CoinEx Adjusts Margin Trading Services, Strengthening Its Robust Position in the Crypto Market
On Tuesday, Bitcoin fell below $30,000 for the first time since January, shrinking nearly 30 percent in value after a week of frequent trading. The latest drop retraces the sharp gains of recent months, bringing its value back to levels close to those seen at the start of the year.
Daily trading volume in Bitcoin derivatives touched a high of $230 billion in May but fell back to $45 billion on July 9, according to relevant data. For now, the industry is generally positive about the outlook of cryptocurrencies, with volatility and trading volumes expected to return to previous highs.
As crypto traders know, spot, leverage, contract, etc. are the predominant facilities of the crypto world, leaving wealth management and mining far behind. Facilities such as NFT emerged recently. The high leverage of crypto leads contract trading and margin trading to become the center of attention.
Almost all crypto investors have tried margin trading, which has become the most attractive investment in the volatile field of digital currencies.
First of all, leverage. Currently, many trading markets offer up to 100x leverage, enabling users to throw a sprat to catch a herring, say, to exchange $500 for $50,000 for trading. The risk is as great as, or even much greater than the returns.
Under the exploitation of the margin coefficient of major exchanges, the exchange will forcibly liquidate, say, a 100x margin contract, for the sake of risk control, which greatly affects the crypto market transactions. And there are incidents such as long wick candle, slippage, lagging, and downtime, which often cause losses that users can only bear in silence. As the crypto market is still in the process of internationalization, even if there is unjust conduct, users have no way to complain but to grin and bear it.
Leverage offers the possibility of obtaining larger returns with less capital. However, it will also saddle you with amplified losses when the market moves against you. Therefore, ordinary traders should avoid large position trading with high leverage to keep themselves safe from forced liquidation or even bankruptcy.
Among the four exchanges, Binance, CoinEx, Huobi, and OKEX, CoinEx is more robust with the lowest leverage for spot trading of around 3x to 10x. For CoinEx and Binance, the larger the borrowed assets, the smaller the leverage available. OKEX and Huobi will evaluate the user’s ability to trade with leverage based on the net assets of the account, that is, the more the principal, the higher the leverage available.
CoinEx leverage adjustment: a 10-day interest-free leverage period for new borrowers
Higher leverage brings more opportunities but also higher risks. CoinEx supports 3x to 10x leverage. And like Binance, it shares all crypto assets as margin, which means all coins of the platform can be used as margin for other coins in margin trading. The amount of leverage available to the user is automatically matched to the net worth of the account. The more assets you have, the higher the leverage available.
These days when exchanges are ruthlessly cashing in on retail investors by various means, robust and forward-looking exchanges will gradually dominate the market. Users can get rid of the misery of being exploited if they choose large platforms with a comprehensive ecosystem and complete underlying facilities.