Binance, leading crypto exchange around the world in terms of trading volume has released a 2.0 version of its platform. The new version allows margin trading for its customers, the firm announced in a blog post today.
With the latest cryptocurrency trading platform, Binance wants to meet the demands of both advanced institutional traders and retail traders, which was being mentioned by the CEO of Exchange, Changpeng Zhao in May 2019. In the same month, Binance has gone through a crucial hack resulting $41 million in losses.
Changpeng Zhao said, “We are providing a new tool in the financial services and cryptocurrency markets to help amplify trading results of successful trades.”
In the recent declaration, Binance said that Margin Trading exchange amount holders to utilize their current balances as collateral to open both for long and short positions on crypto assets. Indeed, this highly helps to increase profit potential as compared to regular trading.
Margin trading enables users to obtain higher returns; however, it also increases the risk of loss. Users efficiently borrow cryptocurrencies, putting their own crypto assets as collateral. In case their losses surpass the value of collateral, their positions are naturally liquidated.
Yi He, who is the co-founder of Binance said, “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.”
He further said that the service is most counted on by the whole crypto-community. “With margin trading being one of the most requested services from our community, this is a testament to the large market demand from retail and institutional traders alike and its promising possibilities in the future,” Yi said.
Binance 2.0 is highly optimized for accessing the already existing platform as well as the new margin trading support in the same Binance account, using a Familiar interface. The 2.0 platform also represents improvements in order matching and press indexes using a new advanced trading engine.
Binance allows users to transfer funds between the primary account and the new margin wallet with zero transaction fees. During the launch, margin trading will be available for six cryptocurrencies: Bitcoin (BTC), Ether (ETH), XRP, Binance Coin (BNB), Tron (TRX), and Tether (USDT) at up to 3x leverage. Margin trading fees can be paid using Binance Coin (BNB).