Binance has set a max limit of $5K on leveraged token holding. In this article, we will explore the Binance alternatives for trading leveraged tokens.
Introduced by FTX, leveraged tokens are ERC20 tokens with leveraged exposure without taking care of the margin, requirements, management, and liquidation risk. In other words, Leveraged tokens are the easiest way to do leverage trading. You can read our guide to learn more about leveraged tokens.
Today, I got an email that Binance has set an upper limit of $5K on leveraged tokens a person can buy/hold. In other words, you can’t take a position of more than $5K for a given leveraged token.
If you read the above guide, you will know that leveraged tokens are not made for holding. However, you can quickly buy and sell them make multiple X returns.
Here is the list of tokens and their limitations. You can read the notification here.
What’s Alternative for Binance?
Therefore, I am writing this blog to help them find alternative exchanges to trade leveraged tokens.
Pionex Leveraged Tokens offer high leveraged exposure with an optimized rebalancing mechanism. They provide variable target leverage that fluctuates within a specific range according to the crypto asset price. The rebalancing is triggered if the leverage exceeds a particular limit.
Pionex offers 1x, 2x and 3x Leveraged tokens. To learn more, read our guide on the Leveraged tokens.
Pionex offers multiple cool features such as Grid bot and Spot-futures arbitrage bot. Therefore you should check it out. I use it daily, and they have a super cool app. To learn more, read our review of the Pionex exchange.
FTX was the first exchange, who introduced the concept of Leveraged Tokens, aka Bull Tokens. It has excellent liquidity and offers 0.5X, 1X and 3X leveraged tokens.
Leveraged Tokens can provide multiple X returns in few hours; however, they are very risky instruments. If you don’t know about what you are doing, most probably you will get rekt. So trade with caution when using Leveraged tokens and don’t hold them long.