Bitfinex remains one of the most popular crypto exchanges in the world today. All of its services are of great interest to users from all over the globe. In a recent change, the company decided to integrate 100x leverage for top cryptocurrencies. This move coincides with Binance recently releasing margin trading as well. Crypto traders have an appetite for risk and exposure, to say the very least.
100x Leverage on Bitfinex
Although the trading platform doesn’t have the best reputation, it is still a commonly used service. Bitfinex is one of the older trading platforms still active in the cryptocurrency world today. To ensure the company can remain competitive with other players, its management decided to increase the limits of its leveraged trading. In doing so, they will let users take huge gambles on how the Bitcoin and Ethereum price will evolve.
Although this feature is not now, the updated limits are very different from what Bitfinex offered up until recently. Until last week, users could only achieve up to 3.3x leverage. For most traders, that is still sufficient. While leverage allows for more potential profit, it can also usher in steeper financial losses. Cryptocurrencies remain volatile efforts under the best of circumstances. That aspect should never be underestimated in the slightest.
Bitcoin and Ethereum vs Tether
It is always interesting to see how different exchanges look at leveraged trading. In the case of Bitfinex, the new derivative contracts are for either Bitcoin or Ethereum. Rather than coupling both currencies to their USD value, the exchange opted for USDT pairs. That in itself will be very controversial to a lot of people. Tether is, in the eyes of many, a very shady project.
That doesn’t mean users will not take note of Bitfinex’s new offering. The fluctuations for Bitcoin and Ethereum over Tether can prove to be even more lucrative or devastating in terms of leverage. The USD and USDT value of both projects are not necessarily the same at all times. As such, traders can play all of these markets across different platforms if they desire to do so.
Competing With BitMEX and Binance
There has been a growing sense of competition among leveraged trading providers. BitMEX will undoubtedly remain the biggest platform for quite some time to come. It is the one platform virtually all traders have taken a liking to. It too provides leverage of up to 100x. Binance, on the other hand, only recently introduced margin trading for select currencies. While it has lower limits, it shouldn’t be overlooked in this particular race.
Limited Availability
What is rather intriguing is how Bitfinex can only provide leveraged trading to select countries. Noteworthy regions not on this list include the US, Canada, Switzerland, or the Seychelles. This latter country is surprising, as the firm is based in that part of the world. Even so, it would appear the current regulation and legislation in that country doesn’t take kindly to leveraged cryptocurrency trading as of yet.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.
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