Gemini cryptocurrency exchange has expanded its cross collateral options by adding support for XRP, SHIB, DOGE, SOL, and BCH. Traders can now use these altcoins as margin collateral for derivatives trading, reducing reliance on stablecoins and enabling greater portfolio flexibility.
The cross margin system allows pooling multiple cryptocurrencies to collectively cover margin requirements without asset conversion. This provides traders with expanded capital efficiency and eliminates stablecoin conversion costs.
Heightened liquidation risks accompany this flexibility due to the volatility of newly supported tokens. Assets like XRP and SHIB are particularly susceptible to rapid downward price movements, which may trigger cascade liquidations during market downturns. Effective risk management strategies, including diversification and conservative leverage usage, are strongly recommended.