Best Bitcoin Margin Trading Exchanges For Beginners in 2020

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Published By Sudhir Khatwani • Updated on June 16, 2020

Margin trading Bitcoin and other cryptos by taking huge leverage is slowly becoming the new trend.

The fact that you are here tells me you have figured that out and wish to participate in Bitcoin leverage trading.

But remember:

Though Margin trading Crypto like Bitcoin (BTC) and leverage might seem attractive it matters a great deal where you trade.

So based on our experience here are some of the best exchanges for Bitcoin trading on low margin and high leverage:

Top Margin Trading Exchanges For Crypto Start Bitcoin Leverage Trading Now
PrimeXBT [Get 35% Deposit Bonus] Trade Now
StormGain [Second Best] Trade Now
Bitmex   Trade Now
BaseFEX  Trade Now
Kraken Trade Now
Binance Trade Now
Cex.io Trade Now
Poloniex Trade Now

I know many might have heard that Bitcoin Margin trading is the quickest way to earn a lot of money but let me tell you it is also the quickest way to lose your money, if not done right.

So trade responsibly and don’t keep your house or spouse on the mortgage to trade Bitcoin and crypto with leverage of 100x.

Note: This is a comprehensive guide on cryptocurrency margin trading!! If you already know about it, well directly explore the best margin trading exchanges for crypto in the above-shown table.

In case you don’t know, directly jump to the introductory Bitcoin margin/leverage trading section to learn what is margin trading of Bitcoin & other cryptocurrencies?

2020’s Top Crypto Margin Trading Exchanges For USA Customers

Let’s get started with the list of Best Bitcoin Margin Trading Exchanges with Leverage to trade:

#1. PrimeXBT Margin Trading

COUNTRY AVAILABLE

Worldwide

CURRENCY

BTC, ETH, ADA, BCH, EOS, LTC, TRX, XRP

Margin Limit/Leverage Up To

100x

FEES

0.005%

MINIMUM

0.001 BTC

USP

30+ assets including commodities, stocks, forex & crypto

Editors’ Thoughts

PrimeXBT has scintillated the margin trading for millions of crypto enthusiasts and is one of the crypto exchanges that allow shorting Bitcoin like cryptocurrencies on high leverage.

PrimeXBT is a rapidly growing Bitcoin-based margin trading platform that offers instant access to over 30+ assets including Crypto (Bitcoin, Ethereum, Litecoin, Ripple, EOS), and much more.

Now using PrimeXBT you can get up to 100x leverage on BTC, ETH, XRP, LTC and many more favorite cryptocurrencies of yours. Go long or short whenever you wish based on the TA trading strategy done on the clean UI of PrimeXBT.

PS: Get a 35% additional bonus on the deposit of any amount of BTC on PrimeXBT.

Meaning, if you put 1 BTC to trade on PrimeXBT, you will get an additional 0.35 BTC to trade. So in total 1.35 BTC when you register using this exclusive deal for TheMoneyMongers readers.

Execute 5 types of advanced orders to get the maximum out of your trades with no KYC and almost instantly approved the margin trading account with the lowest fees forever.

Trade cryptocurrencies, stock indexes (S&P500, FTSE100), commodities, and forex all through one single Bitcoin-based margin trading platform.

#2. StormGain Margin Trading

COUNTRY AVAILABLE

Worldwide

CURRENCY

BTC, LTC, ETH, BCH, and XRP

Margin Limit/Leverage Up To

200x

FEES

0.06%

MINIMUM

0.001 BTC

USP

200x Leverage & Free Trading Signals

Editors’ Thoughts

StormGain is a centralized cryptocurrency exchanged established in July 2019. It is registered in Seychelles and serving 120,000+ customers from 120 countries around the world.

As of now, the exchange supports cryptocurrency spot trading as well as futures trading. Its leverage offerings are one of the highest in industry and go up to 200x for certain cryptocurrencies.

At the moment, BTC, LTC, ETH, BCH, and XRP are prime assets for which futures trading is in the full swing with around $300 million+ volume each day. There are built-in wallets for USDT, BTC, ETH, LTC, XRP, and BCH.

The inbuilt option of purchasing cryptocurrencies using a credit card is available on the exchange to fund your margin trading accounts. Moreover, StormGain provides demo accounts for traders to become comfortable before trading real money, and in the non-demo account as a trader, you get the luxury of in-app trading signals too.

#3. Bitmex Margin Trading

COUNTRY AVAILABLE

Worldwide Except for the US

CURRENCY

BTC/USD,ETH/USD, ADA, BCH, EOS, LTC, TRX, XRP

Margin Limit/Leverage Up To

100x

FEES

0.025-0.075%

MINIMUM

0.01 BTC

USP

Closing fee is 0%

Editors’ Thoughts

BitMEX is a dedicated Bitcoin and cryptocurrency margin trading exchange.

BitMEX is a pioneer in margin trading of cryptocurrencies since 2015 and is comprised of a dedicated team of developers and economists, rightly needed for this kind of business.

And the good thing is that users who sign-up using this exclusive link will receive a 10% fee discount for six months and believe me 10% is a lot when you see it over a period of time.

As of now, you can trade BTC/USD, ETH/USD, ADA, BCH, EOS, LTC, TRX, XRP on its margin trading platform to place a long/short position on any of these pairs at any price.

 #4. BaseFEX Margin Trading

COUNTRY AVAILABLE

Worldwide Except for the USA, Cuba, Iran, North Korea, Sudan, Syria, China, and Crimea.

CURRENCY

BTC/USD,ETH/USD, ADA, BCH, EOS, LTC, TRX, XRP

Margin Limit/Leverage Up To

100x

FEES

0.2-0.07%

MINIMUM

0.01 BTC

USP

ERC tokens also

Editors’ Thoughts

BaseFEX is a crypto derivative exchange unlike any other as it is developed by professionals of the financial industry. It is relatively new but boasts to provide margin trading for BNB, HT, OKB, LTC, TRX, BCH, ATOM which includes ERC20 tokens also. And this isn’t available anywhere else.

Apart from that, it has a secure, reliable, and extremely speedy order matching engine to help you trade perpetual contracts for almost all popular coins with leverage of 20-100x and place a long/short position on any of these pairs at any price.

Also, it has the world’s lowest taker fee especially for BTC/USD pair and the UI very neat in comparison to its other peers so do try BaseFEX once.

#5. Kraken Margin Trading

COUNTRY AVAILABLE

SEPA Countries & The US

CURRENCY

BTC, BCH, ETH, ETC, XMR, XRP, REP


Margin Limit/Leverage Up To

5x

FEES

0.01-0.02%

MINIMUM

0.01 BTC

USP

EUR Margin Trading

Editors’ Thoughts

Kraken is one of the biggest cryptocurrency exchanges in the world operating in this space since 2014.

Kraken is a US registered entity based out of San Francisco, USA and is one of the very few US exchanges that allow margin trading for the US crypto investors.

As of now, you can trade BTC, BCH, ETH, ETC, XMR, XRP, REP on its margin trading platform against BTC, ETH, USD, and EUR to place a long/short position on any of these pairs at any price.

Lastly, Kraken’s trade support is quite proactive in supporting its users, so feel free to margin trade on this exchange as there is an ample amount of liquidity too.

 #6. Binance Margin Trading

COUNTRY AVAILABLE

Worldwide Except for the US

CURRENCY

BTC/USDT

Margin Limit/Leverage Up To

125x

FEES

0.02%

MINIMUM

0.01 BTC

USP

Mobile Apps

Editors’ Thoughts

Binance is the biggest famous altcoin and cryptocurrency exchange for spot trading, but it didn’t use to provide margin trading for cryptocurrencies until recently.

Binance broke to the margin trading sphere recently and in just a few months the trading volume of its margin products has overtaken the spot trading volume.

Though as of now, Binance only provides one pair BTC/USDT it has become a go-to margin trading platform for those who want to leverage trade Bitcoin.

The liquidity is enormous plus the brand name itself is trustable around the world. The funds are backed by SAFU and they also have their Android app from where you can do Bitcoin leverage trading.

Binance 125x leverage on Bitcoin futures is the highest in the industry.

Though they started with BTC/USD pair now new crypto pairs with leveraged trading features on Binance are available. These pairs are ETH/BTC, BNB/BTC, LTC/BTC, etc where you can place a long/short position on any of these pairs at any price.

#7. CEX.io Margin Trading

COUNTRY AVAILABLE

Worldwide Except for the US

CURRENCY

BTC/USD,ETH/USD, BCH/USD, BCH/BTC, BTC/EUR, ETH/BTC

Margin Limit/Leverage Up To

3x

FEES

0.1-0.2%

MINIMUM

0.01 BTC

USP

Closing fee is 0%

Editors’ Thoughts

CEX is another reputed cryptocurrency exchange based out of the UK, and now it is providing margin trading of cryptocurrencies too.

It is operating in this space since 2014, and you can trade BTC/USD, ETH/USD, BCH/USD, BCH/BTC, BTC/EUR, ETH/BTC as of now on its margin trading platform to place a long/short position on any of these pairs at any price.

#8. Poloniex Margin Trading

COUNTRY AVAILABLE

Worldwide Except for the US

CURRENCY

XMR, LTC, ETH, XRP, DASH, etc


Margin Limit/Leverage Up To

2.5x


FEES

0.1-0.2%

MINIMUM

0.01 BTC

USP

10+ Margin Trading Pairs

Editors’ Thoughts

One of the oldest players in the cryptocurrency market, Poloniex still provides classical as well as margin trading for its users.

However, the volume is very low on the exchange, but still one can margin trade easily for 10+ cryptocurrency pairs, but all the pairs are in BTC. So you can place a long/short position on any of these pairs at any price.

#9. Bittrex Margin Trading

COUNTRY AVAILABLE

N/A

CURRENCY

N/A

Margin Limit/Leverage Up To

N/A

FEES

N/A

MINIMUM

N/A

USP

N/A

Editors’ Thoughts

Bittrex is a famous altcoin and cryptocurrency exchange, but it doesn’t provide margin trading for cryptocurrencies yet. When it does, TheMoneyMongers will be the first one to tell you 🙂

What Is Bitcoin Margin Trading?

If you want to understand the nuts and bolts of cryptocurrency margin trading then stick around as I am going to unwind everything from the beginning.

So let’s get in with this fact:

Cryptocurrency trading is risky, but leverage trading them is even more dangerous.

That’s why you should think twice before getting into crypto trading and think thrice before indulging in the margin trading of cryptocurrencies.

I know:

Many of you might get lured into crypto trading because of the stories you hear from your friends and how they turned $1000 to $10,000 in a matter of weeks !!

But on the flip side, they forget to tell you how much risk they have taken to achieve these kinds of returns and what are its downsides…

That’s why in this guide let’s try to understand margin trading in cryptocurrencies, its risks and how, if it used correctly, it could serve you achieve your investment goals.

How Does Crypto-Margin Trading Work?

Cryptocurrency and Bitcoin margin trading is the new hype that is catching up along with regular trading.

But what is it?

Well, to know that we first need to understand, Margin Trading.

Margin trading is the act of trading (stocks, bonds, or cryptos) using borrowed money.

And since the borrowed money is available to you because you already have a certain reserve of money that’s why it is also called leveraged trading.

This breed of trading is a very common practice in traditional markets, and it originated first from the US. But nowadays, this is not only limited to the US as it has already spread across other traditional markets around the world.

And now, this concept is being borrowed by the cryptosphere to introduce cryptocurrency margin or leveraged trading to crypto/Bitcoin traders where one can borrow extra bitcoins or cryptocurrencies based on their already existing holdings.

Still, it doesn’t make sense?

Well, let me give you a simple example:

Let say you want to buy bitcoins worth $10,000, but you have only $1000 at your disposal. So, now you decide to margin trade using the leverage ratio of 100:1 (100x means for every dollar you already have, you will get 100 dollars extra to invest).

Now picture this:

The next morning, after you have placed your margin trade, BTC’s price increases by 50% and so does your initial investment, which is now $15,000. (assuming 1 BTC= $10,000, when you had placed your trade). Now you can close your trade by liquidating your position and pay back the extra $9000 to the lender which you have effectively leveraged on your initial reserve of $1000.

So simple maths, you are now left with a profit of $5000 [$15000-($9000+$1000)] which you have earned by leveraging on the initial $1000 you had.

But this is a hunky-dory scenario.

On the flip side, you could have lost everything including your $1000.

Let see how that can happen:

Let say the price of BTC decreases %50 after you have made your trade and in this case, your initial investment is reduced to $5000, and now the lender needs to be protected. So this remaining $5000 goes to the lender and you are left with nothing.

One would argue that in this scenario the lender has also lost an extra $4000 out of the original $9000 that he/she had lent, but in real life, the position is closed well before a 50% drop happens, thus saving the lender’s capital contribution.

So realistically in the above scenario, the position would have been closed on a 10% BTC drop only and the lender would have got his/her $9000 back !!

Bottom line:

If the market moves in your favor, your profits are magnified as per your leverage, and if the market goes against your position, your losses too are magnified.

But after I learned about margin-trading of cryptocurrencies, I was thinking, who lends to these risky margin traders and why?

And upon further digging, I could find this:

Who Lends To Margin Traders & Why Do They Engage In Margin Trading Of Cryptos?

Margin traders engage in margin trading to maximize their profits with little money/cryptos at their disposal.

On the other hand, the majority of margin traders are veteran traders who understand the dynamics of the market and thus back their technical analysis. (I know there are newbies too, more on that later !!)

Of course, this doesn’t mean that they cannot go wrong and they also do!!

Brokers or people who want to earn an extra percentage of income on their cryptocurrency or Bitcoin holdings usually lend to these margin traders for a flat fee or interest rate.

So whenever the portfolio of a margin trader is performing well, these lenders keep getting the promised fee or interest rate on their lendings.

While on the other hand, if the portfolio performs poorly then the position is automatically closed and remaining funds plus the interest returned to the lender.

Now, I know some of you might be wondering how that happens automatically and who closes the position to reduce further losses for the lender?

Well, here comes the dedicated margin trading cryptocurrency exchanges which I had listed above.

FAQ

Can you buy Bitcoin on margin?

No, one cannot buy Bitcoin on margin and even if it is possible, one should not do this as this trading strategy is not sustainable.

How do you bind margin for trading?

You cannot simply margin trade without a certain degree of cryptocurrencies or Bitcoin in your account, which acts as collateral. When the market moves opposite of your bet, one generally gets a margin call to increase their margin or collateral, otherwise, their collateral is liquidated. This is how it is binding.

So that’s all from us in this massive guide on which crypto margin/leverage exchanges are the best.

But I do have some words of wisdom for novice crypto investors:

If you are not comfortable with the wild volatility of crypto, do not trade bitcoins or any cryptocurrencies and don’t even think about trading cryptocurrencies on margin.

I am saying this not to frighten you but to give a head-ups because I have seen many people losing vast amounts of money in margin trading bitcoins/cryptocurrencies.

Lastly, never leave your cryptocurrencies on these exchanges as they are prone to hacks !!

If you liked this article? Do share with your friends & family !!

Sudhir Khatwani

Hey there! I am Sudhir Khatwani, an IT bank professional turned into a cryptocurrency and blockchain proponent from Pune, India. Cryptocurrencies and blockchain will change human life in inconceivable ways and I am here to empower people to understand this new ecosystem so that they can use it for their benefit. You will find me reading about cryptonomics and eating if I am not doing anything else.

3 thoughts on “Best Bitcoin Margin Trading Exchanges For Beginners in 2020”

  1. Excellent post. I want to thank you for this informative read, I really appreciate sharing this great post. Keep up your work…

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