Binance, one of the top crypto exchanges by trading volume, has launched its 2.0 platform and added margin trading for its customers, the company announced in an official blog post today.
The first hint we got of a possible margin trading on Binance was from the exchange’s CEO Changpeng Zhao in late May, when he tweeted a screenshot of their new platform, which had a Margin Trading tab. As we all know, margin trading allows exchange account holders to use their current balance as collateral to open both long and short positions on a crypto asset, and can either lead to big profits or big losses. Binance’s Co-Founder Yi He explained:
“Though the current cryptocurrency market and legacy platforms for margin trading poses greater risks and benefits at the same time, we are confident that its development coupled with more knowledge on proper risk management will help realize greater benefits in the long run.”
In order for Binance users to take advantage of the new service, they would have to first go through a KYC (know-your-customer) check and have two-factor authentication set up as an extra layer of protection. Margin trading is available across six cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Binance Coin (BNB), Tron (TRX), and Tether (USDT). The fees are 0.02% on all of them, except BNB, which has a fee of 0.01%.
According to the announcement, the new Margin Trading platform is hosted under a newly optimized interface. The 2.0 platform also includes “an advanced trading engine for better order matching and press indexes for margin level calculations to enable lower liquidations”. A new “Margin Wallet” has also been launched. With it users can move funds to their primary Binance Wallet without any fees. In today’s announcement, Binance’s CEO Changpeng Zhao said:
“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. We are providing a new tool in the financial services and cryptocurrency markets to help amplify trading results of successful trades.”