Binance, the biggest exchange by daily trading volumes, has announced a batch of new crypto assets that its users can now trade with leverage. Binance Coin, the exchange’s native token, is also available for margin trading, and Changpeng Zhao has a dire warning for anyone who wants to short it.
#BNB is available for margin now. But I don't recommend shorting it, as you will get #REKT. https://t.co/qDDC9UywLO— CZ Binance (@cz_binance) July 18, 2019
Three new coins
The maximum borrowing limit for Binance Coin is set at 100 BNB ($2,765 at the time of writing). It is worth noting that the exchange is able to suspend the borrowing function during extreme market volatility.
Apart from BNB, Binance users are also able to trade EOS and LINK (the latter came to prominence after becoming one of the best-performing coins of 2019).
Overall, there are now eight assets available for margin trading, including Bitcoin, Ethereum, and Ripple’s XRP.
After testing the waters, Binance eventually made its margin trading platform available for all eligible users on July 11. All those Binancians who are willing to trade with leverage are supposed to go through a verification process.
As of now, Binance allows trading with 1:3 leverage, which means that you can borrow a maximum amount of 50 BNB if you already have 25 BNB.
For comparison, BitMEX, the leading exchange for crypto derivatives trading, offers its users the ability to open 100x leveraged positions.