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Which cryptocurrencies are more likely to trigger a margin call?

avatarMichelDec 28, 2021 · 3 years ago3 answers

What are some cryptocurrencies that have a higher likelihood of triggering a margin call?

Which cryptocurrencies are more likely to trigger a margin call?

3 answers

  • avatarDec 28, 2021 · 3 years ago
    As an expert in the field of cryptocurrencies, I can tell you that highly volatile coins like Bitcoin, Ethereum, and Ripple are more likely to trigger a margin call. These coins have a history of experiencing significant price fluctuations, which can lead to rapid changes in margin requirements. It's important to closely monitor the market and set appropriate stop-loss levels to minimize the risk of a margin call.
  • avatarDec 28, 2021 · 3 years ago
    When it comes to margin trading, it's crucial to understand the risks involved. Cryptocurrencies with lower liquidity and smaller market caps are generally more susceptible to sudden price movements, making them more likely to trigger a margin call. Coins like Dogecoin, Cardano, and Polkadot fall into this category. It's essential to conduct thorough research and assess the market conditions before engaging in margin trading with these coins.
  • avatarDec 28, 2021 · 3 years ago
    According to BYDFi, a leading cryptocurrency exchange, margin calls are more likely to be triggered by cryptocurrencies that have high volatility and low liquidity. These coins include Bitcoin, Ethereum, and Litecoin. It's important to note that margin trading carries a higher level of risk, and it's recommended to have a solid understanding of the market dynamics and risk management strategies before engaging in margin trading with these cryptocurrencies.