Bitfinex, one of the leading cryptocurrency exchanges, has launched margin trading for ApeCoin (APE), an Ethereum-based token related to the non-fungible token franchise Bored Ape Yacht Club.
Users will be able to trade APE tokens at comparatively low leverage of 1.66x.
By borrowing extra money from the exchange’s peer-to-peer (P2P) market, customers may trade with up to 10x leverage. Exchanges must pass through an intermediary verification step.
In October, Bitfinex authorised margin trading for 11 trading pairs, including Solana (SOL), Avalanche (AVAX), Cardano (ADA), Polygon (MATIC), and other cryptocurrencies. These cryptocurrencies may be traded with up to 3.3x leverage.
As part of their efforts to become regulatory compliant, Binance and FTX reduced its maximum leverage from 100x to 20x last year.
Margin trading is regarded as exceedingly risky, which is why only experienced traders are advised to use leverage.
ApeCoin captivated the cryptocurrency world with its loud arrival in March. However, others have attacked Yuga Labs, the creators of the Bored Ape Yacht Club collection, for contributing to the community’s toxicity by issuing additional tokens.
ApeCoin, predictably, failed to live up to the anticipation and fell within the first few days of trade. However, it has subsequently gained some traction and is now selling at $15. OpenSea, a leading NFT market, just gained support for ApeCoin, strengthening its acceptance.
The ERC20-based coin has dropped more than 12% in the past 24 hours after the viral Otherside Metaverse led Ethereum fees to skyrocket owing to growing demands.
, an Ethereum-based token){kind=link}