Binance Exchange Set to Fully Launch Margin Trading as it Announces Last Round of Testing
While Ripple is trying to dominate the market with its many solutions for financial institutions in the form of RippleNet, Binance is also pushing out a lot more services than cryptocurrency exchange.
Binance is arguably the world’s largest exchange firm and has been enjoying the success of its Binance Coin (BNB) which launched through an Initial Coin Offering (ICO) in July 2017.
So far, the asset has performed considerably well and even though it’s the seventh largest asset by market capitalisation, it currently is the best performing crypto in the market for 2019. Binance is however riding on this success and is about to launch a margin trading service.
A Thousand Margin Traders
“We will do a gradual rollout of the margin platform; it’s actually being beta tested by our internal team.”
Now, the firm’s Twitter account posted a message showing that Binance is officially set to begin the final testing of its Binance Margin Trading.
The tweet also included a link to a form expected to be filled by interested BNB hodlers who would like to enjoy margin trading on Binance. The tweet reads:
“Are you a $BNB #HODLer? Want to get your hands on #Binance’s Margin trading first?
Fill in the form below & we will pick 1,000 of you for the last round of margin testing!
Priority will be given based on BNB holdings & willingness to provide feedback.”
Margin Trading, a Plus for Binance
In simple terms, margin trading is a practice that allows the use of borrowed funds from a broker or an exchange in this case, to buy more assets than they normally can afford. This is basically using leverage to increase trading power which could lead to impressive profits but also a significant increase in risk.
With this, Binance joins a few other cryptocurrency exchange firms that already offer margin trading services. These exchanges offer margin trading with Bitcoin (BTC), TRON (TRX) and Ethereum (ETH). Some of them include Kraken, Coinbase’s GDAX, Poloniex, Huobi and OKCoin.
There is now more than enough confirmation that margin trading will officially begin at Binance and this news has had a positive effect on the value of the Binance Coin (BNB) helping it rise to regain the drops it experienced over the last couple of days. At the time of writing, BNB is trading at $33.36 with a 4.86% gain in a 24-hour period.
Other Solutions from Binance
Binance has been ensuring its place in the cryptosphere with a few solutions and services added to its core business. In April, Binance DEX launched on the Binance Chain and the firm also revealed a service in Australia that would let its customers purchase Bitcoin using fiat.
Called Binance Lite Australia, fiat-to-crypto services are now available through a large network of more than 1,300 newsagents in many parts of the country. At the moment, only Bitcoin is supported but Binance has promised to add support for other assets soon.
Earlier in May, Binance was the target of a hack which saw the firm lose about 7,000 Bitcoins worth $40 million at the time. The damage only affected the exchange for a week as it paused services, installed a few new security upgrades and has since been available.