Cryptocurrency markets rate as the most volatile in the world. Therefore, trading cryptocurrencies has become one of the best ways to make money in the crypto space. Many traders use margin trading as one of the profitable methods of trading. It requires one to use the method correctly as it is one of the riskiest forms of trading.
What exactly is margin trading, and what are the best platforms for margin trading crypto?
Margin Trading
Margin trading is one form in which one trades with borrowed money. To access the money, one needs to have some collateral. This type of trading with borrowed money is also known as leverage.
Therefore, trading crypto on margin helps one to buy and sell digital assets with more money than they have in their exchange rate.
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.
However, if you are a good regular trader, here are the best crypto margin trading exchanges you can use.
1. Binance
Binance rates as the world’s best crypto exchange having the maximum liquidity, trading volume and users. 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.
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
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. Kraken
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.
4. KuCoin
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.
5. BitMEX
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.
6. Phemex
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.
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 is a great option to choose from, but after researching the platforms on offer, the exchanges listed here make the list of the best for margin trading crypto.
However, even with these examples, there is a lot of variety. The one you choose depends on your needs as a margin trader. Whether looking for a great UI, extremely high leverage, or low fees, for beginners, there is an excellent margin trading exchange for you.
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