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How Tos

Trading the Biggest Crypto Ratios with Wasabi

How to get started with leverage trading the BTC/ETH and SOL/ETH ratios on Wasabi
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Aug 21, 20242 min read

Wasabi is an increasingly popular DeFi derivatives app, and part of the reason for that is because it’s among the most user-friendly leverage trading platforms in crypto.

Originally launched for trading memecoins with leverage, Wasabi has been steadily expanding its offerings. Its latest addition? BTC/ETH and SOL/ETH markets. 

Wasabi calls these dominance trading markets, as they allow you to speculate on the dominance of the BTC/ETH and SOL/ETH ratios. 

via Wasabi

Of course, these are some of the most closely-watched conversion rates here, as they reflect the ongoing competition between the major crypto assets.

For instance, the current SOL/ETH ratio is 0.054, meaning 1 SOL is worth 0.054 ETH. If you believe SOL will outperform ETH in the near future, you could buy SOL to long the ratio. Conversely, if you expect SOL to underperform ETH, you could buy ETH to short the ratio.

But what if you want to amplify your ratio bets with leverage, and what if you want to simply trade the top markets from a single app without dealing with assets on multiple chains? Cue in Wasabi. 

To start entering positions here, you’ll need some ETH on Ethereum or on Blast depending on which dominance market you want to trade: the SOL/ETH pair is on Wasabi’s Ethereum deployment, while the WBTC/ETH pair is on Blast

via Wasabi

Besides which network you’re on, the trading process is the same. 

In the trading interface on the right side of the market, select the “Long” or “Short” tab depending on your preference. Then input how much ETH you want to open your position with and use the leverage slider to select anywhere from x1 to x5 leverage. 

Remember, though: more leverage means higher risk via a higher liquidation price, which is the price at which your position would be automatically closed to avoid bad debt. Less leverage means lower risk, but also less amplified gains. 

Once you’ve pressed “Open Position” and completed the initiation transaction with your wallet, you can monitor your bet from the “Active Positions” dashboard below the market interface. 

Your position will be open indefinitely, either until you close it or the liquidation price is reached, so monitor it closely. If you’re up and want to lock in profit or to close a red position to prevent further losses or liquidation, you can do so any time from the “Active Positions” interface. 

And that’s all it takes! Just remember to trade responsibly, and never deposit more than you can afford to lose. With some measured management, though, Wasabi can be an avenue for growing your ETH stack through leverage longing or shorting the top conversion rates in crypto.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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