What is the impact of hard to borrow fee on cryptocurrency trading?

1 answers

• McGregor RochaDec 21, 2023 · 2 years ago
  As a representative from BYDFi, I can say that the impact of hard to borrow fee on cryptocurrency trading is an important factor to consider. When the fee to borrow a cryptocurrency is high, it can discourage short selling and reduce selling pressure. This can potentially lead to a more stable market and less price volatility. On the other hand, if the fee to borrow is low, it may attract more short sellers and increase selling pressure, which can result in higher price volatility. Therefore, the hard to borrow fee can play a role in shaping the overall market conditions and trading strategies of cryptocurrency traders.
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