Bitcoin's surge sees Binance take its first margin trading victim

24 Jun, 2019
by Richard Allen
News
Bitcoin's surge sees Binance take its first margin trading victim

Binance chief executive, Changpeng Zhao confirmed on Twitter today that the world’s largest exchange has executed its first liquidation while testing continues on its new margin trading feature.

CZ tweeted earlier today that they had their first ever margin liquidation on a Bitcoin short. Likely an expensive lesson.

Bitcoin’s price has continued its rise, reaching as much as $11,300 on some exchanges. The coin has since corrected a little. It’s these kinds of price movements that can make margin trading so costly for traders, frequently proving itself to be one of the leading causes of traders losing their money.

As such, CZ took the opportunity to remind traders of the risks and to invest responsibly with their money. “Don’t bet against Bitcoin, and don’t bet [against] b…” the CEO tweeted. The latter part of his comment is likely a reference to Binance Coin.

On June 17, Binance announced the launch of a Bitcoin-pegged stablecoin, BTCB. “We are launching tokens on Binance Chain that will be pegged to leading cryptocurrencies. This will start with a Bitcoin-pegged token that will be traded on Binance and proposed for trading on Binance DEX,” the blog post read.

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