How Binance may save the crypto community

Binance doesn’t really need an explanation as to who they are. If you know what cryptocurrency is, it’s highly likely that you’ve heard of Binance. But what’s this about them saving the crypto community? Can that even be done? Well, before describing the saving grace, the problem itself needs to be emphasized.

The problem of Crypto CFDs

Many cryptocurrency enthusiasts aren’t even aware of the fact that Crypto CFDs exists. However, the majority of the community knows full well what CFDs are and what benefits they are able to reap from them.

The general understanding is that a person trading with crypto CFDs is not a crypto owner. They just speculate on the price and that’s it. However, they do indeed have a handy dandy tool called leverage. Leverage allows these traders to trade with astronomical amounts. For example, if one were to invest $100 in a Bitcoin CFD, with 1:100 leverage, they’d be trading with $10,000.

This opportunity was so enticing that cryptocurrency exchanges started losing customers to them. The worst case was sighted with South African traders who quickly gave up on trading actual cryptocurrencies and migrated over to CFDs or even Forex markets. This naturally had to change somehow.

How is Binance saving the community?

Binance had a major update to their code repository this week on Monday. There are always traders who keep track of these updates and then break it down for everybody to see. One such trader noticed that there were two new code lines, one of which was connected to Margin trading.

Margin trading is not anything new for cryptocurrency exchanges, but for Binance it is a surprising commitment. Margin trading is basically what allows traders to utilize leverage. If the additional code line is indeed implemented on the platform, traders will soon be able to trade actual cryptocurrencies with leverage, instead of just CFDs.

This will naturally deter many customers from CFD brokers, and re-fill Binance. The only reason why traders go to the CFD brokerages in the first place is to leverage itself. So why not trade actual cryptocurrencies rather than contracts on them?

How does margin trading help the community?

Imagine if every cryptocurrency trader had 100 times more resources to invest in the market. This would boost the industry to a state it has never seen before. Higher prices on pretty much every coin would be guaranteed and a new “Crypto boom” would be born. It can’t be said whether or not this is Binance’s end game, but it is indeed gearing up towards it.

Should the Margin trading feature be implemented on this giant platform, every single cryptocurrency may see spikes of more than 100%. With spikes comes profit, with profit comes innovation and investments, which will only benefit the industry in the long run.