Gate ETF Leveraged Tokens: How to Use 3x to 5x Leverage to Capture Opportunities in the Crypto Market?

As one of Gate’s core innovations in the field of crypto derivatives, ETF leveraged tokens are becoming increasingly popular tools for traders seeking to simplify operations and amplify returns. Unlike traditional margin leveraged trading, Gate ETF leveraged tokens achieve leveraged gains through an automatic rebalancing mechanism, eliminating the need for users to manage margins and fundamentally avoiding liquidation risks.

01 Product Updates: Gate’s Leveraged Token Deployment

Recently, Gate has been actively expanding its ETF leveraged token product lineup. On January 13, the platform officially launched two new ETF leveraged tokens: “Binance Life 3L” (3x long) and “Binance Life 3S” (3x short), further enriching its product matrix.

To celebrate the new launches, Gate also launched a new coin trading challenge. From January 13 to January 23, users participating in trading have the chance to share a prize pool totaling up to 30,000 USDT, and completing daily specified trading volumes can earn additional rewards.

This is not Gate’s first move in this field. As early as June last year, Gate announced a comprehensive upgrade of its ETF leveraged token product matrix; by January 2026, the number of supported tokens on the Gate platform will be expanded significantly to 254, setting a record for the broadest industry coverage.

02 Core Advantages: Why Choose Gate ETF Leveraged Tokens?

In the current crypto derivatives market, Gate ETF leveraged tokens stand out with their unique design, offering significant advantages over traditional leveraged trading. The following is a detailed analysis of their five core advantages:

The combination of these advantages makes this product especially suitable for prudent and strategic investors who want to amplify market volatility gains while avoiding complex risk management operations and liquidation risks.

03 Popular Underlying Assets: Market Focus and Trading Opportunities

Among Gate’s extensive library of leveraged tokens, some tokens stand out due to their high activity. According to platform data, tokens like ETH5S, ETH5L, DOGE5L perform particularly well, becoming key targets for user participation.

These products are popular because they precisely amplify the price fluctuations of underlying assets (such as Ethereum and Dogecoin). For traders optimistic about short-term trends of certain assets and seeking to gain several times the spot gains (or short declines), they are highly efficient tools.

The platform maintains the target leverage of leveraged tokens through daily scheduled (UTC+8 0:00) and unscheduled rebalancing mechanisms. This means that during sharp market fluctuations, the system automatically rebalances positions to bring the leverage back to the set value, maintaining strategy effectiveness and stability, and providing investors with a healthier trading experience.

04 Trading Mechanism: How It Works and Risk Management

Understanding the operation principles of Gate ETF leveraged tokens is key to using them effectively. Unlike futures contracts that require margin deposits, leveraged tokens are essentially automated managed fund products with a target leverage multiple.

When you purchase a 3x long (3L) token, your funds are actually pooled into a “fund pool” managed automatically by a professional system. This pool uses derivatives contracts (such as perpetual swaps) to automatically establish and maintain a long position at 3x the net asset value.

Its core appeal lies in “no margin requirement” and “no liquidation risk.” Even if the underlying asset’s price experiences sharp adverse movements, causing the derivative position to face liquidation risk, the management system will proactively reduce or adjust positions through automatic preemptive actions, so holders can lose at most their entire investment without incurring additional liabilities.

Of course, this does not mean there are no risks. Due to daily rebalancing and compounding effects, in highly volatile or trendless markets, leveraged tokens may experience value erosion. Therefore, they are more suitable for short- or medium-term trading with clear trend directions rather than long-term holding.

05 How to Participate: How to Start Your Trading?

For new users interested in trying Gate ETF leveraged tokens, the entry process is very straightforward. All trading activities can be completed within the Gate platform. The official Gate learning center also features a dedicated “ETF Leveraged Tokens” section, providing knowledge from beginner to advanced levels for users at different stages.

Before starting trading, investors are advised to:

First, clarify trading goals and risk tolerance, and choose an appropriate leverage multiple (3x or 5x) and long/short direction.

Second, start with mainstream assets (such as BTC, ETH) corresponding leveraged tokens, which generally have better liquidity.

Finally, pay close attention to market volatility and trends, and understand how rebalancing mechanisms may impact holdings.

06 Future Outlook: The Role of Leveraged Tokens in Crypto Finance

As the crypto market matures and becomes more professional, the demand for structured and simplified financial tools is growing. Gate continues to optimize and promote ETF leveraged tokens in response to this demand.

Especially as the market shifts toward simple leverage products, Gate notes that ETF forms remain favored by many professional traders because they can precisely meet hedging needs, and their feature of no forced liquidation risk is particularly advantageous in volatile markets.

Industry experts believe that by 2026, digital assets will transition from speculative tools to practical financial infrastructure. In this process, innovative products like Gate ETF leveraged tokens, which lower participation barriers and offer defined risk exposure, are expected to become an important bridge connecting traditional financial thinking with crypto market dynamics.

Future Outlook

Click to enter Gate’s official ETF leveraged token trading zone. The real-time heatmap on the page clearly shows ETH5L and BTC5S competing for the top trading volume today, with their 24-hour price fluctuation curves jumping sharply on the screen.

On one side of the screen, scrolling announcements show that the list of assets supported by Gate ETF leveraged tokens has just been refreshed, reaching a new high of 348 assets.