The best time to purchase a leveraged ETF is in a single trend market (rise/fall) because of the compounding effect of the rebalancing mechanism. In a highly volatile market, however, the leveraged crypto ETF may underperform its underlying asset.
Therefore, to be successful when trading leveraged crypto ETFs, traders must predict both market direction and volatility.
Crypto Leveraged ETFs are an emerging financial product. The content above does not constitute investment advice. Please be aware that all investments carry risk. Trading leveraged ETFs may seem simple but inexperienced/amateur traders should be wary as cryptocurrencies can be highly volatile.
Crypto Leveraged ETFs may reduce the risk of liquidation, but in extreme conditions their price may approach zero and they may be liquidated. Please pay attention to the difference between order price and net value to avoid losses.