Margin Trading on Bithumb Global — A Step-by-Step Guide
We are in the midst of an economical upheaval. The traditional financial system is bursting at the seams and it is very likely when the time comes, an alternative system, powered by digital assets (cryptocurrencies) will take its place.
If the recent exponential increase of interest in cryptocurrency trading is any indication, the time is near. The crypto markets have seen a steady influx of capital, investors and traders — looking for a hedge against risks posed by traditional money.
Margin trading offers a very attractive way for new and old traders to capitalizer on this unique situation. According to Investopedia, “Margin is the money borrowed from a brokerage firm to purchase an investment. It is the difference between the total value of securities held in an investor’s account and the loan amount from the broker. Buying on margin is the act of borrowing money to buy securities.”
In case of crypto trading, margin trading is the act of buying cryptocurrency assets from funds borrowed against current funds to trade cryptocurrency “on margin” on an exchange. In other words, users can leverage their existing cryptocurrency or dollars by borrowing funds to increase their buying power.
As you might have guessed, margin trading is a great way for traders to trade by borrowing assets from digital asset exchanges. It allows users to use a small amount of initial capital to leverage their positions for maximizing profit.
Bithumb Global has always been on the forefront of innovation. It has always endeavored to develop new fintech solutions for discerning and future-ready cryptocurrency enthusiasts to leverage the exciting opportunities presented by new-age digital assets.
Recently, it introduced its Margin Trading Platform which was warmly received by its growing community of traders.
Currently, Bithumb Global offers two trading pairs — BTC/USDT and ETH/USDT for margin trading by offering 5X leverage.
The process is simple and seamless and is explained in detail below.
To begin trading, you need to first register for margin trading. Once registered, you will have to transfer your funds into your Margin Account. Let us understand the process using the highly popular pair of BTC/USDT.
Step 1: If you are a new user, register on the Bithumb Global trading platform (https://www.bithumb.pro/en-us/margin). If you already have an account on the platform, simply log in and transfer funds to your account.
Step 2: For funding your account for the first time, go to “Assets” in the upper right corner of the top navigation bar and select “Deposit.” You will have to option of funding your account with either crypto or fiat. Since you will be margin trading, you will have to fund your account with BTC, USDT (or ETH).
You will see that we have made it easy for users to buy cryptocurrencies through their credit cards as well.
Step 3: All deposited funds go to your Spot trading account. To transfer funds from spot trading account to margin trading account, click on “Assets.” You will be able to see the spot assets and margin assets. Click on “Spot Account.” Select the currency you wish to transfer. In our example, since we want to perform a margin trade transaction of BTC/USDT, so you will need to select BTC.
Select the amount of BTC you wish to transfer to your margin account and click on “submit.”
Step 4: To go to your margin trading account, select “Margin” on the top left hand side of the navigation bar.
Step 5: The leverage offered is 5X. You will be offered long BTC.
The system will automatically allocate funds based on your margin account holding assets and margin multiples.
Step 6: Input the price and amount of BTC, and click on “Buy (Long) BTC.” If you wish to short BTC, you will have to click Sell BTC. There’s no need to ‘manually’ obtain a margin loan — Bithumb Global’s system does this for customers automatically.
Step 7: In the event BTC rises and the user sells BTC, our system will automatically repay the loaned USDT and interest. Funds are automatically borrowed and returned, eliminating the steps of active borrowing and returning, saving time.
On the lower right side of the page, you will be able to view your leveraged assets as well as borrowed assets. You will also see margin, leveraged multiples and borrowings.
This is a simple step-by-step guide to margin trade on Bithumb Global. In the short time that we have introduced this feature, we are already seeing a lot of interest from our users. We are committed to improve the user experience and help traders trade with confidence and lower their risks.
In the near future, we will be adding more trading pairs for traders to take advantage of.
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