Margin trading has become increasingly popular in the world of Bitcoin and altcoins. Speculators and investors can be exposed to volatile cryptocurrencies without buying them directly or owning them at any point. Nevertheless, one has to wonder whether margin trading is a blessing or a curse for cryptocurrency. So far, it seems to be both.
For those unaware of what margin trading entails exactly, it revolves around using borrowed funds from a broker to trade financial assets. In this case, the trading involves Bitcoin or other cryptocurrencies. Traders can even leverage their position to further increase the potential profits – or losses – associated with their margin position.