More than a few cryptocurrency traders want to use their funds to make bigger games. This is all the more true as the Bitcoin value explodes and the cryptocurrency market is growing rapidly.
But margin trading is still a tricky game and can be regulated in different ways than other types of transactions.
So where can you go to trade with cryptocurrencies on margin? Some of the most common names, such as BitMex, are currently subject to strong regulatory pressure, with the upper brass being handcuffed.
Then there are the platforms that change their way of doing business to proactively avoid the hot seat. Take Coinbase, where the word came out that as of November 25th, margin trading will no longer be part of the exchange function available to traders.
To explain this decision, the spokespersons cite the guidelines of the US Commodity Futures Trading Commission (CFTC).
“We believe that clear regulations and a good sense of the products are ready to margin, which may be required to protect and reassure U.S. customers,” wrote Paul Grewal, head of lawful at Coinbase, in a press release.
So what can you do to benefit from safe and compliant trading in cryptocurrencies? Here are some alternatives for cryptocurrency exchanges that feel secure about their regulatory Compliance and still offer leverage of the funds.
Among the most regulated stock exchanges, Currency.com is a brilliant example. There was no kerfuffle, or music on the chairs Currency.com exchange due to regulatory problems.
By the end of January, users can trade more than 1500 assets at no cost and trade up to 500 times with certain assets.
Currency.com headquartered and licensed to operate in Gibraltar, a small nation with avant-garde guide to crypto-currency.
It is part of Currency.com the strategy, but the first efforts to obtain the necessary licenses and prove commercial security, have also paid off for this exchange.
On BitFlyer’s lightningfx platform, users can make margin trades for leverage of up to 4x, using strategies such as Spot trading and staking different long and Short positions to benefit from BTC price activity across all areas.
The minimum buy-in is 1% of a Bitcoin, and the exchange functionality is around the clock, including weekends, holidays, and every time the urge to open a new position.
Profit-take Orders and stop-loss Orders (which are so important in margin trading) are simple, and thanks to the BitFLyer API, users can perform a number of checks, cancel orders, and view past transactions.
BitFlyer became quite remarkable for its strict compliance. Dealers should have nothing to worry about if they join these guys.
Crypto.com is another regulated exchange that has started to allow trading with margin. As in the Nov. 19, a private Beta feature allows leverage of up to 3x for BTC / USDT pairs.
Crypto.com provides some direct Integration of users in all capital letters to clarify the risks associated with these types of trades.
The stock market, executives say, will try to add more cryptocurrency pairs in the coming months; for now, BTC remains the most popular option for traders who turn to Bitcoin, for example, out of Gold or shares.
Users can also get preferred interest rates for staking on the platform.
Crypto.com has worked diligently over the last year to grow around the world, obtaining a corresponding license in the EU and more recently in Australia.
The octopus exchange is a rather unique example of an exchange with a certain ambiguity of regulation worldwide.
Interestingly, Kraken explains on the Website that it is regulated by British and Australian officials, but also provides margin trading services and other services to users in the US – with the exception of two states, Washington and New York.
The speaker explains the difference:” since maintaining regulatory action in some states can be exuberant, it is not possible to include all states in the country,” suggesting that U.S. federal laws are manageable for octopuses, but the laws of New York and Washington are not.
Take a look at one of these platforms in your research to conduct safe and compliant margin trading, and examine the pros and cons of different parties based in different nation states.
Even though some exchanges are under pressure, there are still safe places to do this kind of business and use the funds for crypto games.
This groundbreaking platform is based in America, but has a margin trading function that it believes is directly within the limits of regulatory Compliance in the United States.
What is interesting is that Poloniex operates a peer-to-peer margin trading system in which it is not the exchange itself that lends the money, but other users.
This seems to be a practical way to get around some of the problems that have tormented other exchanges.Tags: crypto games, ECoinbase, Tradng exchange