Bitfinex Incorporates Margin Trading For Tether Gold And Allows For 5x LeverageAuthor: Ali RazaLast Updated: 17 June 2020 One of the top cryptocurrency exchanges of the world, Bitfinex, had recently added yet another offering on its expanding list: Margin trading support for the Tether Gold stablecoin (XAU₮), the bullion-backed stablecoin.Higher Leverage, More PairsThe announcement came on Thursday, where the exchange platform stated that it was going to offer trading services against people that buy Bitcoin, Tether, and the USD. These pairs are capable of being traded for initial equity of 20%. Furthermore, the platform offers 5x maximum leverage in these trades.Margin trading for the BTC/USD trading pair has also gone up. While it was initially 3.3x, it will now move up to the 5x mark. While not exponentially impressive compared to other leverages in conventional trading, one must be aware of the volatility crypto is known for and the laws of wherever the exchange is based in.Higher Rewards; Higher RisksMargin trading itself allows for traders to borrow funds, typically they borrow from the exchange platforms themselves to increase leverage. This allows for higher profits than what would usually be possible by way of traditional trading styles. As one would imagine, however, it holds a substantial increase in risk as well, one only compounded by the relative volatility of crypto as a whole. There is a very high chance of being indebted to the exchange if you don’t know what you’re doing.It’s only been a week since Tether, the company best known for its stablecoin pegged to the USD, had launched a stablecoin backed on old-fashioned, reliable gold.A single XAU₮ token is claimed to represent one troy fine ounce of gold when measured on a London Gold Delivery gold bar. All the gold backing the tokens has been stored, by Tether, into a Swiss vault. The coin itself is available in an ERC-20 token format, based on the Ethereum blockchain. It stands available on the TRC20 token format as well, this one being based on the TRON blockchain.Latest Stablecoin TrendAs time goes one, a fair amount of digital currencies have popped up that is based on a gold value backing it, one of the more prominent ones being PAX Gold. As is the norm by now, Tether is the only company that doesn’t charge custody fees for it.iFinex owns both Bitfinex and Tether, and are currently embroiled in a lawsuit within the US. Simply put, the New York Attorney General’s Office is claiming that the firms gave services to New York clients illegally, as well as giving an unauthorized loan on top of that.