Kucoin is a popular crypto exchange globally that provides various trading options. Includes Kucoin Margin Trading, spot trading, futures, P2P Trading, and lending and borrowing to its 6 Million users.
Kucoin offers enhanced security levels and also selection of 400+ cryptocurrencies. Typically, Kucoin crypto exchange is beginner and user-friendly with various advanced features.
As many of you know there are several ways for traders to trade cryptocurrencies. Contrary to what most new traders believe, crypto margin trading is not as complicated as it is.
Basically crypto market is famous for its high volatility due to price fluctuations. Volatility makes it more difficult for traders to turn profits quickly, as prices can drop unexpectedly. But margin trading on kucoin gives great opportunities to turn profits for traders.
Alright, let us take a look at what Kucoin Margin trading is about and also learn how to make trade in this blog.
What is Kucoin Margin Trading?
In margin trading, traders can borrow capital and increase their buying abilities. Then with that, they can open larger positions than the actual account hold.
Traders can gain more exposure through margin trading to various assets and it differs from standard trading. In Margin Trading, traders can able to increase the amount of capital that they can use to trade beyond what they already have.
When getting information about Margin Trading the term leverage trading automatically comes in. Leverage is nothing but a factor that a trader can able to multiply their position. For eg: Exposure and gains can be multiplied by 100 times if the trader opens up a trading position with 100x leverage.
How beneficiary Kucoin Margin Trading is?
Generally, Margin Trading involves high risks compared to normal trading. When margin traders take their positions they need to be aware and careful because the cryptocurrency market is highly volatile.
For doing Margin trade one must know new level hedging and risk management strategies. Because of these reasons, margin trading is not a suggestion for new traders.
But don’t think it does not have any benefits
With this strategy, a trader has the option to take a position that exposes them to more potential gains than they could have obtained with their initial assets. As I said before, traders get 100 times more money on a profitable trading position with 100x leverage than they would have in normal trading.
How to do Kucoin Margin Trading?
Margin Trading on the Kucoin crypto exchange platform is simply a straight process. Let me briefly tell you in steps…
Enable Margin Trading
- At first, you need to get into the official site of Kucoin. (I know all of you know that. Is it kind of silly right? Don’t be frustrated I am telling you that for a proper explanation)
- After entering the platform need to log in to the Kucoin account. (If you don’t have one already create a new one)
- After you have logged in to the Kucoin account, click on the “Trade” button which is at the top of the platform, and then choose “Margin Trading”.
- Then to do Margin Trading you need to enable that thing. Choose the asset class in which you want to trade using leverage. You can see the “Enable” option in the bottom right corner and click that.
Transfer assets into the margin account
You need to transfer some of your assets into your margin account in order to borrow funds.
- Click “Transfer” in the right bottom corner and you can get the Transfer section box.
- In that Transfer box, select the token and then enter the amount that you want to transfer into your margin account, and then click “confirm”.
Borrow Tokens
Generally in Kucoin, there are two ways to borrow tokens…
- In the trading interface, click the “Borrow” button which is on top to borrow tokens quickly. Then for the optimal interest rate, the market can borrow tokens.
- On top of the Kucoin platform, click on the “Earn” button and then choose the “Lend” option. Then new page will appear click the “Borrow” button on top. A small box will appear, in that choose the token, enter the daily interest rate, and enter the quantity. Then click the “Borrow XXX” button in order to borrow tokens.
Trade
Choose and select the trading pair that you want to trade, then trade the borrowed token for another token. If you borrow USDT and predict a rise in BTC, then you will trade USDT for BTC. Using the borrowed USDT, choose the BTC/USDT trading pair and buy BTC.
Close your position
The tokens that you borrow again can traded in Margin Trading. If you use borrowed USDT to buy BTC, you can close the position by simply selling the BTC and exchanging it back to USDT.
Repay
- In the trading interface, select the trading pair and then click the “Repay” button which is in the bottom right corner. Then one box will appear.
- In that box, you can see the repay option, choose the token that you want to repay, and enter the quantity of repay. Then click on the “confirm” button to repay.
How to manage risks?
- Traders first should learn and understand the market. Traders need to start with a small trading position with low-level leverage and after they get experience they can increase their trading size.
- Start a demo trading that will help to get a proper trading experience and new trading strategies.
- By spreading their position traders can able to minimize their risk.
- Traders need to include interest when repaying the borrowed money. Before borrowing funds take interest into the account that’s a good strategy.
Closing Thought
Kucoin Margin Trading is highly appreciated among crypto traders because of uses small funds to leverage large funds and increase income. Traders can attain returns far beyond the principal who understands its operations thoroughly.
Due to increasing returns currently, the number of traders is continuing to increase their investments to attain high profits which can lead to investment failures. So to control these risks, traders need to set up stop profit and stop loss.
I hope now you get an understanding of Kucoin Margin Trading. If you need further information, get in touch with our assistant as they have various experience in it and also in Kucoin Clone Script. Get a free consultation now.
