjQt/pubhtml?gid=1762620174&single=true), progress is sitting at 92% at time of writing.

A long-term [goal](https://reserve.org/en/protocol/our_long_term_goal/#our-long-term-goal_1) of Reserve is to eventually have RTokens decouple from the USD peg. This is to ensure that RTokens remain stable, and not be tied to the risks of the dollar. This goal can only be possible with tokenization of various financial assets such as equities, commodities, and derivatives. Due to the nascent state of crypto, this process will take time.

## **Final Thoughts**

![](https://static.cryptohopper.com/images/news/uploads/1657203903-reserve-bringing-stable-currency-to-the-world-9.jpg)

At time of writing, the RSR is trading at $0.007, which is about -94% down from its all time highs. This values the project at a market capitalization of $127 million and an FDV of $689 million.

As discussed above, investors should note that under Option 1 of the unlock schedule, the circulating supply of RSR stands to triple should the team allow the unlock to go ahead due to low selling demand via their appointed OTC desk.

Despite rising inflation and poor global macroeconomic conditions, Reserve seems to be well-positioned to provide a solution to highly inflationary and even hyperinflationary economies. This is further reinforced by their confidence in their robust runway. The launch of RSV and RPay in five Latin American countries can also be seen as a successful testing ground of sorts ahead of the Protocol’s mainnet launch.

We are excited to see RTokens launch and expand to more countries and look forward to following the developments of Reserve.

_Disclosure: Members of Bybit may be invested in some or all of the tokens and projects mentioned within the following article. This statement discloses any conflict of interest and is not a recommendation to purchase any token or participate in any of the mentioned ecosystems. This content is purely for educational purposes only, and should not in any way be construed as investment advice. Please exercise caution and practice your own due diligence if you are planning to partake in any of these projects in any way. The views expressed in this article are that of the author(s) and do not represent the views of Bybit._

https://cdn.cryptohopper.com/images/news/uploads/1657203900-reserve-bringing-stable-currency-to-the-world.jpg

Reserve: Bringing Stable Currency to the World

**At a Glance**

- In this series, we take a look at the latest news, developments and innovations within the ever-changing decentralized finance (DeFi) space. We will dive deep into the nitty gritty details to better understand how protocols within the DeFi space work, the problems plaguing the ecosystem, as well as how builders intend to overcome them.

Reserve: Bringing Stable Currency to the World - Cryptohopper

That's right, all you have to do is register for a Bybit account and kick-start your Derivatives Trading.

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**_\*Terms and Conditions:_**

1. _This event is only valid for new users who registered for a Bybit account via promotional links._
2. _The Options trading fee discount is valid for 30 days from the date of sign up._
3. _The total discount will be calculated at the end of the 30 days and will be airdropped as a refund to traders' wallets._
4. _Each Bybit trader can only participate in one Options event within the same time frame. Traders are not allowed to participate in more than two (2) campaigns at the same time._
5. _Participants who engaged in fraudulent activities will be disqualified from this event._
6. _The rewards will be credited to the qualified Bybit accounts within one (1) month after the campaign ends._
7. _All participating users must abide by the Bybit Terms of Service._
8. _Bybit reserves the right to disqualify any participants who engage in dishonest or abusive activities during the event, including bulk-account registrations to farm additional bonuses and any other activities in connection with unlawful, fraudulent or harmful purposes._
9. _Bybit reserves the right of final interpretation of this event. If you have any questions, please contact customer service._

https://cdn.cryptohopper.com/images/news/uploads/1657203903-get-ready-for-bybit-s-derivatives-dash.png

On your marks, get set, go!

Exclusively for new traders — enjoy 15% off Options trading fees for a whopping 30 days\*!

Get Ready for Bybit's Derivatives Dash

1) [Download Trust Wallet here](https://share.trustwallet.com/H6U8pDHOMab). If you already have Trust Wallet, make sure your app is up to date.

2) Complete [basic setup of a multi-coin wallet](https://community.trustwallet.com/t/how-to-create-a-multi-coin-wallet/41). Remember to save your backup phrases.

3) Go to your Smart Chain wallet and press receive to find your address.

4) Deposit BEP20 assets to your wallet. The easiest way to do this is with Binance. Choose an asset on Binance that supports BEP20 withdrawals and withdraw to your Trust Wallet Binance Smart Chain address. Keep in mind that BNB is required to make any transactions on Binance Smart Chain.

![](https://static.cryptohopper.com/images/news/uploads/1604064223-how-to-set-up-and-use-trust-wallet-for-binance-smart-chain-1.png)

5) That’s it! You’re ready to start using Binance Smart Chain.

6) Once you’ve received a BEP20 token, to view your transaction ID you can click on the transaction, press the share button in the top right and then copy the transaction ID.

![](https://static.cryptohopper.com/images/news/uploads/1604064225-how-to-set-up-and-use-trust-wallet-for-binance-smart-chain-2.png)

Using Binance Smart Chain Dapps

7) For this part, iOS users will need the Dapp browser, which [you can get by following this guide](https://community.trustwallet.com/t/how-to-use-the-dapp-browser-on-ios/69390?ref=JLI1VBLA&utm_source=TrustTwitter&utm_medium=TrustSocial&utm_campaign=TrustSocial). Android users have the Dapp browser by default.

8) Once you’ve topped up your wallet, open the Dapp browser by pressing on the four squares at the bottom of the app.

9) Navigate to a Binance Smart Chain Dapp like PancakeSwap or BurgerSwap.

![](https://static.cryptohopper.com/images/news/uploads/1604064226-how-to-set-up-and-use-trust-wallet-for-binance-smart-chain-3.png)

10) Use the Dapp and have fun!

Here are some more detailed guides on how to interact with Binance Smart Chain Dapps with Trust Wallet:

- [How to send and receive BNB on Smart Chain with Trust Wallet](https://community.trustwallet.com/t/how-to-send-and-receive-bnb-on-smart-chain/67430)

- [How to Earn, Farm and Stake CAKE on PancakeSwap with Trust Wallet](https://community.trustwallet.com/t/how-to-earn-farm-and-stake-cake-on-pancakeswap-with-trust-wallet/70964)

- [Swapping BEP2 to BEP20](https://community.trustwallet.com/t/how-to-swap-twt-bep2-to-twt-bep20/72718)

https://cdn.cryptohopper.com/images/news/uploads/1604064223-how-to-set-up-and-use-trust-wallet-for-binance-smart-chain.png

How to Set Up and Use Trust Wallet for Binance Smart Chain

Here’s how you can get set up on Trust Wallet and start using Binance Smart Chain in just a couple of minutes.

How to Set Up and Use Trust Wallet for Binance Smart Chain - Cryptohopper

Leveraged Tokens (LT) simply eliminate the trade-off and allow users to gain leveraged exposure without worrying about liquidation risk and the nitty-gritty of managing a leveraged position.

While LTs have gained popularity due to this innovative feature, they have been controversial and have caused confusion among users. Historically, LTs have a poor track record of generating long-term returns when compared to traditional margin-leveraged products.

Despite its flaws, LTs continues to attract great demand from users worldwide. As such, Binance has worked towards addressing the crucial problems with existing leveraged tokens and launched the Binance Leveraged Tokens (BLVT).

What are Binance Leveraged Tokens?

Binance Leverage Tokens (BLVTs) are designed to address the issues users faced when trading with traditional Leveraged Tokens. Unlike conventional LTs, BLVTs do not maintain ‘constant’ leverage. Instead, BLVTs maintain a variable target leverage range between 1.5x and 3x.

It is tradable in the Binance Spot Advanced trading interface and tracks the BTC perpetual contracts on Binance Futures. Currently, BLVTs are offered in two types: BTCUP and BTCDOWN.

- BTCUP allows you to generate leveraged gains between 1.5 to 3x when Bitcoin goes up.

- On the other hand, BTCDOWN allows you to generate leveraged gains when Bitcoin goes down.


A BLVT tracks the change in the notional value of the perpetual contract positions and changes in leverage.

Why Trade BLVTs Over LTs?

There are several advantages of BLVTs over traditional LTs, they are Variable leverage, Rebalancing, Liquidity, and Fees.

1\. Variable vs Fixed Leverage

Currently, the most popular LT product promises a constant 3x leverage, which means users can potentially gain triple the returns of its underlying asset. For instance, if BTC appreciates by 5%, the LT should generate a 15% return to users.

Let’s take an example to understand how constant leverage in a Leveraged Token works:

1. Assume both the underlying asset and a 3x LT starts at an equal value of $100 each.

2. On Day 1, the underlying asset goes up by 5%, therefore, the 3x LT goes up by 15%

3. On Day 2, the underlying asset goes down by 5%. Likewise, the LT goes down by 15%.


The resulting P&L of both assets at T+2 will be as follows:

![](https://static.cryptohopper.com/images/news/uploads/1597747603-your-essential-guide-to-binance-leveraged-tokens-1.png)

As you can see, the price of the underlying is almost unchanged, while the 3x LT lost more than 2% from its initial value. The situation shown here is known as volatility drag. Volatility drag is the long-term, detrimental impact that volatility has on the investment. The greater the volatility and the longer the time horizon, the more detrimental the impact of volatility drag tends to be.

Most Leveraged Token users are not aware of the hidden dangers of LTs. In particular, users are not aware of how the ‘constant’ leverage of an LT impacts long-term returns, especially in markets where prices are consolidated for an extended period.

Let’s assume that the earlier example plays out over an extended period (365 trading days), where prices of the underlying remain flat and volatile in the range of +5%/-5%. Let’s take a look at the impact on the value of both securities.

![](https://static.cryptohopper.com/images/news/uploads/1597747604-your-essential-guide-to-binance-leveraged-tokens-2.png)

This example illustrates how volatility drag could impact total returns in a side-ways market. This is devastating to users that bought and held the 3x LT, thinking that it is a perfect reflection of the underlying asset.

To address this issue, BLVTs are designed to reduce the impact of volatility drag by maintaining a variable target leverage, from 1.5x to 3x. BLVTs are less impacted in side-ways markets and tend to perform better with market momentum as prices move in one direction.

2\. Rebalancing

LTs increase or decrease their exposure in the underlying asset to achieve the target leverage for the day. As the price of its underlying asset goes up, it will take on more positions. Likewise, if prices go down, it will reduce positions. This is also known as rebalancing. Traditional LTs need to be rebalanced every day to consistently maintain its objective.

For instance, assume that a 3x LT has an initial Net Asset Value (NAV) of $100 million. In line with its mandate, the LT maintains a total exposure of $300 million in the underlying asset.

![](https://static.cryptohopper.com/images/news/uploads/1597747605-your-essential-guide-to-binance-leveraged-tokens-3.png)

Now, let’s imagine that the underlying asset delivers a 5% return. Here we explain how LTs conduct daily rebalancing:

- As prices increased by 5%, the value of its exposure increased by $15 million to $315 million. As a result, the LT will gain $15 million and its NAV increased to $115 million.

- Since the total exposure is now $315 million and its NAV is $115 million, the LT is no longer at 3x leverage and we can say that the total exposure and NAV are unbalanced to one another.

- At the end of the day, the LT must rebalance by purchasing an additional $30 million worth of exposure, increasing the total exposure to $345 million, or 3x of NAV.


Likewise, as the price of the underlying asset goes down, the LT will decrease its exposure in the underlying and rebalance to maintain its constant 3x leverage.

Essentially, if users hold the position longer than a day, their exposure levels could rise or fall dramatically affecting their original investment.

Traditional LTs are programmed to rebalance at preconfigured times (daily). By being entirely predictable in rebalance, LTs are susceptible to front-running. High-frequency traders and arbitrageurs can predict the incoming trades, and profit by nibbling at the edges.

In contrast, BLVTs are not forced to rebalance unless losses are extreme. In fact, BLVTs will only rebalance the positions as needed to maximize profitability on upswings, and minimize losses to avoid liquidation. This means that ‘normal’ fluctuations in the market will not cause rebalances, and the token value will maintain its correlation with the value of its underlying asset.

3\. Market Liquidity

Binance will be the sole-liquidity provider and issuer of BLVTs, which means users will be able to buy tokens at a fair price, and if the supply of tokens runs out, Binance will inject capital, create more tokens, and sell them on the open market. This ensures that users can transact their tokens efficiently and get their orders filled at an acceptable price.

Additionally, Binance guarantees that BLVTs will be always available for sale or purchase within 10% of the NAV. There will be no 'price gouging' or any kind - no BLVTs will be available for sale on the Binance marketplace outside of these strict price limits.

4\. Transaction and Related Fees

Binance Leveraged Tokens offer lower fees as compared to other existing leveraged tokens. BLVTs charge a low daily management fee of 0.01%, with an annualized rate of only 3.5%, whereas the daily management fee of other existing tokens is as high as 0.03%.

Users of BLVTs may choose to exit their positions by selling the token into the Spot market or redeem them at the market value of its NAV. For which, trading or redemption fees will be charged to the user. Users may redeem tokens at any time, although this will generally be more expensive than selling them on the Spot market, and is not recommended during normal trading times.

There are three types of fees related to BLVTs: Trading fees, Redemption fees, and Daily management fees.

Fees

Description

Trading Fees

Trading fees are charged when buying or selling tokens in the spot market, and the fee schedule is identical to spot trading.

Redemption Fees

Redemption fees are charged when users choose to redeem tokens, which is currently set at 0.1% each redemption.

Management Fees

A daily management fee of 0.01% or so depending on the token will be charged and reflected directly in the NAV.

Additionally, users must note that the underlying leveraged positions of BLVTs carry a funding fee. These fees are paid (or paid to) the underlying fund based on the funding rate and reflected directly in the net asset value. Binance takes no fees for funding rate transfers; these are directly between traders.

In Summary

The innovations of BLVTs are designed to tackle the controversial issues of traditional Leveraged Tokens, thus, protecting users from NAV erosion caused by constant rebalancing.

In general, Leveraged tokens are not the substitute for holding assets in the spot market, and that applies to BLVT as well. However, if users predict market moves correctly, they will generally make money by trading BLVTs. It offers many viable alternatives for amplifying gains, putting less trading capital at risk, and even profiting with strong market momentum.

https://cdn.cryptohopper.com/images/news/uploads/1597311607-your-essential-guide-to-binance-leveraged-tokens.png

Your Essential Guide To Binance Leveraged Tokens

Binance has worked towards addressing the crucial problems with existing leveraged tokens and launched the Binance Leveraged Tokens (BLVT).

Your Essential Guide To Binance Leveraged Tokens - Cryptohopper

While we at Binance advocate for everyone to buy crypto, we understand that you sometimes need to sell crypto because you might need cash. And as the world’s largest crypto exchange, trusted by millions of users, we offer you some of the best methods for selling Bitcoin at the rate that’s most favorable to you. Besides, our 24/7 [Customer Support team](https://www.binance.com/en/support-center?ref=P6CD65KX) is always ready to help you if there are problems with your transaction.

But First: Explore Other Non-Selling Alternatives.

With crypto becoming more prominent day by day, there are a lot of ways for you to pay for your transactions using the crypto you have. Ask yourself the following questions:

“Will I sell Bitcoin into cash to protect myself from the price fluctuations?”

If yes, then don’t sell immediately. Explore converting your crypto into [stablecoins such as BUSD](https://www.binance.com/en/blog/421499824684900886/?ref=P6CD65KX). Using stablecoins protects your cryptos' fiat valuation without needing to cash out and incurring fees in the process.

“Is there a way for me to pay for my transactions using crypto?”

If yes, then we suggest opting for those methods. Most of the time, opting for crypto payments can end up costing you less than going through the hassle of converting crypto into fiat.

One great way to use crypto to pay for your expenses is the [Binance Card](https://www.binance.com/en/cards?ref=P6CD65KX), which allows you to use the crypto on your Binance account to pay for your bills anywhere in the world. The card is now available in many countries in Europe, with more areas to follow soon. Get one now, and you may not need to cash out for long.

Now, if after those questions, you still need to convert crypto into your local currency, then we’re here to help you regardless.

[Sell Bitcoin into Cash on Binance’s Buy and Sell Crypto Page](https://www.binance.com/en/buy-sell-crypto?type=SELL&amount&ref=41606034?utm_source=blog&utm_medium=copy&utm_term=cta-blog&utm_content=fiat&utm_campaign=en-sell-crypto)

For a streamlined manner of selling Bitcoin and turning that into cash, the Binance Cash Gateway offers a simplified and secure way for you to directly convert BTC into USD, EUR, and other currencies you may need at the moment.

[![](https://static.cryptohopper.com/images/news/uploads/1612796024-how-to-sell-your-bitcoin-into-cash-on-binance-2021-update-1.png)](https://www.binance.com/en/buy-sell-crypto?type=SELL&amount&ref=41606034?utm_source=blog&utm_medium=copy&utm_term=cta-blog&utm_content=fiat&utm_campaign=en-sell-crypto)

[Convert Bitcoin into Cash with P2P Trading](https://p2p.binance.com/?ref=VJ9G6UC4?utm_source=blog&utm_medium=copy&utm_term=cta-blog&utm_content=p2p&utm_campaign=en-register)

Sell Bitcoin directly to other Binance users to exchange them for your local fiat currency. Browse a [variety of Bitcoin listings](https://c2c.binance.com/en/trade/buy/BTC) to shop for the best offers on Bitcoin from other users. To place an order, you must first place your Bitcoin (or other cryptocurrencies) into the P2P wallet portion of your account.

Trade Your Bitcoin for Fiat and Withdraw Them From Your Account

Over the past few months, we’ve launched support for the storage of fiat currencies like Euro (EUR), Brazilian reais (BRL), Australian dollar (AUD), British pound (GBP), and the Turkish lira (TRY) on your Binance account. If you need to sell your Bitcoin into any of the following supported fiat currencies, all you need to do is to sell Bitcoin in the corresponding trading pair, then withdraw the fiat currency you earned from that transaction.

[Use the Convert and OTC Portal to Sell Bitcoin](https://otc.binance.com/en?utm_source=blog&utm_medium=copy&utm_term=cta-blog&utm_content=otc&utm_campaign=en-otc)

The newly launched Convert and OTC Portal allows you to convert the BTC you have on your account into select fiat currencies that the portal supports. While this platform is available for large-scale transactions, you can get access to friendlier rates for your deal than what’s on the open market through this platform.

Use Our Fiat-to-Crypto Partners to Sell Bitcoin into Cash

Depending on where you are in the world, Binance can offer you many options on where to sell Bitcoin into cash

### [Binance.US](https://www.binance.us/?ref=35014894) \- Convert Bitcoin into US dollars (USD)

### [Binance.SG](https://www.binance.sg/)\- Convert Bitcoin into Singapore dollars (SGD)

### [Binance.IN](https://www.binance.com/en-IN?ref=P6CD65KX) \- Convert Bitcoin to Indian Rupees (INR)

[Binance.BR](https://www.binance.com/pt-BR?ref=P6CD65KX) - Convert Bitcoin to Brazilian Real (BRL)

Note: Each of these platforms has its own registration processes.

[![](https://static.cryptohopper.com/images/news/uploads/1612796025-how-to-sell-your-bitcoin-into-cash-on-binance-2021-update-2.png)](https://www.binance.com/en/download?utm_source=blog&utm_medium=copy&utm_term=cta-blog&utm_content=app&utm_campaign=en-binance-app)

https://cdn.cryptohopper.com/images/news/uploads/1612796022-how-to-sell-your-bitcoin-into-cash-on-binance-2021-update.png

How to Sell Your Bitcoin Into Cash on Binance (2021 Update)

Following our guide on how to buy Bitcoin, we now provide you with various available options on how to convert BTC into fiat currency on Binance and our partner platforms. (This blog has been updated as of February 2021.)

How to Sell Your Bitcoin Into Cash on Binance (2021 Update) - Cryptohopper

Grid trading is when orders are placed above and below a set price, creating a grid of orders at incrementally increasing and decreasing prices. In this way, it constructs a trading grid. For example, a trader could place buy-orders at every $1,000 below the market price of Bitcoin while also placing sell-orders at every $1,000 above Bitcoin’s market price. This takes advantage of ranging conditions.

Grid trading performs the best in volatile and sideways markets when prices fluctuate in a given range. This technique attempts to make profits on small price changes. The more grids you include, the greater the frequency of trades will be. However, it comes with an expense as the profit you make from each order is lower.

Thus, it is a tradeoff between making small profits from many trades, versus a strategy with lower frequency but generates a bigger profit per order.

Let’s examine how it works.

Suppose you expect Bitcoin to hover in a price range between $50,000 to $60,000 in the next 24-hours. In this case, you could set up a grid trading system to trade within this predicted range.

On the grid trading panel, you could set parameters of the strategy, including:

- The upper and lower boundaries of the price range,

- The number of orders to be placed within the configured price range,

- The width between each buy- and sell-limit order.


![](https://static.cryptohopper.com/images/news/uploads/1615541741-what-is-grid-trading-a-crypto-futures-guide-1.png)

In this scenario, as the price of Bitcoin falls towards $55,000, the grid trading bot will accumulate buy positions on the way down at a lower price than the market. As prices recover, the bot will sell on the way up at a higher price than the market. This strategy essentially attempts to profit from price reversions.

[![](https://static.cryptohopper.com/images/news/uploads/1615541742-what-is-grid-trading-a-crypto-futures-guide-2.png)](https://accounts.binance.com/en/register?ref=&source=futures&return_to=aHR0cHM6Ly93d3cuYmluYW5jZS5jb20vZW4vZnV0dXJlcw%3D%3D&utm_source=internal&utm_medium=blog&utm_campaign=grid_trading_post)

Set-up Your First Grid Trading Strategy

The grid trading bot systematically executes buy- and sell-limit orders based on the user’s parameters. Here’s how you can set-up your first grid trading bot.

First, launch your grid trading panel by clicking on the Grid Trading tab located on the top right-hand corner of the Binance Futures trading interface.

![](https://static.cryptohopper.com/images/news/uploads/1615541742-what-is-grid-trading-a-crypto-futures-guide-3.png)

The first parameter that you must select is the contract on which the trading bot will be deployed. In this example, we will be using BTCUSDT perpetual contract.

![](https://static.cryptohopper.com/images/news/uploads/1615541743-what-is-grid-trading-a-crypto-futures-guide-4.png)

Next, determine the type of margin for the grid trading position: Isolated or Cross margin modes. In an isolated margin mode, the margin is independent in each trading pair. Meanwhile, the margin is shared between all trading pairs in the futures account for cross margin mode.

After that, select your desired leverage amount. Leverage magnifies both gains and losses. With leverage, you can magnify relatively small price movements to potentially create profits that justify your time and effort. But do bear in mind that leverage is a double-edged sword, and you must use it prudently.

![](https://static.cryptohopper.com/images/news/uploads/1615541744-what-is-grid-trading-a-crypto-futures-guide-5.png)

The lower and upper price boundaries are the two most essential inputs you must determine before launching the grid trading bot. This determines the range within which your limit orders will be placed. The lowest boundary will be your last buy-limit order, while the highest boundary line will be your last sell-limit order.

Next, you choose from two predefined modes: The arithmetic mode constructs each grid with an equal price difference, while the geometric mode constructs each grid with an equal price ratio difference. Remember to set the number of grids; this will determine the number of orders populated within your pre-determined grid range.

![](https://static.cryptohopper.com/images/news/uploads/1615541745-what-is-grid-trading-a-crypto-futures-guide-6.png)

Lastly, assign the initial margin of the position. The system will calculate your Initial Margin value based on the number of grids, leverage, and the strategy’s price range.

Note that the denser the grid, the greater the corresponding initial margin.

Please ensure that your available balance and maintenance margin is higher than the initial margin to avoid liquidation. And finally, click Create to place the grid order.

[![](https://static.cryptohopper.com/images/news/uploads/1615541746-what-is-grid-trading-a-crypto-futures-guide-7.png)](https://accounts.binance.com/en/register?ref=&source=futures&return_to=aHR0cHM6Ly93d3cuYmluYW5jZS5jb20vZW4vZnV0dXJlcw%3D%3D&utm_source=internal&utm_medium=blog&utm_campaign=grid_trading_post)

Advanced Features

The grid trading bot also comes with enhanced functions that enable you to better manage your positions and risk. One of which is the trigger price. The Trigger price is a predetermined price level at which the grid trading bot will be activated. This allows you to dictate when the system will be active when market conditions meet your criteria.

When a grid trade is triggered, the system divides the asset price range into several grid levels according to your parameters and sets pending orders for each price level. When the asset’s price falls, a buy order is executed, and a sell-order is placed immediately at a high price. When an asset’s price rises, a buy-order is placed directly at a lower price as soon as a sell order is executed. This strategy sets you up to buy low and sell high and allows you to make profits in volatile market conditions.

Additionally, you can set a stop-loss for your grid positions. Once the asset’s price crosses below or above the stop loss range, your entire grid position will be closed. This feature protects your position from incurring outsized losses when the market behaves unfavorably.

To monitor trading activity, click the Active Grid Tab to find grid trading details.

Lastly, click Terminate to end the grid trading system.

Benefits of Grid Trading

The main advantage of grid trading is that it allows you to trade cryptocurrencies systematically without forecasting the market direction. In ranging markets, grid trading tends to be more effective, but the question is, will it be applicable when prices are trending?

Even in trending markets, volatility continues to exist, especially in short timeframes where prices fluctuate rapidly due to a surge in trading activity. Grid trading benefits from small price changes and allows you to capitalize on increased market volatility. It is also convenient as it eliminates the need to place orders and monitor real-time market movements manually.

When grid trading, you are essentially a liquidity provider to the exchange. By placing multiple buy- and sell-limit orders across the order-book, you are increasing market liquidity; this is favorable to a cryptocurrency exchange.

As a liquidity provider, you will pay “maker” fees, which is usually cheaper than “taker” fees. Therefore, it lowers your overall transaction costs.

Grid trading always sets you up to buy at prices lower than the market or sell at prices higher than the market. Thus, when markets suffer from large price swings (5% up, then 10% down, etc.), grid trading enables you to take advantage of these spikes by providing liquidity with a grid trading bot to transform them into a tidy profit.

Grid Trading Tips

Determining a reasonable price range is the key to ensure your strategy’s profitability. This means that you need to be extremely selective on market conditions suitable for your strategy to avoid being on the wrong side of a trending market.

Importantly, you must ensure that proper risk management measures are in place. Therefore, you must determine a suitable leverage ratio and set appropriate take-profit and stop-loss orders to avoid losses caused by market fluctuations. For example, if a sell order is placed, a stop loss should be above the top of the price range, and if a buy order is placed, a stop loss should be below the bottom of the range.

![](https://static.cryptohopper.com/images/news/uploads/1615541747-what-is-grid-trading-a-crypto-futures-guide-8.png)

Lastly, ensure that your grid trading parameters are compatible with the prevailing market conditions. Especially in range-bound markets, limits orders placed out of range are unlikely to get filled and, as such, causing missed opportunity. The grid trading parameters can be adjusted in real-time according to the prevailing market conditions.

Grid trading is ideal for novices who want to trade in a systematic approach. Don’t miss the opportunity to capitalize on market volatility. Grid trading is available on USDT-margined futures. Explore it today!

[![](https://static.cryptohopper.com/images/news/uploads/1615541748-what-is-grid-trading-a-crypto-futures-guide-9.jpg)](https://accounts.binance.com/en/register?ref=&source=futures&return_to=aHR0cHM6Ly93d3cuYmluYW5jZS5jb20vZW4vZnV0dXJlcw%3D%3D&utm_source=internal&utm_medium=blog&utm_campaign=grid_trading_post)

https://cdn.cryptohopper.com/images/news/uploads/1615541739-what-is-grid-trading-a-crypto-futures-guide.png

What is Grid Trading? (A Crypto-Futures Guide)

Grid trading is a robot that automates the buying and selling of futures contracts.

The $425 Million Bitcoin Bet – A Free Kraken Webinar w/ Dan Held & Michael Saylor – October 30 @ 14:00 UTC

Automate
your
trading!

How to Set Up and Use Trust Wallet for Binance Smart Chain

Your Essential Guide To Binance Leveraged Tokens

How to Sell Your Bitcoin Into Cash on Binance (2021 Update)

What is Grid Trading? (A Crypto-Futures Guide)

Start trading with Cryptohopper for free!

Free to use - no credit card required

The $425 Million Bitcoin Bet – A Free Kraken Webinar w/ Dan Held & Michael Saylor – October 30 @ 14:00 UTC

Automateyourtrading!

How to Set Up and Use Trust Wallet for Binance Smart Chain

Your Essential Guide To Binance Leveraged Tokens

How to Sell Your Bitcoin Into Cash on Binance (2021 Update)

What is Grid Trading? (A Crypto-Futures Guide)

Start trading with Cryptohopper for free!

Free to use - no credit card required

Automate
your
trading!