The cryptocurrency trading platform Gemini has updated its list of available digital assets for collateral use in derivatives trading by adding XRP and other altcoins.
Expansion of Cross-Collateral in Gemini
Gemini has updated its cross-collateral features by adding XRP to the list of supported digital assets. Now users can utilize not only Bitcoin (BTC) but also assets like Shiba Inu (SHIB), Dogecoin (DOGE), Solana (SOL), and Bitcoin Cash (BCH) to create a collateral pool for derivatives trading.
New Risks and Opportunities with Altcoins
The addition of XRP and other altcoins as collateral creates new opportunities for traders; however, it also introduces new risks. Cryptocurrencies like XRP are highly volatile, meaning that adverse market movements can increase the risk of liquidation.
Risk Management Recommendations
To minimize risks, users are advised to diversify their assets and avoid overleveraging. A good diversification strategy may help safeguard capital during market volatility.
With the addition of new altcoins, including XRP, Gemini is changing its approach to derivatives trading, providing more opportunities for traders while requiring careful risk management.
