Crypto Margin Trading – These are the best exchanges

The cryptocurrency markets are among the most volatile markets out there. Therefore, cryptocurrency trading has become one of the best ways to make money in the crypto space. Margin trading has become a popular method of trading cryptocurrencies, although there are significant risks to be aware of. In this article, we will look at the best platforms for crypto margin trading.

What exactly is margin trading and what are the best platforms for margin cryptocurrency trading? Let’s see.

margin trading

Margin trading is an advanced form of trading and allows you to trade with more money than you actually have in the bank or on the stock exchange. When you trade on margin or leverage, you borrow money (margin) from a bank or crypto exchange for a small fee by providing a small amount of collateral.

The benefits of margin trading lie in the ability to make higher profits when your trades are successful. On the other hand, trading with leverage involves high risk and there is a high chance of being liquidated if the trade goes wrong. Liquidation means that your deposited security and your positions are lost.

Note: In general, margin trading is very risky. Crypto margin trading is even more risky due to the high volatility.

Margin trading requires great skill and should only be used by experienced traders. Especially since cryptocurrencies are extremely volatile, you should never trade with more money than you are willing to lose.

Top 7 platforms for trading with margin and leverage

Here are our top 7 exchanges for crypto margin and leveraged trading.

1. binance

Binance margin
  • Yield: 100x
  • Spot margin: Yes
  • Leveraged tokens: Yes

Binance is recognized as the world’s best crypto exchange with the highest liquidity, largest trading volume and the most users of any crypto exchange. Binance offers traders more than 600 supported tokens and offers over 1,000 trading pairs to carry. In order for traders to trade on margin on Binance, they must manually enable this feature, which allows for up to 1:100 leverage on certain markets such as BTC/USD.

If you want to trade on the world’s largest crypto exchange, you can use the link and discount code below to get a 20% discount on all your Binance trades.

Binance discount code
Binance Referral Code for 20% Off

Margin fees on Binance vary depending on the traded pair and the user’s VIP level. For example, trading BTC/USD on margin at the standard account level will incur a margin fee of 0.01%.

2. city ​​bit

CityBit
CityBit
  • Yield: 100x
  • Spot margin: Yes (up to 3x)
  • Leveraged tokens: Yes

Bybit is one of the best crypto margin trading exchanges because of the trust that many have in the platform. Bybit has been in the spotlight since 2018, serving over 2 million users and having over $10 billion in 24-hour trading volume. In a real sense, this ensures extremely high liquidity for short-term traders.

In addition, Bybit is a specialized platform for trading derivatives. It deals in various perpetual and futures contracts. They offer an entry bonus that one can use for margin trading.

For margin trading, Bybit offers up to 100x leverage, which is a generous offer compared to other exchanges. Bybit has insurance funds that can be used to absorb losses if a merchant goes bankrupt.

The platform is also easier to use for those new to leverage trading, making it perfect for both experienced and new traders.

3. FTX

FTX
FTX
  • Yield: 20x
  • Spot margin: Yes
  • Leveraged tokens: Yes

The platform was launched in May 2019 and is a state-of-the-art crypto exchange with various exciting features. In general, the FTX exchange offers its users enormous liquidity with a 3-layer liquidity protocol.

Additionally, the FTX margin trading interface is user-friendly and leverages up to 20x, with fees as low as 0.02% for makers and 0.07% for takers.

FTX offers a massive selection of 275+ coins and a number of unique features not found anywhere else. For example, one can buy inverse leverage tokens on FTX.

FTX does not target US residents who are required to use FTX.US.

4. squids

squids
squids
  • Yield: 5x
  • Spot margin: Yes

Based in San Francisco, Kraken is one of the largest cryptocurrency exchanges in the United States and has been active since 2013.

Kraken gives traders access to 36 different crypto-tokens with a margin of up to 1:5. This means traders can access $500 worth of cryptocurrencies for every $100 wagered. When it comes to pricing, Kraken has a maximum rollover fee of 0.02% which is calculated every four hours.

5. KuCoin

Kukoin
Kukoin
  • Yield: 100x
  • Spot margin: 10x
  • Leveraged tokens: Yes

KuCoin is one of the best altcoin exchanges for wealth diversity. There are more than 700 digital assets listed on the platform. The exchange claims to have over 18 million active investors from over 200 countries. Most of the little gems can be found on this platform.

The platform has an interactive user interface and high platform liquidity, which puts it on our list.

KuCoin offers 10x margin on spot trading and 100x on derivatives trading. KuCoin also offers some leveraged tokens which are a better version of margin trading as they do not risk asset liquidation.

6. BitMEX

BitMex
BitMex

BitMEX makes the list as one of the best crypto margin trading exchanges for experienced traders. The platform is also packed with advanced trading tools such as custom charts and technical indicators such as MACCD and RSI. BitMEX generates significant trading volumes, so liquidity is rarely an issue.

As an unregulated exchange, BitMEX does not accept direct fiat payments, but accounts are funded in Bitcoin.

Currently, BitMEX offers margin trading for 6 cryptocurrencies, of which Bitcoin margin trading is the most well-known. Offers leverage up to 1:100 on BTC/USD.

7. Phemex

Phemex
Phemex

As one of the newest crypto exchanges on the list, Phemex offers a wide range of trading products and markets. These include conventional spot trading markets and the ability to buy cryptocurrencies with a credit card.

Since its launch in 2019, the exchange has grown to a significant user base and trading volume in a short period of time. It has more than 5 million users with an average 25-hour trading volume of around $8 billion.

The exchange offers a leverage of up to 100x when trading derivatives. The transaction fee for derivatives is 0.075% for receivers and 0.025% for a producer. This means that a manufacturer will receive a trading fee.

FAQ

Is margin trading profitable?

Margin trading can be very profitable if you know what you are doing. You can increase your investment and profit many times if you make a successful trade on margin. On the other hand, you can also lose your entire investment if it is liquidated, which is why margin trading is quite risky.

Is margin and leverage trading risky?

Yes, trading on margin and leverage is very risky. When you trade on margin and leverage, there is a risk that your position will be liquidated if the market takes a different direction. The higher the margin and leverage on a position, the higher the risk of being liquidated.

A liquidation means loss of your positions and your security.

We therefore recommend that you only use these advanced forms of trading if you know what you are doing.

What does 100x leverage mean?

With 100x leverage, $1 can be traded as $100 and traders can take full advantage of $100 so their investment returns can be higher. The investor risks $1 but can win $100. But with 100x leverage, the investor faces a high risk of being liquidated.

What are leveraged tokens?

Leveraged tokens are tokens that offer investors leverage to increase profits. Leveraged tokens offer higher volatility which can multiply gains or losses.

Conclusion

The best crypto margin trading platforms allow users to enter digital currencies with more capital than they have. The crypto exchange market is huge right now and continues to grow as cryptocurrencies become more of a mainstream investment option.

There is a wide variety to choose from, but after researching the platforms on offer, the exchanges listed here have proven to be the best for margin cryptocurrency trading.

There is a great variety. We recommend that you choose your platform based on your needs as a trader. Whether you are looking for a great user interface, extremely high leverage or low fees for beginners, there is an excellent margin trading exchange for you.

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