3X Short Compound to USD Price Chart

Has 3X Short Compound Token's Price Changed Recently?

3X Short Compound (COMPBEAR) is a specialized financial instrument in the cryptocurrency market. As of the latest data we have, the price of 3X Short Compound $ 0.00000042, increased by +0.00% in the past 24 hours. It's important to keep tracking the price as these tokens can be highly volatile due to their leveraged nature.

What Is 3X Short Compound (COMPBEAR)?

3X Short Compound (COMPBEAR) is a type of cryptocurrency known as a leveraged token. These tokens provide traders exposure to the Compound (COMP) cryptocurrency but with the added twist of being inversely related; they amplify the inverse performance of COMP. So, if the price of COMP decreases, the value of COMPBEAR increases – and it does this at 3 times the rate, hence the '3X Short' in the name.

Who Created 3X Short Compound?

Generally, leveraged tokens like 3X Short Compound are created by financial services companies that specialize in crypto derivatives. These tokens are part of a broader spectrum of financial products intended for more sophisticated trading strategies. The specific creators of COMPBEAR might be proprietary to the service offering them, but typically, a team of finance and cryptocurrency experts are involved in creating and maintaining such instruments.

How Does 3X Short Compound Work?

3X Short Compound works by using a combination of Compound (COMP) futures and debt to provide the 3x inverse exposure to the daily performance of Compound. If Compound's value goes down on a given day, 3X Short Compound aims to go up by 3 times that amount, and vice versa. It's important to note that the compounding of daily returns means that the long-term performance of these tokens can differ significantly from the 3x exposure to the inverse performance of their underlying assets.

What Makes 3X Short Compound Unique?

The main characteristic that makes 3X Short Compound unique is its ability to give traders leveraged exposure to an asset (in this case, Compound) without the need for a margin account. They can be traded like regular cryptocurrencies despite being complex financial instruments. This offers a level of accessibility to leveraged positions that might not be possible through traditional trading accounts.

How Is 3X Short Compound's Performance Calculated?

3X Short Compound's performance is calculated by an algorithm that tracks the price of COMP and adjusts the value of COMPBEAR based on its inverse correlation, at a 3x rate. The rebalancing of the fund's holdings ensures that the targeted leverage level is maintained daily.

What Are the Risks of Trading 3X Short Compound?

Trading 3X Short Compound comes with high risks, particularly due to the amplified nature of losses when the price movement of Compound opposes a trader's position. Leveraged tokens are also subject to decay over time, making them typically unsuitable for long-term holdings. Due to these risks, it’s important that potential investors understand the intricacies of leveraged tokens before trading.

How Much 3X Short Compound Is There?

Details like the total supply and circulating supply of 3X Short Compound may not always be available, as these tokens operate differently from traditional cryptocurrencies. Their supply can fluctuate significantly as they are created and redeemed based on demand and the performance of the underlying asset.

Can 3X Short Compound Be Used as a Store of Value?

3X Short Compound is not generally considered to be a store of value. Its primary function is for short-term trading based on the expected performance of the Compound cryptocurrency. Its value can be highly volatile, especially due to the daily rebalancing needed to maintain its inverse leverage.

Where Can You Buy 3X Short Compound (COMPBEAR)?

3X Short Compound can be purchased on various , which support leveraged tokens. It's essential to trade them on reputable platforms that offer these particular types of derivative products.

How to Keep Your 3X Short Compound Tokens Safe?

To keep your 3X Short Compound tokens safe, always use secure crypto wallets that provide strong encryption and security measures. Additionally, practicing safe trading habits, such as enabling two-factor authentication on exchanges and being wary of phishing scams, is critical.

Please remember, while I've provided information based on what is available, it's important to conduct your own research and consider speaking with a financial advisor if you're thinking of trading leveraged tokens like 3X Short Compound.

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