What is bitcoin margin trading and how it will be beneficial for a bitcoin exchange website
Bitcoin Margin trading - An unique way to increase trading flow on a trading website!
Before understanding the role of margin trading in cryptocurrency exchange network, let us discuss & understand about what is margin trading?
Usually, margin trading plays an important role in the forex market, but now the concept has entered into the bitcoin marketplace also.
This process involves these three steps,
1. Borrowing funds/money/bitcoin from a source.
2. Continues to do trading with borrowed money/bitcoin.
3. Making the profit, and returning the actual money to the source.
(Note: Here source is referred to the admin of an exchange website, or a bitcoin lender )
Let us know about how margin trading can benefit a bitcoin trading website!
The benefits of integrating bitcoin margin trading with lending!
1. Increases the trading flow of a bitcoin trading website.
2. Admin can earn commission from the traders for each trading activity
3. Highly beneficial to bitcoin traders , becuase it increases their trading capacity
4. Traders can earn profit with margin trading even though if bitcoin price falls down.
5. Admin can collect fees depending upon the Currency pairs (BTC/USD,BTC/EUR, and ETH/BTC)
6. By Integrating lending process along with margin trading, many bitcoin lenders may fall in your website. The website can collect fees from them for permitting to do bitcoin lending.
Like wise, we can list out "n" number of benefits. So by understanding this infinite benefits of marin trading, many bitcoin trading websites started to integrate margin trading as an additional buisness model.
Hope you got a basic idea of margin trading, In the upcoming blog we are going to understand about how bitcoin margin trading serves as a buisness model !
Have a nice day!