Disclaimer: The text below is a press release that was not written by Cryptonews.com.
The unprecedented growth of Blockchain technology has been accompanied by several new revolutionary concepts. Primarily, people derived new methods of earning or generating a passive income through digital platforms and apps that are decentralized. While yield farming and staking has taken the limelight for some time now, margin trading in the crypto space is gaining momentum. The cryptocurrency analysts and experts have devoted considerable time into margin trading over the years.
Margin trading in crypto is not a very complex process. It simply allows crypto traders to earn profit by keeping an eye on the fluctuations in the market, in an effective way. Usually owning cryptocurrencies is an expensive process and not everyone can afford them. So, by being a margin trader, users can borrow money and increase their position as well as the buying capacity.
What is Margin Trading in Cryptocurrency?
Margin trading is a process that involves borrowing assets or capital from a third party and investing them. Here the trader can access the market with more flexibility and this would help the trader in leveraging his/her position. Margin trading has a lesser risk in the lower markets, like the Forex market because users can read these markets and predict things easily.
In the initial stage, a trader has to deposit a certain amount to gain access to a position. The user deposits some amount in the wallet on a particular platform. The amount being leveraged for margin would completely depend upon the terms and conditions of that particular platform.
Working of the market in Margin Trading
When users get a position in margin trading, they can either opt for the long run or short run. When they choose a short-run investment, user essentially challenges the price of the cryptocurrency. This means the user anticipates that the value of the cryptocurrency is going to fall.
On the other hand, when the user chooses the long run, they predict that the value of the cryptocurrency is going to increase. The profits would depend upon the amount the user has deposited. The leverage might vary from platform to platform. While some platforms may provide 15X leverage, some may provide you with much less.
DIFX is a cryptocurrency exchange platform that focuses on both centralized and decentralized exchanges. It is a comprehensive platform that offers various kinds of products, services, cryptocurrencies, and other essential commodities. The platform is user-friendly and can provide profits to both amateur and expert traders due to various advanced features.
DIFX aims to bring significant revolutions in trading platforms by connecting every user, third party, and company on top of a Blockchain-based system introducing unparalleled trust and security. It aims to improve efficiency and solve transaction issues by providing simple yet secure payment procedures. Further, it also aims to solve the problems faced by the existing crypto trading platforms by leveraging blockchain at its core.
Benefits provided by the DIFX platform
- (i) DIFX can provide enormous leverage in margin trading with Application Programming Interface.
- (ii) It can simplify the investment activities of the users by providing a channel, where the buyer and the seller can exchange cryptocurrencies and get into a settlement as easily as possible.
- (iii) One of the key offerings by the platform is that it allows the traders to exchange or trade any asset by swapping a cryptocurrency with another.
DIFX has the aim to bridge the gap between assets and cryptocurrencies. The DIFX utility token is the heart and soul of this platform which is based upon the ERC-20 token standard
Using this standard allows DIFX to facilitate faster payments, regardless of the geographic or compliance constraints.
On top of all the features, DIFX provides a high leverage and a discount of 50% on trading making it a favorite for all types of traders.