Ripple’s RLUSD stablecoin has gained momentum in decentralized finance (DeFi), attracting significant supply to Aave’s V3 Ethereum Core market, with a notable amount in loans taken. 

Daily top performer — Sui Network (SUI)

The S&P 500 gained 1.67% on easing trade tensions and Fed reassurance, but pared gains after tariff cut hopes were downplayed. Gold fell from its $3,500 high, signaling a bearish reversal. Key support lies near $3,167, with further downside possible. The Coindesk Indices, which tracks the broader crypto market, fell 0.53%, with Bitcoin and Ether up 2.19% and 5.92%, respectively, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is SUI, up 7.3%, following OVERTAKE's partnership with Sui to build a scalable and trustless game asset trading platform.

Sui Network (SUI), founded in 2022, is a Layer 1 blockchain by Mysten Labs, built to improve web3 scalability, speed, and security. It aims to reduce smart contract latency and support innovative NFT gaming, like Sui Monstar, with a developer-friendly environment. 

, efficient game asset trading platform. Leveraging Sui’s object-centric architecture, parallel execution, zkLogin, and modular infrastructure, OVERTAKE aims to enable trustless trading, verified in-game assets, and a real, on-chain game economy.

Check out the latest prices, charts, and data of 

 has gained momentum in decentralized finance (DeFi), attracting significant supply to Aave’s V3 Ethereum Core market, with a notable amount in loans taken. Initially slow, the stablecoin's growth has accelerated after its debut on Aave. RLUSD has a market cap close to $300 million and a supply cap, with borrowing limited to a specific amount. Ripple aims for RLUSD to become a top-five stablecoin by year-end. Ripple's collaboration with Chainlink enhances RLUSD’s utility across both institutional and DeFi applications.

Yesterday, BTC spot ETFs saw $273.8M in total inflows, all from non-GBTC funds.

, with 10% of MILK’s 1B supply allocated for eligible users—mPoint holders, oolitia NFT holders, and milkINIT testers. Opt-in is required for CEX claims; wallet claims need no action. Pre-deposits close April 26, 12 PM UTC.

Beginner

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Ripple’s RLUSD stablecoin gains momentum with Aave integration and growing DeFi presence

VanEck’s BNB Spot ETF proposal could bring BNB to U.S. markets, expanding access and marking a key milestone for BNB Chain's growth in regulated finance.

After the US Securities and Exchange Commission (SEC) approved spot exchange-traded fund (ETF) products based on 

 (ETH) in 2024, a flurry of new altcoin ETF applications emerged in early 2025. Many prominent asset management firms are vying for the approval of their ETF products, based on coins like 

 (AVAX) and others. Even some smaller-cap meme coins, specifically Pudgy Penguins' 

, have joined the SEC's ETF waiting list.

Given that most top cryptos already have their ETF applications filed with the country's financial regulator, it's little surprise that BNB Chain's 

, the fifth-largest cryptocurrency by market capitalization, has joined the bandwagon. In late March 2025, the New York–based global investment management giant VanEck registered a trust entity named VanEck BNB ETF in the US state of Delaware. The registration is an early sign that the acclaimed investment manager is planning to lodge a BNB ETF application with the SEC.

If approved, it will be the first US-based BNB ETF product on the market, likely leading to significant growth within BNB Chain's already well-established ecosystem.

On Mar 31, 2025, one of the leading asset managers in the world, VanEck, registered a trust named VanEck BNB ETF in the US state of Delaware. This is the strongest imaginable indicator that the company plans to subsequently launch an application with the SEC for the ETF’s approval. If approved by the regulator, the product will be the first spot ETF in the US to track BNB coin. As of the time of this writing (Apr 23, 2025), VanEck hasn't formally applied with the SEC, but this step is likely imminent.

Following the SEC filing, BNB coin will join a long list of other leading cryptocurrencies whose spot ETF applications have been lodged with the US regulator. Over the past few months, the SEC has received spot ETF applications for Solana, 

The VanEck BNB Spot ETF will track BNB coin, allowing holders to invest in the asset without directly holding it. While BNB is among the most popular assets in the crypto market, many investors are eschewing it and other cryptocurrencies due to their unregulated nature. Upon approval, the ETF product would be available for trading on regulated stock exchanges.

The exact composition of a crypto ETF product is usually unknown before its application is filed with the SEC. Therefore, we can assume that at this stage the ETF will be based entirely upon tracking BNB coin. Any additional components, such as minor holdings of other assets such as cash equivalents, could theoretically be included, but this will only be known upon VanEck’s formal application to the SEC.

VanEck itself is among the leading ETF issuers in the finance industry and is a pioneer of crypto ETFs. The firm already offers approved 

, and has filed applications with the SEC for spot ETFs based on several other cryptocurrencies, including a 

Currently, there’s no ETF in the US based on the BNB coin. In that respect, VanEck’s registration is the first serious effort to introduce such a product. Internationally, there is one exchange-traded product (ETP) that tracks BNB — the 21Shares Binance BNB ETP (ABNB), listed on the Swiss Stock Exchange. This ETP is offered by 21Shares, a leading digital asset management firm based in Zurich, Switzerland.

. ETPs may be based on various assets, such as stocks, bonds, commodities or cryptocurrencies. However, ETFs often offer better liquidity, lower fees and greater tax efficiency than other types of ETPs.

In short, despite the presence of the ABNB ETP on the market, the BNB ETF landscape remains an empty niche, as the 21Shares product isn’t a full-fledged ETF and has no regulatory approval in the US.

Current impact of BNB ETF applications on the crypto market

VanEck’s BNB ETF application — or, to be precise, its registration in Delaware — has so far had no immediate impact on the coin’s market price. In fact, BNB coin is currently trading at $615.68, barely different from its price of $600 in the early days of April when news of the ETF’s registration first surfaced.

BNB is a major cryptocurrency featuring at least one billion dollars in daily trading volumes. The news of VanEck's initiative is unlikely to seriously affect BNB’s price. However, if the ETF ultimately gains approval from the SEC, such a development may have a significant positive impact on the crypto's future price.

What will it mean if a Spot BNB ETF application is approved?

If the SEC approves the Spot BNB ETF, it will likely lead to higher demand for BNB coin — as demand from investors for the product rises, VanEck will need to source more BNB to back its ETF shares. This increased demand would push the price of BNB higher. As noted above, BNB is one of the market's largest cryptos and features substantial trading volumes. Therefore, it's unlikely that a Spot BNB ETF would cause drastic rises in the coin’s price. However, a certain positive price effect is a safe bet, and the magnitude of the effect will be directly related to the popularity of the ETF among investors.

Additionally, the ETF will improve the visibility of the BNB ecosystem, potentially leading to more 

 (DApps) and projects launched on its blockchain.

If approved by the SEC, the Spot BNB ETF by VanEck would usher in a new era for the coin. For the first time ever, BNB as a financial asset would become available through the regulated environment of US stock exchanges. This would not only help support the coin’s price and expand the chain’s ecosystem, but would also be a major reputational gain for Binance, the world’s largest crypto exchange and the corporate entity behind BNB Chain.

Over the years, Binance has had its fair share of troubles and arguments with US regulators. A fully approved spot ETF based on Binance’s own coin would, therefore, send a signal to the crypto market that the major components of the Binance ecosystem — BNB crypto, BNB Chain’s blockchain and the Binance crypto exchange — aren’t as risky to deal with as some Americans may believe.

Intermediate

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BNB Spot ETF: A new gateway as BNB Chain evolves

In this article, we explore liquid staking protocol StakeStone's key features, the STO token launch, tokenomics and how to trade STO on Bybit.

StakeStone (STO) is a next-gen omnichain liquidity infrastructure protocol designed to optimize yield and cross-chain liquidity. Its introduction of liquid yield-bearing versions of ETH and BTC — STONE and STONEBTC — enables users to earn sustainable yield while enhancing capital efficiency. This article explores StakeStone’s architecture, core assets, founding team, tokenomics and recent market performance.

 is a decentralized liquidity infrastructure protocol that issues liquid, 

-bearing assets like STONE (Ethereum) and STONEBTC (Bitcoin). Designed for omnichain integration, it empowers users and protocols with composable 

 solutions and efficient cross-chain liquidity.

Launched in 2024, StakeStone was built to address the fragmented and capital-inefficient nature of ETH and BTC staking by introducing secure, flexible and modular primitives. StakeStone’s mission is to maximize on-chain yield while ensuring deep liquidity across ecosystems.

StakeStone was founded in 2023 by a team of DeFi-native builders led by Charles K, a crypto veteran with over 10 years of experience in centralized exchanges (CEXs), hardware wallets and DeFi infrastructure The core team includes Rose Li, Chief Strategy Officer, and Ivan K, Chief Marketing Officer.

The project has secured funding from notable crypto funds, including Polychain Capital, Binance Labs, OKX Ventures, Amber Group, HashKey Capital and Bankless Ventures. These backers not only provide capital but also strategic ecosystem access — positioning StakeStone as a serious player in omnichain liquidity and yield infrastructure.

StakeStone converts ETH and BTC into liquid, yield-bearing assets — STONE (ETH) and STONEBTC (respectively) — through a modular and omnichain framework. When ETH is staked, it flows into the StakeStone Vault and is allocated to the Strategy Pool, and STONE is minted via the Minter.

Yield is generated through strategies such as:

Users can deploy STONE across chains via the 

 (LP) rewards, with optional LP locking for enhanced returns. SBTC is the liquid BTC asset mirroring Bitcoin’s value, with STONEBTC adding a yield layer to BTC and unlocking passive income without sacrificing liquidity.

StakeStone implements key security measures, including the following:

STONE (ETH): Omnichain yield-bearing asset

 derivative. It’s minted when users stake ETH, and is backed by underlying yield from stETH, EigenLayer restaking and additional DeFi strategies.

STONE supports seamless cross-chain bridging, enabling deployment across supported networks and STONE-Fi Pools for additional rewards. Users benefit from passive yield, cross-chain utility, governance participation and on-demand liquidity.

SBTC is a liquid Bitcoin asset that mirrors BTC’s value and enables seamless use within EVM-compatible chains. STONEBTC, on the other hand, enhances SBTC by adding a yield layer, empowering users to earn yield from BTC-based strategies while preserving liquidity.

 utility by unlocking native BTC liquidity and enabling new use cases, such as cross-chain lending and borrowing, LP participation in BTC-based DeFi pools and composable integration across multichain DeFi protocols.

Together, SBTC and STONEBTC aim to position Bitcoin as an active capital layer across Ethereum and beyond.

 of StakeStone, with a total supply of 1 billion. It underpins protocol governance via OPAP proposals, voting-escrowed STO (veSTO) staking and 

Emissions are set to taper gradually until 2031, aligning incentives with long-term ecosystem growth.

According to CoinGecko, as of Apr 24, 2025, 

with a market cap of over $25 million. The token has recently shown strong momentum, rallying 85.4% over the past two weeks. Furthermore, StakeStone’s value could benefit from various catalysts, such as the rise in demand for 

 the STOUSDT Perpetual futures contract in the Innovation Zone, with up to 20x leverage.

 a Bybit account, complete identity verification and fund your 

 using crypto deposits or fiat currencies. 

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StakeStone (STO): Cross-chain liquid staking protocol

The MANTRA (OM) token’s wild crash on Apr 13, 2025, shocked the crypto world. Discover the causes, fallout, and what’s next in MANTRA’s road to recovery.

In the morning and daytime hours of Apr 13, 2025, the MANTRA blockchain's native token, OM, sat at a respectable market cap of $6 billion, making it the third-highest-ranked cryptocurrency in the 

 (RWA) category, the area the platform specializes in. Everything seemed like smooth sailing for the token.

Then, just after 6 PM UTC, the price of the OM token suddenly began to free-fall, declining from nearly $6 to about $0.50 in the space of just two hours.

A project that started the day as one of the top players in the RWA field was now worth 90% less as the evening approached. OM's abrupt, sharp crash immediately caught the market's attention, with speculation of a 

However, MANTRA's CEO, John Patrick Mullin, immediately sprang into action for PR damage control on social media, reassuring the public that the team members weren’t dumping OM tokens at all. Instead, MANTRA's founder and CEO alleged that deliberate actions of some 

 (CEXs) had caused the catastrophic plunge.

As of our coverage date of Apr 23, 2025, this is a developing story. In this article, we’ll establish what actually happened, who's involved and what awaits the OM token in the foreseeable future.

 decentralized network dedicated to RWA tokenization and utilization in compliance with real-world regulatory requirements.

 It features high scalability and low transaction fees. The project is one of the earliest initiatives dedicated to RWA use via blockchain technology. Originally, MANTRA debuted as a 

 (ETH) in August 2020. In October 2024, the project migrated to its own dedicated Layer 1 platform, the MANTRA Chain. The MANTRA blockchain is based on the Cosmos SDK framework, and is part of the wider 

The MANTRA ecosystem's main products include MANTRA DEX, a 

 (DEX); a digital identity (DID) management tool; a compliant token development and management solution; and a comprehensive compliance and permissioning system. MANTRA has also partnered with global powerhouses like Google Cloud, and with DAMAC Properties, one of Dubai's most prominent developers, to propel innovative solutions for 

Starting in late 2024, right after its own dedicated mainnet launch, MANTRA had become a significant player in the RWA corner of 

 (DeFi). By late February 2025, the platform’s native OM token had climbed to a value of nearly $9, with its market cap peaking at around $8.2 billion. Before the fateful events of Apr 13, 2025, OM was the third-highest-capped crypto in the RWA category, trading at $6.27, with a market cap of slightly over $6 billion, according to the CoinGecko portal.

In the evening hours (UTC time) of Apr 13, 2025, OM began to lose its value precipitously, dive-bombing from over $6 to about $0.52 in the space of two hours. The token’s market cap fell to slightly under half a billion dollars — a loss of more than 90%.

CEO John Mullin was quickly online, reassuring the crypto community that no team member had sold their OM holdings, and that this wasn’t a case of the bad ol’ rug pull. Instead, Mullin alluded that after OM tokens were moved to two leading CEXs (Binance and OKX) to use as collateral, the exchanges initiated a cascade of 

 of positions backed by the token. Both exchanges refuted the allegations, and connected OM’s price collapse to its recent unusually high price 

, and significant tokenomics changes made to OM in October 2024 that greatly undermined its value.

As a chain of liquidations took place, the token’s price started to plummet, causing significant panic that quickly led to further price drops. The situation only stabilized closer to the end of the day, with OM’s price remaining under $1. As of Apr 23, it’s trading at $0.5543 — a far cry from its rate of over $6 just two weeks ago.

After investigating, crypto analytics firm Lookonchain concluded that 17 wallets had deposited 43.6 million OM tokens (4.5% of the token's circulating supply) into the implicated exchanges. Two of these wallets are believed to belong to Laser Digital, one of MANTRA's investors. Another investor in the project, Shorooq Partners, is also suspected to be among the 17 wallets. Both Shorooq and Laser Digital have denied the allegations.

Although the price plunge was immediately compared to the 2022 collapse of the 

 (LUNA) blockchain, many analysts point out that the two crashes are fundamentally different. Terra's crash resulted from structural abnormalities in the 

 regulating UST, the project's stablecoin. In contrast, OM's fiasco is suspected to be the direct result of market-driven manipulation by 

, and possibly exchanges. No security breach, disruption to services or data, or other adverse structural events have occurred on the platform.

While this development is unprecedented for the project, MANTRA has been embroiled in other controversies throughout its history. One of these was its 

, first announced in August 2024 and then delayed multiple times. Around 50% of the wallets believed to be bots were cut off from the airdrop list. However, many considered the bot-culling process to have been conducted without much proof.

There have also been reports of vote rigging in the project's governance system in a bid to obscure MANTRA’s centralized model of profit allocation. Additionally, some analysts have accused the project of "forced bridging" to manipulate the market price. Platform users had to migrate their Ethereum-based OM tokens to MANTRA's native OM tokens via 

, which would increase gas fees and allow the project team to control the token's circulation pace.

How is MANTRA (OM) headed toward recovery?

MANTRA’s CEO rapidly reassured users that the team is now working hard to jump-start the token’s recovery. On Apr 14, 2025, Mullin unveiled plans to initiate a buyback scheme, along with the intent to burn all OM tokens held by the project team. The team's supply totals 300 million tokens, representing about 17% of the total supply.

He also denied factually incorrect assertions circulating online that the team effectively controls 90% of OM's supply. Mullin further assured the public that no large-scale selling events by investors have occurred.

As OM’s value has stayed firmly under $1, it remains to be seen how these PR efforts — as well as the planned buyback and burn — will affect the token’s future.

 as a swap pair with USDT, or on the Derivatives market as the 

Naturally, given the ongoing situation with the OM token, buying OM is at your own discretion, as right now the token is truly for the adventurous and brave at heart.

As of Apr 23, 2025, the OM token is trading at $0.5543, 93.8% lower than its ATH of $8.99 on Feb 23, 2025, and 3,138.8% higher than its ATL of $0.01726 on Oct 12, 2023.

Curiously, most crypto price prediction portals are optimistic about the OM token's long-term prospects. DigitalCoinPrice 

 of $1.81 in 2027 and $2.82 in 2030, whilePricePrediction 

It's hard to verify all the allegations flying around regarding the involvement of exchanges and key investors in the MANTRA OM incident. What matters at this stage is that the project team has been quick and proactive in injecting transparency and clarity into the situation.

The free fall in the token's price seems to be over by now. In fact, OM’s decline was over within hours of the incident. Moreover, unlike Terra's LUNA and UST coins, OM hasn't become worthless. All these factors point to potential stabilization and recovery ahead. The question now is: Will the pace and magnitude of the recovery be enough to save the project in the long term? At this early stage after the collapse, few people could answer the question with confidence. We'll eagerly await the developments over the next few weeks to see if MANTRA finds its way out of the woods. 

mantra om crypto.png

MANTRA (OM): Understanding its wild ride and road to recovery

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

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