See More

8 Best Crypto Leverage Trading Platforms in 2024

25 mins
Updated by May Woods
Join our Trading Community on Telegram

Crypto leverage trading is a powerful tool for traders seeking to maximize their potential returns. This guide explores the intricacies of leveraging trading strategies, risk management techniques, and short-term opportunities in cryptos like Bitcoin and Ethereum. 


8 best crypto leverage trading platforms


Best crypto exchange for
Leverage trading fees
Trading pairs
Max Leverage
Countries available

2. Coinbase

Best crypto exchange for beginners
Leverage trading fees
Trading pairs
Max Leverage
Countries available

3. OKX

Best crypto exchange for DeFi
Leverage trading fees
0.05% (futures) and 0.03% (options)
Trading pairs
Max Leverage
Countries available

4. BingX

Best crypto exchange for
Leverage trading fees
Trading pairs
Max Leverage
Countries available

5. Bybit

Best crypto exchange for leverage trading
Leverage trading fees
0.055% (futures) and 0.02% (options)
Trading pairs
Max Leverage
Countries available


Best crypto exchange for trading fees
Leverage trading fees
Trading pairs
Max leverage
Countries available

7. Kraken

Best crypto exchange for security
Leverage trading fees
0.02% or 0.05% + rollover fees
Trading pairs
Max Leverage
Countries available

8. Binance

Best crypto exchange for all
Leverage trading fees
0.05% (futures) and 0.03% (options)
Trading pairs
Max Leverage
Countries available

Crypto leverage trading platforms compared

Cryptocurrencies offeredTrading pairsMax leverageCountries supportedLeverage trading fees
Kraken240+600+50x190+0.02% or 0.05% + rollover fees
OKX310+640+125x180+0.05% (futures) and 0.03% (options)
Bybit560+800+100x160+0.055% (futures) and 0.02% (options)
Binance400+1500+125x100+0.05% (futures) and 0.03% (options)

What is cryptocurrency leverage trading?

Cryptocurrency leverage trading involves using borrowed funds from an exchange to increase the potential returns on a digital asset like Bitcoin or Ethereum. Traders use various strategies, combining technical and fundamental analysis to predict market movements. 

Leverage in any form of trading is a double-edged sword. Yes, it amplifies
your upside, but the downside edge is normally sharper.

Siam Kidd, crypto financial mentor and author of the bestseller “The Crypto Book”

Leverage amplifies both gains and losses, making risk management crucial. Futures derivatives are essentially bets placed on whether a crypto will go up or down. Futures allow you to achieve a much more substantial position than if you were to buy the same amount of tokens. 

According to this simulation of Tradeciety, potential outcomes of margin trading with a 2:1 leverage (2x) ratio are major, with only a 10% price change. 

crypto leverage trading

Source: Tradeciety

Traders should employ stop-loss orders and understand the exchange’s order book to mitigate risks. While leverage can magnify short-term profits, it also increases the trading fee and potential losses. 

Therefore, it’s essential to have a solid understanding of the crypto market and use payment methods approved in your jurisdiction. Before engaging in leverage trading, investors should thoroughly research and apply careful financial decision-making.

Types of crypto derivatives trading

Cryptocurrency leverage trading can take several forms, each offering different mechanisms and risks. Here are the main types:

  • Traditional futures: These contracts have an expiry date. Traders agree to buy or sell a digital asset at a predetermined price on a specific future date. Leverage is also available in these contracts, allowing traders to amplify their positions.
  • Perpetual futures: These are futures contracts without an expiry date. Traders can hold positions for as long as they want, as long as they can maintain the margin requirements. They closely mimic the spot price of the digital asset and allow high leverage.
  • Options: Options give traders the right, but not the obligation, to buy (call option) or sell (put option) a cryptocurrency at a specified price (strike price) before a certain date. Leverage in crypto options trading comes from the ability to control large amounts of tokens with a relatively small capital (the premium).
  • Leveraged tokens: These are ERC-20 tokens that represent a leveraged position in an underlying asset. They allow traders to gain exposure to leveraged positions without worrying about collateral, margin, or liquidation. However, they can be volatile and are subject to rebalancing events.
  • Margin trading: This involves borrowing funds to increase the size of a position. Traders must maintain a minimum margin level, and if the market moves against them, they may face a margin call or liquidation.
  • Inverse futures: These are futures contracts where the quote currency is a cryptocurrency rather than a fiat currency. They allow traders to hedge against price drops in the digital asset.

How does cryptocurrency leverage trading work?

Cryptocurrency leverage trading allows traders to amplify their market positions beyond their account balance. For instance, if you engage in crypto leverage trading by opening a $500 Ethereum position at 20x leverage, your effective market exposure increases to $10,000. 

This method is popular among traders aiming to enhance profits without committing additional funds, using strategies supported by technical and fundamental analysis. However, the increased leverage magnifies both gains and losses. If the market moves unfavorably, positions can be liquidated, leading to a total loss of the initial stake.

Various platforms offer this type of trading, with options like perpetual futures, leveraged tokens, and both long and short positions, allowing for diverse trading strategies in both bullish and bearish scenarios. Traders should be familiar with the order book and trading fees and use proper deposit funds. 

It’s crucial to conduct technical analysis, understand candlestick patterns, and have a solid strategy before engaging in leverage trading, especially in volatile markets like Bitcoin, Ethereum, and other altcoins.

Benefits and risks of leverage trading

Understanding both the benefits and risks is crucial before engaging in leverage trading. Remember it’s essential to have risk management strategies in place to mitigate potential losses.

Benefits of leverage trading

  • Capital efficiency: Leverage allows traders to open larger positions with a smaller amount of initial capital, maximizing the potential return on investment.
  • Market access: Traders with limited capital can access more expensive markets and assets, increasing diversification and opportunity.
  • Profit potential: In favorable market conditions, leverage can significantly amplify profits from small price movements.
  • Hedging: Leverage can be used to hedge other investments, protecting against market downturns by opening opposite positions.
  • Short selling: Leverage enables traders to short-sell, profiting from declining prices by borrowing and selling high, then buying back lower.
  • Strategic trades: Allows for more complex trading strategies, such as spread trading or pairs trading, that may require leveraging multiple positions.

Risks of leverage trading

  • Amplified losses: Just as leverage can amplify profits, it can also amplify losses if the market moves against the trader’s position.
  • Margin calls and liquidation: If the value of the position falls below a certain level (margin requirement), traders may face margin calls requiring additional funds or face automatic liquidation.
  • Market volatility: High leverage can be particularly risky in volatile markets, leading to rapid losses and liquidation.
  • Interest costs: Holding leveraged positions overnight can incur interest costs, eating into potential profits.
  • Complexity and overtrading: Leverage trading is complex and might encourage overtrading or taking poorly thought-out positions due to perceived low entry costs.
  • Counterparty risk: In leveraged trading, there is a risk associated with the lender or platform, which could affect the trader’s position or funds.
  • Psychological pressure: Leveraged trading can induce stress and lead to irrational decision-making due to the potential for high losses. Make sure to learn how to master your crypto trading emotions.

Leverage trading vs. margin trading

Leverage trading and margin trading are popular methods in the crypto trading community, often employed by those looking to capitalize on the volatile nature of digital assets.

Both involve borrowing funds to increase potential returns, but they cater to different trading strategies and risk management approaches.

Leverage trading

  • Definition: In crypto leverage trading, investors borrow funds to increase the size of their trade, amplifying potential profits. For instance, using 10x leverage, a $1,000 investment controls a $10,000 position.
  • Pros: High leverage magnifies profits on successful trades, suitable for short-term trading strategies, and allows traders to capitalize on small price movements.
  • Cons: Amplified losses can exceed the initial deposit, leading to rapid liquidation in volatile markets. This requires constant vigilance and effective risk management techniques, such as setting stop-loss orders.
  • Best for: Experienced traders who perform technical analysis and have a clear understanding of market trends. This method is favored in fast-moving markets like crypto, where candlestick patterns and fundamental analysis play crucial roles.

Margin trading

  • Definition: Margin trading involves borrowing funds to trade a digital asset, using the asset as collateral. Unlike leveraged trading, margin involves a more conservative borrowing level, usually up to 5x.
  • Pros: Provides additional capital for trading without requiring full investment upfront; is suitable for both long and short positions; offers the opportunity to diversify trading strategies.
  • Cons: While less risky than high-leverage trading, losses can still exceed the initial investment. Interest fees on borrowed funds can reduce profits.
  • Best for traders looking for moderate amplification of their positions, longer-term positions, and those implementing detailed risk management practices.

Both trading forms require users to open an account on an exchange offering these services, with adherence to risk management being paramount. 

While leverage trading suits those seeking aggressive, short-term gains, margin trading is preferred by those aiming for steadier, more calculated exposure. 

Note that payment methods for deposit funds vary by platform and location. Traders in the United States need to ensure their chosen exchange complies with local regulations.

Regardless of the type of trading chosen, traders should use technical analysis, understand the order book dynamics, and adhere to strict trading fee and risk management principles to navigate the volatile crypto market effectively.

What to look for while picking the best crypto leverage trading platforms

When selecting the best crypto leverage trading platform, you should consider several key factors to ensure a safe and positive experience. These include the integration of trading analysis tools like the RSI indicator and the ability to recognize patterns such as the Wyckoff pattern and the “bull flag” pattern.

Always remember that leverage trading involves high risk, so start with small investments and never invest more than you can afford to lose. Be wary of the “falling knife” scenario in volatile markets.

Regulatory compliance and security

Ensure the platform complies with regulations in your country, especially if you’re in the United States. A platform adhering to legal standards is more likely to offer secure trading environments. Check for security features like two-factor authentication (2FA), cold storage for digital assets, and insurance against cyber theft.

User interface and support

Newcomers should opt for a platform with an intuitive interface and educational resources. This could include tutorials, guides on grid trading, and demo accounts for practicing free crypto trading without real funds. Effective customer support, accessible through various channels, is crucial for addressing any questions or issues.

Leverage limits and terms

Different platforms offer varying leverage levels. While high leverage can lead to significant gains, it also increases risk. Start with a platform offering lower leverage options (like 5x or 10x) to manage risk better while learning the fundamentals.

Trading fees

Understand the fee structure, which can include trading fees, overnight fees, and withdrawal fees. Lower fees can significantly impact your profitability, especially when starting. Consider the cost-efficiency of your trading strategies.

For instance, decentralized platforms may offer a lot more assets than centralized crypto exchanges. But in DeFi, you might need to know about additional transactions and fees, such as crypto slippage.

Liquidity and order book depth

High liquidity is crucial as it means your orders are more likely to be executed at desired prices with minimal slippage. To ensure efficient trade execution, thoroughly check the platform’s order book depth and overall market liquidity.

Understanding how to trade cryptocurrency effectively involves analyzing these liquidity indicators before executing trades, which can significantly impact your trading outcomes.

Asset variety and trading pairs

Look for platforms offering a wide range of cryptocurrencies and trading pairs. This allows more flexibility in trading strategies and the opportunity to diversify your portfolio. Understanding a variety of digital assets can enhance your trading experience.

Risk management tools

Seek platforms that provide risk management tools like stop-loss orders, which can help mitigate losses when the market moves against your position.

Crypto trading bots can be beneficial for automating trading strategies. It’s important to ensure the platform offers legitimate and effective bot services, especially when engaging in leverage trading.

Deposit and withdrawal options

Evaluate the platform’s payment methods for depositing and withdrawing funds. Ensure there are convenient and cost-effective options available to you, and understand any deposit or withdrawal limits. This will help you manage your funds effectively and execute your trading strategies without unnecessary delays.

Community and reputation

Research the platform’s reputation within the crypto community. Read reviews and testimonials from other users, especially those who are also new to leverage trading. A strong community can also provide support and learning opportunities, enhancing your understanding of market trends and risk management techniques.

Know the risks

Navigating crypto leverage trading requires a blend of knowledge and caution, especially for newcomers. It’s vital to approach trading strategies with a clear understanding, employing both technical and fundamental analysis to guide decisions. 

Risk management should be at the core of your activities. Familiarize yourself with candlestick patterns, market indicators, and the crypto fear and greed index to better anticipate market movements.

Ensure you select a reputable exchange offering detailed educational resources and customer support. Lastly, whether dealing with any digital asset, always start with short-term trades to build your confidence and experience. By adhering to these guidelines, you’ll set a solid foundation for successful leverage trading in crypto.

Frequently asked questions

What is leverage crypto trading?

What is 100x leverage on crypto?

What is the best leverage for crypto?

What is 20x leverage in trading?

Is 10x leverage risky?

What is a good leverage for a beginner?

What is the best platform for crypto trading in 2024?

Which crypto has the highest leverage?

Which exchange is best for leverage crypto trading?

Which crypto is best for leverage trading?

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024



In line with the Trust Project guidelines, the educational content on this website is offered in good faith and for general information purposes only. BeInCrypto prioritizes providing high-quality information, taking the time to research and create informative content for readers. While partners may reward the company with commissions for placements in articles, these commissions do not influence the unbiased, honest, and helpful content creation process. Any action taken by the reader based on this information is strictly at their own risk. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

Iulia Vasile
Iulia Vasile is a seasoned professional in the cryptocurrency and blockchain industry, working full-time in the field since 2017. With a background in computer engineering, she has the unique ability to write about complicated topics, including DeFi, NFTs, trading, and AI, in a way that is easy to understand. Iulia learned multiple programming languages while completing her Software Engineering degree in Bucharest at Politehnica University. Iulia brings her expertise and personal...