One of the biggest cryptocurrency exchange platform Bitfinex has announced that it would be removing the previously imposed $10,000 minimum equity requirement in an attempt to attract and reach out to a much broader customer base.
What is the Minimum Equity Requirement?
The minimum equity requirement is a familiar term on popular trading platforms, and it works with the rule of maintenance margins. Bitfinex’s previous imposed minimum equity requirement is held by certain rigid regulations that ensure users cannot trade if they are unable to maintain a $10,000 equity maintenance in their margin accounts. A margin account is an account with a brokerage firm that allows an investor to buy cryptocurrency options or obtain crypto-backed loans— all with cash loaned by the broker.
This means that prior to Bitfinex’s announcement, $10,000 was the maintenance margin that had to be maintained in any margin account on the platform.
Minimum Equity Removal and New Updates
The Hong-Kong based exchange often prides itself as one of the most sophisticated crypto exchanges in the world given the manner of its state-of-the-art updates ton of interesting options it offers. The company recently migrated to its specially self-designed dedicated servers with advanced premium security.
The new development to remove the minimum equity of $10,000 is only one of the many changes that the exchange has made to accommodate more traders across the globe. The digital currency exchange wrote via its official blog post that its most recent changes had been carefully made and tailored to the appetite and taste of a broader range of customers.
CEO of Bitfinex, Jean-Louis van der Velde commented about the new developments and revealed that they had been in planning for about half a year as the company strives to reach out newer audience.
“We simply could not ignore the increasing level of requests for access to trade on Bitfinex from a wider cohort than our traditional customer base,” he said. “For the last six months, we have been working hard to ready our platform for a new wave of customer accounts and are now in a position to open Bitfinex to a wider audience. By dropping our minimum equity requirement, the only limits are now set by the traders themselves.”
Bitfinex new updates are also expected to include an upgraded support centre. The centre has been reportedly designed to foster a more intuitive user experience for users on on the platform. The upgrade also involves a new KYC portal for easy implementation of third party tools.