Binance, which recently secured a payment license in Bahrain , has made a big announcement that has raised eyebrows in the crypto community. On April 12, the exchange revealed it would change the collateral ratios for 10 crypto assets, including popular tokens like DENT, ENJ, and AXS. This adjustment, which will take effect on April 18, could impact how much traders can borrow against these assets. This news comes a few days after investors poured over $1.8 billion worth of Bitcoin into the exchange as the market braces for economic signals and political turbulence. What is Happening with the Binance Collateral Ratios? Binance is lowering the collateral ratios for 10 cryptocurrencies. The tokens affected by this change are DENT, ENJ, NOT, DASH, CHZ, AXS, ENS, SAND, THETA, and QNT. The collateral ratio is important because it determines how much of a cryptocurrency can be used as collateral for borrowing. When the ratio is lowered, traders can borrow less against their assets, which limits their ability to make larger trades or open new positions. As a result, many market participants may have to adjust their portfolios. If traders cannot use their assets as collateral as much as before, they may need to sell some or shift their holdings to avoid potential losses. Binance also mentioned that the change will affect the Unified Maintenance Margin Ratio (uniMMR), which helps traders monitor the health of their positions. Even though the collateral ratios will be reduced, some of the affected tokens on Binance have seen their prices rise. DENT increased by 3%, ENJ by over 2%, and DASH by nearly 2%. Other tokens, like ENS, also saw a price jump. On the other hand, some tokens, including CHZ, AXS, and THETA, experienced price drops. How Traders Can Prepare for Upcoming Changes With the new collateral ratios set to take effect, traders must be prepared. Binance has recommended that users monitor their uniMMR carefully to avoid unexpected liquidations. The exchange also advised traders holding the affected token to reassess their trading position. This ensures that users do not depend too much on these assets for margin trading. Additionally, Binance has recently announced plans to list new tokens, including ONDO, VIRTUAL, and BIGTIME. This move could offer fresh opportunities for traders seeking to diversify their portfolios. These changes from Binance could lead to some shifts in the market, and traders need to stay informed. The post Binance Unveils New Crypto Collateral Ratios For 10 Assets appeared first on TheCoinrise.com .
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