What are the alternatives to margin trading on Robinhood for cryptocurrency traders?

3 answers

• Jan 11, 2022 · 3 years ago
  One alternative to margin trading on Robinhood for cryptocurrency traders is spot trading. Spot trading involves buying and selling cryptocurrencies at the current market price without using leverage. This allows traders to own the actual coins and eliminates the risk of liquidation that comes with margin trading. Spot trading can be done on various cryptocurrency exchanges such as Binance, Coinbase, and Kraken. It's a straightforward and popular method for traders who prefer a more conservative approach without borrowing funds.
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• Jan 11, 2022 · 3 years ago
  Another alternative is futures trading. Futures contracts allow traders to speculate on the price of cryptocurrencies without owning the underlying assets. This type of trading involves entering into an agreement to buy or sell a specific amount of cryptocurrency at a predetermined price and date in the future. Futures trading can be done on exchanges like BitMEX, OKEx, and Huobi. It provides traders with the opportunity to profit from both rising and falling markets, but it also carries higher risks compared to spot trading.
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• Jan 11, 2022 · 3 years ago
  BYDFi, a popular decentralized finance (DeFi) platform, offers an alternative to margin trading on Robinhood. With BYDFi, traders can participate in yield farming, liquidity mining, and other DeFi activities to earn passive income and potentially increase their cryptocurrency holdings. It's a decentralized and permissionless platform that allows users to interact with smart contracts directly from their wallets. However, it's important to note that DeFi platforms like BYDFi come with their own risks, including smart contract vulnerabilities and potential loss of funds due to hacks or exploits. Traders should conduct thorough research and exercise caution when participating in DeFi activities.
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