KuCoin crypto borrowing in the Margin market is now live. In an announcement from the cryptocurrency exchange that prides itself as the one-stop-shop for buying and selling crypto, users can borrow Bitcoin and Tether at Margin that attracts the lowest interest in the crypto space so far. However, the launch will only be on the platforms’ official portal.
The announcement goes on to add that users can sell bitcoin for short. This way, one borrows bitcoin when the price is low and sells when the price appreciates. Though it sounds risky, buying the crypto when the price is at its lowest and selling when it is high can enable traders to make some profits.
Photo credit: KuCoin
Another possible scenario is buying Bitcoin for Long and head over to the platform and borrow Tether (USDT) and buy when BTC is low and waiting to offload it when the price is high. This too is a way of making profits with KuCoin crypto borrowing.
KuCoin crypto borrowing mechanism
The KuCoin crypto borrowing is a first come first served market funding and commences on June 2 and runs to June 4. The exchange will allow its users to borrow BTC and USDT at 0.0015% and 0.02% interest rates respectively. The market funding period is 28 days and the exchange has set aside 350 Bitcoin and 2,100,000 tether coins for users to borrow.
The additional KuCoin feature comes at a time when the market is struggling to maintain a growth momentum with the largest coin by market capitalization struggling to go past the $10,000 mark. However, Margin trading comes with its shortfalls including losses.
Due diligence with KuCoin crypto borrowing
With margin trading, due diligence is very important. The market volatility and risks keep traders away from staking huge amounts. This is a venture that requires users conscious of the market trends and when to stop losses.
Ultra-low interest borrowing is a new concept in the crypto space and many enthusiasts are watching how the feature works for the exchanges and its users. The exchange is fighting to grow its market share by allowing users to borrow. However, the platform cautions traders about Margin trading:
However, due to market risks, price fluctuations, and other factors, you are strongly recommended to be prudent about your investment actions, adopt an appropriate leverage level for margin trading, and properly stop your losses in a timely manner.
