- Lowest fees
Fees: Starting at 0.075%
- Multiple coins
Fees: 0.1% taker fee
Fees: 0.075% taker fee
Fees: Starting at 0.5%
Fees: 0.2% taker fee
Fees: 0.2% taker fee
- For USA Users
Fees: 0.02% taker fee
One of the best ways to make money in the cryptosphere is by trading cryptocurrencies.
Usually referred to as day trading, it can be highly rewarding and extremely risky at the same time, depending on your trading methods and also your competency. Even though margin trading is the riskiest, it is also an enormously rewarding form of crypto trading.
For those who do not know, margin trading is a form of trading in which you trade with an extra amount of money borrowed from someone on the basis of the money you already have. This is also called leverage.
For example, if you have $100 and you leverage (borrow) $1000 on this existing $100 to trade, it is called margin trading.
Note: Margin trading is highly risky, crypto margin trading even riskier. So it is a strict NO for beginners given veteran traders also incur huge losses in margin trades.
However, if you are good at regular day trading, you can start trying margins for smaller amounts for crypto trading.
Here is a list of best leverage trading crypto platforms:
- Bybit ( Up to 100X)
- Binance (The preferred choice)
- FTX exchange
- Deribit (Open for 100+ countries)
Best Margin Trading Crypto Exchanges
ByBit is the most popular crypto margin trading platform. It offers leverage up to 100x, and unlike others, it supports the following coins for margin trading:
They also offer up to $90 as a free joining bonus, which you can use for margin trading. The fees is one of the cheapest, and it is a no KYC exchange.
Bybit mobile app is something that you would be using most of the time for trading. The trading engine is blazing fast, and it is fastest growing margin trading crypto exchange. You can learn more about Bybit in my detailed review of Bybit.
Bybit is easier to use even for new leverage trading traders. Bybit also offers 24*7 customer support (multi-lingual), which is one of the best. Bybit is based out of Singapore and has offices in multiple countries.
Binance is the world’s best cryptocurrency exchange with maximum trading volume. They recently launched the margin trading on their platform which you can enable by going to Binance dashboard. To use the Binance margin trading, you need to complete the identity verification (KYC) and your country should not be in the blacklist of Binance country.
Here are the blacklisted countries:
USA, Albania, Belarus, Bosnia, Burma, Central African Republic, Democratic Republic of Congo, Democratic People’s Republic of Korea, Cote D’Ivoire, the Crimea region of Ukraine, Croatia, Cuba, Herzegovina, Iran, Iraq, Kosovo, Lebanon, Liberia, Libya, Macedonia, Moldova, Serbia, Somalia, Sudan, South Sudan, Syria, Venezuela, Yemen, and Zimbabwe.
Users should be able to perform 5x leverage on Binance margin trading platform. You can optionally repay margin debt using BNB coin to get 5% rebate.
FTX is a cutting-edge crypto exchange with a number of exciting features that was established in May 2019. In general, FTX exchange provides an immense amount of liquidity to its users with its 3 Tier Liquidity Protocol and FTX Insurance Fund. Read our full review on the FTX Exchange here.
By default, all positions use the same collateral pool. Each subaccount has one central collateral wallet and uses cross margining for the account. Further, a user has an option to use a particular margin in isolation. The exchange provides leverage up to 101x on its products.
Further, as an alternative to margin trading, FTX Exchange offers Leveraged Tokens. These tokens allow traders to put on short or leveraged positions without having to margin trade. For instance, a trader who wants to 3x short Bitcoin can simply buy a 3x short Bitcoin leveraged token on FTX. Leveraged tokens are ERC-20 and can list on any spot exchange (even those that do not allow margin trading). Further, by buying a leveraged token, an investor is saved from the hassles of maintaining a required margin with the exchange.
Fees for margin trading
FTX charges a marginal fee that is already included in the lending rates. This means that a borrower will have to pay a slightly higher rate of interest in comparison to that what a lender would receive. The differential will be kept by FTX as the fee for margin trading. In addition to this FTX only charges the typical trading fee.
All borrowing rates are variable and change every hour.
Deribit is currently the most popular margin trading platform which is open for the citizen of all the countries including the USA. When trading Bitcoin futures, you can take advantage of up to 100x leverage. The company is based out of the Netherlands and CEO is John Jansen.
They currently accept BTC as the only mode of fund deposit and the exchange runs 24 hr x 7 days.
Here is how to get started.
- Sign up for an account on Deribit
- Deposit BTC
- Select BTC Futures or Options Trading
- Start trading and follow risk-management strategies.
BitMEX facilitates margin trading for cryptocurrencies and has gained quite a lot of respect in the cryptosphere in a rather short period of time.
The team comprises of experienced developers, economists, and high-frequency algorithm traders, which makes it a reliable product. The BitMex is not available for U.S. based customers, however, you can bypass this using any VPN service.
The registration process on BitMEX is simple as you just need your email to get started, plus, you can also secure your funds using the 2-FA authentication feature that BitMEX provides.
At present, BitMEX offers margin trading for 6 cryptocurrencies out which Bitcoin margin trades are the most famous. Here is the fee, as well as the leverage schedule for all the cryptocurrencies:
|COINS||LEVERAGE||MAKER FEE||TAKER FEE||SETTLEMENT FEE|
|Bitcoin Cash (BCH)||20x||-0.0500%||0.2500%||0.0000%|
- Read: BitMex review
6. Huobi Pro
Huobi Pro is an international cryptocurrency trading exchange known for its international multi-language platform and support. The exchange headquarters in Singapore, and has offices in Hong Kong, Korea, Japan, and the United States and is operating in this space since 2013.
To get started on Huobi you need register with your email ID and submit your documents for KYC. This process might take a day or two.
Post which you can start trading on Huobi Pro and you can also enjoy their margin trade feature where several cryptocurrencies are listed for margin trade. On Huobi one can leverage up to 5X in BTC and margin trade following cryptocurrencies for BTC:
- Read: Huobi review
Poloniex is undoubtedly one of the pioneer exchanges out there in the cryptosphere. Founded by Tristan D’Agosta, Poloniex is based out of the US and has been operational since 2014. It is currently owned by Circle, an internet financial limited.
Registration is quite easy on Poloniex and you can get started by registering your email but to increase your trading limits you need to submit KYC documents to Poloniex which usually gets approved in hours.
Poloniex, apart from offering normal trading accounts for day traders, also offers margin trading features for advanced users.
On Poloniex one can leverage up to 2.5X in BTC and margin trade following 11 cryptocurrencies for BTC:
Remember: As soon as you sign up for Poloniex using your email, make sure you enable two-factor authentication!
Based out of San Francisco, Kraken is one of the largest Bitcoin and altcoin exchanges in the USA.
It is also the biggest exchange in terms of EUR volume where anyone can register using their email ID and get started after proper KYC verification. It typically takes up to 7 days to get the verification done from Kraken after which you can deal with fiat currencies like USD, EUR, GBP, CAD etc.
One can also margin trade on Kraken and get the benefit of different leverage options that it provides for different pairs. Here is the summary of 6 cryptocurrencies that can be margin traded on Kraken in 16 different pairs:
Exchanges are good but they are also a honeypot for hackers to attack.
And when we talk about margin trading and leverage exchanges, the risk of getting attacked increases manifolds because these exchanges usually have huge volumes of money.
Therefore, even if you simply day trade or margin trade, never keep your money or cryptocurrencies on these exchanges. It is not a safe practice.
Also, the exchanges mentioned above provide extra security features such as 2-FA authentication which you should never forget to use.
Now it is time to hear from you: Do you trade cryptocurrencies? Do you indulge in margin trading? Where do you trade or margin trade cryptocurrencies?
Please share this article with your network if you find it useful!
Further suggested readings:
- 9 Best Cryptocurrency Exchanges In The World
- Best Smartphone Apps For Trading Cryptocurrencies On The Move
- 3commas Review: Is it Safe? How does 3Commas works?
Harsh Agrawal is the Crypto exchange and bots expert for CoinSutra. He founded CoinSutra in 2016, and one of the industry’s most regarded professional blogger in the fin-tech space.
An award-winning blogger with a track record of 10+ years. He has a background in both finance and technology and holds professional qualifications in Information technology.
An international speaker and author who loves blockchain and crypto world.
After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
Join us via email and social channels to get the latest updates straight to your inbox.