Coinbase to implement margin trading?
There is a rumor circulating that Coinbase may soon be implementing margin trading.
Whether that is for US users or not remains to be seen.
Coinbase would most likely need sufficient regulatory clarity from U.S. authorities before enabling margin trading for clients.
However, it sounds like they may be seeking it...
A Coinbase VP had this to say on the matter:
"We still need to figure that out because there’s not a lot of regulatory clarity there right now in the US. And so that that is being discussed.”
(Source: https://www.ccn.com/coinbase-hints-bitcoin-margin-trading-usa)
This quote was in response to several of the world's largest crypto exchanges allowing margin and/or moving towards margin outside the US.
Talking specifically about Bitmex and Binance.
What does this mean for crypto?
Overall, this would be very interesting for crypto in both directions.
On the one hand, allowing US based users the opportunity to use margin should they qualify would likely add fuel to bull markets.
However, it might also allow those looking to bet against bitcoin and the like their first opportunity to do so in the spot markets.
Which likely would allow them to help drive prices down in bear markets.
(Source: https://www.ccn.com/coinbase-hints-bitcoin-margin-trading-usa)
The net effect?
Not completely sure, but I think it would be positive.
Allowing traders/investors to adequately make bets in both directions is needed for accurate price discovery.
Which means in that regard, I think it would be a very good thing.
What do you think?
Stay informed my friends.
-Doc
This would lead many n00bs to the slaughterhouses
I am sure you will have to have a minimum balance or answer questions about income levels before you qualify for margin, just like with traditional brokerages here in the US.
Which of course will change the kinds of information exchanges ask from customers... yay.
Ultimately it would be a good thing I think 🤔
I think so as well. A net positive.
Will you be using any margin?
I also see it as a net gain. Extra functionality is extra functionality.
There will be some terrifying horror stories in the wake of such an event though.
Yep, though I am sure they will put some restrictions on who can qualify for margin based on assets and/or income levels... something along those lines.
Interesting update but given the way I have been burnt in the past with leveraged trading in forex and futures, I will stay away from it given my long term view as having equity will enable the holding ability!
Posted using Partiko iOS
This might help bitcoin go higher during booms and lower during busts... we shall see.
Yay! For more volatility 😜 we'll see
Posted using Partiko iOS
Yep, we will.
Yep, I will most likely as well. Margin usually works best for traders.
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