What is 3X leveraged BTC?

The mechanism behind BTC3L's operation involves the application of leverage. Leverage is a financial tool that enables investors to borrow funds to increase their position size, thereby magnifying both potential profits and losses. In the case of BTC3L, the leverage effect is set at 3x.

BTC3L represents a Leveraged token designed to amplify the gains of BTC through futures trading. This unique financial instrument allows investors to gain exposure to BTC in a manner that triples the returns associated with traditional BTC holdings.

In addition to leverage, the asset base of BTC3L undergoes regular rebalancing. This process adjusts the token's holdings to maintain the desired leverage ratio, ensuring that investors continue to benefit from the amplified returns.

When the price of BTC increases by 1%, the impact on BTC3L is significant. Due to the combination of leverage and asset rebalancing, the net asset value of BTC3L will climb by 3%. This creates an opportunity for investors to achieve substantial gains in a relatively short period.

BTCC, a prominent cryptocurrency exchange, offers a range of services that cater to the needs of crypto enthusiasts. Among its offerings, BTCC provides access to spot and futures trading, allowing investors to engage in both traditional and Leveraged trading strategies. Furthermore, BTCC operates a wallet service, offering a secure and convenient way to store digital assets.