What are the recommended loan-to-value (LTV) ratios for cryptocurrency margin trading?

1 answers

• Mar 19, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends maintaining loan-to-value (LTV) ratios below 50% for cryptocurrency margin trading. This conservative approach helps to mitigate the risk of liquidation and potential losses. However, it's important to note that different exchanges may have varying LTV ratio requirements and it's essential to comply with the specific rules and guidelines of the platform you're using. It's also advisable to regularly review and adjust your LTV ratio based on market conditions and your risk tolerance. Remember, margin trading can be highly volatile, and it's crucial to have a thorough understanding of the risks involved before engaging in such activities.
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