Cryptocurrency margin trading options allow cryptocurrency traders and investors to take advantage of leverage. The leverage ranges from 2x, 10x to 100x, or even more in many cases.
Today, we will be diving deeper into the best cryptocurrency exchanges that will allow you to trade cryptocurrencies with leverage, so you can make an educated decision the next time you end up picking which platform to use.
Top 5 exchanges for Crypto Leverage Trading
Here, you will find a list of the top 5 exchanges through which you can trade cryptocurrencies with high leverage.
Binance is by far one of the largest cryptocurrency exchanges out there and has a reputation for the low fees it has. It supports a wide selection of cryptocurrency tokens and offers peer-to-peer, spot, and margin trading. Binance offers a spot trading margin of up to 20x, with a derivatives trading margin of up to 20x.
FTX is a cryptocurrency exchange that was founded in 2019 by Sam Bankman-Fried. It offers a wide range of products, such as futures, options, and leveraged tokens. FTX offers a spot trading margin of 20x, with a derivatives trading margin of up to 20x.
Kraken is a cryptocurrency exchange that was initially founded in 2011 and offered a wide range of cryptocurrencies; and has a reputation for its educational content that teaches newcomer investors about a lot of crypto-related concepts and tokens. Kraken offers a spot trading margin of up to 5x, with a derivatives trading margin of up to 5x as well.
Bybit is a Singapore-based trading platform for cryptocurrency derivatives and allows you to open long positions, short positions and use leverage without owning the underlying assets. The platform was founded by Ben Zhou in 2018. The highest leverage Bybit offers is up to 100x.
Poloniex is a centralized cryptocurrency exchange tailored at both cryptocurrency newcomers as well as veteran traders, and offers a wide range of crypto markets, advanced trade types, and margin trading as well as cryptocurrency lending. The highest leverage Poloniex Futures offers is up to 100x.
Which crypto exchange is the best for Leverage?
Bybit is currently one of the best cryptocurrency exchanges, which offers one of the highest leverage of up to 100x. If you have an appetite for a high level of risk, then it is the go-to option for your specific cryptocurrency leveraged trading needs.
Which crypto exchanges offer Leverage Trading?
The best cryptocurrency exchanges which offer leverage trading include Binance, FTX, Kraken, Bybit, and Poloniex. Note that there are a lot of other options out there, but these were specifically picked based on their level of security, tokens on offer, as well as the leverage they offer.
Should you trade Crypto with Leverage?
Bitcoin margin trading allows you to open a trading position with leverage through borrowing funds from the exchange. So, for example, if you wanted to trade a cryptocurrency token’s margin position with 2x leverage, and that token increased by 10%, then your position would have yielded 20% due to the 2x leverage.
Leverage is the usage of borrowed capital for your own business. 10x means ten times, so if you were placing a 10x margin spot trade, you would keep $10 as margin and can place an order worth $100, where the exchange will lend you $90.
This carries a high level of risk, as if the token decreases, you could lose everything.
Trading cryptocurrencies with leverage has a high level of risk. However, it can also give you higher rewards than you would normally get by trading without utilizing it. While this is not a cryptocurrency investment strategy that everyone will feel comfortable using, the high-risk, high-reward thrill will be an interesting experience for those who do indeed use it. Hopefully, now you know a lot more about which platforms will provide you with the best leverage when trading cryptocurrencies.