There are three reasons to use leveraged tokens.
Leveraged tokens will automatically reinvest profits into the underlying asset; so if your leveraged token position makes money, the tokens will automatically put on 3x leveraged positions with that.
Conversely, leveraged tokens will automatically reduce risk if they lose money. If you put on a 3x long ETH position and over the course of a month ETH falls 33%, your position will be liquidated and you will have nothing left. But if you instead buy ETHBULL, the leveraged token will automatically sell off some of its ETH as markets go down--likely avoiding liquidation so that it still has assets left even after a 33% down move.
You can buy leveraged tokens just like normal ERC20 tokens on a spot market. No need to manage collateral, margin, liquidation prices, or anything like that; you just spend $10,000 on ETHBULL and have a 3x leveraged long coin.
Leveraged tokens are ERC20 tokens. That means that--unlike margin positions--you can withdraw them from your account! You go to your wallet and send leveraged tokens to any ETH wallet. This means you can custody your own leveraged tokens; it also means you can send them to other platforms that list the leveraged tokens, like Gopax.
1. None of this is investment advice.
2. Much of the below analysis ignores any difference between futures and spot prices, and ignores the effects of fees.
3. Leveraged tokens greatly reduce the risk of liquidation but cannot make it fully impossible; if markets instantaneously gap down 50%, there is nothing that can stop a +3x leveraged position from getting liquidated.