Binance Margin Trading For Bitcoin (BTC), XRP, Ethereum (ETH), (TRX) and BNB Coin on the Horizon?
Binance is, without discussion, the most important international cryptocurrency exchange of the market today. It sets the trends and every announcement that it makes has a huge weight. Now, it seems that the company might be entering the market of margin trading and this will be a very important development if it is true.
In fact, speculation about the subject has been going on for quite some time now. It all started on Reddit with Lifofifo, a Reddit which affirmed that Binance was about to start margin trading with nine pairs last month.
According to him, the trading pairs would be BTC/USDT, BNB/BTC, BNB/USDT, ETH/BTC, ETH/USDT, TRX/BTC, TRX/USDT, XRP/BTC, and XRP/USDT. He affirmed that some people found out margin trading features on the Binance API and that this could certainly be interpreted as a sign that margin trading was coming soon to the popular exchange.
In case you are not familiar with the term, margin trading is basically trading with borrowed money, meaning that you do not need all the amount in order to start trading, you can use leverage instead. You have to pay some interest for the borrowed funds, but if you trade them well, you can hopefully make more money than you are spending and it will be a profitable idea.
Another Redditor called Enriquejr has talked about the subject affirming that Binance decided to include two extra booleans between “filters” and “icebergAllowed”. According to the Redditor, the changes were not actually reflected on the official documentation of the company, so they could mean some surprise.
If Binance is trying to implement margin trading, this could be huge because the exchange is very influential and margin trading would be on the spotlight of the industry.
Changpeng “CZ” Zhao, the CEO of Binance, has only affirmed the company “future proof the API framework” as part of their upgrades, which could mean that the exchange is, indeed, taking margin trading into account.
After that, the only mention he made to the subject was in confirming that “crowd intelligence is amazing”, which could mean that the people on Reddit are right.
Some people commented about the subject on social media. They affirmed that margin trading is very dangerous for inexperienced traders since they can lose a lot of money quite fast this way. Some affirmed that they were very interested in knowing how the price of the coins could be affected by this.