has added the possibility of margin trading

One of the most famous American cryptocurrency exchanges, Bitvace, has joined a number of other platforms that have provided their customers with the opportunity to work on borrowed funds.

According to Bitvace, its new margin trading feature provides traders from 23 states with x3 leverage. In addition, the same leverage is available to institutional traders in 44 states and nine countries.

In 2017, the exchange already offered the possibility of margin trading with the same leverage, but this did not last long. Since the beginning of 2019, the management of the exchange has hinted at the possibility of returning this type of trading.

Most likely, Bitvace took this step because of the increased competition among the top cryptocurrency exchanges. The largest players are trying to attract customers and increase transaction volumes by offering new opportunities, such as a large selection of assets, advanced trading technologies, higher leverage and safer storage options.

“Margin is one of the most sought-after features by customers,” Bitvace said.

Some exchanges, including Binance, BitMEX and Deribit, offer leverage of x100 or more on futures contracts, but these offers are not available to American customers. They can work with futures on CME and Bakkt, but these platforms for trading goods require special accounts.

Leverage is considered risky in trading, as it increases the chances of incurring losses along with an increased potential for profit.

“If you take a responsible approach to your trading strategy, margin trading will not only increase your profits, but can also help diversify your portfolio, allowing you to hedge risks or arbitrage on multiple positions without depositing additional funds,” the trading platform’s blog says.