Crypto Margin Trading – The Best Exchanges

Cryptocurrency markets are some of the most volatile markets in the world. Therefore, trading cryptocurrencies has become one of the best ways to make money in the crypto space. Margin trading has become a popular method trading crypto, although one has to be aware of the huge risks involved. 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 trading crypto? Let’s take a look.

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 exchange. When trading with margin or leverage, you borrow money (margin) from a bank or a crypto exchange for a small fee by depositing a small collateral.

The benefits of margin trading is a possibility of making higher gains when the trades are successful. On the other hand trading with leverage bares alot of risk and there is big chance of getting liquidated if trades go wrong. Liquidation means that your collateral will be lost.

Note: Generally, margin trading is highly risky, making crypto margin trading even riskier. Suppose the market moves in a direction opposite your position; the exchange forces the sale of assets and liquidates your holdings.

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

Best Platforms for Crypto Margin and Leverage Trading

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

1.   Binance

• Leverage: 100x
• Spot Margin: Yes
• Leveraged Token: Yes

Binance rates as the world’s best crypto exchange having the highest liquidity, trading volume and users of all crypto exchanges. Binance offers traders more than 600 supported coins, offering over 1,000 trading pairs. To allow traders to trade on margin at Binance, users need to manually switch on the feature, which opens up to 1:100 leverage on certain markets, such as BTC/USD.

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Margin fees at Binance vary depending on the pair being traded, with the user’s VIP level. For instance, trading BTC/USD on the margin on a standard account tier attracts a margin fee of 0.01%.

2.   Bybit

• Leverage: 100x
• Spot Margin: Yes (up to 3x)
• Leveraged Token: Yes

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

Additionally, Bybit is a specialized platform for derivatives trading. It deals in several perpetual as well as futures contracts. They offer a joining bonus, which one can use for margin trading.

For margin trading, Bybit offers up to 100x leverage, which, compared to other exchanges, is a generous offer. Bybit has insurance funds used to recover losses in case a trader goes bankrupt.

The platform is easier to use even for new leverage trading traders, making it perfect for experienced and newer traders.

3.   FTX

• Leverage: 20x
• Spot Margin: Yes
• Leveraged Token: Yes

Established in May 2019, the platform comes as a cutting-edge crypto exchange with various exciting features. Generally, the FTX exchange provides immense liquidity to its users with a 3 Tier Liquidity Protocol.

Additionally, the FTX margin trading interface is user-friendly and has up to 20x leverage, having low fees of just 0.02% for makers and 0.07% for takers.

FTX offers a huge range of 275+ coins and a range of unique features that are not found anywhere else. For instance, in FTX, one can purchase inverse leverage tokens.

FTX does not cater to US residents who need to use FTX.US.

4.   Kraken

• Leverage: 5x
• Spot Margin: Yes

Kraken, based out of San Francisco, is one of the largest cryptocurrency exchanges in the USA, operational since 2013.

Kraken allows traders to access 36 different crypto tokens, having a margin of up to 1:5. This means that, for every $100 staked, traders can access $500 worth of crypto. On pricing, Kraken has a maximum rollover fee of 0.02%, charged every four hours.

5.   KuCoin

• Leverage: 100x
• Spot Margin: 10x
• Leveraged Token: Yes

KuCoin is one of the best altcoin exchanges for asset diversity, with the platform listing more than 700 digital assets. The exchange claims to be home to over 18 million active investors from over 200 countries. Most of the low market cap gems can be found on this platform.

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

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

6.   BitMEX

Leverage: 100x

BitMEX is on the list as one of the best crypto margin trading exchanges for seasoned traders. The platform further comes packed with advanced trading tools, such as customizable charts and technical indicators, such as MACCD and RSI. BitMEX generates significant trading volumes, which makes liquidity rarely an issue.

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

Currently, BitMEX offers margin trading for 6 cryptocurrencies, out of which Bitcoin margin trades are the most famous. Offers a leverage of up to 1:100 on BTC/USD.

7.   Phemex

Leverage: 100x

Phemex offers a wide range of trading products and markets as one of the newest crypto exchanges on the list. This includes conventional spot trading markets and the ability to buy cryptocurrency with a credit card.

From its launch in 2019, the exchange has captured a substantial user base and trading volume within a short span. It has more than 5 million users with an average 25-hour trading volume of approximately $8 billion.

The exchange offers leverage of up to 100x on derivatives trading. The transaction fee for derivatives is 0.075% for Taker and 0.025% for a Maker. This means that a Maker would receive a trading fee.

FAQ

Is margin trading profitable?

Margin trading can be very profitable if you know what you are doing. You can multiply you investment by alot if you have a successful trade. On the other hand you can also lose your entire investment by being liquidated, for which reason margin trading is quite risky.

Is trading with margin and leverage risky?

Yes, margin and leverage trading is very risky. When trading with margin and leverage you are at risk of having your position liquidated if the market goes another way. The higher your margin and leverage for a position, the higher the risk of getting liquidated.

Liquidation means loss of your positions and your collateral.

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

Final Thoughts

The best crypto margin trading platforms allow users to gain exposure to digital currencies with more capital than they have. The crypto exchange market is currently huge and continues to grow as crypto becomes more of a mainstream investment option.

There are great options to choose from, but after researching the platforms on offer, the exchanges listed here make the list of the best for margin trading crypto.

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