The best cryptocurrency margin trading exchanges
ExchangeSpot Trading MarginDerivatives Trading MarginKey Features1. BinanceUp to 20%* The most liquid crypto exchange * Maximum liquidity on the market BybitNot applicableUp to 100x* Dedicated derivative trading platform FTXUp To 20xUp To 20x* The best customer service and user interfaces on the market * Features many unique products KrakenUp to 5xUp To 5x* Secure platform * Great choice for US residents5. KuCoinUp To 10xUp To 100x* Simple and easy to use * Offers many unique products.6 BitmexNot applicableUp to 100×7. Phemex not applicable up to 100x* Negative maker fee for derivatives trading * Many promotional bonuses * No KYC8 CEX.io – Up to 10x * Registered with FinCEN * The oldest exchange in the market
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 employ different trading methods to make their trading profitable.
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 is more risky than traditional margin trading. 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:
Binance Exchange – Crypto Margin Trading
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 just a few steps. You will need to submit your identity verification (KYC) in order to use Binance margin trading. Your country should not be on the blacklist of Binance. Residents of the US are currently unable to use the Margin Trading feature on 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 debt 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 in the form 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
Bybit Exchange – Crypto Margin Trading
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
FTC Exchange – Crypto Margin Trading
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.
All borrowing rates can change at any hour. The borrowing rate can be found here.
Margin Trading on the FTX
Kraken Exchange – Crypto Margin Trading
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. To learn more about Kraken, read our detailed Kraken review.
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:
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
Kucoin Exchange – Crypto Margin Trading
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 that, unlike Binance and FTX Exchange offer a superior version of margin trading because they don’t face the risk of assets being liquidated.
You can refer to this page for the current margin trading interest rate on KuCoin.
Start Margin Trading On KuCoin
Bitmex Exchange – Crypto Margin Trading
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
Phemex Exchange – Crypto Margin Trading
Phemex is one the newest crypto exchanges. Jack, an ex-Morgan Stanley employee, created the platform in Singapore in November 2019.
Within a relatively short time, the exchange has gained a large userbase and increased trading volume. The platform’s high leverage and promotional bonuses are responsible for this. Phemex boasts more than 5 million users and an average daily trading volume of approximately. $8 Billion.
The exchange doesn’t require KYC. The platform allows users to sign up and deposit assets. Once they have started trading, they can close their account. Some services, bonuses and other benefits are not available to non-KYC customers. Phemex does NOT cater to US residents.
Leverage up to 100x is available on derivatives trading at the exchange. The transaction fee for derivatives trading is 0.075% for Takers and 0.025% to Makers. A Maker would be charged a trading fee.
Learn more about the Phemex Fees structure by clicking here
Start Margin Trading on Phemex
CEX.io Exchange – Crypto Margin Trading
CEX.io was founded in London in 2013. It is one of the most established exchanges in crypto. FinCEN (Financial Crimes Enforcement Network) has registered the exchange. It has also applied appropriate KYC (Know Your Customer), and AML (Anti Money Laundering), procedures.
CEX.io has more than 100 tokens in over 200 token pairs. Margin trading is also possible for these tokens up to 10x.
It is accessible in all 50 states. Margin trading is not available to residents of the USA.
The exchange charges traders a trading fee, 0.155% for makers and 0.25% for takers. The fee decreases with increasing trading volume.
The CEX.io Fees Schedule can be found here.
Start Margin Trading on CEX.io
Do I Margin Trade Crypto Crypto?
Margin trading is possible if you understand how margin works in trading. Margin trading can be very profitable if done correctly. However, if not managed properly, it could quickly result in capital loss.
Can Bitcoin be purchased on margin?
You can purchase Bitcoin on margin. You can buy Bitcoin on margin with all the leverage exchanges mentioned above.
What is the best place to shorten crypto?
These are the best crypto exchanges to shorten it:
Conclusion: Margin Trading Exchanges
This was my list with the Top 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 do margin trading, it is important to be cautious about keeping your money on these exchanges. It is not secure. You should not forget to use 2-FA authentication on the above exchanges.
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?
If you find this article useful, please share it with your network!
Additional reading suggestions:
9 Best Cryptocurrency Exchanges in the World. The Move3commas Review: Are they Safe? What is the working principle of 3Commas?