Binance Launches ‘Cooling-Off Period’ For Crypto Traders To Practice ‘Self-Discipline’ – Benzinga


What Happened: Binance, the world’s largest crypto exchange, has introduced a new feature to its futures trading platform called the “cooling-off period.”

Essentially, once traders enable the cooling-off period for a specified time frame, they will no longer have access to the futures trading platform and will not be able to access it until the cooling-off period ends.

Binance explained that the functionality could be used to “prevent compulsive trading practice” and develop “self-discipline.”

“If you made some bad, unnecessary revenge trades during recent [market] dumps, you could’ve protected your funds with just a few clicks,” said the exchange in an explainer video.

“Sometimes the best trade is…no trade.”

Why It Matters: Binance is one of the crypto exchanges that sees the largest liquidations during periods of excess market volatility.

According to data from bybt, out of the $9.26 billion, long positions that were liquidated on April 17, over $4.69 billion liquidations were from Binance alone.

CZ worried his userbase wouldn’t have any funds left at this rate if they continue to keep degening the chop suey.

— Hsaka (@HsakaTrades) June 3, 2021

The exchange offers up to 100x leverage on cryptocurrency trades, and the ability to trade with such a large amount of leverage can itself cause the market to move significantly in either direction and lead to traders’ long positions being liquidated.

“How much leverage people bet in derivative trading can indicate investors’ fear and greed,” commented Crypto Quant analyst Ki Young Ju.

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About the Author: Kate