New “Margin Trading Suite” Offers More Control for Traders
Margin trading is a method that allows one to trade with more capital than one actually possesses. It’s a strategic move to increase the size of one’s portfolio and help to make larger and more aggressive crypto trades. There are many exchanges out there offering margin trading tools but they come with high fees and lack of convenience. Hence, YouHodler recently released a suite of new features that aim to replicate the benefits of margin trading without all the hassles and high costs.
How margin trading works on crypto exchanges
In traditional margin trading, the trader requests to open a position and in order to keep that trading position open, a swap/rollover fee is required. To use Forex as an example, this fee is paid every 24 hours but in the world of crypto, many exchanges are taking these fees every four to eight hours and using the traders collateral as a fee.
These commissions, in addition to taker and maker fees, are commonplace amongst crypto exchanges. Many exchanges do offer fair rates and great features for margin traders but YouHodler has a few unique ideas compared to the competition and we think many traders will be interested. So take a look at what we’re offering and give it a try.
“Margin trading” on YouHodler: Low fees, more options, and high profits
Going by the official definition, YouHodler is not a margin trading platform per say but it has all the necessary tools in place for traders to find success.
- Extend PDL: Extend the Price Down Limit, (a.k.a Margin Call Level) on a loan and reduce risk in the event of a price drop.
- Price Down Limit (Margin Call): If the price of the user’s collateral drops below a certain level, the user can keep their borrowed funds and prevent further losses. YouHodler keeps in the collateral in exchange but the user can buy their crypto back without having to pay a fee.
- Increasing LTV: YouHodler has the highest loan to value ratio (LTV) on the market (90%). Yet, if the user wants to increase their LTV, they can get more cash from an active loan if the collateral’s price grows by increasing the LTV and getting more funds to buy more crypto assets.
- Close now: In just one click of a button, client’s have the option to use the value of their collateral to pay the loan and keep the rest as profit. No need to find additional funds to pay a loan.
-Reopen: Extend the term of a loan without needing to repay the loan in full. The user only pays the interest and a 1% fee. The rest of the borrowed funds stay with the client. Hence, this feature lets traders keep their position open for an affordable price.
All of these trading options aim to help the user manage their positions more effectively and more affordable than ever before. Sure, you’ll see these same features on other exchanges but they will charge users high rollover fees as a result. For example, where Binance, Huobi and Poloniex have margin trading fees around 0.1% - 0.2%, On YouHodler, clients do not need to pay fees every, 24, 8 or 4 hours and there is no need to pay a margin fee either. Users simply pay the interest fee (e.g. 7% for a 30 day loan term on YouHodler’s “Bull Run” plan) which is far more affordable in the long term than rollover fees found on exchange.
In addition to that, YouHodler lets users multiply their loans up to 10 times (using our automated Turbo Loans process) or potentially, multiply an unlimited amount of times if done so manually. Using loans to acquire more capital for trading is hardly a new concept. Professional traders have been doing it forever and many have been doing on YouHodler as well. We have simply decided to create an automated version of this process for trader’s convenience.
YouHodler uses real time execution on exchanges for these tasks. So when a transaction takes place, the user is buying real crypto at that moment and not just given an artificial number as a placeholder like on other exchanges. When a trader wants to multiply their crypto asset using loans as a type of leveraging method, then on YouHodler, they have the right tools to manage this process at every step for maximum control.
How to buy crypto for 15% of it’s value on YouHodler
A popular feature for traders on YouHodler is the ability to buy crypto with fiat at a reduced rate. For example, let’s see how to buy BTC for 15% of it’s value in three quick steps:
Step 1: Using bankwire, credit or debit cards, buy 1 BTC on YouHodler with fiat. This is just temporary capital that will be repaid in about 15 minutes).
Step 2: Use this 1 BTC as collateral for a cash (USD, EUR) or Tether (USDT) loan. With YouHodler’s 85% LTV, you get 85% of 1 BTC send to you in fiat or USDT.
Step 3: you now have 1 BTC sitting in collateral that you bought for 85% of it’s value. Now, just wait for the price of BTC to rise again before repaying the loan and getting back the 1 BTC. User are just responsible for paying back the value of 1 BTC at the time the loan was finalized. Hence, if the price of BTC risers at all, you keep all additional profits.
A user can repeat this process unlimited times to multiply their crypto portfolio but since that can be a time consuming activity, YouHodler automated this with Turbo Loans. Turbo Loans allow one to take a “chain of loans” (3-5 loans consecutively) that can help one multipy their crypto assets with ease.
Attention traders: Explore a new way to trade with low fees and more convenience
If you’re a crypto trader and reading this article, then give YouHodler a try for all your margin trading activities. The platform has all the same features as your favorite crypto exchange but without the hassle and more importantly, without the high fees. So if you want more control over how you trade crypto then visit YouHodler.com and let us know what you think. We’re always open to client feedback and ways to make our experience better for you.