Margin Trading

Increase Your Profit Potential With Margin Trading

25/08/2020 by Idelto Editor

Spot trading is a popular way for investors to access the crypto market in a straightforward manner. It’s mainly fiat-to-crypto trading, as well as crypto-to-crypto trading. It’s simple, you get a crypto wallet, you buy a token with fiat currencies, and then once the price has increased, you sell the asset and make a profit.

Margin Trading vs Spot Trading?

Well, imagine you don’t have enough for the trade you’re looking towards leveraging. With margin trading, the trading platform allows you to open a position that is larger than the balance of your account. Essentially, this allows people, or traders to access an amount of funds to increase their order, which then effectively means they boost the gain from a profitable trade. In essence, you’ll be maximizing your potential gains, allowing you to open a larger position than you would normally allow within your account.

With margin trading, you’re effectively boosting your gains from market swings, opening up your trading horizons, and letting you, the trader, explore new trading opportunities and strategies. This then allows you to use leverage for the short, or long term gains on a variety of cryptocurrencies, giving you a bigger earning potential compared to spot trades.

What’s an example of Margin Trading?

Let’s all assume that the price of Bitcoin Cash (BCH) is equal to USDT1000 and a trader thinks, and feels that it will rise in the future. However, the trader only has USDT100. The amount the trader has won’t limit him from amplifying his potential gains with margin trading. The trader can use the maximum 10x leverage provided by Bitcoin.com Exchange to open a USDT1000 long position (trader’s USDT100 was multiplied to 10). Now let’s assume that during the next few hours the price of Bitcoin Cash rocketed by 10% to USDT1000. The trader decides to close this profitable position and realizes a positive Profit & Loss of nearly USDT100 (you need to take into account the fees and paid Interest Rate – Check out the Fee Page). If the trader opened this position without the leverage he or she will only see USDT10 gain, because the position’s value would be equal to the trader’s balance of USDT100.

How can I start my Margin Trading journey?

Bitcoin.com Exchange provides one of the leading Margin Trading platforms in the industry, giving users the opportunity to trade borrowed assets. This means that clients now can open Long and Short positions on a variety of cryptocurrencies by up to 10x leverage. Those who use Margin Trading can amplify their potential profit depending on the selected leverage for 29 markets as seen below:

Enjoy up to 10x leverage on: BCH/USDT, BTC/USDT, ETH/USDT, XRP/USDT, ETH/BTC, BCH/BTC, XRP/BTC, TRX/USDT, LTC/USDT, EOS/USDT,XMR/USDT, ETC/USDT, ADA/USDT, TRX/BTC, LTC/BTC, ETC/BTC, ADA/BTC,XMR/BTC, EOS/BTC.

Up to 5x leverage on: ZEC/USDT, DASH/USDT, VET/USDT, DOGE/ USDT XLM/USDT, ZEC/BTC, DASH/BTC, XLM/BTC, DOGE/ BTC, VET/BTC.

So what are you waiting for? Take advantage of added leverage to boost your potential gains today, with Bitcoin.com Exchange.

Disclaimer

Please consider that margin trading has several risks due to cryptocurrency price volatility and product complexity. We advise you to exercise carefulness and attention. Bitcoin.com provides high liquidity, 24/7 multilingual support, and dozens of trading pairs complemented by high security, but we are not responsible for your financial losses during trading activities.

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CryptoAltum, The CFD Trading Platform With 1:500 Leverage

23/06/2020 by Idelto Editor

CryptoAltum, a popular MT5 platform, executes trades using market execution with all trades filled at the best available price in the market. The company uses Fill or Kill orders meaning orders are filled entirely at the best available price, with no partial fills and a 100% execution rate.

Fills All Trades Automatically

The company fills all trades automatically with no dealing desk intervention. Traders can enter and liquidate positions at any time. The maximum amount of open orders users can have on their accounts include having up to 200 open trades and 30 pending orders, providing your overall exposure does not exceed our maximum of USD 1,000,000. Margin call is at 150% and stop out level is 100%.

The company’s servers are located in London. The company also uniquely has a 24/7 support team available on Whatsapp, Messenger, Telegram, and Line.

CryptoAltum also differentiates itself by providing full market depth available on MT5 for all instruments. To further demonstrate pricing transparency, tick data requests are available from the CryptoAltum risk team. The platform also not only provides exposure to cryptocurrencies but also to Forex, Gold, and Indices.

Professional traders may also note that the minimum lot size and maximum lot size for each crypto trading pair varies as does the volume limit. There are some interesting crypto pairs that users can bet against for example XRPEUR and BNBJPY.

For crypto pairs involving the prices of BTC, XRP, DASH, LTC, BCH, ETH, EOS, and XMR, there is a maximum limit of $1,000,000 per trading pair and as the volume in USD increases, the margin requirements increase as well. For example, for volume less than $10,000, margin is 0.2% but as volume surpasses $200,000, the required margin rises to 5%. The 1:500 leverage that CryptoAltum offers is the highest leverage offered globally on CFD products.

For crypto pairs that involve ADA, BNB, BSV, and TRX, the max limit per crypto pair is lower at $300,000 and the volume limits for increased margin are also lower with any volume that surpasses $80,000 requiring users to put up 5% margin as opposed to 0.2% margin on the lower end.

Fees that users will face will be on financing long or short positions and will be calculated by the lot size multiplied by the financing points which change from the liquidity providers on a daily basis. Cryptocurrency financing fees are applied every four hours, and daily for FX and indices. The longer that positions remain open, the higher the Financing rates. The historical buy and sell premiums per lot on cryptocurrencies range from -.0114% to -.0186%.

Main Takeaways

CryptoAltum, based in the Republic of the Marshall Island, does not require KYC or employ any onchain surveillance technologies, assuring traders of privacy and anonymity. This is useful for even novices who may want to utilize the platform to gain exposure to CFD’s without revealing personal information.

The 1:500 leverage offering means a minimum 0.2% margin whereas other competing platforms such as TradeDirect365 may require 40% margin requirements for cryptocurrencies. This allows traders who have the right market intuition to make higher profits on trades that they have conviction on that end up panning out.

Overall, CryptoAltum has interesting features in its wide variety of cryptocurrencies, Forex, gold, and Indices markets, its transparent fee structure, and its willingness to offer traders the highest leverage on their trades.

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2 in 1 – Learn How to Trade on Derivatives for Free and Win Apple Prizes From CoinDeal Derivatives

17/06/2020 by Idelto Editor

Derivatives trading is one way of generating huge profits in a very short time. This raises the question: How can you learn it at no cost?

CoinDeal will allow you to test derivatives for free. This is a unique opportunity to try your hand at margin trading. At first, CoinDeal will launch a DEMO version and after a month of learning the official CoinDeal Derivatives, the platform will be available for every CoinDeal user.

This is just the beginning… So let’s move to the point!

In order to appreciate the efforts and willingness to learn, the exchange guarantees prizes worth over 2500 euros for the best traders. Among the prizes are: iPhone SE, iPad mini, Apple Watch, JBL Flip 4, and many others.

The whole action will be split into two parts.

The first part of the competition will take place before the start of the DEMO version will last from now to 7 July 2020.

At this stage, you will only need your email address and sign up with this email for the waiting list. Then to raise your chances of winning prizes you need to recommend signing up to your friends. This way, in addition to inviting them to the whole action, for each invited person you get points, which are counted in the ranking and give you a better chance to win prizes. The more points you have, the more likely it is that the prizes will go to you.

You will have a direct opportunity to check the ranking here.
Every person on the waiting list will receive an instruction to register for the DEMO CoinDeal Derivatives platform and a reminder of the start of the next stage.

The second part of the competition starts at the start of the DEMO version after the first stage and will last until 8 August 2020. Here the profit generated from trading in derivatives will count. Each user of the DEMO version will receive a pool of free cryptocurrencies for the start, with which he will be able to start trading.

More information about the second part of the competition will be visible in time on CoinDeal social media channels.

Each participant has exactly the same chances to win prizes. The prizes for the first and second parts of the competition are separate. The number of invited people in the first part does not affect your chances in the second part of the game. You can read all the regulations on the Derivatives page.

Contact Email Address
[email protected]

Supporting Link
https://bit.ly/3hmysSs

This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Dydx Processed $1.1 Billion Cryptocurrency Loans in 12 Months — 70% in Just 60 Days

23/04/2020 by Idelto Editor

Cryptocurrency lender Dydx advanced a total of $1.14 billion in digital asset loans over the past 12 months. But about 70% of the money was borrowed in just two months, February and March, as coronavirus-linked volatility triggered a frenzy of borrowing among investors.

Monthly volume remained below $100 million in the nine months to January but rose sharply between February and March to about $300 million and $400 million, respectively, the latest data from the company shows. More than $100 million worth of loans have been lent out so far this month, indicating a steep decline in investor appetite to borrow.

Cryptocurrency prices fell sharply during this period as coronavirus lockdowns sent markets crashing throughout the world. Ethereum, a dominant currency of exchange on Dydx, dropped below $100 at the time but has since recovered to above $180.

About 45% of the total loan portfolio, or $516.64 million, is denominated in ether while 33%, or $378.67 million, comprises dai loans. USDC loans account for the remainder of the equivalent of $128.08 million.

The decentralized margin trading exchange did not detail the type of borrowers it lent to or how they utilized their funds. However, with such market volatility, investors typically try to hedge derivative investments or bet on the direction of certain cryptocurrencies.

Antonio Juliano, the founder of Dydx, said traders scrambled to use his margin trading facility as coronavirus volatility reached a fever pitch, according to media reports. But that has since started to decline because volatility had slowed down, he said.

Dydx is a decentralized exchange for margin trading. It operates on the Ethereum Blockchain, allowing users to trade, borrow or lend three digital assets — ether, dai and USDC — with leverage of up to 4x. Cryptocurrency loans are emerging as an increasingly viable alternative to borrowing fiat.

What do you think about cryptocurrency borrowing during covid-19? Let us know in the comments section below.

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Coinbase Margin Trading Now Live for Coinbase Pro Users

14/02/2020 by Idelto Editor

Coinbase has launched margin trading for users of its cryptocurrency trading platform, Coinbase Pro. Both individual and institutional investors in selected regions now have access to Coinbase margin trading. The company plans to expand access to more regions and provide more types of collateral assets.

Also read: Bitcoin, Tesla Stock, Tron: How Warren Buffett Got His First Bitcoin

Coinbase Margin Trading Launches

Digital asset platform Coinbase announced Wednesday that it has launched margin trading on Coinbase Pro, its cryptocurrency trading platform. The San Francisco-based company wrote:

Today we’re excited to announce the availability of margin trading for eligible Coinbase Pro customers … Coinbase Pro customers in 23 U.S. states can access up to 3x leverage on USD-quoted books.

Margin trading (or leverage trading) has been one of its most requested features, Coinbase noted. Margin trading “can amplify the impact of your trades by allowing you to borrow additional funds,” the company described. “If deployed as part of a responsible trading strategy, margin trading doesn’t just increase your position in a specific trade, but can also help diversify your portfolio, allowing you to hedge or arbitrage across multiple positions without depositing additional capital,” Coinbase detailed, elaborating:

Over the next year we plan to expand access to the product to customers located in more regions. We will also be expanding the product to include more types of collateral assets.

The platform claims to have over 30 million users trading over $150 billion. Coinbase previously offered margin trading of up to 3x leverage through its GDAX platform but the service was later suspended. Launched in 2015, GDAX was the company’s professional trading platform for individuals; it became Coinbase Pro in May 2018.

Margin Trading on Coinbase Pro — Who Is Eligible

In its Wednesday announcement, Coinbase explained that “For institutional customers to access margin trading, they must be based in one of the 43 states or 9 international countries where we currently offer margin for institutions.” In contrast, the company added:

For individuals to qualify for margin trading, they must live within one of the 23 states where we currently offer the feature, have a valid Coinbase Pro account, and be active on Coinbase Pro, measured by recent trades, balances, and deposit and withdrawal activity.

Users may be subject to additional requirements for margin trading, including having enough collateral assets in their Coinbase Pro accounts.

Coinbase Pro “offers an intuitive interface with real-time orderbooks, charting tools, trade history, and a simple order process so you can trade from day one,” according to its website. It is available to users in a number of countries worldwide. Anyone with a Coinbase account can upgrade to a Coinbase Pro account and start trading. Some countries have access to crypto/fiat trading pairs while others can only access crypto/crypto trading pairs. The Coinbase Pro app is available for both iOS and Android operating systems.

What do you think of Coinbase offering margin trading for its Coinbase Pro users? Would you use it? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images courtesy of Shutterstock and Coinbase Pro.

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