Leverage tokens bull bear question

[OpenCryptoSystem]

If i would bought leverage token 2019 btc bull 3x
I would have made with one btc profit now
Btc price of 48000$ x 3= 144 000$  profit ?

So if im sure price will go up the bull token is good investment ? Correct ?

[Bitcoin_Arena]

Nope, that's not how Leveraged tokens work. Remember the Bitcoin price will be moving up and down so the leveraged tokens will increase or decrease the futures position by a process know as rebalancing
Secondly, there will be periodic funding fee which will be deducted from you postion. So imagine how much fee you will incur over all that period of time. So there is no way you are going to make $144, 000 but keeping an open bull position for that long

I think you need to read more about leveraged tokens, watch videos and know how they work or else you might end up losing money like most traders did when they first came to limelight in crypto trading.

- https://www.binance.com/en/support/faq/73c39e149c90425dbbab242cbb443685
- https://help.ftx.com/hc/en-us/articles/360032509552-Leveraged-Token-Walkthrough-READ-THIS-