With so many cryptocurrency exchanges now offering margin trading, it may be difficult to know where to start. Luckily, we’ve compiled a list of the top options for crypto traders looking to multiply their gains.
Margin trading is an extremely risky (but also very lucrative) way to trade cryptocurrencies. As such, it’s definitely not recommended for beginners and you should always start by trading small amounts.
In a nutshell, margin trading is essentially speculating on funds borrowed from an exchange. Let’s say you have $100 and borrow another $1000, you are then betting that the price of said crypto-asset will exceed what you borrowed at. As you might expect, the market is chaotic so — oftentimes, risk-assessment is a core strategy for margin traders. One bad move and you could see all your profits evaporate near-instantaneously.
If you are looking to start margin traders here are our top picks.
One couldn’t top off this list without first mentioning BitMEX, currently the leading exchange for margin trading. Boasting very high amounts in daily trading volume, it is often the exchange-of-choice for many of the top traders. All you need is an email to get started. Just bear in mind that the exchange geo-blocks American users.
BitMEX is one of the few exchanges that offer leverage on Bitcoin of up to 100x. It also supports Bitcoin Cash (up to 20x leverage), Cardano (20x), Ethereum (50x), and many more.
StormGain is definitely the newest exchange on our list but is by no means going to stay a small fish for long. Requiring only an email to sign up, it is the only legitimate place beside BitMEX and PrimeXBT to trade Bitcoin with a multiplier of 100x.
All profits are in USDT with a commission rate of only 0.08 percent.
It aims to be the ultra-accessible competitor to BitMex. As of now, the exchange supports Bitcoin (BTC), Bitcoin Cash (BCH), Ripple (XRP), and Litecoin (LTC).
Binance is the leading cryptocurrency exchange in the world by trading volume — but did you know that it also supports margin trading of up to 3x leverage? This will soon be expanded in the near future to support 20x, as well.
Fees are made in BNB and most of the top altcoins (and Bitcoin, of course) are supported for margin trading.
Kraken has proven itself in the last few years as a level-headed exchange with a secure foundation. One of the leading exchanges in both the United States and in EUR trading volume, the exchange boasts an active margin trading community.
Currently, Bitcoin (BTC), Ethereum Classic (ETC), Ethereum (ETC), XMR (Monero), and others are available for margin trading against many different fiat currencies and stablecoins. The maximum leverage Kraken supports is 5x.
PrimeXBT has been going strong since 2018 while directly competing with BitMex. It has, over the years, managed to consistently have around $100M in daily trading volume. Best of all, the exchange supports 100x leverage for both Bitcoin and Ethereum for all you risk-takers out there. If you really want to go wild, there’s also 1000x leverage available for indices, forex, and some commodities.
Currently, the exchange supports up to 100x leverage for Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and EOS (EOS).
Become a Day Trader
So, now you know the top places to margin trade in the cryptocurrency world. If you’re looking to get your toes wet, start small. Margin trade at the smallest leverage just as a test. Get a feel for the market.
However, always be extra-cautious: without proper risk assessment while margin trading, you going to have a bad time.
What is your favorite cryptocurrency exchange for margin trading? Let us know your thoughts in the comments down below.
[Disclaimer: This article is not intended as financial advice and should not be taken as such. Always consult a trained financial professional before making any investments or trades. StormGain is a partner exchange of BeInCrypto.]