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Binance had hinted that it would introduce margin trading on its platform for several months but the long-awaited feature is now live with margin trading capabilities available for Bitcoin, XRP, Binance Coin, TRON, and Ethereum.
For a long time, Binance has hinted that it would release margin trading on its platform. The long-awaited feature has finally gone live. Users can now enjoy margin trading capabilities on the exchange for selected cryptocurrency pairs. In the new beta version, users can margin trade Bitcoin (BTC), XRP, Binance Coin (BNB), TRON (TRX), and Ethereum (ETH).
The users interested in availing themselves for the new service can get 2-times leverage for every available currency. Higher leverage and more pairs will join in the coming months. The margin trading will not be available for everybody. Users in Cuba, Iran, the US, Crimea, Syria, and North Korea appear to be excluded.
No information is available why the US is excluded or when American customers will access the feature. Other exchanges have also taken similar steps. Initially, Binance gave no clear date on when margin trading would appear on their platform. Nonetheless, the exchange rolled out the beta version making it available for its users for the first time.
When Binance posted a mysterious tweet earlier this month, BNB hit a new all-time high. Also, as we published earlier, the exchange tweeted that ‘Binance 2.0 is Ready at 90%’ pushing the BNB price above $33. The mystery was finally solved when the exchange officially launched margin trading on beta version.
If you're on https://t.co/KiZP5RBX6P you might see a shiny new button on the top left. ?
— Binance (@binance) May 30, 2019
There is a Catch
For now, the margin trading is available on invites only. There is no clear official announcement on whether and when the new feature will be available for public participation. Additionally, the restrictions, especially for US customers, still remain a mystery. Binance is generally available to the US market except for a few states like New Mexico, New York, Washington, Georgia, Hawaii, and Connecticut.
The new margin trading option comes with an increased level of risk. Thus, it has to be exercised quite carefully and only by experienced traders. Those using the Binance platform now have an option to navigate to the beta version or stick tot eh old binance.com site. The company is yet to declare when they intend to make the move from the old site to the new site permanently.
How to Access Binance Margin Trading
Users can access the margin option by clicking the “M” icon at the top-right corner of the trading screen. With that feature, customer can leverage 2-times on five of the top cryptocurrencies. However, more tokens are expected to come aboard in the coming months.
The beta version is a plan by Binance to keep in touch with competitors like BitMEX and others. The exchange company confirmed that they plan to also roll out futures trading too according to their roadmap released in 2017.
Binance’s Aggressive Expansion
The entire cryptocurrency world has long awaited this update. Binance ranks as the leading crypto exchange by volume and 2019 has proved monumental for the company. It has been quite aggressive in its expansion especially after releasing its decentralized exchange recently. Also in 2019, its Initial Exchange Offerings (IEOs) have been highly successful replacing the drying Initial Coin Offering (ICO) market.
The exchange is seeking to dominate a new market after introducing its margin trading option. More will definitely come from Binance since this is just the beta version.