Bitfinex Adds Tether Gold Margin Trading with 5x Leverage
- The gold-backed stablecoin was launched last week.
Bitfinex, one of the top global crypto exchanges, has added margin trading support for bullion-backed stablecoin Tether Gold (XAU₮).
Announced on Thursday, the exchange is offering trading services against the US dollar, Bitcoin, and Tether. The pairs can be traded with initial equity of 20 percent, and the platform is also offering maximum Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term of 5x.
In addition, Bitfinex also raised the maximum leverage of its BTC/USD margin trading pair from 3.3x to 5x.
Margin trading enables traders to borrow funds, usually from the exchange platform, to increase leverage, offering the potential for greater profits than in traditional trading. This, however, increases the risk of trading, especially considering the volatile nature of digital currencies.
Growing demand for stablecoins
Tether, a company known for its USD-pegged stablecoin, launched the gold-backed digital currency last week. Per the company, it was introduced with the growing demand for asset-backed digital currencies.
One XAU₮ token represents one troy fine ounce of gold on a London Good Delivery gold bar, and the gold backing each token has been stored at a Swiss vault, the company specified. For now, the coin is available as an ERC-20 token on the Ethereum Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term and as a TRC20 token on the TRON blockchain.
Recently, many bullion-backed digital currencies, including PAX Gold, were introduced in the market. However, per Tether, its stable currency is the only product among the competition that offers zero custody fees.
Both Bitfinex and Tether are controlled by the same parent company - iFinex. Meanwhile, the duo is facing a lawsuit brought by the New York Attorney General’s Office, alleging the firms for illegally serving New York clients and also for an unauthorized loan.
“Holders of XAU₮ obtain the combined benefits of both physical and digital assets,” Bitfinex noted. “XAU₮ token holders will be able to enjoy ownership of gold while avoiding drawbacks associated with physical gold, such as high storage costs and limited accessibility.”
Bitfinex, one of the top global crypto exchanges, has added margin trading support for bullion-backed stablecoin Tether Gold (XAU₮).
Announced on Thursday, the exchange is offering trading services against the US dollar, Bitcoin, and Tether. The pairs can be traded with initial equity of 20 percent, and the platform is also offering maximum Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term of 5x.
In addition, Bitfinex also raised the maximum leverage of its BTC/USD margin trading pair from 3.3x to 5x.
Margin trading enables traders to borrow funds, usually from the exchange platform, to increase leverage, offering the potential for greater profits than in traditional trading. This, however, increases the risk of trading, especially considering the volatile nature of digital currencies.
Growing demand for stablecoins
Tether, a company known for its USD-pegged stablecoin, launched the gold-backed digital currency last week. Per the company, it was introduced with the growing demand for asset-backed digital currencies.
One XAU₮ token represents one troy fine ounce of gold on a London Good Delivery gold bar, and the gold backing each token has been stored at a Swiss vault, the company specified. For now, the coin is available as an ERC-20 token on the Ethereum Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term and as a TRC20 token on the TRON blockchain.
Recently, many bullion-backed digital currencies, including PAX Gold, were introduced in the market. However, per Tether, its stable currency is the only product among the competition that offers zero custody fees.
Both Bitfinex and Tether are controlled by the same parent company - iFinex. Meanwhile, the duo is facing a lawsuit brought by the New York Attorney General’s Office, alleging the firms for illegally serving New York clients and also for an unauthorized loan.
“Holders of XAU₮ obtain the combined benefits of both physical and digital assets,” Bitfinex noted. “XAU₮ token holders will be able to enjoy ownership of gold while avoiding drawbacks associated with physical gold, such as high storage costs and limited accessibility.”