Savvy traders leverage on many financial instruments to capitalize on today’s volatile markets. Derivatives, in particular, have become such a tool for crypto traders. Today, we will present a simple guide to trading Bitcoin and Ethereum derivatives on the Level01 so that you can use it as part of your trading strategy to hedge and manage risks.


Before we begin trading

Set up your Level01 app. It is will only take a few minutes:

An Overview of Crypto Derivatives 

Crypto derivatives like Bitcoin (BTC) or Ethereum (ETH) are on the rise. While Bitcoin derivatives are the most popularly traded instruments in the top exchanges, recording billions of dollars in volume daily, Ethereum derivatives are not far behind in terms of performance.

As a DeFi platform, Level01 offers major and well-established markets such as Bitcoin, Ethereum, and Ripple. When asked the advantages and disadvantages of trading crypto on the platform, Level01 co-founder Jonathon Loi said, “We place options trading in between spot and margin or futures trading. Compared to spot trading, the amount of money used to secure a position is much less, and as most spot trades are made are on centralized exchanges, this exposes traders to the risk of hacks and exit scams. If we compare this to the next popular market, margin, and futures, options do not have unexpected liquidations due to flash crash or market manipulation. Thus, we only offer major and well-established markets such as Bitcoin, Ethereum, and Ripple to reduce market manipulation risks.”

To check on current LVX/USDT, and subsequently, BTC/USDT and ETH/USDT prices, click here.

How to trade Bitcoin and Ethereum using the Level01 app

1. Enter the app and click on Markets via the main menu, then select Crypto, then click on Bitcoin.

It looks like crypto derivatives are on an upward trend.


2. Study the chart and candlesticks to determine market trends. Determine whether you want to opt for short term play or long term play. We opted for a relatively short term play.

You can choose to view by minutes, hours, days, weeks or months.


3. Click on New Contract. Set your contract’s expiry date by selecting the day, date time, and determine your strike price (the position you want to take). You will see that your win rate and percentage of profit adjusts as you select different prices. Our proprietary FairSense AI predicts your winning chances based on real-time data from Bloomberg. A note to add that when trading crypto derivatives, you may notice that the win rate and estimated profit percentage changes rather quickly. In this case, we’ve set the contract to expire on Sunday, 15th November 2020 at 18:00pm, with a strike price of 16100.00.

Select your desired day, date, time and strike price. Note the win rate and profit percentage as you make the selection.


4. If you are new to trading crypto derivatives, begin with a small percentage of what you have in your wallet so that you can manage risk (and your emotions). Here, you can choose to trade using LVX or ETH. The minimum required amount to trade is 100 LVX. In this example, we have set it to 500 LVX. In the last section, you will see Fairsense; it will allow you to attract other traders with an incentive to match your contract by enabling you to offer a premium or a discount on the contract. In this example, we chose to leave it blank. Click on Create Contract.

The win rate and profit percentage are now different from the image snapshot above that was taken within a few seconds ago but it is still within the projected range.


5. Click on the document icon on your top right to view your contracts. You will see your new contract under the Created section.

You can create as many contracts as you want, but if your contract is not matched, it will automatically expire.


6. If your contract offer is accepted, you can view it under the Matched Section.

Once your contract is matched, you will have to wait to see whether your position wins.


7. At the designated time of settlement, review the Settled section to see if you have won or lost.

Wins or losses will be reflected in your wallet.


8. Next, click on Markets on the main menu, then select the Crypto market and click on Ethereum.

Ethereum seem to be on a downward trend.


9. Study the movement of the Ethereum market, then click on New Contract.

Alternatively, you can also choose any contract below the chart to trade if you feel you have a winning chance.


10. Select your desired day, date, time, and strike price. Again taking note of your win rate and estimated profit percentage. In this example, we set the contract to expire on 15th November 2020, 21:00pm at a strike price of 456.00.

Sometimes you have to take a risk even if the win rate is around the 50% range.


11. Determine your tradeline by keying in the amount you wish to trade. We chose to trade with LVX 300. Then click on Create Contract.

100 LVX is the minimum amount required to trade.

12. Click on the document icon on the top right corner of the app to view your newly created Ethereum contract.

Your new contract is created.


13. If your contract offer is accepted, you can view it under the Matched Section.

Now you just have to wait to see if your position will win.


14. At the designated time of settlement, review the Settled section to see if you have won or lost.

This section serves as a summary of your winning or losing trades for the day.


Turn a Situation to Your Advantage

Interest in crypto-derivatives is quickly gathering momentum, and it will be hard to ignore this trend. Whether you are a seasoned investor or a beginner, Level01’s AI-Guided Derivative Trading app will give you an advantage with FairSense AI risk and reward projections and quick trade executions with smart contract settlements. In short, you can now trade with the same efficiency as professionals with FairSense, estimating the true market value of the contracts you seek to trade.

For those who are just starting, you can train in terms of skill, knowledge, and emotions by reading books, going for suitable crypto derivatives trading workshops, and practicing with the Demo version of this app. Practice does make perfect. There is a trading contest happening now till 31st December 2020. In this contest, you trade with your demo account to win actual LVX tokens in your real account. Winners stand to win 10,000 LVX – 20,000 LVX in their wallets. Read the contest details here.

Try the World’s 1st DeFi Platform with AI-Guided Derivatives Trading APP:
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