The best cryptocurrency margin trading exchanges
ExchangeSpot Trading MarginDerivatives Trading MarginKey Features1. BinanceUp to 20%Up to 20%* The most liquid crypto exchange on the market * Up to 20xUp To 20% FTXUp To 20xUp To 20x* The best customer interface and support in the market * Features a variety of unique products KrakenUp to 5xUp To 5x* Secure platform * Good choice for US residents BitmexNot applicableUp to 100×5. BybitNot ApplicableUp To 100x* Specializing derivative trading platform6. Huobi GlobalUp To 5xUpto 125x* A top exchange in the market * High liquidity platform7. KuCoinUp To 10xUp to 100x * Simple and easy to use * Features a variety of unique products.
Note: 10x means 10 times. A user can place an order of $10 if they are placing a spot trade at 10x margin. However, the margin must be $1. The exchange will lend $9.
As we all know, cryptocurrency markets are among the most volatile markets in the world. Trading cryptocurrencies is one of the best ways for you to make money in crypto.
Day trading is often called day trading. It can be both risky and lucrative at the same time. A trader must be skilled and have a variety of trading methods in order to make a living trading.
Margin trading is the most risky type of trading. This can be a very profitable way to trade if done correctly.
Margin trading, which involves trading with borrowed money, is a way to get a head start. You will need collateral to borrow the money. This is also called leverage, or trading with borrowed money.
If you have $100, the exchange will allow 10x margin on BTC spot trading. In this instance, you can place a long or short order up to $1,000. Margin trading is the act of trading more than your financial means allow you to.
It is basically like borrowing money and then investing it in cryptocurrency.
Users must be aware that if the market moves in the opposite direction to their position, the exchange may force you to sell these assets or liquidate your holdings.
Notice: Crypto margin trading, while being risky in general, can be even more dangerous. It is not recommended for beginners as experienced traders could also lose a lot in margin trades.
If you’re good at day trading, you might be able to start trading margins with smaller amounts of crypto trading.
Best Margin Trading Crypto Exchanges
Here’s a list with the best crypto platforms for leverage trading:
1. Binance
Binance is the best cryptocurrency exchange in the world, with high liquidity and trading volume as well as a large user base. You can read our complete review of Binance here.
Margin trading is supported by the exchange. Users can understand and carry out margin trading in a few easy steps. You will need to submit your identity verification (KYC), and you country must not be on the blacklist. Residents of the US are currently not allowed to use the Margin Trading function of Binance.
To protect its liquidity, the exchange also has a Margin Insurance Fund. If a trader becomes bankrupt while margin trading and his assets do not meet his debts then the Exchange will repay his debts from the Insurance Fund.
Margin trading can both be used to trade short and long positions. A margin of up to 10x can be allowed for spot trading, and up to 125x for derivatives trading.
You can refer to this page for more information about the interest rate on borrowed funds. You can also choose to pay margin trading interest as BNB (Binance In-House token), which will reduce your interest rate by 5%.
Binance also offers Leveraged Tokens as an alternative to margin trades. These tokens enable traders to take short or leveraged positions, without the need to trade margins. A trader may want to be 3x shorter Bitcoin by simply purchasing a Binance 3x Bitcoin leveraged token. Leveraged tokens can be listed on all spot exchanges, even those that don’t allow margin trading. An investor can also save time by purchasing a leveraged token.
Start Margin Trading in Binance
2. FTX
FTX, a cutting-edge cryptocurrency exchange that was launched in May 2019, has a variety of exciting features. The FTX exchange offers a lot of liquidity for its users through its 3 Tier Liquidity Protocol, and FTX Insurance Fund. You can read our complete review of the FTX exchange here.
All positions default to the same collateral pool. Each subaccount uses cross margining and has a central collateral wallet. A user can also choose to use a specific margin in isolation. The exchange offers leverage of up to 101x for its products.
Similar to Binance’s, FTX Exchange offers a variety of Leveraged Tokens. FTX.com is not available to residents of the United States. US residents will need to use FTX.US.
Margin trading fees
FTX charges a marginal charge that is included in the loan rates. The borrower will be charged a slightly higher interest rate than a lender. FTX will retain the differential as a margin trading fee. FTX charges only the usual trading fee.
Lending Rates
All borrowing rates can change at any hour. The borrowing rate can be found here.
Margin Trading on the FTX
3. Kraken
Kraken, based in San Francisco is one of the most popular cryptocurrency exchanges in America. It is second in trading volume and has the most users.
Kraken also offers many crypto tokens, even though it caters to US residents. Kraken allows you to trade derivatives and spot margin. These trades can be leveraged up to 5x.
The following tokens can be used for Margin Trading on Kraken at the moment:
BTCETCXTZDASHETHREPLTCTRXUSDTXRPADALINKXMRBCHEOSUSDC
Kraken has provided eligibility criteria to determine whether or not a user can be used for Margin Trading. The same criteria can be found here. You can also refer to the fees for margin trading here.
Margin trading fees are also very affordable. More information can be found here.
Start Margin Trading on Kraken
4. BitMEX
BitMEX facilitates margin trading in cryptocurrency and has quickly gained a lot respect in the cryptosphere.
It is a trusted product because it includes experienced developers, economists, high-frequency algorithm traders, and economists. BitMex isn’t available to U.S. customers. However, any VPN service can get around this.
BitMEX registration is easy. You only need to provide your email address to register. BitMEX also offers 2-FA authentication that will allow you to secure your funds.
BitMEX currently offers margin trading for six cryptocurrencies, with the most well-known being Bitcoin margin trades. Here’s the information about the fees and the leverage schedule for all cryptocurrencies.
COINSLEVERAGEMAKER FEETAKER FEESETTLEMENT FEEBitcoin (XBT)100x-0.0250%0.0750%0.0500%Bitcoin Cash (BCH)20x-0.0500%0.2500%0.0000%Cardano (ADA)20x-0.0500%0.2500%0.0000%Ethereum (ETH)50x-0.0500%0.2500%0.0000%Litecoin (LTC)33.33x-0.0500%0.2500%0.0000%Ripple (XRP)20x-0.0500%0.2500%0.0000%Read: BitMex reviewStart Margin Trading On BitMEX
5. Bybit
Bybit is a platform that specializes in derivatives trading. It was founded in 2018 and has over 2 million users.
Bybit offers a variety of futures and perpetual contracts. A pilot program for spot trading has been launched by the platform and should be made available to all users within the next few months.
You can also get a $90 free bonus for joining, which you can use to trade margins. It is the cheapest fee and does not require KYC. To use third-party services such as fiat trading however, users will need to complete their KYC on the platform.
Bybit’s market liquidity and depth is impressive. It is a great platform for margin trading.
Bybit offers margins as high as 100x for margin trading. Bybit also has its own insurance funds that can be used in the event of a trader going bankrupt.
The Bybit mobile app can be used for trading most of the day. It is fast and efficient, making it the fastest-growing margin trading cryptocurrency exchange. My detailed Bybit review will provide more information.
Even for new traders in leverage trading, Bybit is easy to use. Bybit offers multi-lingual customer support, which is among the best. Bybit is based in Singapore, but has offices all over the world.
Get $90 Joining Bonus on Bybit
6.Huobi Global
Huobi is an international cryptocurrency exchange that is well-known for its multilingual platform and support. The exchange’s headquarters are in Singapore. There are also offices in Hong Kong and Korea.
Register with your email ID to get started with Huobi. You will also need to submit KYC documents. This may take up to a few days.
After that, you can trade and can also use their margin trade feature. There are many cryptocurrencies available for margin trade. Huobi allows spot trading at up to 5x and derivatives trading at up to 125x.
Margin trading fees are variable. You can refer to them here.
Read our complete review of Huobi here.
Start Margin Trading at Huobi Global
7. KuCoin
KuCoin, one of the most popular crypto exchanges, offers many services and crypto tokens. This platform hosts the majority of low-market cap gems.
This platform is my top choice for margin trading because of its interactive interface and the high liquidity.
KuCoin allows spot trading at up to 10x and derivatives trading at up to 100x. Kucoin offers Leveraged Tokens, which, unlike Binance and FTX Exchange offer a better version to margin trading because they don’t face the risk of liquidation.
You can refer to this page for the current margin trading interest rate for KuCoin.
Start Margin Trading On KuCoin
Conclusion
This was my list of the Best Crypto Margin Trading Exchanges. All these exchanges can be used for trading but they also offer hackers a great opportunity to hack.
Additionally, these exchanges serve a large amount of money and this increases the risk of leveraged or margin trading.
Even if you only day trade or margin trade on these exchanges, it is important to be cautious about keeping your money there as it can prove dangerous. You should always use 2-FA authentication, which is an additional security feature that the above exchanges offer.
Margin Trading can be very risky and traders should exercise caution.
We want to know if you trade cryptocurrency. Are you a margin trader? Do you trade or margin trade cryptocurrency?
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Additional reading suggestions:
9 Best Cryptocurrency Exchanges in the World. The Move3commas Review: Are they Safe? What is the working principle of 3Commas?
