Cardano Leverage Trading
Overbit allows you to magnify your ADA exposure to the market with up to 20x leverage
Margin Trading with Cardano
Cardano is one of the prominent blockchain networks running on a proof-of-stake consensus algorithm. Founded by Charles Hoskinson (a founding member of the Ethereum network) in 2017, Cardano enables owners of its ADA cryptocurrency to help operate its network and vote on changes to its software rules.
As Charles Hoskinson is a renowned researcher with a degree in Mathematics, Cardano differs from the other projects by emphasizing a research-driven approach to design. Cardano’s operation is based on a group of well-thought-out technologies, all of them working together to make Cardano a high-speed blockchain. It runs on Ouroboros proof-of-stake consensus algorithm and allows smart contract developers to deploy decentralised applications (dapps) on it while paying transactions fees in ADA, its native token. Input Output HongKong (IOHK) the company that developed Cardano blockchain has published more than ninety academic papers with respect to Cardano, cementing Cardano’s place as a well-researched and ‘provably secure’ blockchain.
Benefits of Trading Cardano
Since its creation, Cardano has consistently ranked as one of the top ten coins on Coinmarketcap. After finally transiting from the federated Byron model to a decentralised Shelley model, it has garnered much attention from the trading community.
As a top ten cryptocurrency, Cardano is available across any crypto trading platform because of its huge liquidity. Most advanced crypto trading platforms offer margin trade of ADA with different leverage options. Depending on the trading platform, some can offer up to 100x leverage on your capital to trade ADA.
Make profits when ADA goes up or down
Go long or go short on Cardano when the price is rising or falling using the Overbit platform. Profit from trading both ways.
Trading Cardano with leverage
Overbit allows you to trade Cardano with leverage. With leverage you can get a lot more exposure to the ADA price movement than the amount you deposit. This also means you can trade ADA using your Bitcoin or USDT without taking delivery of the ADA.
Let’s say ADA is trading at $0.50 and you believe the price will get to $0.65. You can use leverage to purchase a larger amount of ADA than your deposit. At $0.50, if you want to purchase 20,000 ADA, it would cost you $10,000 USD. If you leveraged your position at 15X, then the calculation would be as follows:
1/15 * 20000 * 0.50 = $667 USD.
If the price of ADA rises to $0.65 and you close your position, you stand to make a profit of $3,000 USD. However, if the price drops by $0.03, you would lose your entire $667 USD.
We can apply a similar example if you short the market. Let’s say ADA is currently trading at $0.50 and you expect it to drop in price by $0.15. You can short the market by placing a sell trade. As above, we will short 20,000 ADA using 15X leverage, the calculation would be as follows:
1/15 * 20000 * 0.50 = $667 USD.
$667 USD would be the capital required. If ADA drops to $0.35, then you stand to profit 20000 * 0.15 = $3,000 USD. If the price rises by $0.03, then you will lose your entire $667.
You can get a more accurate calculation of the margin requirement and your liquidation price in Bitcoin or USDT – on the deal ticket window of the Overbit trader.
How Cardano leverage works
With a Cardano leveraged trade, you can get up to 20X the exposure of the capital you deposit.
Why trade Cardano with Overbit
Overbit is a world-class exchange with a deep and liquid order book from our multiple global liquidity partners. Our traders enjoy fair market prices consolidated from the world’s top exchanges and are free from price manipulation. This means no single trader can manipulate prices on Overbit with large positions. At Overbit, you can trade Cardano using your Bitcoin or USDT without the need of taking delivery of assets.
We provide a wide range of features in leverage trading. On Overbit, you can trade Cardano with up to 20X leverage. However, in order to limit your risk exposure, we employ advanced risk management measures. We allow you to open each position with your own margin preference (isolated margin or cross margin).
Overbit recognizes and rewards community efforts by running one of the best affiliate programs from any crypto exchange. Users get rewarded in BTC or USDT for referring friends. This is unarguably the most rewarding cryptocurrency affiliate program in the world. As a way to incentivize the continued use of our exchange, we operate a tiered reward program. Traders get rewarded in Tier Points (TP) for trading. Once you reach 1,000 TP, you can swap for BTC or USDT.
You never have to worry about the security of your funds on our exchange as we employ military-grade security to ensure customers’ funds are always safe. We segregate user funds to ensure they are protected, and stored in multi-signature cold wallets. If you ever need our support team, we offer 24/7 live chat support to all users.