Binance wants to introduce a leverage of up to 1: 100

Even 100: 1 is expected to be leveraged on one of the world's largest cryptocurrency exchanges - Binance. However, not everyone will be able to benefit from such a large leverage. Beginners will be able to afford much less risk. Stock exchange representatives are also planning even greater investments in ensuring the safety of their clients.

Be sure to read: A review of the Binance cryptocurrency exchange

Leveraging transactions on cryptocurrency exchanges is not the future and the present. Other platforms introduce the possibility that trading in tokens would have more liquidity and be comparatively profitable, such as the Forex market. Especially that on many cryptocurrencies, spectacular increases or falls in one day are less and less frequent, so you can earn much less than a few years ago, when several dozen percent of movements in one day were practically everyday. And the smaller turnover is also the lower profits of stock exchanges, so it's not surprising that their managers are more and more willing to turn to intermediaries, who will ensure liquidity and allow for the greatest leverage of transactions, so that you can make big profits.

Binance - market making will be external

The same is true of Binance, one of the largest cryptocurrencies in the world. First, cooperation will be established with liquidity providers, which will be several. This was confirmed by Binance Gin Chao, who appears at the FinTech conference, which takes place in the capital of Israel, Tel Aviv.

“Everything indicates that we will not try to simulate the market on our own, market making will be performed by experienced and largest liquidity providers to whom we will send orders. We are already checking this model of operation in the testing phase and it is very promising " Gin Chao said in Tel Aviv.

The biggest lever for experienced traders

We also learned some information about the planned size of the lever, but I must admit that the interlocutor was very careful not to give all the details, and even if he cheated on it, he stipulated that they were in the reconciliation phase. It is evident that the decision has not yet been fully approved, but the direction of changes is clear and based on these statements, we can deduce what changes await us.

The leverage will definitely appear, and its level will depend on the experience of traders and their turnover. However, according to the words of the Binance representative, beginners will be able to use it. The likely level for them will be 5: 1. Experienced traders, on the other hand, may have access to trade leverage as high as 100: 1. The largest leverage will be available not only to the holders of the "oldest" accounts, but also to those who make the largest turnover on cryptocurrencies. A special algorithm, which is also in the testing phase, will take care of calculating the capacity. For now, however, these are preliminary estimates of the leverage, and we will have to wait for their official confirmation. How much? We will surely know the details in the coming months.

Binance: safety first and foremost

Binance wants to focus primarily on the security of transactions and the money of its clients. After a widely commented attack on the Binance stock market, which ended a spectacular theft of funds reaching PLN 42 million the company wants to put even more emphasis on protection against hackers and the effects of their actions. They bring not only financial losses, but also incalculable image losses, which make potential new customers - fearing to lose money - not decide to invest in cryptocurrencies.

Gin Chao stressed, first of all, that the clients of the stock exchange did not lose anything on the last attack, and all losses were covered by the company. This does not mean, however, that the problem is over, because the hackers are still coming up with new ways to steal tokens that do not belong to them, or to allow them to sell quickly. That is why Binance wants to develop the decentralized Binance DEX cryptocurrency exchange, which is to be the future of cryptocurrency exchange by providing virtually 100-percent deposit security.