2018-12-29 22:22 |
The popular cryptocurrency exchange Kraken has announced that is launched margin trading for Bitcoin Cash (BCH) and XRP. This would allow users to trade virtual currencies with funds that they do not actually have allowing them to make greater profits but amplifying their losses as well. The information was released in a blog post by the company on December 29.
Now there are eight assets that are available for being traded with margin, including Bitcoin (XBT), Ethereum (ETH), Ethereum Classic (ETC), Augur (REP), Monero (XMR) and Tether (USDT).
The leverage available for users will depend on their account verification level. Top tier accounts could have the possibility to leverage 500 BCH or 2.5 million XRP coins. Leverage levels start at 2x for Bitcoin and 5x for XRP.
As mentioned before, there are risks involved in margin trading. On the matter, the exchange wrote:
“Please note that BCH and XRP are not collateral currencies. This means you cannot open margin positions against the value of your BCH or XRP balances. For this reason, you should always maintain adequate balances of other collateral currencies to maintain your margin positions.”
XRP is continuously growing in a bear market that affected most of the virtual currencies in the space. A few days ago, Binance announced that XRP will be added as the quote currency. It can now be traded against Tron (XRP/TRX) and against Zcoin (XRP/XZC).
Furthermore, XRP was able to surpass Ethereum (ETH) as the second largest virtual currency in the market a few days ago. Although in past occasions when XRP surpassed Ethereum it could not sustain its position, this time was different. Since it surpassed Ethereum that it does not fall from the second place.
We have enabled margin trading for Bitcoin Cash (BCH) and Ripple (XRP)! The addition expands our margin offering to 8 assets. Read more on our blog: https://t.co/DSBaMBdOR7
— Kraken Exchange (@krakenfx) December 29, 2018
At the time of writing, XRP has a market capitalization of $15.11 billion and each coin can be purchased for $0.37. Bitcoin Cash is being traded close to $166 and it has a market cap of $2.91 billion.
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