Leveraged Tokens Explained: A Complete Walkthrough

Choosing the right financial products and underlying assets can be challenging for investors, especially with so many options available and the changing market environment. This guide will introduce you to Leveraged Tokens — a type of product that, if fully understood and used wisely, can better support your ride through this volatile market.

What Are Leveraged Tokens?

In simple terms, a Leveraged Token is a financial product designed to track the price movements of an underlying asset by using derivative instruments to magnify the returns of the underlying asset (with 3x leverage, for example).

What Are the Differences Between Spot, Leveraged Tokens and Derivatives?