Binance is back with another major announcement after receiving feedback from users concerning the tags they attach to cryptocurrencies. Among crypto traders, they are always the experts, intermediates, and beginners.
In most cases, only the experts and intermediates should trade cryptocurrencies that are highly risky and volatile due to their experience. These traders already know the nook and cranny of the market and know exactly when to leave and stay in a trade. Even when they take losses, it isn't because they were blanked out on what to do.
On the other hand, beginners or newbie crypto traders trading highly volatile and risky cryptocurrencies can be a nightmare for them. To make things even worse, some of these beginners don't know they are trading a high-risk token until they are deep into the trade.
So users in the Binance exchange, especially beginners, have resorted to giving the largest crypto exchange feedback of their experience. And Binance has come up with a solution. They created a hierarchy system and, subsequently, tags that will help users to know tokens that are highly volatile and risky. They even took things to a new level by bringing up an altcoin list in their announcement. This altcoin list contains cryptocurrencies that are highly volatile in Binance trading platforms.
Binance Trading Unveils New Altcoin Tags
Today, Binance announced the new changes to its website. The names of these tags are Seed Tag and Monitoring Tag, representing assets that are highly risky to trade.
Binance said:
"Fellow Binancians,
Based on feedback from the community that it is hard for users to differentiate tokens listed in the Innovation Zone and Main Trading Zone, Binance will be introducing the Seed Tag and Monitoring Tag on 2023-07-26."
So how will this whole tag thing work? The way Binance broke it down is quite simple. Apparently, it is pretty clear that Binance introduced these tags to prevent those who don't have a good knowledge of the market from trading cryptocurrencies that fluctuate heavily. Binance says for users to trade tokens with these tags, they must take approval quizzes once every 90 days.
"To gain trading access to the tokens marked with Seed Tag or Monitoring Tag, users will need to pass the corresponding quizzes every 90 days on the Binance Spot and/or Binance Margin platforms, and accept the Terms of Use."
"The quizzes are set up to ensure users are aware of the risks before trading the tokens with the Seed Tags and Monitoring Tags. Users may find the Seed Tags and Monitoring Tags on the corresponding Binance Spot and Binance Margin trading pages, as well as on the Markets Overview page. A risk warning banner will also be displayed for all tokens with the Seed Tags and Monitoring Tags," Binance added.
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Many Cryptocurrencies Already Added to Highly Risky List
Binance didn't waste any time in publishing an altcoin list containing cryptocurrencies which are currently highly volatile in the market. However, this list is bound to be changing from time to time.
This list contains several cryptocurrencies that were deemed risky and volatile by Binance. Among them are FTX Token (FTT), Ren (REN), Tornado Cash (TORN), Acropolis (AKRO), Ark (ARK), Cream Finance (CREAM), and DFI.Money (YFII).