Bitcoin is all over the latest cryptocurrency news, even though it corrected from $13,000 to the $11,000 levels. However, the popularity of 100x margin trading is still active and crypto investors absolutely love to take on risk.
As you probably know, BitMEX has already materialized this trend, allowing retail and institutional investors alike to get their hands dirty and try on margin (leverage) trading. For those of you who are unaware, this means that users can gain access to more cryptocurrency than they deposited by simply borrowing from exchanges (and thus taking more risk). This is the main concept of 100x margin trading.
In the coming altcoin news, we can see that Bitfinex is ready to join BitMEX and offer 100x margin trading to its clients. This means that one user with one BTC could make 100 BTC trades if they wanted to. The product was first hinted at in a Tuesday morning tweet by PAolo Ardoino who is the chief technical officer (CTO) at Bitfinex.
— Paolo Ardoino (@paoloardoino) June 24, 2019
If the news are true and this is materialized, Bitfinex will join BitMEX in offering 100x leverages. Ardoino spoke to the best cryptocurrency news sites in exclusive posts, explaining that Bitfinex is on the verge of shipping a derivatives product that will allow for 100x leverage to its clientele.
As the Bitfinex C-suite member said, it is “now ready for prime time” – revealing how the 100x margin trading will improve the current margin system (which allows for up to 3.3x leverage). It is important to point out that this new derivative won’t replace the old system.
Per the CTO, only the “verified” customers will be able to use this feature, which is very much unlike BitMEX and its free-for-all business model. In the Bitfinex case, “verified” basically means investors that have passed the proper know-your-customer (KYC) processes and have the right capital to support 100x margin trades.
The altcoin news about 100x leverages on Bitfinex also comes hot on the heels of Binance, which recently forayed into margin trading. As of recently, the exchange (Binance) has hinted that it will roll out margin to all KYC-verified users with due time.
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