The crypto market is on fire once again, following the longest bear market on record. Throughout the bear market and especially during times of sideways consolidation and increasingly tightening ranges, crypto traders often turned to exchanges that offered margin trading in hopes of magnifying any profits generated and better keep up with the gains traders became accustomed to during the crypto bull market.
The crypto market environment has once again changed. More competitors are entering the margin trading arena than ever before, as it is the #1 most desired featured most cryptocurrency traders request. It’s become so important, one CNBC-featured trader believes that margin trading is the key to capturing market share.
Battle for the Best Margin Trading Experience, Winner Takes Market Share
During the bear market, BitMEX made quite a name for itself, as it has long been the main crypto exchange offering traders 100x leverage on Bitcoin trading, as well as the ability to “short” the market, earning off falling crypto prices. But as the market heats back up, more competitors are entering the industry, and established powerhouses are working on adding margin trading services of their own.
In just a few short months, margin trading has become a hot topic across the crypto industry. As BitMEX frustrates users with order submission errors, and with Tether drama making Bitfinex less appealing for traders seeking leverage, it has opened the doors for many others to take notice.
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Malta-based crypto exchange OKEx recently raised their max leverage from 3x to 5x. In a recent Youtube AMA, Coinbase CEO Brian Armstrong mentioned that his firm is considering adding margin in the future. Much of the recent interest in margin trading lately is due to Binance adding the option in the future. Thus far, Binance CEO Changpeng Zhao confirmed rumors that the firm is adding support for margin trading “soon,” but fell short of offering any additional details.
It’s expected that Binance is to offer margin rates similar to OKEx, Kraken, or Bitfinex, which may not be enough for traders who have grown fond of the 100x offered by BitMEX.
🔮Future Prediction: Margin trading on @binance will allow them to capture a majority share of the margin trading market from Bitmex and Bitfinex and make $BNB a top 3 token in the near future.
Congrats to @cz_binance for the new platform upgrade and listening to the community. pic.twitter.com/8pHIWhgkxp
— Jacob Canfield (@JacobCanfield) May 24, 2019
CNBC-featured trader Jacob Canfield believes that margin trading is the key to capturing market share, and it could help Binance bring its Binance Coin utility token into the top 3 by increasing demand for the token that is used to reduce fees for traders.
Related Reading | Analyst: Bitcoin Price Rally Targets Between $12K and $22K Based on BitMEX History
Binance has a lot going for it – it’s among the most popular exchanges by volume, and it offers one of the largest varieties of exotic altcoins. However, it lacks the ever important 100x leverage offered by BitMEX and and others.
Binance will have to prove itself to the crypto market once again, this time that the platform can handle margin trading and still maintain its large catalog of alts and massive trading volumes, and not experience the instability that has frustrated BitMEX traders for much of its existence.
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