How Margin Trading On Altcoins Affects The Market (MATIC -73%)
Matic is only one example of a cryptocurrency for which margin trading was introduced by Binance. Matic pumped 300% (x4) in a few months, and dumped 73% in just 1 day…
It makes me believe that margin trading will cause the prices to go higher than expected and to fall lower than expected. I think that big whales are right now trying out how to optimize their strategies for pumping these altcoins using margin. It’s remarkable to see that the recent big gainers were all altcoins with margin trading option on Binance.
It will affect the market since new retail investors will try margin trading out for sure. There are many risks involved though, with margin 5x you lose ALL your money when the price dumps with 20%. Big risks.
#cryptocurrencies #MATIC #margintrading
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