Understand Margin Trading in the Crypto world

Margin trading is a type of Leverage trading that essentially involves placing your assets as collateral (leverage) with an intent to increase your purchasing power. If you’re a Margin trader in the traditional markets, I guess you could 5x your portfolio with Crypto margin trading.

And a platform like Binance Margin could get you started in minutes. Expert Crypto traders are known to borrow funds on Binance Margin to leverage their position and make big profits.

Here are a few reasons why Binance Margin Trading should be a priority for you:

1. Diverse trading pairs- With Binance being the largest Crypto exchange in the world, traders on Binance Margin get over 600+ trading pairs that are scarce in other exchanges.
2. Multi-asset collateral- When trading margin on Binance, you are free to invest multiple assets as collateral to initiate your leverage trading. This is made possible with the cross-margin mode. Hence, one could invest BTC, ETH, BUSD, and USDT in a BTC-based margin trade.
3. Cooling-off period- In an effort to help traders avoid excessive trading, users have the option to temporarily stop margin trading activities for a specific duration of time via initiating the cooling-off period function. All this stems from Binance’s attempts to uplift responsible trading and avoid often compulsive trading altogether.
4. Insurance fund- Binance Margin is all about protecting its users; and with an insurance fund in place, the platform protects traders when their equity gets to less than 0. This factor also helps when users are unable to pay their dues as a result of a lack of funds in their accounts.

Binance Margin Trading comes in handy in the following scenarios:

1. If you feel that you’re limited by your current capital, and you intend to capitalize on a potential trade, margin trading can give you the capacity to leverage your position for bigger profits.
2. If you intend to diversify your portfolio to other cryptos but are limited in funds, you can use Binance margin to increase your buying power. Additionally, entering a hedged position via margin trading could be a good boost in protection against market downturns.
3. When you comprehensively understand your potential losses- Binance margin trading is not a beginners game. Hence, it is only ideal for experienced traders who have placed proper risk management strategies for maximum protection.

If you’re an oldie in the traditional markets, Binance Margin could be your ultimate trade to dive into the Crypto space and build a diverse portfolio. That definitely sounds like a good deal to me.

Get started with Binance Margin Trading today>>

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