USA: Still No New Margins for Crypto
We hear it all the time:
When margin on Binance?
When ETF trading with Bitcoin?
If you are in the United States, among several other countries, keep dreaming. Binance has begun offering beta of its new platform updated with Margin functions. However, there is a blatant warning that you can't use it in the USA. It would seem that Uncle Sam just doesn't want us making quick easy money on our shitcoins. There are far too many hoops to jump through when trying to become a serious trader in the United States. Most brokers require $25,000 in capital to even allow you the ability to go beyond the 5 same-day trades limit, so it is understandable why these exchanges will continue to avoid allowing margin and ETF to USA customers. They do not want to deal with the over-reaching SEC.
I find it funny though that this hype gets touted and promoted en mass all over social media, especially on Crypto Twitter, claiming they will be bringing the benevolent ETFs and Margin trading to everyone. Lets take the exchange "Abra" for example. When they were first spamming everyone on Crypto Twitter, they were basically doing exactly as I described above. However, the day I get an email saying they have finally launched ETF trading using Bitcoin, it explicitly says no for USA. I called them out for it then and they have now proved me right. And for EU people, you could have just as easily been trading on SimpleFX which is a larger and superior exchange to Abra anyways.
In my opinion there are simply too many exchanges trying to hop on the Bitcoin "ETF" and "Margin" bandwagons, offering quasi false hope and promises to the world, and making money off the unaware laymen who were just looking for a better trading platform. Until Uncle Sam lightens up, stay off these exchange or move to where you can use them, those are really your only good options. You could use Kraken still, but that recent fat-finger on XBT/CAD was pretty spooky. Be careful out there my friends.