6 Things to Know Before You Buy Leveraged Crypto Tokens – The Motley Fool

6 Things to Know Before You Buy Leveraged Crypto Tokens – The Motley Fool

As cryptocurrency investing has evolved, new types of tradable assets have become available. One that has gotten the attention of investors with a high risk tolerance is leveraged crypto tokens.

A leveraged crypto token allows you to take a leveraged position in a cryptocurrency, meaning your earnings or losses are multiplied. For example, a token called 3X Long Ethereum Token (ETHBULL) triples the profits of an Ethereum investment. So if Ethereum increases by 1%, its value increases by 3%. It works the same way if Ethereum decreases in price.

People often buy leveraged crypto tokens without fully understanding how they work. To avoid an investment you’ll regret, there are several things to know before you buy.

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