May 13, 2021

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Leverage without liquidation: Do you know what BEAR and BULL tokens are?

1 min read
Leverage without liquidation: Do you know what BEAR and BULL tokens are?

Have you ever wondered what a leverage would look like without liquidation? Unique ERC-20 tokens have now begun to add various exchange offices. In this article, we will explain how BEAR and BULL tokens work and how you can build massive positions with no risk of liquidation.

 

The BEAR and BULL tokens are always bound to a particular cryptocurrency. For example, ETH. They move in the same direction as the original cryptocurrency itself. But that’s not all. They act as a lever to the given cryptocurrencies, which means that their voltages are several times greater than the original cryptocurrencies. However, since you do not borrow any funds, you can never go through liquidation.

 

Leverage without liquidation: Do you know what BEAR and BULL tokens are?

 

BEAR token

It is a short of cryptocurrency with which it is bound. For example, ETHBEAR or EOSBEAR. For each percentage that ETH or EOS falls, ETHBEAR will grow by 3%. Of course, the reverse is also true. However, the big advantage is that it is traded on the spot market. So you don’t have to maintain a margin or liquidation level. You simply hold until happiness smiles at you. Of course, you could lose 50% of your money. But you will never lose everything. And most importantly, not all tokens.

 

BULL token

This token works on the same principle, but takes it as a Long Position. For each percent that the original cryptocurrency grows up, this token grows by 3%.

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