How to Margin Trade Cryptocurrency on Bithumb Global

Handy Tips / 25.10.2020

Margin trading is one of the best features Bithumb Global offers. Impressively, users can get 10X leverage on their trading positions. Professional traders utilize leverage trades daily to increase ROIs and take advantage of market volatility. As a savvy investor, you should understand the concept, and when it’s best to employ it.

What is Margin Trading?

The term margin trading refers to an investment strategy in which an investor utilizes borrowed funds from a broker to trade a financial asset. Margin trading brings with it some significant advantages. For one, users enjoy higher returns when they complete a leveraged trade. Margin trading loans feature competitive interest rates and are considered a more comfortable financing option in the market.

Margin traders also enjoy more diversification in their strategies since they have more funds to commit to their plans. Diversifying your investments can help to protect you against total loss. It also allows you more opportunities.

Margin Trading on Bithumb Global

Margin trading on Bithumb Global is easy to set up. There are multiple cryptocurrencies available for leveraged trading. These trading pairs offer users up to 10X leverage on their positions. The first step of the process is to register for margin trading access. Once you receive an approval notice, you can then transfer your funds into your Margin Account.

From your trading portal, you need to select Assets in the upper right corner. Then, select the Deposit button. From here, you will need to decide how to fund your account. You can fund your account with BTC, USDT, or any of the cryptos that are available for margin trading. Next, go to your margin trading account section by pressing Margin.

You will see a prompt that asks you to select the amount of BTC you desire to margin trade. Conveniently, Bithumb Global automatically allocates funds based on your margin account, holding assets, and margin multiples. This feature streamlines the entire margin trading process significantly and makes it more user-friendly to new investors.

Long or Short

You will also need to decide whether to long or short your investment. Longing your investment means that you expect the value to rise. Shorting is the opposite. You expect the value to drop when you short an asset. 

For example, let’s say you have one BTC, and you expect the price to rise significantly in the coming week. You could take out a 10X leverage and purchase more BTC. Once the price goes up, you can sell your assets and repay the loan. The best part is you get to keep all the extra profit made from your broader investment positioning.

Shorting is the reverse strategy. You take out a loan to buy more crypto, and then you sell it instantly. Once the value of the asset drops, you then repurchase at the lower price. Lastly, you repay the loaned amount and keep the difference.

Track Your Trades with Ease

There is a detailed description of your margin trading activities on the lower right side of the page. You can also see leveraged multiples and borrowings. In this way, it easy to monitor these investments as they mature.

Get Mobile

Bithumb Global has a cool mobile app. The exchange looks excellent in the app, thanks to the vibrant layout and straightforward interface. From here, you can accomplish all of the most common trading activities. The app is free to download and only takes around five minutes to set up. You will need to prove your identity as the platform is KYC/AML compliant. Bithumb Global’s mobile app is available in both the Android and iOS mobile configurations.  

Promotions

Who doesn’t like to win free crypto? Bithumb Global keeps its community engaged and excited via constant promotions. These events, contests, and prizes help Bithumb global provide users with a fun and entertaining investment experience. 

Features Galore

Bithumb Global packs all the latest blockchain features into a secure platform. Users have access to margin trading. Margin trading is an advanced strategy that involves taking a loan out before your trading activities to leverage your position. The practice is widespread in the stock markets because it improves your ROI potential significantly.

Liquidity Staking

No proper #CeFi platform is complete without staking options nowadays. Bithumb Global continues to be a pioneer in the exchange sector by integrating its BG Staking protocol. Notably, staking is only available at select times. Users receive rewards for locking their cryptocurrency in the firm’s liquidity pool.

Smart Tokens Rule

Bithumb introduces the world to “smart tokens.” These tokens are cryptocurrency-pinned stablecoins used for specific trading purposes. The introduction of these unique financial instruments makes it possible to short Bitcoin. Buying a smart token is similar to opening an unleveraged short position on the underlying cryptocurrency. 

Bithumb Global Has a Strong Community of Users

Bithumb Global managed to secure a healthy following of users in a short period. The platform features an active and vocal social media presence. Users can communicate directly with developers via these channels. In this way, developers can understand what features and coins hold the most value to their users.

Transparency Is Paramount

In terms of centralized exchanges, Bithumb Global is one of the most transparent. The platform was built from the ground up with strict ethical principles. For example, Bithumb will periodically allow third-party audits of their holdings. This data is available via network financial reports published on the blockchain. 

Bithumb Global – The Right Exchange for the Times

Bithumb Global has proven to be the right exchange for investors seeking reliable margin trading alternatives. This fully regulated and externally monitored exchange continues to see record growth alongside the rest of the market. 

Much can be said about the group’s pioneering spirit and the monumental accomplishments the crew has made thus far. For now, Bithumb Global remains one of the most robust cryptocurrency trading platforms in the world.

David Hamilton aka DavidtheWriter is a long time Bitcoinist and cryptocurrency journalist. Currently, he has over a thousand articles published on blockchain technology. His expertise and experience makes him one of the most reputable writers in the sector.