Solv Protocol serves as an on-chain Bitcoin reserve, offering BTC holders the opportunity to earn yield on their assets through SolvBTC and more.

 currently boasts a market capitalization of $1.96 trillion, solidifying its position as the world’s most valuable cryptocurrency. Yet, much of this BTC remains idle in investors' wallets, held for long-term gains. But what if there were a way to generate yield while 

ing Bitcoin? Enter Solv Protocol — a platform designed to maximize Bitcoin's utility by enabling users to earn staking and 

 (DeFi) yields on their BTC holdings. Let's dive in!

 serves as an on-chain Bitcoin reserve, offering BTC holders the opportunity to earn yield on their assets through 

 (WBTC) for SolvBTC, which can then be utilized in 

 (LSTs) across multiple chains. By integrating with BTC liquidity solutions, Solv Protocol bridges the gap between Bitcoin and DeFi. The platform currently boasts $2.7 billion in 

 (TVL), with nearly 26,000 BTC staked and over 590,000 users.

 is Solv's universal Bitcoin reserve token. Designed to unlock the full potential of over $1 trillion in BTC assets, SolvBTC ensures price stability with a direct 1:1 peg with Bitcoin. 

Users can mint the SolvBTC token by depositing either native Bitcoin or WBTC. Doing so provides them with an asset they can utilize to earn additional yield on their Bitcoin holdings via 

Through Solv DeFi vaults, you can utilize your Bitcoin in DeFi applications to generate yield and 

. Solv Protocol has integrated DeFi protocols from across 12 blockchains, enabling users to execute SolvBTC strategies ranging from lending and liquidity provision to staking and restaking.

SolvBTC LSTs establish the standard for all liquid staking tokens within Solv’s ecosystem. By staking SolvBTC in the form of an LST, you can earn staking rewards on your assets while maintaining liquidity. Since there’s no need to lock up your Bitcoin, you can generate additional yield on SolvBTC LSTs by depositing them to DeFi protocols. These liquid staking tokens can be unstaked at any time to access SolvBTC deposits and cash out staking rewards, and can be transferred seamlessly across multiple blockchains. Examples of SolvBTC LSTs include SolvBTC.BBN, SolvBTC.CORE, SolvBTC.ENA and SolvBTC.JUP.

How Does Solv's Staking Abstraction Layer (SAL) Work?

SAL is the core infrastructure underpinning Solv's ecosystem. As a unified interface for Bitcoin holders, it abstracts BTC staking's complexities across several blockchains. SAL provides users with a range of multichain yield-generating strategies, which they can execute while holding SolvBTC (a liquid representation of their BTC holdings). SAL integrates with different DeFi platforms and ecosystems, simplifying the process for holders who wish to diversify their yield strategies while keeping exposure to Bitcoin.

How Solv Protocol Enables Users to Earn Yield on Their Bitcoin Holdings

Solv enables users to participate in DeFi by providing a seamless entry point into staking for Bitcoin holders. This is in great contrast with BTC residing on the Bitcoin mainnet, which lacks native yield-generation properties. As mentioned above, with Solv Protocol users can swap their BTC for SolvBTC to earn staking rewards via SolvBTC LSTs and generate yield via DeFi protocols.

In addition to offering new opportunities for Bitcoin holders to maximize their earnings, Solv's platform also simplifies the BTC staking process and makes it accessible to more users. In addition, Solv is integrated with multiple blockchains — including Bitcoin, Ethereum, BNB Chain, Merlin Chain, Arbitrum, Botanix, Linea, Scroll and Core — unifying liquidity across these chains and enabling users to access cross-chain yield opportunities with minimal effort through SolvBTC.

Solv Protocol maintains a transparent Proof-of-Reserve (PoR) system to ensure SolvBTC's 1:1 peg with BTC. These on-chain reserves can be publicly verified by anyone, with Solv featuring completed security audits from Quantstamp, CertiK, SlowMist, Salus and Secbit.

Solv's ecosystem consists of the following key players.

Solv Protocol offers an innovative solution for BTC holders seeking to maximize their assets’ utility beyond long-term investment. By bridging the gap between Bitcoin and DeFi, Solv empowers users to maintain liquidity while they earn rewards through staking and via LSTs. 

With its seamless multichain integrations and transparent 

 (PoR) system, Solv Protocol simplifies BTC yield generation, making it accessible to a broader audience and unlocking Bitcoin's full potential.

You can also earn rewards with Solv Protocol on 

 through Jan 20, 2025, 10AM UTC. Simply stake Solana (SOL) tokens as Bybit Staked SOL (bbSOL), and you can win a share of 1.3 million native Solv Protocol (SOLV) tokens. Don't miss this exciting opportunity to maximize your holdings — 

Intermediate

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Solv Protocol: Earn Diverse Yields Through Bitcoin Staking

Ethena Labs unveiled its 2025 roadmap on January 3, highlighting a Telegram app for payments and savings using its sUSDe stablecoin, aiming to offer a "neobank experience." 

Daily Top Performer — Injective Protocol (INJ)

The S&P 500 gained 1.26% Friday, led by tech stock rallies. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.24%, with Bitcoin and Ether dropping by 0.22% and 0.35%, respectively in the past 24 hours.

Today's top performer is INJ, which surged 6.9% following the approval of Injective's $INJ 3.0 proposal to drastically reduce token supply.

Injective Protocol (INJ), launched in 2018, is a Cosmos-based DEX with cross-chain trading, using an order book model for efficiency. INJ tokens power governance, staking, and trading fees. Injective's governance proposal for $INJ 3.0 

 with 99.99% approval, initiating a new phase to significantly reduce token supply and make $INJ highly deflationary.

Check Out the Latest Prices, Charts, and Data of 

, highlighting a Telegram app for payments and savings using its sUSDe stablecoin, aiming to offer a "neobank experience." The app allows users to manage sUSDe for savings and payments, including Apple Pay integration. Ethena’s goal is to rival Tether by evolving into Ethena Network, a platform for on-chain financial innovation. Key projects include Ethereal, a perpetual and spot exchange, and Derive, an on-chain protocol for options. The roadmap also emphasizes dollars as the backbone of DeFi and the expansion of stablecoin-based products using sUSDe.

Between December 30, 2024, and January 3, 2025, BTC Spot ETF flows showed significant fluctuations. GBTC saw total outflows of $167.2M, while non-GBTC investments experienced inflows of $423.2M, resulting in a net inflow of $256.0M for the period. Notable activity included a large non-GBTC inflow of $908.1M on January 3, 2025, despite earlier outflows on December 30 and January 2. Cumulatively, GBTC has recorded outflows of $21.5B, while non-GBTC investments have attracted $57.4B, yielding a net inflow of $35.9B to date.

" and is currently offering a waitlist. Users can claim their Human role on Discord by joining the server and adding their Human ID. Additionally, daily RWT claims are redeemable for H tokens at TGE. The farming process is free, so don't miss out!

Beginner

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Ethena Labs Reveals 2025 Roadmap with Telegram Payments, sUSDe Integration, and DeFi Innovations

Find out more about AI Rig Complex (ARC), an advanced AI agent framework built in the Rust programming language.

Artificial intelligence (AI) isn’t going away anytime soon, and crypto protocols have started embracing it more and more. 

AI Rig Complex (ARC) is an advanced AI agent framework built in the Rust programming language. It goes beyond the capabilities of traditional AI systems, enabling applications to comprehend and react to human desires and contexts naturally. 

Through its modular and scalable architecture, ARC is redefining the way developers approach AI in a blockchain environment. Whether it’s integrating large language models (LLMs) for intuitive interaction or leveraging Rig Framework's innovative design, AI Rig Complex stands at the intersection of AI and decentralization.

This article explores the foundational elements of ARC, its technological framework and its future potential in the AI and 

 frameworks are rapidly evolving platforms that can improve the way humans interact with technology, particularly with regard to crypto and the broader 

 realm. These frameworks enable applications to perform tasks autonomously, moving beyond simple automation to workflows driven by natural language processing and decision-making processes.

The adoption of agents in real-world applications has surged this year, with developers increasingly integrating them into workflows. For instance, the percentage of LLM-app developers using agents on 

 jumped from 7% to 43%, highlighting their growing utility. Enterprises are focusing on automation and simplification, particularly within customer service, IT, marketing and software development workflows.

Large companies, such as Microsoft AutoGen, Phidata and LangGraph, are also advancing open-source frameworks, demonstrating broader potential beyond crypto. As the market matures, differentiation will be critical. Key characteristics, such as modularity, extensibility and integrations, are becoming essential, while advanced features like 

 (RAG) allow agents to incorporate new information seamlessly into conversations.

 represents a cutting-edge evolution in AI frameworks that’s designed to transcend the limitations of traditional chatbots. While many AI systems excel at executing basic tasks, ARC focuses on creating applications that understand and adapt to human desires and contexts in a far more intuitive manner. Its goal is to make software interactions seamless, contextual and human-like, paving the way for more meaningful engagements between users and AI systems.

At the heart of ARC is Playgrounds, a powerful platform that serves as the foundation for building and experimenting with AI applications. Playgrounds combines a unified interface for multiple LLMs with advanced AI workflow abstractions, enabling developers to implement sophisticated setups like RAG and multi-agent frameworks.

Powered by Rust, ARC offers unmatched performance, safety and scalability. Features ranging from type-safe LLM interactions and flexible embedding support to seamless vector store integration allow developers to build efficient and production-ready AI systems. ARC’s modular design encourages customization and extension, while 

 architecture optimizes resource utilization.

By unifying advanced AI tools and workflows under a consistent API, ARC eliminates vendor lock-in and accelerates development, positioning itself as a leading framework for next-generation AI applications.

The core team is founded by a team with diverse expertise in AI and blockchain. 

 focuses on the technical architecture of AI frameworks, while 

 brings deep experience in software engineering and product development. Meanwhile, 

 contributes strategic insights into scaling AI solutions, and 

 specializes in building robust developer tools. 

Together, this dynamic team is redefining AI frameworks by prioritizing modularity, performance and real-world applications

AI Rig Complex primarily relies on advanced 

 to improve software interaction. These models interpret human language and intent, enabling applications to provide a more natural and interactive experience. Unlike traditional software, ARC leverages LLMs to dynamically adapt to user inputs, offering intelligent and context-aware responses that feel less robotic and more conversational.

At the heart of ARC is Rig Framework, a Rust-based library tailored for high-performance AI development. Rig offers a unified API across various LLM providers, such as 

, making it easy for developers to integrate advanced models. Its pre-built abstractions support streamlined development of workflows, including RAG and multi-agent systems.

Rig Complex’s architecture is modular, enabling scalability and seamless integration with a range of AI models and vector stores. This design ensures flexibility for developers to build applications that incorporate features like semantic search, embeddings and advanced AI-driven workflows. 

AI Rig Complex encourages developers to think beyond basic functionality and to focus on meaning and context. By prioritizing intuitive design and leveraging Rust's memory safety, Rig reduces runtime errors while ensuring that applications are efficient, reliable and ready for production. 

The ARC token is designed for broad community ownership and utility. With 90% of the supply circulating from day one, ARC ensures fair distribution. A 5.5% allocation is reserved for the prize pool, rewarding participants of ARC experiments, while 4.5% is allocated to the team for ongoing development, locked in escrow and vested over a year to align with long-term goals.

, trading 15.11% below its all-time high of $0.4259 but boasting a staggering 1,086.14% increase from its all-time low of $0.03048. The token's 24-hour trading volume is $90.87M, reflecting a 55.40% increase. Its market cap of $362.42M ranks it at #258, with a 

 (FDV) of $362.42M. Over the past week, ARC has outperformed the global market and similar tokens, rising by 87% (as of Jan 3, 2025).

AI Rig Complex is setting the stage for next-generation AI agent frameworks with its advanced platform, modular architecture and seamless integration of LLMs. Its tokenomics ensure fair distribution and long-term development alignment, while recent price performance highlights strong market confidence.

Despite being so new, the AI agent sector in crypto is set for significant growth as enterprises adopt more intelligent workflows. ARC's focus on scalability, interoperability and developer-friendly tools positions it as a top contender in this market. 

arc.png

AI Rig Complex (ARC): AI Agent Framework in Rust

Phala Network is a cloud computing platform that runs AI models and programs inside a secure module called a trusted execution environment (TEE). Learn more now!

 became the predominant narrative in the crypto market in 2024, a trend that’s likely to continue in 2025. New and emerging projects — such as 

 — have shown glimpses of what’s possible when these two emerging technologies collide. 

As AI technology spreads, the privacy of the model that’s training data sets becomes an important issue. Phala Network offers a solution to this pressing concern.

 is a cloud computing platform that runs AI models and programs inside a secure module called a trusted execution environment (TEE). TEEs are isolated environments that guarantee the code and data loaded inside are protected from external observation or tampering. This method allows Phala to execute sensitive information like AI model training and inference without compromising the privacy of the data or the integrity of the process. 

Through this innovation, Phala has managed to carve out a niche as the go-to AI coprocessor on web3. In 2024, it hit several notable performance metrics, as detailed below:

To understand Phala’s strong growth in the AI sector, let’s delve deeper into its hybrid architecture and discover what sets it apart from its competitors. 

What Is a Trusted Execution Environment (TEE)?

Phala uses a TEE-blockchain architecture that combines the strengths of TEEs and blockchain technology to create a secure, scalable and efficient system.

TEE refers to a segregated area of hardware that’s protected from the rest of the system using encryption. Data in the TEE can’t be read or tampered with by any code outside that environment; only trusted applications within the environment can access and modify the data. This architecture has been used by governments, enterprises and other cloud service providers to enable secure handling of confidential information on traditional Web 2.0 mediums. With Phala’s integration of TEE to blockchain, web3 DApps have also gained access to the same level of security. 

Within this hybrid architecture, once the TEE handles secure, 

 computations, the blockchain is used to verify their integrity and make sure the computations have been executed as intended. This hybrid approach allows Phala to combine the trust of blockchains with the privacy of TEEs, thereby addressing the limitations of both systems. 

Since this approach is similar to that of 

 (ZKPs), comparisons between the two are inevitable. While TEE proofs and ZKPs share the same goal of ensuring computational integrity and verifiability, they differ in their construction and operation. The computational cost of generating a TEE proof is significantly lower than for a ZKP. In addition, the sizes of ZKPs are also larger than those of TEE proofs, which increases the cost of on-chain verification. Therefore, TEE-based verification methods are often faster and cheaper than ZK-based methods.

Benefits of a Trusted Execution Environment–Blockchain Hybrid

: TEEs ensure that sensitive data such as AI inference remains protected from unauthorized access.

: Blockchain is used to authenticate and verify the correctness of computations performed within TEEs, ensuring that results are trustworthy. 

: Compared to ZKPs, TEEs are faster and cheaper, making them ideal for large-scale computations like those required for artificial intelligence.

: By offloading computations off-chain, the hybrid architecture reduces the load on the blockchain and improves the scalability of the underlying chain.

Phala uses a 3-tier model to provide security, privacy and transparency. The image below depicts the inner workings of the network: 

 is the top layer that manages the network. It blacklists untrusted hardware and verifies the integrity of the 

 generates and manages cryptographic keys, ensuring that computations are secure and data is protected. 

 ensures that all hardwares, such as GPU and CPU and software (TEE) are secure and trustworthy. 

 provides a secure environment for the DApps to run on. 

 is used to ensure the authenticity of TEE transactions stored on the blockchain. 

On Phala 1.0, TEEs were CPU-centric in providing security and privacy. However, most AI models depend upon GPUs for the bulk of their computational requirements. To meet this new and emerging demand, the Phala team decided to upgrade the network to Phala 2.0, which brings in GPU TEE support. This enables higher processing power and efficiency to handle demanding AI workloads. With this upgrade, Phala is also integrating NVIDIA 

 technology, which allows sensitive GPU-based computations to remain isolated and protected, even if the host machine is compromised. 

Another major recent release from Phala Network is 

, a computer solution that empowers developers to offload sensitive workloads into a secure environment. The Dstack SDK streamlines the deployment process, enabling seamless program integration with Phala Network's Confidential Virtual Machine (CVM). It provides developers with an experience comparable to Web 2.0 cloud services such as Amazon Web Services (AWS), but with enhanced security. 

In December 2024, Phala announced a new collaboration with ai16Z to build Eliza’s TEE framework. 

 has emerged as the leading open-source AI agent framework on Solana. Through this partnership, Phala is furthering its role as a privacy-preserving AI framework. By utilizing Phala Network’s TEE, Eliza’s various capabilities will gain cryptographic verifiability and enhanced privacy across different platforms like Telegram, X (formerly Twitter) and Discord. Additionally, Phala’s modularity and custom plug-ins will offer Eliza improved scalability and developer-friendly integrations. 

PHA is the native token of the Phala Network. It serves multiple purposes on the network, such as the following: 

The token was launched through an Initial Parachain Offering. It has a total supply of 1 billion and a 

 (FDV) of $373 million. Initial token distribution was as follows:

The intersection of AI and cryptocurrencies is a new and emerging trend in web3. As with 

 blockchains and DeFi, emerging sectors in the blockchain space often experience intense hype cycles, attracting significant attention and capital. Such growth will eventually demand the development of robust infrastructure to support scalability and innovation. For instance, during the DeFi summer of 2020, projects like 

Similarly, Phala aims to position itself as a foundational infrastructure provider in the AI sector, becoming a key player in the ecosystem through its innovative use of TEE-blockchain hybrid architecture that allows it to provide fast, cheap and secure AI computation.

Bybit users can now trade PHA by heading to the 

phala network.png

Phala: Powering Decentralized AI Computing

Bybit Learn

Trading

Intending to trade leveraged tokens? Read this article to find out exactly how you can avoid the top five mistakes that other crypto traders often make.

A variety of financial instruments can help you gain leverage when trading crypto, but none of them are as simple as a leveraged token. This article helps explain the concept and offers advice on 

Leveraged tokens are a financial product that tracks the price movements of an underlying asset. The tracking is done using derivative instruments to ultimately multiply your earnings.

Leveraged tokens are becoming popular because they let you trade with leverage without worrying about margin calls, liquidation risk and loans from your broker. In addition, you can trade them as easily as other coins.

 is an example of a leveraged token. The "3X" indicates the leverage, which means that your assets are multiplied by three if ETH3L increases in value. However, it's a double-edged sword because you can also lose value quickly as well. For every 1% drop in ETH, ETH3L also decreases by 3%.

There are all kinds of leveraged tokens. For instance, if you're anticipating a drop in the price of ETH, you can buy a 

. In this case, ETH3S Token will give you three times leverage if the price of Ethereum starts to fall.

Depending on the crypto exchange, the trading symbol may differ slightly. Accordingly, here are a few other examples of leveraged tokens:

You may also come across leveraged tokens that have different margin ratios — for example, HALF (1/2X) and HEDGE (-1X).

Understanding the difference between a leveraged token and a 

 will help you appreciate the need to introduce leveraged tokens in the market.

Traditionally, investors have used derivatives to take leveraged positions in the market. In a way, this lets you open a much larger position than your account allows. To trade a derivative, you borrow funds from the broker. In this setup, you must keep an eye on margin requirements and the risk of liquidation because the position is based on borrowed money.

In contrast, leveraged tokens don’t require collateral. You can buy and sell a leveraged token as easily as any other cryptocurrency without worrying about liquidation and margin requirements.

A leveraged token manages liquidation risk using a dynamic rebalancing mechanism, which compounds profits. The profit is automatically reinvested into the underlying asset. Similarly, it sells some of the profit when the price drops. This rebalancing act nullifies any risk of liquidation.

Since you don’t borrow anything from the broker, there’s no need to worry about maintaining a specific margin. 

A leveraged token is like a crypto trading fund where investors keep their money. At the end of the day, the fund rebalances itself to maintain a target leverage exposure and ensure that there's no liquidation risk. This is known as the regular rebalancing mechanism. However, in the case of Bybit, the fund rebalances itself when the leverage hits -4X, -2X, 2X or 4X. This is referred to as an irregular rebalancing mechanism.

In the case of a 3X token, if the token is profitable on a given day it will reinvest its profits in the underlying asset. This is similar to compounding. If it has losses on a given day, it will sell off some of its positions to reduce its leverage back to 3X to avoid liquidation.

In extremely volatile situations, the leveraged token can also rebalance itself intraday. For example, it usually requires a 33% adverse move to liquidate a 3X token. If the situation demands it, the 3X token can perform an intraday rebalancing act when the price moves between 6% and 12% in the opposite direction. The intraday rebalancing helps reduce the risk of liquidation by returning the token to 3X leverage.

Top Mistakes to Avoid When Trading Leveraged Tokens

There’s little doubt that leveraged tokens are some of the most misunderstood products in the industry. While leveraged tokens are suitable for anyone willing to take the extra risk, there’s more to them than meets the eye.

If you want to trade leveraged tokens, avoid these top 5 common mistakes.

Leveraged tokens are not intended for long-term investment. Instead, they're more suitable for short-term investment and trend-trading. Holding them for long periods will expose you to greater risk.

It's quite common for crypto traders to ignore the basic math associated with leveraged tokens. For instance, in the event of consecutive losses, a leveraged token needs a return greater than its loss to break even.

Impact of Holding Leveraged Tokens Long-Term

If you're holding a leveraged token long-term, be sure you understand that it will behave poorly as compared to a typical margin position. If a 3X leveraged token loses 10% daily for three days, the total loss is 90% (30% x 3 = 90%). In other words, you’ll require a 1,000% return to recover that loss.

, cut losses quickly and control risk exposure.

Neglecting the Effects of Volatility Decay

Volatility decay is the accumulated decrease in the 

 portfolio of an investor due to the frequent ups and downs in the market. Since markets are non-trending in nature, you need to consider volatility decay when trading leveraged tokens.

When trading leveraged tokens, most traders don't take volatility decay seriously because they're used to trading typical financial instruments. As a result, it's surprising for them when their leveraged token underperforms despite a slight uptick in the market.

Impact of Neglecting the Effects of Volatility Decay

As discussed, a typical 3X leveraged token will perform well in a trending market because there is no volatility decay. However, it can misfire in fluctuating markets.

Suppose you invest $100 in a crypto which gains 10% on the first day and loses 10% the next day. In this case, the value of the 3X leveraged token is $130 on the first day because it gained 30%. The following day, the value will decrease to $91 because the price was reduced by 30% ($130 − 30% = $91).

If you were to hold a normal crypto account, it would perform better because it reached $110 the first day, and finished up 10% lower at ($110 − 10%) = $99 the next day.

Theoretically, there’s not much you can do to avoid volatility decay because it's an intrinsic part of any leveraged financial instrument. To prevent such risks, it's recommended you trade leveraged tokens when markets are trending and nonvolatile.

A leveraged token rebalances its portfolio either at the end of the trading day or once the leverage hits -4X, -2X, 2X or 4X. New traders often disregard the rebalancing mechanism.

A lot of new traders fail to see leveraged tokens as a portfolio that must maintain its leverage at each stage. They forget that if tokens are held for a very long period, the continuous rebalancing act will ultimately lead to losses.

Impact of Disregarding the Effects of Rebalancing

A leveraged token increases or decreases its exposure according to the rise and fall in the value of the underlying asset. 

In an ideal scenario of irregular rebalancing, when you're trading in a trending market or you're holding the token for a couple of weeks, there will be fewer instances of rebalancing.

In the long run, the token is exposed to various volatile market conditions that can trigger multiple rebalancing acts. Therefore, investors holding the token for an even longer period of time may experience a dramatic rise or fall in their investment.

In an ideal scenario of regular rebalancing where rebalancing happens at the end of the day, there will be fewer rebalancing acts when you hold the token for just a few days.

However, over the course of a few days, the various volatile market conditions can potentially trigger multiple rebalancing acts, resulting in token holders experiencing sharp increases or decreases in their investment.

To avoid risk, only hold a leveraged token when you're sure that the market will trend in a certain direction. In this scenario, you're likely to experience exceptional returns without facing adverse conditions.

Risk management and control are essential for successful trading. In adverse trading conditions, it's wise to close your losing positions when necessary.

Most new traders don’t change their style when trading leveraged tokens. They often let losers run, waiting for the momentum to turn in their direction. While this holding pattern is justified for long-term investments in traditional markets, it can quickly doom your investment when trading leveraged tokens.

When trading leveraged tokens, the impact of loss is magnified because you require greater returns to recoup your losses. To understand this phenomenon, let's run a comparison between a normal account and a 3X leveraged account.

In a typical account, which experiences a 10% loss for three consecutive days, you’ll see a 30% decline in your portfolio. Using $1,000 as an example, a loss of 30% will result in your having $700 left. In order to recoup the 30% loss, you would need a return of 43%. This isn't the case with leveraged tokens.

When trading 3X leveraged tokens (as explained above), you need a return of 1,000% in order to recoup 90% (30% loss daily x 3 = 90%) of your losses. Accordingly, it will take more effort to regain your initial investment.

In an event of losses, a leveraged token needs a return greater than the loss to break even.

If you're not sure about the trend or the future direction of the market, try to hedge your position during adverse conditions.

Trend trading is designed to take advantage of market trends. It's based on the idea that markets have an element of predictability that allows traders to accurately predict price movements in the short run. Some traders ignore the existing trend, which can ultimately lead to a loss.

When trading leveraged tokens, it's common for investors to rely on long-term fundamentals. However, this mindset isn’t conducive to trading leveraged financial instruments. Instead, leveraged tokes are better suited to swing trades and intraday trades.

If you're not using trend trading, your leveraged positions are exposed to risks from price fluctuations, volatility, rebalancing and transaction fees. The negative impact of these elements offsets any gains you're likely to enjoy.

Try to trade during a trending market. You can either wait for the confirmation of the trend, or enter a market when there’s a high probability of a breakthrough. In any case, stay away from a ranging market because it's counterproductive.

Leveraged tokens are designed to take advantage of short-term trends in the market. If used as intended, leveraged tokens can quickly offer tremendous gains in a very short time span. They're simple and extremely effective.

Despite their attraction, they’re not for the faint of heart. Therefore, before trading leveraged tokens, avoid common mistakes by having both risk-mitigating trading strategies and an exit plan. 

Top 5 Mistakes to Avoid When Trading Leveraged Tokens

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards