Coinbase Enables Margin Trading Up to 3x But Conditions Apply for Individual Traders

    • Coinbase Pro customers in 23 US states can access up to 3x leverage
    • To be qualified for margin trading, while institutional customers need to be based in one of the 23 states, have a Coinbase Pro account, enough collateral assets, and activity measured by balances & trades

    Coinbase has announced margin trading for its “eligible” Coinbase Pro customers. The San Francisco-based cryptocurrency exchange announced yesterday. From now on, Coinbase Pro customers in 23 US states can access up to 3x leverage in USD quoted books.

    Coinbase had been one of the few exchanges that did not offer margin, though a really small amount in the line of Bitfinex and Kraken’s 5x, it’s a step in the margin trading direction. Meanwhile, leading cryptocurrency exchange Binance offers a whopping 125x leverage, outdoing BitMEX’s 100x.

    Eligibility to Qualify for Margin Trading

    The exchange says, margin trading is a much desired feature by their clients and now they have delivered it. Instead of depositing your own additional capital, Margin or leverage basically allows one to borrow additional funds from the platform as such amplifying the impact of the trades.

    Only persons who meet the requirements for margin trading will live within one of the 23 states, have a Coinbase Pro account and are active on Coinbase Pro measured by recent balances, trades, deposit and withdrawal activity can avail of this service.

    Additional requirements may also apply to engage in margin trading including having an account on Coinbase Pro stacked with enough cryptocurrencies to be used as collateral assets. Meanwhile, institutional customers must be based in one of the 23 states or 9 international countries to access margin trading. 23 states where margin trading is currently available in:

    • Alaska
    • Arkansas
    • Colorado
    • Connecticut
    • Illinois
    • Florida
    • Georgia
    • Kansas
    • Maine
    • Massachusetts
    • Nebraska
    • New Hampshire
    • New Jersey
    • North Carolina
    • Oklahoma
    • Oregon
    • South Carolina
    • Texas
    • Utah
    • Virginia
    • West Virginia
    • Wisconsin
    • Wyoming

    Smart or Yikes?

    While trader Scott Melker sees this as a “very smart and conservative” move and those “with a Coinbase account who doesn't know where else to trade will be using this,” not everyone was positive towards this move. Trader Jonny Moe made fun of the move by stating in a tweet,

    The exchange says over the next year, they plan to further expand this service to customers located in other regions as well.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    AnTy has been involved in the crypto space full-time for over a year now. Before his blockchain beginnings, he worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Indian State Telangana Govt Launches Blockchain Accelerator With Tech Mahindra

    The IT arm of Mahindra Group and the Telangana government have closed a partnership and aims to launch a blockchain accelerator that will be...

    Ripple Co-Founder' Claims His XRP Sell-Off Doesn't Impact The Market Is ‘Simply Preposterous'

    XRP Whale and former Ripple CTO argues his huge sell offs Not possible to sell off over 2% of the total supply without...

    Ripple (XRP) Price Analysis (February 19)

    Key Highlights The US dollar has now forced the XRP price value into a range trading condition. The XRP/USD price now hovers around $0.30...

    Microsoft Azure Integrates Lition’s Blockchain Tech to Scale Commercial Operations

    Microsoft is one of the fast-moving IT giants in blockchain research for leverage with their existing services. The firm recently integrated Lition blockchain which...

    European Space Agency to Use Blockchain-Powered Satellite Data For Mining Transparency

    Blockchain tech is fast on the track of providing solutions from space despite a skeptical approach towards its major use as per now ‘cryptocurrencies’....

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.