Binance, the world’s largest cryptocurrency ecosystem, is taking steps to empower traders with better risk management strategies, News About Nigeria reports.
In an effort to inform users about potential volatility, the exchange has introduced two innovative tags – seed tags and monitoring tags – replacing the previous “Innovation Zone” that emphasized early-stage products with high risks.
Seed tags will replace Binance’s Innovation Zone, a section where traders could access early-stage tokens associated with higher risks. The Innovation Zone, which contributed to the growth of many promising altcoins, will be replaced by seed tags to highlight tokens that may experience increased volatility.
The new seed tags will be applied to all cryptocurrencies currently listed in the Innovation Zone, as well as future listings of tokens issued by innovative products, which are often subject to high levels of volatility.
Another groundbreaking feature is the introduction of monitoring tags, a first-of-its-kind novelty for cryptocurrency exchanges. These monitoring tags will identify tokens with volatility levels higher than the majority of tokens, allowing users to exercise caution when trading such assets.
To promote responsible trading practices, Binance will make tokens with seed and monitoring tags available only to traders who complete special quizzes designed to educate them about the risks associated with high-volatility assets.
To ensure maximum trading security, users will be required to take quizzes every 90 days on both the Binance Spot and Binance Margin platforms. The corresponding labels will be prominently displayed next to trading pair tickers and on the Markets Overview page.
In addition, risk warning banners will be prominently placed on every page featuring seed and monitoring tag-labeled tokens. This repeated information will ensure that traders are constantly aware of the higher risks associated with these types of tokens.
With the introduction of seed and monitoring tags, Binance (BNB) is taking a proactive step to empower traders with vital information, allowing them to make more informed decisions and create flexible, data-driven risk management strategies.
