Binance, the world’s largest cryptocurrency exchange by daily trading volume, has launched its 2.0 margin trading platform to increase trading potentials in order to meet the traders’ needs.
In their release statement, Binance asserted that margin trading (which is an effort to push the industry towards the freedom of money by letting traders borrow funds to increase leverage which in turn enables them to profit more), will substantially increase profit more than traditional trading.
Co-founder of Binance, Yi He, said that margin trading is “one of the most requested services from our community”. Although she recognizes the benefits, she also notes that it poses greater risks.
According to her, “Though the current cryptocurrency market and legacy platforms for margin trading poses greater risks and benefits at the same time, we are confident that its development coupled with more knowledge on proper risk management will help realize greater benefits in the long run.”
In a tutorial video, the company stated that “Your Margin Wallet balance determines the amount of funds you can borrow, following a fixed rate of 3:1 (3x). So if you have 1 BTC, you can borrow 2 more…” which is an increase in profit potential.
The new version allows the movement of funds to the primary Binance wallet with no fee charge. Users can now choose pairs, collaterals and marginal assets from six cryptocurrencies which are; Bitcoin (BTC), Binance Coin (BNB), Ether (ETH),Ripple Coin (XRP), Tron (TRX), and Tether (USDT).
As part of the latest version 2.0, margin trading support is hosted with Binance legacy platform. Binance has also revealed that version 2.0 has “an advanced trading engine for better order matching and press indexes for margin level calculations to enable lower liquidations.”
Another added feature is its high security system, where users are expected to pass the Know-your-customer (KYC) test and set up a two-factor authentication as a means of extra security. This would serve as a guard against hackers.