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Leverage trading is live on Binance now - but not the 20x as originally indicated

Discussion in 'Crypto Currency News' started by keith, Jul 14, 2019 at 5:51 AM.

  1. keith

    keith Contributor

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    Binance has officially launched version 2.0 of its platform which was part of a strategy to add margin trading and revamp the exchanges user-interface.

    The exchange originally declared it would feature up to 20x leverage, however, the final product is significantly less with an underwhelming 3x available to BTC, ETH, XRP, TRX, and USDT. Another disappointing factor is that it is compulsory to undergo a KYC to utilize the service.

    Binance is up against a number of trading platforms that already offer the possibility to margin trade, and in most cases, the majority tend to offer between 3x-5x like Kraken, OkEX, and Poloniex, etc. Then there are the specialty margin trading platforms like Bitmex, PrimeXBT, and ByBit which offer up to 100x leverage and have dramatically grown in popularity since the beginning of 2019 consequently.

    Unfortunately, it seems that Binance isn’t bringing anything new to the table, rather trying to avoid losing their customers to the growing trend to utilize more sophisticated strategies as the market matures.

    It’s clear that there is now more institutional investment being injected in to the crypto market than ever before as the concept of cryptocurrency is becoming less esoteric and more mainstream. Thus, traditional investors that are well-accustomed to trading with these more advanced and profitable strategies are geared towards using high leverage trading platforms.

    In one instance, it is now further possible to anonymously access the world’s most popular financial instruments in forex, commodities, and stock indices, in addition to 9 major crypto pairs under the same roof - on the aforementioned PrimeXBT. Moreover, with the highest leverage across all asset classes which allows traders to implement thoughtful diversification, hedging, and risk management strategies.

    With the state of the evolving global financial market, Binance’s meek 3x leverage isn’t very impressive comparatively some of the other aforementioned trading platforms that cater more so to the next generation of traders. Although, Binance is undeniably breaking ground in other areas, like the Binance DEX, and the Binance IEO launchpad for instance.
     

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