Margin Trading

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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XRP Plummets 56% in One Candle, Bitmex Traders Outraged Over Flash Crash

13/02/2020 by Idelto Editor

XRP Price Brought Down 56% in One Candle, Bitmex Traders Outraged Over Flash Crash

A number of XRP traders are complaining about massive liquidations on Bitmex as the price of XRP spiked and was brought down by 56% in a single candle. After the incident, well known traders with leveraged positions took to Twitter to complain about the upset as some investors were completely liquidated.

Also read: Fed Chair Powell Reveals US Response to China’s Digital Yuan, Libra, Public Payments Ledger

Traders Complain About XRP’s 56% Drop in One Candle

XRP traders got extremely upset on Thursday when the price of XRP went from a high of $0.32 to a low of $0.14 in one trading candle on Bitmex exchange. This means the price swing or “flash crash” took place in the blink of an eye and movements like that catch lots of traders off-guard. One trader Marc de Koning took to Twitter and said “WTF — This is really not okay — My stop didn’t trigger and my entire Bitmex account is […] gone.” The blockchain analytics organization Fiatleak even complained about the XRP action and people noticed glitches on the website.

“The site is wobbling and staggering under the combined weight of many, many thousands of XRP fanatics watching a technical breakout,” the website’s official Twitter account noted. “We’re working on it, but keep trying … you can’t break the site any more than you already are.”

XRP Plummets 56% in One Candle, Bitmex Traders Outraged Over Flash Crash — A screenshot of the 56% drop in one candle shared by Marc de Koning who tweeted he was unhappy with the experience and his “entire Bitmex account is gone.”

Popular analyst Jacob Canfield discussed the odd price movements with his 48,000 Twitter followers. “XRP traded from $.34 to $.14 in one candle on Bitmex,” Canfield tweeted. “My mama told me that’s the devils coin and I’m starting to believe her.” The Twitter account Cryptogainz talked about the subject as well as the XRP liquidations started trending on the social media platform. “If you longed XRP/USD on Bitmex, you’re an idiot,” Cryptogainz said. “You just paid exorbitant funding and got hit with a wick that either stopped you out or liquidated you — You could have paid less in funding and not been liq’d on bybit. This […] is why all my [Bitmex] refs have low longevity.” Cryptocurrency trader and “bubble chaser” Benjamin Blunts called the candle drop “disgraceful.” “That XRP scamwick on Bitmex is disgraceful, I don’t think I’ll ever trade XRP perps on Bitmex after seeing that,” Blunts stressed. The trader added:

Hope [Arthur Hayes] digs into the insurance fund to compensate the people who’s stops didn’t go off otherwise, that’s a dog act.

‘Cripple the Shorts’

Many people blamed the XRP coin itself for lack of real liquidity and also noted that Bitmex is known for liquidations. “XRP is well known for been a crypto that always [screws] its holders and Bitmex well known for making those moves to liquidate accounts, so…,” tweeted Silvia Gutierrez. This is not the first time XRP traders have seen a flash crash and massive liquidations in a short period of time.

Crypto traders complained two years ago about an alleged flash crash on Bitfinex, a year ago another one purportedly took place on Bitstamp. At the moment, there isn’t any official word from Bitmex, but Arthur Hayes’ tweet the day prior also got people fired up over the flash crash drama. “CRipple the shorts,” said Hayes with a picture of the XRP price against USD. “Pro Tip: the Buy and Sell buttons are both equally profitable regardless of whether or not you are trading a turd,” Hayes added.

“The statements you make reflect negatively on Bitmex,” an individual wrote in response to Haye’s tweet. “Very unprofessional/childlike.”

What do you think about the XRP trading candle that took place on Bitmex on Thursday? Let us know what you think about this topic 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. Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”

Image credits: Shutterstock, Marc de Koning’s tweet/chart, Wiki Commons, Fair Use, and Pixabay.

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Binance Launches Margin Trading Service

13/07/2019 by Idelto Editor

Global cryptocurrency exchange Binance launched its margin trading platform today, July 11, 2019.

Using the new Margin Trading platform, users can leverage their digital assets in order to borrow funds from Binance. They can then trade the borrowed money — a practice that comes with high risk but also allows for amplified profit potential.

In a company announcement, Binance CEO Changpeng “CZ” Zhao said that the new platform will serve to amplify “trading results of successful trades.”

“This is another step in providing an inclusive cryptocurrency trading platform catering to the needs of both advanced institutional traders and retail traders under the same roof,” CZ said.

The new platform, called “Binance 2.0,” will have a newly optimized interface that will enable access to both the exchange and the margin function so that traders only have to use one account. This will also enable users to transfer funds between the margin wallet and their primary Binance wallet with no transaction fees.

Users can currently trade bitcoin (BTC), ether (ETH), XRP, binance coin (BNB), tron (TRX) and tether (USDT).

Yi He, co-founder of Binance, said that despite the great risks and benefits that come with margin trading over current cryptocurrency market and legacy platforms, the company is confident that its development, combined with proper risk management, will allow for greater benefits in the future.

“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,” he said.

Binance recently announced the expansion of its trading platform to Singapore to allow users to buy and sell cryptocurrencies using the Singaporean dollar (SGB). The company also extended its platform to the European market in January 2019.

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The Daily: Bitfinex Launches Tether Margin Trading, Zebpay Resumes BCH Transactions

23/12/2018 by Idelto Editor

In today’s edition of The Daily, we feature a number of recent developments from influential cryptocurrency exchanges including Bitfinex, Coinbase and Zebpay. We also cover the latest investment in the field by Paypal co-founder, Peter Thiel.

Also Read: Poll Shows 13% of Russians Use Cryptocurrency for Online Purchases

Bitfinex Launches Tether Margin Trading

Bitfinex, the exchange linked to the controversial Tether stablecoin, has introduced trading on margin for the USDT/USD pair. As strange as it may sound, offering leveraged trading on an instrument against the fiat base it is supposed to be matching can have some uses. And above all, it signals that the company is confidant about being able to maintain the 1:1 backing, even under new pressure from leveraged traders.

Bitfinex claims that adding margin trading on USDT/USD “will not only allow for more efficient price discovery, but in an important move for risk management, unlock the ability to hedge the exposure taken on stablecoins. Along with a dedicated lending market, USDT will be available as collateral for margin positions.”

The exchange further claims that while stablecoin margin trading is limited to USDT/USD for now, Bitfinex has plans to introduce margin trading for other stablecoin pairings, as part of its “commitment to providing a coin agnostic platform, when sufficient liquidity is reached.”

Coinbase Expands to Six European Markets

Coinbase has announced the rollout of its basic service to six additional European regions, encompassing about three and a half million people. This means that customers in Andorra, Gibraltar, Guernsey, Iceland, Isle of Man, and Lithuania will be able to use the website and mobile apps to buy and sell cryptocurrencies on the platform. And the company also hopes to make Coinbase Pro and Prime available in these regions over time.

“Cryptocurrencies are global by their very nature and we believe that they should exist without borders. To realize our mission means making crypto easily available to everyone, irrespective of their geographical location,” the team stated. “Next year we will continue expanding rapidly into new regions and adding assets to the Coinbase platform to meet customer demand.”

Zebpay Resumes Bitcoin Cash Transactions

Zebpay, formerly one of India’s largest exchanges which recently launched in Europe, has notified clients on Friday that it is now reenabling BCH deposits and withdrawals paused since the recent hard fork. The exchange will also restart BCH trading for supported fiat and crypto pairs in supported countries over a couple of days.

“We have closely monitored the BCH network, it is now stable and safe to resume BCH wallet transactions. You can perform Bitcoin Cash sends and receives from your Zebpay wallet,” the team explained. “We are providing support for the Bitcoin ABC network which is identified on the Zebpay platform as Bitcoin Cash with ticker BCH. ABC chain is leading in blocks, hash rate, total chain difficulty. In your Zebpay wallet, BCHABC will be called BCH, balances will be credited in 1:1 from fork time.”

Peter Thiel Invests in New Crypto Platform

San Francisco-based crypto investment platform Layer1 has announced the closing of $2.1 million in seed funding. The round was backed by notable investors such as Peter Thiel, Digital Currency Group, Jeffrey Tarrant, and others.

The company’s stated mode of operation is to take a long-term position in crypto assets it believes represent promising technologies with network effects, then deploy capital and resources in order to improve their fundamental value and support market adoption. It is said to have a heavy focus on programmable money and store-of-value applications.

Layer1 is led by co-founder, Alexander Liegl, and the team comes with experience from both big tech companies, such as Google and Facebook, and major investment funds such as Protégé Partners and Stanford Management.

“We believe that the crypto investment company of the future will look radically different to status quo, with a clear focus on an engineering-first and pro-activist investment approach,” said Liegl. “Cryptocurrencies, as open-source protocols, offer the unprecedented opportunity for companies like Layer1 to meaningfully add value. This is fundamentally different from the possibilities available in traditional asset classes.”

What do you think about today’s news tidbits? Share your thoughts in the comments section below.

Images courtesy of Shutterstock.

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Japan Publishes Draft Report of New Crypto Regulations

18/12/2018 by Idelto Editor

Japan Publishes Draft Report of New Cryptocurrency Regulations

Japan’s Financial Services Agency has published its draft report outlining new cryptocurrency regulations. The report contains measures in areas that are not currently addressed in existing laws such as hacking incidents, self-regulation, deemed dealers, privacy coins, and margin trading.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

New Crypto Regulatory Framework

Japan’s top financial regulator, the Financial Services Agency (FSA), published a draft report outlining the country’s new regulatory framework for cryptocurrencies and initial coin offerings (ICOs) on Friday. The report, which was discussed at the agency’s 11th study group meeting, contains recommendations from the previous 10 study group meetings. According to local media, there was no major objection to the proposed measures in the report so the FSA is expected to draft regulations based on its content.

One major area in the report concerns preventing and dealing with hacking incidents such as the hacks of two major Japanese crypto exchanges — Coincheck in January and Zaif in September. The FSA will require crypto exchanges to strengthen the “management and maintenance of customer property,” such as the management of private keys. For consumer protection, the FSA states that it is necessary for exchanges to have net assets “equal to or more than the amount equivalent to the currency and repayment funds” in the event of a hack. The document also outlines countermeasures against crypto exchanges going bankrupt.

Self-Regulation

The FSA explains that it recognizes the rapidly changing technological innovation and sees the importance of collaborating with accredited self-regulatory organizations. “For this reason, we urge members to join the certified [self-regulatory] association” and develop systems according to their rules, the FSA wrote. In October, the Japan Virtual Currency Exchange Association (Jvcea) obtained accreditation from the FSA to be able to legally enforce self-regulatory rules.

The document also explains that the FSA deems it appropriate to refuse or cancel the registration of operators that neither join “the accredited association and conform to the self-regulation” nor establish their own internal systems to comply with the self-regulatory rules.

Deemed Dealers

The report also addresses “deemed dealers,” which are companies that have been allowed to operate crypto exchanges while their applications are being reviewed. Currently, there are three of them: Coincheck, Lastroots, and Everybody’s Bitcoin. The report points out that some of them have been aggressively advertising and rapidly growing their businesses, but many of their customers are not aware that they are not registered.

The FSA has proposed a number of measures for them. Firstly, they cannot expand their businesses or list additional coins until they are registered. Moreover, they can neither acquire new customers nor advertise or solicit for the purpose of acquiring new customers. They must also post a notice on their websites about the status of their registration.

Some Other Measures

Among other measures outlined in the report are restrictions on privacy coin listings, transactions in derivatives, and margin trading.

In addition, the report discusses ICO regulation. ICOs “can be subject to the securities regulation,” the FSA noted, adding that “We are implementing administrative measures.” Depending on their structure, tokens may be subject to regulation by the Financial Instruments and Exchange Act or the Fund Settlement Act. The document also reveals that the FSA finds it appropriate for third-party organizations to establish a framework and examine token issuers’ businesses and financial situations.

Additionally, the report addresses crypto custody businesses which do not fall under existing laws. The FSA has proposed measures such as introducing a registration system, maintaining an internal control system, separating the management of exchanges’ and customers’ cryptocurrencies, publishing response policies in case of hacking incidents, and retaining funds for repayment.

What do you think of Japan’s proposed new regulatory framework for cryptocurrencies? Let us know in the comments section below.

Images courtesy of Shutterstock.

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