The crypto market is increasingly mature. The growth of Margin, Lending services; and not to mention futures; It is a sample of it. But, the growth of the cryptoverse can also be perceived with the emergence, and sustainability of firms such as the Argentine crypto exchange 🇦🇷 of SatoshiTango, being this one of the oldest platforms in the region.
Who are SatoshiTango?
Three Argentine entrepreneurs near 2014 agreed on the idea of the SatoshiTango crypto exchange. Nicolas Loterspil, Matías Bari Y Mariano Craiem, formed between a chemical engineer, an innate entrepreneur, and a financier.
The crypto exchange dances to the sound of tango 💃; and currently offer the following services.
- Purchase and sale of cryptocurrencies: On its platform it allows you to acquire Bitcoin (BTC), Litecoin (LTC), Ripple (XRP), Ethereum (ETH) and Bitcoin Cash (BCH) with your local currency.
- Trading: Once the account is created, and deposited some hodls you can count on the platform’s trading service.
- Sending and receiving remittances: Being a platform created in our continent, this platform places great importance on sending and receiving cross-border money. And according to the platform, they take advantage of cryptocurrency technology to make this service fast, safe, cheap and very liquid.
- App: As expected SatoshiTango has a mobile application available for Android and iOS where you can enjoy all its services.
- Margin trading: And finally, which is the subject of this content, we find that the crypto exchange offers the margin trading service, in which you can leverage up to 5x.
What is Margin Trading?
In a nutshell, the margin trade is simply a crypto asset trading method, in which the trader uses the funds provided by a third party as a kind of cryptocurrency loan. To increase “leverage” in your daily operations.
Expert traders use this feature to access more capital when they want to take an action, whether long or short, (a bet) on whether a cryptocurrency will increase or decrease its value in the future, which will allow it to generate more returns, only if it succeeded In your predictions.
Thanks to this, margin trading is especially popular in markets where there is low volatility, particularly in the Forex. However, it is also used in our crypto ecosystem, with quite high risk rates, thanks to the volatility inherent in the crypts.
In times of contraction of savings and pens in Latin America, we continue to bring you tools to capitalize on crypto.
Express the SatoshiTango team
How does Margin Trading work in SatoshiTango?
Once the account is created in the crypto exchange; We recommend completing all validation and security processes so that your hodls are more than protected; You can enjoy this benefit.
You just have to log in to your account, go to the “Buy / Sell” option, and then to the “Margin Trading” option.
Then choose which cryptocurrency you want to buy, depending on what your bet will be; if prices will go down or prices will go up.
Then enter the total crypto you are going to acquire, so that the platform lends you, 1 time, 2 times, or up to 5 times your investment.
For example: If you expect the price of Bitcoin (BTC) it will increase in the next few hours; The most sensible thing is to buy as much BTC as possible in the present, and then collect the profits in the future.
But, suppose you only have $ 20. Yes, you go to the SatoshiTango margin trading option, and choose the 5x option. The platform will lend you 4 times the value of your investment, that is, now you will have $ 100 (20 yours and 80 from the crypto exchange) to buy BTC.
Not everything is rosy
Although the crypto exchange in Argentina 🇦🇷 provide this incredible but normal service; At least for the traditional financial world. We must be very careful, because, in the example we have given, we do not express whether the price of BTC fell or rose; and if the hopes of that trader who asked for $ 80 in leverage were fulfilled.
There is something very important that you should know: You will never be in debt using Margin Trading, the company expresses (and calms) us.
SatoshiTango tells us that in the case that the price of BTC drops more than you can afford. The position is simply sold automatically; and SatoshiTango recovers your leverage money and pays off the debt so that you have no debt, and perhaps no money remaining.
It is important to note that these services are recommended only for expert traders. Remember the basic investment rule:
Don’t bet what you can’t lose
Do not say that in cryptocurrency.com we do not warn you.
Economics student of the UCV. Defender of individual freedoms and of course also of the market and cryptocurrencies.