WHY SHOULD I TRADE WITH BINANCE MARGIN?
Margin trading is a type of trading in which traders use their assets as collateral while putting in a large amount of money to leverage market positions. Usually, the funds borrowed are in turn used to leverage trades with very high purchasing power. As is common in the traditional markets, the funds borrowed in the crypto market is typically provided either by the exchange or other crypto brokers.
Interestingly, margin trading is gradually becoming a new normal as far as the financial market is concerned, as it’s now commonly practiced in stock, forex, commodity, and, of course, crypto markets. Oftentimes, many traders experience difficulties in trading cryptocurrency via margin trading owing to a lot of technical complications ranging from ignorance of how it works, non-compatibility with an exchange, fear of loss, and many others. The truth, however, is that trade margin requires due diligence and a thorough understanding of how it works. To get full details on how margin trading works, kindly check the link below:
Sequel to the subject of this write-up on why you should consider trading with Binance Margin. I would like to highlight for you four major reasons why you need to consider trading with Binance margin.
BENEFITS OF TRADING BINANCE MARGIN
DIVERSE TRADING PAIRS
Margin trading allows traders to trade with both common and uncommon trading pairs. Unlike spot, margin trading allows over 600+ pairs, thereby giving traders the privilege of amplifying their gains as much as they can. Being limited to some pairs undisputedly limits one’s chances of attaining some financial goals. However, with Margin trading, traders can opt into as many trade as they can to make a profit, and repay their loans as soon as they can. Provided the risks involved have been well calculated.
Most lending channels often do not permit the use of heterogeneous collateral owing to inaccuracies that could arise as a result of that. Contrarily, Binance allows its users to tender multiple assets as collateral for the sake of convenience and to allow users’ operation on Margin much more stress-free. For example, if every other loan condition is met, a combination of a BTC-ETH asset can be tendered as collateral to put in for a BTC loan.
In trading, the adage “all work and no play makes Jane a dull girl” is very true. Over and over, it has been proven severally that the mental well-being and overall well-being of traders have been messed up when the market turns the other way round(i.e. huge loss sets in). Binance understands the importance of taking a necessary break in order to reenergize, restrategize, and prepare for future trades. And to this end, a cooling period feature has been put in place for her margin traders. In order to help buy time when required without any FOMO.
Lastly, the saddening part of making a loss as a trader is losing your treasured asset with no means of recovery in sight. Such experiences mar a lot of traders psychologically as it appears all hope is gone. The stigma of relegating from somebody to nobody, plus the desperation of wanting to bounce back from the loss, can further complicate things. However, trading on Binance Margins foresees these cost-effects and has put in measures to salvage its traders from such a status quo plight. With insurance funds in place, traders engaging in Binance Margin can rest assured of a substantial amount of assets safely insured for gloomy days of loss. Insured funds help traders to get back into trading much more quickly than expected.
WHEN CAN I USE BINANCE MARGIN?
A lot of questions beg for an answer as to when, how, and why to use Binance Margin to trade. While the question of Why has been well answered on the basis of the benefits contained in using Binance Margin. The question of when to use it can best be answered by considering the relatable instance below:
BTC as of today, June 28th, 2022 stands at $21,029 as shown below.
Based on your technical analysis, you reached the inference that it’s bound to hit high at the $20,996 market price as seen in the chart below:
But owing to insufficient BTC in your wallet, you want to have a lot of purchasing power so you can leverage the market and make as much money as possible. You can simply reach out to Binance Margin to borrow more funds, using your assets as collateral. Provided your leverage ratio is within the permissible range.
On clicking the Margin overview, click on the three horizontal dotted lines. This will direct you to another page where you can borrow and proceed to trade accordingly.
Click on the ‘Borrow’ option and apply for the amount of loan based on your leverage ratio and the amount to be used as collateral. After that, you can proceed to trade BTC in the Margin-trade with your TP and SL well in place to adequately manage the trade.
With the extensive expository on the importance of trading with Binance Margin. The fact remains, that margin trading involves a high level of risk as much as the profits it contains. Without due study, research, analysis, and most importantly, enough assets. One can go into margin trading and run into loss confidently. Such an experience is not a good one to behold, and as such, there is a need to go into such a trading channel through platforms that guarantee the safety of one’s assets and make trading stress-free. With Binance Margin, you’re guaranteed all of the advantages earlier discussed above, among several others. Basically, to trade in spot is good, but trading is Futures is much better. However, if the aim is to make maximum profit, speedy leverage on highs in the markets, and attain one’s financial goal promptly. Nothing beats trading on Binance Margin where collaterals are secured, high purchasing power is made available, interest is minimal, trading pairs are quite dynamic and the volatility of the market is best managed.
To join the league of risk-takers and profit rakers leveraging on Binance Margin today. Kindly sign up on Binance through the link below: