Popular Crypto Exchange Kraken has released margin trading options for the two popular cryptocurrencies by market capitalization, Bitcoin Cash and XRP. By adding two new currencies, it is now offering margin trading of total eight cryptocurrencies. Recently, the site also enhanced it's the user interface and incorporated charts and tools and supports mobile trading.
High-Risk Margin Trading available at Kraken
Margin trading enables users to take advantage of their accounts with funds they do not currently possess. This might help them to earn more profits but increases their risk also.
Earlier, Crypto Exchange Kraken was providing trading on six digital currencies. These include Bitcoin, Ethereum, Ethereum Classic, Tether, Monero, and Augur. As declared in the Kraken's blog today, Bitcoin Cash and Ripple has just been added into the list.
How much you can leverage or borrow limits will be based on the verification level of your account. Top level four accounts might get upto 500 BCH or 2.5 million XRP. Leverage begins at 2x for BTC Trades and reaches upto 5x for XRP fiat trades. Kraken has also published a note about the dangers of risk trading and suggests users maintain a good balance with margins:
“Please note that BCH and XRP are not collateral currencies. This means you cannot open margin positions against the value of your BCH or XRP balances. For this reason, you should always maintain adequate balances of other collateral currencies to maintain your margin positions.”
XRP Base Pairings are increasing
Majority of exchanges are looking forward to adding XRP as a base pair for Bitcoin, Ethereum, and Tether. Previously, Binance also declared that its listings to add XRP/ TRX (Tron) and XRP/ XZC (Zcoin base pair).
One of the popular crypto exchange, Binance to rename Ethereum as ALTS to reflect the different base pairs now offered.
Major changes done by popular exchanges
In June 2018, Korea considered Coinone's margin trading is considered as illegal gambling. Recently, Poloniex declared that it is removing margin products from U.S. customers to remain regulatory compliant and Japan hasn't made any decision with capping crypto margin trading.
Kraken was also in the news when New York State Attorney called Kraken, Binance, and Gate.io to the New York Department of Financial Services (NYDFS) for violating New York's virtual currency regulations. Jesse Powell, CEO of Kraken was serious about New York's "controlling" behavior and hadn't replied to the questionnaire which was part of the Office of the Attorney General (OAG) report.
