Binance pledges user safety with mandatory self-trade prevention
Binance has made a strong commitment to safeguarding the interests of its users, and for that, it has built a user-friendly trading scenario. The company is inclined towards innovation and safeguarding users from the unstable cryptocurrency trading situation. Earlier, the company had announced the execution of a self-trade prevention program as an option. Binance has since changed it to a mandatory execution to safeguard users’ interests and decrease unnecessary fee charges. This will include the company’s spot and margin users.
Self-trade prevention is an in-built system that has been created to discourage users from trading amongst themselves. This invariably brings about unwanted transaction fees for the users. Binance is known to be the biggest crypto exchange in terms of trading volume. The company deals with a large number of users, ranging from sporadic retail traders to frequent and high-volume institutional investors. Where there is self-trading, the need of the hour is for a safeguarding system.
Users are provided with the option of establishing an STP barrier where their instructions are concerned, which helps put a stop to self-trading. Through this, users can select either the maker order, the taker order, or both to expire in case a self-trade takes place.
The implementation option had its own set of benefits. It provided users with a degree of adaptability, allowing them to engage in commerce with this protection. Positive feedback was received from merchants who utilized this function. However, with the requirement in force, it has its own benefits. It reduces the likelihood of increased trade volume and discourages fraudulent activities. It also serves as a buffer against market volatility.
This shift from optional to mandatory usage speaks volumes about Binance’s commitment to creating a user-friendly and safe trading environment. Binance’s goal is to establish successful trading methods while lowering user risk factors, thereby improving the overall cryptocurrency ecosystem.