Beta Version Of Margin Trading On Binance Now Live As New Exchange Option Excitement Builds
Beta Version Of Margin Trading On Binance Now Live
There has been a major shift in perception about Bitcoin and cryptocurrencies, especially when it comes to institutional investors. Now, crypto industry kingpins like Binance and Coinbase are facing the heat to be overthrown by established financial giants. In order to avoid this, even these crypto companies are stepping up their game. One of the biggest wildcards of Binance is their much-awaited margin trading feature whose Beta version was just launched.
If you're on https://t.co/KiZP5RBX6P you might see a shiny new button on the top left. 👀
— Binance (@binance) May 30, 2019
Users can access the margin option by clicking the “M” icon at the top-right corner of the trading screen. Essentially, Binance users can now margin trade on the platform with 2x leverage for five cryptocurrencies: Binance Coin (BNB), Bitcoin (BTC), Ethereum (ETH), Tron (TRX), and Ripple (XRP). However, more tokens are expected to come aboard in the coming months.
Earlier the company was hesitant in giving out release dates of release of margin trading so this release of their Beta version comes off as a surprise to many. The users interested in availing themselves for the new service can get 2-times leverage for every available currency. Higher leverage and more pairs will join in the coming months. The margin trading will not be available for everybody. Users in Cuba, Iran, the US, Crimea, Syria, and North Korea appear to be excluded.
However, there is a small catch. The margin trading feature is available to invite only. Furthermore, the limitations, particularly for US customers, still remain a mystery. Binance is generally available to the US market except for a few states like New Mexico, New York, Washington, Georgia, Hawaii, and Connecticut.
As the market regains momentum, exchanges are likely to see a large increase in volume, bringing back stability in their operations and cash flow. Still, exchanges would need to continuously find new markets to penetrate into to expand and secure capital to prepare for an unexpected turn in market conditions as seen throughout 2018.
Even Coinbase CEO Brian Armstrong said his firm is considering margin in the future during a recent Youtube AMA. However, they would need sufficient regulatory clarity from U.S. authorities before enabling margin trading for clients.