Crypto margin trading platforms allowing crypto traders to take huge leverage while trading is slowly becoming the new normal in the cryptosphere.
You are here tells me that:
You have figured that out and wish to participate with these cryptocurrency traders using high leverage on some of the best crypto margin trading exchanges.
Though margin trading Bitcoin and other cryptos on leverage might seem attractive, it matters a great deal where your margin trades.
So based on our experience, here are some of the best exchanges for Bitcoin trading on low margin and high leverage:
Many might have heard that crypto margin trades are 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 100x leverage.
Note: This is a comprehensive guide on high leverage trading!! If you already know about it, well, directly explore the best margin trading exchanges for crypto in the above-shown table. If you don’t know, directly jump to the introductory Bitcoin leverage trading section to learn what margin trading of Bitcoin & other cryptocurrencies is?
2021’s Best Crypto Leverage Trading Platforms
Let’s get started with the list of the best Bitcoin & crypto exchanges that offer leverage to trade:
|Best Crypto Trading Platform with Leverage||Quick Links|
|ByBit [Get Deposit Bonus upto $1010]||Trade Now|
|PrimeXBT [Get 35% Deposit Bonus]||Trade Now|
|Binance [125X Leverage On Bitcoin]||Trade Now|
|FTX [101X Leverage]||Trade Now|
|Stormgain [Get upto 200X Leverage]||Trade Now|
Bybit is one of the most user-friendly crypto exchanges that is leverage on crypto futures markets, including some prominent crypto tokens.
Established in 2018, Bybit quickly grew its foothold amongst beginners and professional, experienced trades interested in trading leveraged tokens and cryptos like Bitcoin or Ethereum.
Bybit offers perpetual swaps and crypto futures on some popular cryptos that offer leverage up to 100X.
Bybit has all the order types, including stop-loss orders which any exchange should have for the traders opening positions on leverage. Plus, its order execution is flawless because of its low latency trading engine.
Bybit follows the maker fees and taker fees model for its trading fees, where the maker fees are 0.025% & the taker fee is 0.075%.
Currently, there is no KYC requirement to use Bybit’s user-friendly interface for any trading pairs and any margin trading products of its own.
Bybit currently serves 300,000+ user accounts worldwide, helping them take leveraged positions in a volatile market like crypto and is surely better than Binance when it comes to the crypto futures market.
You can always read our in-depth ByBit Exchange Review here.
PrimeXBT exchange has scintillated the leverage 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.
PrimeXBT Offer: 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 leverage trading account with positions and the collateral that you want to trade.
Trade cryptocurrencies, stock indexes (S&P500, FTSE100), commodities, and forex all through one Bitcoin-based margin trading platform.
FTX is a relatively new but dynamic crypto margin trading exchange offering crypto derivatives of all sorts.
FTX: launched in 2019 by founders of Alameda Research, it consistently is now the top trading exchange for traders to trade crypto and Bitcoin futures with the lowest trading fees.
FTX- being a margin exchange that offers 150+ perpetual and quarterly futures, leveraged tokens, BTC options, MOVE contracts, leveraged tokens to help you speculate, and take advantage of any volatility is itself a great feat.
The friendly interface of FTX lets traders margin trade their all crypto trades at a leverage of 101X leverage for all popular trading pairs.
On FTX, leverage options are also available for nominal collateral, which helps beginners and experienced traders use the option of stop-loss to avoid hitting any unwanted liquidation price.
FTX trading tools, I must say, are superior to that of Bybit and Binance because they offer leveraged tokens with nominal trading fees for any positions a trader might want.
FTX has almost all order types that one would want to trade cryptos plus an efficient trading engine to avoid unfair liquidations and razor-sharp customer support.
FTX is a no-KYC exchange where they charged 0.02 % as the maker fees and 0.07% as the taker fees, but this can be reduced upto 60% depending upon how many FTT tokens you hold while using this FTX crypto exchange.
Binance broke to the leverage 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 leverage crypto exchange for those who want to leverage trade Bitcoin, other popular cryptocurrencies & tokens.
Binance liquidity is enormous, plus the brand name itself is trustable around the world. SAFU backs the funds, and they also have their Android app from where you can leverage trade.
Binance 125x leverage on Bitcoin futures is the highest in the industry. Binance also offers fiat currencies on its platform for trading pairs as well as deposits.
Binance’s trading engine is one of the best in the industry because you need that while crypto margin trading to execute your trading strategies and all the order types to execute precisely, including stop-loss orders.
Though they started with BTC/USD pair, 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.
Lastly, Binance is highly compatible with many crypto bots to make your trading journey more rewarding than usual.
BitMEX margin trading exchange is a dedicated platform for any experienced trader to trade Bitcoin futures on high leverage.
BitMEX is a pioneer in the margin trading of cryptocurrencies since 2015 and comprises a dedicated team of developers and economists, rightly needed for this kind of business.
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 along with a stop-loss order to avoid liquidations.
But please note that BitMEX’s trading platform has a little glitch-prone trading engine which has liquidated many traders in the past.
BaseFEX is one of those crypto trading platforms unlike any other as professionals in the financial industry developed it.
BaseFEX is relatively new but boasts of providing 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.
BaseFEX provides the option of a stop-loss order, including other order types, to help you make more winning trades.
Also, it has the world’s lowest taker fee, especially for BTC/USD pair, and the UI is elegant compared to its other peers, so do try BaseFEX once.
Kraken exchange is one of those trading platforms regulated by the US and allows US traders to take advantage of the growing crypto market.
Kraken, being of the biggest cryptocurrency exchanges in the world is operating in this space since 2014.
Kraken- a US registered entity based out of San Francisco, USA, and is one of the very few US exchanges that allow margin trading for US crypto investors and gives up to 5x leverage.
Though 5x leverage might not look too much in the US, only this is feasible now, but let me tell you that this kind of leverage is also not less.
On Kraken 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 with order types necessary for you to make winning crypto trades.
Kraken believes in good customer support, and hence their trade support is quite proactive in supporting its users.
So if you are a US-based customer, feel free to margin trade on the Kraken exchange as there is ample liquidity on it.
CEX.io is another reputed cryptocurrency exchange based out of the UK, and now it is providing leverage on cryptocurrencies.
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.
One of the oldest players in the cryptocurrency market, Poloniex still provides leverage on cryptos for its users.
However, the volume is very low on the exchange, but still, one can easily trade 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.
StormGain is a centralized cryptocurrency exchange 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 is offering crypto futures markets trading. Its leverage offerings are among the highest in the 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 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 accounts.
Moreover, StormGain provides demo accounts for traders to become comfortable before using real money. In the non-demo account, as a trader, you get the luxury of in-app crypto signals.
What Is Bitcoin Margin Trading?
If you want to understand the nuts and bolts of cryptocurrency margin and leverage trading, then stick around as I will 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 or leverage trading of cryptocurrencies.
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 they are its downsides…
That’s why in this guide, let’s try to understand leverage trading in cryptocurrencies, its risks, and how, if it is used correctly, it could serve you to achieve your investment goals.
How Does Crypto-Margin Trading Work?
Leveraged trading in cryptocurrency or Bitcoin margin trading is the new hype 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 widespread practice in traditional markets, and it originated first from the US. But nowadays, this is limited to the US as it has spread across other traditional markets worldwide.
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 placing your margin trade, BTC’s price increases by 50%, so your initial investment 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.
In this scenario, one would argue that the lender has also lost an extra $4000 out of the original $9000 that he/she had lent. Still, 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 !!
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, most margin traders are veteran traders who understand the market dynamics and 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 the remaining funds plus the interest is 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.
Should I Margin Trade Crypto?
If you understand how margin works, then you should trade crypto on margin.
Otherwise, one should not buy/sell cryptos like Bitcoin on margin. Even if it is possible to do, one should not do it as this trading strategy is not sustainable for & especially for those who don’t understand margin.
How do you find crypto trading exchanges offering margin?
So that’s all from us in this massive guide on some of the best crypto margin trading platforms available today in the market.
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 leverage.
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 !!