Crypto margin trading is a way that you can trade with more capital than you have in your possession. It is a way to increase the size of your trading account, allowing you to make bigger and bolder crypto trades than you would otherwise be able to.
If you’re interested in getting started with crypto margin trading, this guide has everything you need to know.
We’ll explore the best crypto margin trading exchanges out there, allowing you to choose the right one for you. We’ll also answer all your key questions about crypto margin exchanges so you can make a truly informed choice.
What Is Crypto Margin Trading?
Before we explore the best crypto margin exchanges out there, and equip you with the strategies and tactics you need to be successful, let’s cover the basic concept of crypto margin trading and what it means.
In order to be knowledgeable in this area, there are three key concepts you need to grasp:
- 1Margin Loan
- 2Trade Leverage
- 3Liquidation Price
Let’s take a look at each of these in turn.
Crypto Margin Trading Key Terms – Margin Loan
The term margin loan refers to the amount of funds that is lent to the trader by the crypto exchange or broker in order to carry out margin trades. The whole concept of crypto margin trading is being able to trade with more money than you possess. The extra amount exists in the form of a margin loan made between broker/exchange and trader.
Crypto Margin Trading Key Terms – Trade Leverage
The term trade leverage refers to the multiplier amount of the trade taking place. This usually starts at 2x the amount of actual capital being traded, and can range all the way up to 100x multiplier. The greater the leverage, the larger the amount of potential gain, but also the level of risk.
Crypto Margin Trading Key Terms – Liquidation Price
Of course, not every trade is successful, and the broker/exchange needs a way of protecting their potential losses. In order to protect against the downside of crypto margin trades that don’t work out as intended, the exchange sets a liquidation price. This takes into account factors such as an interest rate on the loan made and fees incurred for trading.
Comparison Of Crypto Margin Exchanges
Deposit methods:Crypto, Changelly widget deposit
Fees: 0.075% taker fee
Fees: Starting at 0.5%
Fees: 0.2% taker fee
Deposit methods: Wire transfer, Crypto
Fees: 0.02% taker fee
Deposit methods: Wire transfer, Crypto
Deposit methods: Wire transfer, Crypto, Credit card
Fees: 0.1% taker fee
Deposit methods: Wire transfer, Crypto, Credit card
Deposit methods: Wire transfer, Crypto, Credit card
type: Futures, Derivatives
Fees: 0.09% + 0.09%
Deposit methods: Wire transfer, Crypto, Credit card
What Are The Best Crypto Margin Exchanges?
There are a wide range of different crypto margin exchanges out there, and it can be difficult to know which are worth your time. Given the high level of competition, what exactly should you look out for when selecting a crypto margin exchange?
Some of the factors to take into account when choosing the right crypto margin exchange for you include:
- Leverage. How much leverage is offered on a particular exchange? Do you qualify for the level of leverage you need?
- Liquidity. What is the level of liquidity found in any given exchange?
- Trading Options. There are a wide range of different crypto trades out there. What types of trades can you execute on a given crypto margin exchange? Does the selection on offer meet your particular needs?
- Fees. The interest rates and fees found differ from exchange to exchange. How much will it cost you to use any particular exchange? How does this compare to the other options out there? Are you happy with the costs you will incur?
Ultimately, the best crypto margin exchange for you is the one most suited to your particular requirements. Perhaps you’ll be willing to pay more in fees for greater leverage, for example. Or perhaps you’re looking for the lowest levels of fees possible.
In order for you to make the smartest choice, we’ve assessed the key pros and cons to some of the most popular crypto margin trading exchanges out there.
Binance, originally based in Hong Kong, has been in operation for a couple of years. It’s known for its crypto only operation, with no Fiat traded.
If you’re thinking about trading on Binance, check out our guide to the advantages and disadvantages of this crypto margin exchange.
Advantages of Binance Crypto Margin Trading Exchange
- Basic and Advanced Views. You can change the complexity of the Binance interface to match your level of familiarity with trading. Both interfaces are clear and provide the essential data you need.
- Good range of trading options. A wide range of cryptocurrencies available to trade, including Bitcoin, Ethereum, Dash, and Ripple. Support for tokens resulting from ICO listings.
- Special Competitions. If you want the chance to win luxury prizes, such as Maseratis and iPhones, Binance runs contests where this is possible.
Disadvantages of Binance Crypto Margin Trading Exchange
- Verification. If you have a problem completing the full KYC (know your customer) verification process, then Binance is not the best choice of exchange.
- Limited Support. If you want to be able to receive telephone support for your crypto margin trading exchange account, it isn’t possible with Binance. You can submit support tickets instead.
- Regulation. Binance has diversified its base location several times due to regulatory compliance. This can be seen as a positive move, but it might unsettle some traders.
Binance Crypto Margin Trading Exchange – Overall Verdict
If you’re looking for a crypto margin trading exchange with a good range of coins, token support, and an admirable approach to security, Binance is definitely worth looking at.
Although Binance has been faced with the same security challenges as most other exchanges, the company has responded better than many competitors. This should give you confidence about their exchange.
Overall, Binance is a great choice of crypto margin trading exchange for both begginer and advanced traders.
BitMEX has been in operation for over five years, and has made a name for itself as one of the most prominent crypto margin exchanges out there.
So what are some of the key advantages and disadvantages to using BitMEX as your crypto margin trading exchange?
Advantages of BitMEX Crypto Margin Trading Exchange
- Excellent levels of leverage. BitMEX offers you up to 100x leverage multiplier, allowing you to make seriously large trades.
- Great variety of cryptocurrencies. If you’re interested in trading some of the more obscure cryptocurrencies out there, BitMEX has got you covered.
- Manageable verification requirements. BitMEX does not have as strict and annoying verification processes as some other exchanges.
Disadvantages of BitMEX Crypto Margin Trading Exchange
- No US sign ups allowed. If you are a US citizen, BitMEX is not available to you.
- Subpar UI. The experience of using BitMEX is a little more complex than found in some other exchanges.
- Lack of Fiat. If you want to make Fiat trades, BitMEX is the wrong exchange for you.
BitMEX Crypto Margin Trading Exchange – Overall Verdict
BitMEX is an exchange you can trust. A fantastic choice for those with a little bit of knowledge and experience in making leveraged trades.
Overall, BitMEX is well worth your attention if you are looking to carry out crypto margin trades and you are not a US citizen.
BitMEX offers some of the best levels of leverage in all the exchanges out there. It is advised that you have some background or familiarity with leveraged trading, as it isn’t necessarily the most user friendly exchange for newcomers.
Cex.io is a crypto exchange that has been in operation for over six years. The company originally existed as a mining service, but is now a full trading exchange.
Should you use Cex.io to trade crypto?
Read on to discover the advantages and disadvantages to this crypto margin trading exchange.
Advantages of Cex.IO Broker Crypto Margin Trading Exchange
- Track Record. One of the key concerns when choosing a crypto margin exchange is the company’s reputation. Cex.io has a good track record of reliable performance. This definitely isn’t a fly by night operation.
- Location. Unlike some other exchanges, Cex is registered and operated from some of the most respectable business locations out there, including London.
- Account Levels. When it comes to creating a crypto trading account, there isn’t any such thing as a ‘one size fits all’ account. Cex.io recognizes this and offers different account levels. Lower level accounts have very quick verification processes and times.
Disadvantages of Cex.IO Broker Crypto Margin Trading Exchange
- Fees. If you are looking for the lowest levels of fees possible, Cex.io isn’t the most suitable exchange out there. The fees are slighter higher than found on some other exchanges, but are by no means excessively high.
- Support. Some exchanges offer a really wide level of support options, including live chat and telephone support. If you’re looking for the full range of support options, Cex.io isn’t the best exchange for you.
- Limited US Access. Are you looking to trade crypto from the US? If so, check to make sure Cex.io supports your state. There is support for some US states, but by no means the full range.
Cex.IO Broker Crypto Margin Trading Exchange – Overall Verdict
In exchange for the excellent service provided by Cex.io you will pay slightly higher fees than are found at some other exchanges, so if you are looking for the lowest fees possible, this might not be the right exchange for you.
The different account levels are an appealing option, allowing you to get started trading crypto quickly with a low level of verification.
Cex.IO is a great choice of crypto margin exchange. The company behind it is reputable and has a track record of providing excellent facilities for crypto margin exchanges.
One of the newer entrants on the crypto scene is the Xena Crypto Margin Trading Exchange.
Xena is one of the more advanced crypto exchanges out there, being particularly suitable for corporate and advanced traders.
Read on to discover our key pros and cons to the crypto margin trading exchange, and our verdict on whether it’s worth your attention or not.
Advantages of Xena Crypto Margin Trading Exchange
- Speed. Xena boasts the fastest trading speed in the entire crypto world. With an asset class such as cryptocurrency, where the price is very volatile, even fractions of a second can make a huge difference.
- Fees. If you’re looking to keep more of the profit you make from trading, Xena is a good choice of exchange. The fees are far lower than found at many other exchanges.
- Corporate. One of the specialisms of the Xena exchange is in corporate trading. If there is the type of crypto trading you wish to perform, you should definitely check out Xena.
Disadvantages of Xena Crypto Margin Trading Exchange
- Lack of US Support. Like many other crypto exchanges, Xena does not support access for US customers. If you’re trading crypto and based in the United States, look elsewhere.
- Advanced. This isn’t a crypto exchange for newcomers. You need to have some level of experience to achieve the best results on the Xena platform.
- New. Xena has been in operation for under two years at the time of writing. If you are looking for an exchange with a longer track record, Xena might not be the best choice.
Xena Crypto Margin Trading Exchange – Overall Verdict
For a relative newcomer to the world of crypto margin trading, Xena is very impressive. It is one of the most attractive options out there for serious crypto traders, thanks to its combination of low fees and fast trading technology.
However, if you’re an experienced or corporate crypto trader, Xena is definitely worth checking out.
If you’re new to the world of crypto, or based in the USA, Xena might not be the best choice.
One of the newer players in the world of crypto trading exchanges is Bithoven, a platform that has been around for a relatively low level of time.
Thinking of creating a trading account on Bithoven? Read on to discover our full guide to the pros and cons of trading crypto on Bithoven.
Advantages of Bithoven Crypto Margin Trading Exchange
- Coin Selection. The world of cryptocurrency is constantly expanding, with new types of coin cropping up regularly. Bithoven supports one of the widest ranges of coins out there.
- Active Trading. Some exchanges charge fees that make active trading prohibitively expensive. This isn’t the case with Bithoven. If you are looking to be an active trader, Bithoven is a great choice.
- Affordable Withdrawal. One of the most annoying things about crypto trading is finding the withdrawal fee to be prohibitively discouraging. If you’re looking to withdraw your profits at an affordable rate, Bithoven makes this possible.
Disadvantages of Bithoven Crypto Margin Trading Exchange
- Age. If you’re looking for a crypto exchange with years of experience, Bithoven isn’t your best bet. It’s a relatively new exchange.
- Unregulated. Some of the crypto trading exchanges are regulated by oversight bodies. Bithoven isn’t.
- Lack Of Leverage. Looking to make leveraged trades? If so, look elsewhere, because Bithoven doesn’t offer the levels of leverage found on many other exchanges.
Bithoven Crypto Margin Trading Exchange – Overall Verdict
If you’re looking for an affordable crypto exchange with support for active trading, and reasonable withdrawal rates, Bithoven is worth a look.
It lacks the track record and regulation of other options out there.
However, it’s affordability and the range of coins on offer might outweigh these downsides for many traders.
Bybit is one of the newer players in the world of crypto margin trading, having launched back in 2018. Despite its relatively young age, the company has some serious prestige and technological clout behind it. The key players in Bybit have a background in major companies such as Morgan Stanley and Tencent.
So is Bybit a good choice of crypto margin trading exchange or are you better off trading crypto on another platform?
Advantages of Bybit Crypto Margin Trading Exchange
- Leverage. One of the key factors in choosing a crypto margin trading exchange is the levels of leverage on offer. If you are looking for the highest levels of leverage, you should consider Bybit. Depending on the value of the position being traded, you can enjoy up to 100x leverage levels.
- Support. Not every crypto margin trading exchange out there offers excellent support services. Thankfully, Bybit does. You can either engage in live chat to get your issue sorted as quickly as possible, or even reach out through social media.
- Fees. One of the things that can hurt your profits when crypto margin trading is the withdrawal fees. Bybit charges a lower withdrawal fee than the industry average, allowing you to keep more of your gains
Disadvantages of Bybit Crypto Margin Trading Exchange
- Deposits. If you’re looking to deposit using Fiat, Bybit isn’t the right exchange for you. You will need to deposit crypto directly, meaning you need to have a holding somewhere else to get started trading on Bybit.
- Age. Bybit has been in operation for just over a year at the time of writing. While older doesn’t always equal better, if you’re looking for a crypto margin trading exchange with a long track record, you might want to look elsewhere.
Bybit Crypto Margin Trading Exchange – Overall Verdict
In total, Bybit is a good choice of crypto margin trading exchange if you’re looking for good levels of leverage, a wide range of different support choices, and a company run by names from major players in the world of tech and finance.
If you’re looking to deposit in fiat, Bybit isn’t the right choice of exchange for you. But if you already hold some crypto elsewhere, and are looking for a new place to trade it, Bybit is definitely worth checking out.
It seems like there’s always a new player around in the world of crypto margin trading exchanges, and one that’s been getting a lot of attention recently is Basefex. As one of the newer entrants on the scene, it’s natural that you have some questions and concerns about Basefex if you’re considering it as a place to trade crypto.
We’ve researched and summarized the key advantages and disadvantages to trading crypto on Basefex, so read on to discover if this is the right exchange for you.
Advantages of Basefex Crypto Margin Trading Exchange
- Clear interface. One of the key things to keep in mind when considering a crypto margin trading exchange is the user interface. You want a clear, clean interface which is familiar to you. The Basefex interface is very user friendly, quickly and concisely displaying all the info you need to carry out smart trades.
- Secure. There are a number of great security features in place at Basefex, such as cold wallet storage for all assets, and a bug hunter program. Security is so important, so it’s great to see Basefex taking it seriously.
- Fees. Lower fees allow you to keep more of your profit from trading. Although not the lowest out there, Basefex is very reasonable in this department.
Disadvantages of Basefex Crypto Margin Trading Exchange
- Age. If you want an older exchange with a long reputation, maybe look elsewhere. Basefex has been in operation for only a couple of years.
- Support. If you want live chat support, this isn’t available through Basefex. It does offer some innovative options in terms of support, however, such as a Telegram group.
- No App. Some traders insist that the best way to trade crypto is through a well designed mobile app. If this sounds like you, be aware that Basefex doesn’t have a dedicated app at this time.
Basefex Crypto Margin Trading Exchange – Overall Verdict
If you’re looking for a crypto margin trading exchange with reasonable fees and great security features, Basefex is certainly worthy of your attention.
Although it lacks some of the flashy features found at other exchanges, it offers solid and stable trading, and that is sometimes all that is needed.
For an affordable, user friendly crypto trading experience, definitely check out Basefex.
Dedicated, serious crypto traders are often seeking out the lesser known exchanges. These often offer better value, or some innovative features that aren’t as often found on the more popular exchanges. An example of such an exchange is Bluebelt. Is this exchange worthy of your business, or are you better off executing your crypto trades elsewhere?
If you’re keen to learn about the pros and cons of using Bluebelt as a crypto trading exchange, read on. We’ve gathered together all the essential facts to help you decide if this is the right crypto exchange for your needs.
Advantages of Bluebelt Crypto Margin Trading Exchange
- Customizable. Sometimes, crypto exchange interfaces can be frustrating, offering unwanted info. With Bluebelt, you can customize your interface, seeing only the info you need.
- Mobile friendly. Unlike many other exchanges, Bluebelt has a dedicated mobile experience. This allows you to trade crypto on the go, no matter where you are at the time.
- Order types. If you’re looking to make crypto trades of a more advanced type than simple buying and selling, Bluebelt supports a range of advanced order types.
Disadvantages of Bluebelt Crypto Margin Trading Exchange
- Leverage. Although Bluebelt does support leveraged trading, the levels are relatively low, at a maximum of under 7x. Leverage of 100x can be found at some other exchanges.
- Advanced. If you’re new to the world of crypto margin trading, Bluebelt might not be the best exchange for you. It’s aimed at serious, knowledgeable traders familiar with advanced trading approaches.
- Derivatives. Like many exchanges, Bluebelt offers derivatives such as crypto futures. If you want an actual holding of crypto, you need to look elsewhere.
Bluebelt Crypto Margin Trading Exchange – Overall Verdict
Although Bluebelt may lack the fame of some other trading platforms, it is well worth a look for serious traders with a good level of knowledge.
If you’re a fan of mobile trading, this is an especially good choice of trading exchange, as the Bluebelt mobile experience is one of the best out there.
The levels of leverage on offer might not be as high as some other exchanges, but if you’re comfortable with leverage of around 7x, definitely check out Bluebelt and see if the trading experience is a good fit for your needs.
Delta Exchange Summary
Are you thinking of trading crypto on the Delta Exchange? If so, you’re sure to have some questions about how the exchange operates, the company’s reputation, and the type of trades you will be able to make on this particular exchange.
We’re about to run down the key pros and cons of trading crypto on the Delta Exchange, providing you with the essential information you need to decide if it’s the right option for you.
Advantages of Delta Crypto Margin Trading Exchange
- Leverage. If you’re looking to take advantage of leveraged trading, the Delta Exchange is a great choice for you. You can receive leverage levels of up to 100x for some types of trade, such as Bitcoin futures. This is one of the best leverage rates in the entire industry.
- Learning. Are you new to the world of crypto margin trading? If so, you might have some questions about how it works and the best types of trade to carry out. You can learn from a wide range of on site educational materials, allowing you to advance and grow in your trading knowledge.
- Quick Sign Up. Speed is often the priority in the world of crypto trading. For traders who want to get started as quickly as possible, Delta Exchange boasts a sign up time of under 1 minute. This allows you to start trading crypto as quickly as possible, without having to fill out too many annoying forms.
Disadvantages of Delta Crypto Margin Trading Exchange
- Futures only. The Delta Exchange is a specialist crypto trading platform, specialising in crypto future trading only. If you want to actually hold crypto, you need to look elsewhere.
- Coins. Although the range of coins found on Delta Exchange is acceptable, there are other exchanges that offer more. If there is an obscure coin you are looking to trade, make sure it is on the Delta Exchange before signing up.
- Fees. Like all crypto exchanges, Delta Exchange charges a fee for trading on it. This isn’t really higher than many other exchanges, so it shouldn’t particularly put you off if everything else meets your needs.
Delta Crypto Margin Trading Exchange – Overall Verdict
Ultimately, Delta Exchange is an attractive choice of trading platform if you are looking to specialise in crypto futures.
The high leverage levels of up to 100 x will be an attractive feature for many traders considering Delta. The range of coins might not be quite as wide as found at some other exchanges, but it is going to be more than enough for most people.
If you’re looking to get into the world of crypto derivatives, Delta Exchange is a great place for you. You can learn in a lot of detail on their platform, so it’s a great choice for newcomers as well as more veteran crypto traders.
One of the most intriguing choices of all the crypto margin trading exchanges available today is BiBox Exchange. This is an exchange that has got a lot of buzz and attention in the trading community. But does BiBox Exchange live up to the hype surrounding it? Or is it not a good choice of crypto margin trading exchange?
If you want to find out if the BiBox Exchange is right for your needs, read on. We’ll cover the advantages and disadvantages, as well as providing an overall verdict, allowing you to make an informed choice about whether to sign up to BiBox Exchange.
Advantages of BiBox Crypto Margin Trading Exchange
- Ease of use. BiBox Exchange is a modern choice of place to trade crypto, and this is very much apparent through the easy and intuitive user interface. You don’t need much technical knowledge to make trades here.
- AI. One of the key features that sets BiBox Exchange apart from some of its competitors is its use of AI. You can make use of various tools to automate and optimize various aspects of your trading.
- Fees. Often, it can be confusing and annoying to get to grips with the fee structure in place at a particular exchange. This isn’t the case with BiBox Exchange. There is a low flat rate which is one of the most reasonable out there.
Disadvantages of BiBox Crypto Margin Trading Exchange
- Age. BiBox Exchange has only been in operation for a couple of years, having opened in 2017. If you’re looking for an exchange with a longer track record, this might not be the right option for you.
- Mystery. One of the weird things about BiBox Exchange is the lack of information about the people behind it. There is conflicting stories out there about exactly who runs the exchange, and who the brains are behind it. If you want an exchange with transparent information about the people running it, you should look elsewhere.
- No Fiat. BiBox Exchange is an example of crypto only. You want be able to deposit or withdraw in Fiat. You’ll therefore need to have a holding of some crypto elsewhere in order to get started trading on this exchange.
BiBox Crypto Margin Trading Exchange – Overall Verdict
Overall, we can safely say that BiBox Exchange is worthy of consideration for traders who don’t mind a bit of an unknown entity.
It is likely to appeal to a younger, tech savvy breed of investor, due to its use of AI and other innovative features that set BiBox Exchange apart from other crypto margin trading exchanges out there.
If you don’t mind the fact that the origins of BiBox Exchange are a little bit mysterious, and you are attracted to its promise of advanced AI trading technologies, why not check it out?
Bitfinex has been going strong for over seven years at this point, and has made a name for itself thanks to its high levels of liquidity and innovative features.
As you can tell by its name, Bitfinex is a trading platform with a strong focus on crypto. It has an especially strong reputation for its Bitcoin and Ethereum trading options.
If you’re thinking of trading on the Bitfinex platform, what are the key pros and cons you need to know?
Advantages of Bitfinex Crypto Margin Trading Exchange
- Volume. When it comes to major assets, Bitfinex has a truly superb volume.
- P2P options. One of the innovative options found with Bitfinex is the chance to benefit from peer to peer financing. This is a modern financing method which helps to make trading on the Bitfinex platform more inclusive than would otherwise be the case.
- Order types. If you want to feel unrestricted in terms of the orders you can execute, Bitfinex is a trading platform you should definitely check out. It has one of the widest range of order types out there.
Disadvantages of Bitfinex Crypto Margin Trading Exchange
- Past mishaps. In the past, Bitfinex has experienced some issues with its security. This have been ironed out, but it is still a blot on Bitfinex’s record which will deter some traders from this platform in particular.
- Low leverage. If you are looking for high levels of leverage, Bitfinex is the wrong trading exchange for you. There is a maximum level of 3.3x leverage, which is a lot lower than the 100x found elsewhere.
- Restricted purchase options. If you are seeking the widest range of purchase options out there, Bitfinex isn’t the exchange for you. It has a more limited range of purchase options than found on some other exchanges.
Bitfinex Crypto Margin Trading Exchange – Overall Verdict
The 3.3x maximum amount of leverage offered won’t be right for every trader, but if you are looking to get started with a fairly limited level of leverage, then you might find this works to your advantage.
The security issues that Bitfinex has had in the past have largely been fixed, but this will deter some of the more cautious users from using the Bitfinex platform. However, the company have made serious security improvements, and have put measures in place to prevent the past problems from reoccurring.
Bitfinex is a good choice if you are looking to trade a wide variety of cryptocurrencies, and want to benefit from the innovative peer to peer financing options offered by the platform.
Kraken is one of the more established names in the world of crypto margin trading. The platform has been in operation since 2011, and has undergone a range of evolutions and improvements since its initial launch.
So what are some of the key positives and negatives to choosing Kraken as your choice of crypto margin exchange?
Advantages of Kraken Crypto Margin Trading Exchange
- Leverage. Kraken doesn’t offer the highest levels of leverage out there, but its 5x leverage is more than enough for many traders. This leverage amount is also higher than found on many other exchanges.
- Fees. The fees charged by Kraken for using their platform are lower than some rivals. This makes it a good choice if you are looking to limit your trading costs.
- Liquidity. The liquidity levels on the Kraken platform are truly excellent for the vast majority of tradable assets.
Disadvantages of Kraken Crypto Margin Trading Exchange
- Customer service. Some traders have reported a frustrating experience when using the Kraken customer support services.
- Verification. Some of the strictest and most demanding verification requirements of all the platforms out there.
- Pairs. If you are looking to trade crypto pairs, Kraken has a relatively poor selection.
Kraken Crypto Margin Trading Exchange – Overall Verdict
So what’s our overall advice regarding Kraken as a crypto margin trading exchange?
Some of the features that make Kraken well worthy of your attention include its superb security record, international accessibility, and great levels of liqudity.
You might be put off using Kraken by its verification requirements, but by the same token, its strict approach to security also makes it a platform you can trust.
A good choice of crypto margin trading exchange for traders who want an average level of leverage, and for who security is paramount.
Poloniex is a name that is synonymous with crypto trading. Why? Of all the many crypto margin trading exchanges out there, Poloniex was one of the first to offer leveraged margin trading.
Its longstanding provision of margin trading means that Poloniex has a lot of experience that other exchanges doesn’t. This makes it particularly attractive for traders.
So what exactly are the key things you need to know about Poloniex before getting started and funding your trading account?
Advantages of Poloniex Crypto Margin Trading Exchange
- Fees. If you are looking to limit the cost of your trading, then Poloniex is a great choice. It offers far lower fees than found on many other exchanges, allowing you to keep more of the money you make.
- Margin trading focused. As one of the first exchanges to offer and popularize the concept of margin trading in relation to crypto, Poloniex has a great reputation within this particular area of crypto trading.
- Altcoins. If you are looking for one of the best choices of altcoin out there, Poloniex is the exchange for you. A truly impressive range.
Disadvantages of Poloniex Crypto Margin Trading Exchange
- Liquidity. Compared to some other exchanges, Poloniex has relatively low levels of liquidity for some assets. It’s worth checking the liquidity level for a particular asset you are looking to trade.
- USA customer restrictions. If you are a crypto trader from the USA, you will not be able to carry out margin trades with Poloniex.
- Know Your Customer. Poloniex insists on ‘know your customer’ regulations for all traders. This might be a problem depending upon your needs.
Poloniex Crypto Margin Trading Exchange – Overall Verdict
Poloniex is often seen as a legacy platform, but this viewpoint is a little mistaken. Its still an exchange that strives to improve and innovate, offering a better experience to traders as time goes on.
If you are looking to limit the cost of your crypto trading activity, Poloniex is a fantastic choice. You will pay far lower fees than are found elsewhere.
Poloniex is its range of different cryptocurrencies on offer. At the time of writing, the platform offered over 50 different options.
Coinsbit was launched in 2018 and is one of the largest cryptocurrency exchanges. The platform has over 1.3 million registered users which are supported in 12+ languages. Coinsbit service offers 200 k + POS terminals in India, China, Vietnam and Korea. As many other exchanges, Coinsbit keeps 95 % of traders’ funds in different cold wallets.
In 2019, the crypto exchange passed successfully an independent and specialized examination by the European specialized agency and was assigned one of the highest levels of security.
Advantages of Coinsbit Crypto Margin Trading Exchange
- High Performance – up to 10000 trades each second and 1000000 TCP connections
- Extremely high security – 95% + of all user funds are kept in cold wallets. WAF screen – detects/ blocks hacker attempts.
- All major coins are supported – BTC, LTC, ETH, BTG, BCH, TUSD, ETC
- User friendly and effective mobile app
- Wide variety of deposit and withdrawal methods
- InvestBox –developers and users’tool for new altcoin exploration
Disadvantages of Coinsbit Crypto Margin Trading Exchange
- Customer support level is questionable
- Withdrawal delays
- Lack of transparency – hard to find information about the owners, employees and the company
73 active markets, 29th place of Best Rated Exchanges, stablecoins supported
Bittrex was launched in 2014. The platform is US based and its headquarters are in Seattle, WA. The three founders are ex Microsoft employees – Richie Lai, Bill Shihara and Rami Kawach. The exchange is supporting cryptocurrency, tokens, stable coins and fiat. It offers 319+ markets and has $ 9 million trade volume.
Advantages of Bittrex Crypto Margin Trading Exchange
- Wide diversity of cryptocurrency pairs – over 450 trade pairs
- Compliant with United States laws
- Very reasonable trade volumes
- Easy registration process
- Worldwide Availability
- Great customer support and reasonable reply times
Disadvantages of Bittrex Crypto Margin Trading Exchange
- Long process of verification
- Limited selection of Fiat trade tairs
- Unexplained accounts closing
Bittrex offers a high level of security, UI, selection of assets, and helpful customer service. The exchange is perfect for both institutions and individuals.
Bithumb Global Summary
Bithumb Global is launched in 2019 and is the Bithumb Korea’s international platform. It already has more than one million registered users. The exchange is supporting fiat and cryptocurrency. It offers 124+ markets and trade volume of 55 + million USD.
Advantages of Bithumb Global Crypto Margin Trading Exchange
- Great customer service in various languages available 24/7.
- The platform is user friendly for novice and mid-level traders.
- It offers low and competitive fees and access to a number of major tokens
- Easy to use and understand interface
- High liquidity based on its popularity
- A mixture of order types is available
Disadvantages of Bithumb Clobal Crypto Margin Trading Exchange
- South Korean targeted first and then everyone else.
- Detected errors and issues in language translation
- Fiat deposits are only available to residents of Korea
- Some issues with security in the past
Bithumb Global offers 100+ prime digital crypto currencies. A key feature is its customer support team.
Bitvo launched in 2018 and is a relatively young Canadian crypto exchange based in Calgary, Alberta. Founder of the platform are all ex finance service employees with experience in Trading Risk Management and Banking. Bitvo offers free buying/ selling of cryptocurrencies, Zero trading fees and free deposit policy.
Advantages of Bitvo Crypto Margin Trading Exchange
- Instant registration of new accounts, deposit/ withdrawals processing the same day, customer live service 24/7.
- Bitvo Cash Card – Bitvo Visa allows you to use funds from your Bitvo personal account directly with ATMs in 200+ countries.
- Very professional and highly qualified team of financial and banking professionals.
- High security standards – Fiat capital is stored at Canadian financial institutions/ banks and is insured. Crypto currencies are stored in cold wallets offsite and involve using several signatures.
Disadvantages of Bitvo Crypto Margin Trading Exchange
- Low Liquidity
- Recently opened
- There are fees for Fiat trading
Bitvo offers ZERO trading fees, Visa Cash Card to use the funds from your account and Same Day Guarantee.
The CoinEx crypto exchange is Hog Kong based. It was launched in 2017 and In 2019 the exchange began offering trading with leverage. It offers high security, user friendly interface, low fees and fast cryptocurrencies platform. It has various languages support and already has users from 100+ countries. The exchange is not yet registered.
Advantages of CoinEx Crypto Margin Trading Exchange
- Low trade fees – only market takers are charged a 0.10%. fee. There is no fee for the market makers.
- Great Altcoin number – the exchange supports Bitcoin, Litecoin, Ethereum and some other ocins.
- The most traded pairs are BTC/BCH, DASH/BTC and ETH/BTC.Simple, user friendly platform with advanced charts.
Disadvantages of CoinEx Crypto Margin Trading Exchange
- There is no support for Fiat currency
- There is a fee for withdrawals – most of the coins withdrawals are charged 0.001. Bitcoin Cash withdrawals are free though.
There are minimum deposit/ withdrawal amounts.
Coinfield is another cryptocurrency exchange that was launched in 2018 in Canada. Its main features include easy of use, 24/7 support, security and the fact that it is very transparent. These are extremely important factors when you choose a crypto trading exchange. One of the factors that brought success and popularity to Coinfield is the MoonGo collaboration – MoonGo is an application that allows traders to buy physical goods/assets with their own virtual account funds.
Advantages of CoinField Crypto Margin Trading Exchange
- User-friendly and convenient interface.
- Multiple currencies are supported
- Highly secure
- Fas and easy registration process
- Advanced instruments and tools access
Disadvantages of CoinField Crypto Margin Trading Exchange
- Coinfield is not available in the United States
Coinfield offers fast and secure registration process, 6 FIAT Deposit/Withdrawal options, 0.05 % fees.
BitMart is a premier crypto trading platform which ranks amongst the top 10 exchanges in the world. The exchange was launched in 2018 and up to now it has 600 000 + users and a trade volume of 100 + million USD. Its headquarters are in the Cayman Islands and it has offices in US, China, Korea, Japan. BItMart offers crypto/ crypto trades for utility tokens and coins.
Advantages of Bitmart Crypto Margin Trading Exchange
- Secure and stable – it offers multilayer multi cluster systems architecture, cold/ hot wallets, secret security keys.
- Various languages support – English, Chinese, Vietnamese, Japanese.
- Google spanner and Big Table features
- On the road to become one of the largestdigital assets liquidity providers
Disadvantages of Bitmart Crypto Margin Trading Exchange
- Low trade volume
- Number of coins is still limited
- Only Limit command, No Market and Stop commands
BitMart is a premier Digital Assets Trade Platform with 296 trading pairs and over 1,700,000,000 USD 24 hour volume
Bitstamp was launched in 2011 and is based in UK. The exchange is supporting crypto currency and fiat trading. Bitstamp is highly popular among experienced and intermediate traders. The exchange has $700m+ a day and is one of the top exchanges offering BTC/EUR and ETH/EUR pairs.
Advantages of Bitstamp Crypto Margin Trading Exchange
- High liquidity and volume
- Low fees
- Compliant to the law and with practices that are very transparent
- Great reputation
Disadvantages of Bitstamp Crypto Margin Trading Exchange
- Supported cryptocurrency is limited
- High credit card deposit fees
- Customer support may be slow
Bitstamp is the world’s longest standing cryptocurrency exchange, it offers highly convenient mobile platform, advanced trade tools and 24/7 support
Overbit is registered in the Seychelles and is run by Abberton Trading Limited. The founders of Overbit are Nathan Taku and Chieh Liu. Chieh Liu is the CEO who has a background in technology and finance ventures. Nathan Taku is the COO and offers 10+ experience in FX trading, finance and real estate.
Overbit is an easy to use platform which is suitable for beginner, intermediate and also experienced traders. It offers some of the popular perpetual swaps and contracts. It also offers demo trader account for free so users can practice before they start live trading. Each user of the free demo account is given eight virtual BTC to practice trade and get to know all of the trade functions.
Advantages of Overbit Crypto Margin Trading Exchange
- 0% trading commission
- Generous Tier Points reward system
- Crypto, Forex, Gold trading
- Easy interface
- Top leverage conditions
Disadvantages of Overbit Crypto Margin Trading Exchange
- No tracked online presence
- Users from the United States are not accepted
- Only email to reach customer support
Overbit is the world’s longest standing cryptocurrency exchange, it offers highly convenient mobile platform, advanced trade tools and 24/7 support
Deribit is options and futures trading platform that is based in Panama. It lists derivatives with prices in USD for BTC and Ether products. Deribit also offers perpetual contracts for BTC and Ether similarly to some other major exchanges like OKEx and BitMex. The options offerings for both BTC and Ether are also available at Deribit – both of them cash settled. The options contracts are European style traded which means they are exercised only at expiration. Block trading is also offered allowing companies to make big, not public transactionsat agreed prices via partnership with Paradigm. Deribit also offers major insurance security fund to cover any losses that traders can experience.
Advantages of Deribit Crypto Margin Trading Exchange
- Deribit is allowing anonymous accounts
- Options such as European Vanilla available
- Fast crypto trading
- Very low fees
- Strong security features
- Test crypto platform for beginner Deribit users
- Highly experienced broker
- iOs and Android apps
Disadvantages of Deribit Crypto Margin Trading Exchange
- BTC-only site
- Issues with liquidity
- Limited types of customer support
Deribit is the world’s longest standing cryptocurrency exchange, it offers highly convenient mobile platform, advanced trade tools and 24/7 support
PRIME XBT SUMMARY
Prime XBT is a BTC based derivative trading platform that allows users to trade not only BTC but different financial instruments like Forex, Nasdaq, indices, crude oil and gas and many more. Despite the many choices it offers, Prime XBT is extremely simple to use and even beginner traders can start trading in minutes. The exchange gives the possibility of trading with up to 100X leverage and also up to 1000X leverage for Forex trading. Prime XBT is available in 150+ countries globally.
The main aims that Prime XBT is trying to achieve are decreasing the KYC process approval times, solving problems for markets that are failing, not good EE, and battling high exchange fees.
Advantages of Prime XBT Crypto Margin Trading Exchange
- Advanced but easy to use settings
- Besides cryptocurrencies, Prime XBT offers forex trading, indices and commodities
- Simple interface
- 100x-1000x leverage options
Disadvantages of Prime XBT Crypto Margin Trading Exchange
- Beginner traders can sustain losses based on excessive leverage
- Fiat options are limited, especially for deposits/ withdrawals
- Very high min limits
- Not regulated
Prime XBT is the world’s longest standing cryptocurrency exchange, it offers highly convenient mobile platform, advanced trade tools and 24/7 support
Coinbase is one of the most popular and well known crypto exchanges. It was launched in San Francisco in 2012 and currently operates in 32 countries globally. Coinbase has over 12 million users and has exchanged 40 billion + USD in different cryptocurrencies.
In 2013 the exchange was known as the largest worldwide. Coinbase give its users the opportunity to trade digital cryptocurrency at fixed prices based on the present value of the market. This is the feature that allows traders to buy cryptocurrency faster than any other crypto platforms.
The two core products of Coinbase are GDAX – Global Digital Asset Exchange which lets users to trade different digital assets and also the user facing brokerage of BTC, BTC Cash, Ethereum Classic, Ether, Litecoin. In 2018, Coinbase made an announcement to additionally support the ERC20 tokens.
Advantages of Coinbase Crypto Margin Trading Exchange
- Beginner crypto traders friendly exchange
- PayPal account linkage
- Purchase up to $1,000 bitcoin weekly
- Strong insurance policies
- Instant transfers
- Coinbase card and wallet
- Well known and reliable company
Disadvantages of Coinbase Crypto Margin Trading Exchange
- Some user complain of low level customer service
- Vault feature
- Closed trader accounts due to bank laws integration
Coinbase is the world’s longest standing cryptocurrency exchange, it offers highly convenient mobile platform, advanced trade tools and 24/7 support
BitMax is a Singapore based crypto exchange that was launched in 2018. The exchange offers crypto to crypto trading of 36+ coins with 72 cryptocurrency pairs and three markets – BTC, USDT, ETH. There is also a mining transaction type of model providing full reimbursement of trading fees in BTMX – the BitMax native token. BitMax offers market, limit, stop market and stop limit trading.
Some of BitMax features are – high transparency, advanced UE design, API + FIX connectivity, very high security and an international team of professional aboard.
Advantages of BitMax Crypto Margin Trading Exchange
- Very competitive fees
- Margin crypto trading
- Liquidity is high
- Great referral system
- BTMX reward program from traders
- Fast and reliable customer service
Disadvantages of BitMax Crypto Margin Trading Exchange
- The platform is better suited for traders with experience
- No fiat deposits and withdrawals
BitMax is the world’s longest standing cryptocurrency exchange, it offers highly convenient mobile platform, advanced trade tools and 24/7 support
Huobi is China founded and Singapore based crypto exchange with offices in Korea, Japan, Hong Kong and the United States. In 2018 Huobi became a Hong Kong publicly listed company. In 2017 the Chinese government put a ban on BTC exchanges and Huobi stopped all BTC withdrawals. The company also operates as a research and blockchain consulting platform. In 2018 Huobi mentioned that by then it has processed USD $1 billion + in daily trades.
Huobi offers a great number of different cryptocurrency pairs, great user support available 24/7, customer protection fund against hacking attempts or thefts and the ability for companies and institutions to trade.
Advantages of Huobi Crypto Margin Trading Exchange
- Convenient for beginner traders
- Registration process is very easy
- High liquidity for top cryptocurrency
- Margin funding and trading
- Worldwide brand
- Both iOS and Android apps
- Very high security level
- 24/7 user support
Disadvantages of Huobi Crypto Margin Trading Exchange
- The exchange was accused of falsifying trading volume
- KYC verification required for withdrawals
- Higher than the standard ones trading fees
Huobi is the world’s longest standing cryptocurrency exchange, it offers highly convenient mobile platform, advanced trade tools and 24/7 support
What Are The Benefits Of Crypto Margin Trading?
Now that we’ve covered the fundamental info you need to know about crypto margin trading, and provided you with insight into some of the top platforms out there, let’s consider the benefits of crypto margin trading.
After all, there are a wide range of different types of trading out there. What are some of the main reasons you should invest your time and money into crypto margin trading?
- Profits. The leveraged nature of crypto margin trading means you can potentially make a lot more profit with the amount of money you actually have, thanks to the leveraged loan. The exact level of leverage you use will depend upon your appetite for risk, as well as the limits set by your exchange. With potential leverage of up to 100x, the potential is vast to make some serious profit with this type of trading.
- Shorting. If you’ve been around the world of crypto trading for any amount of time, you will be well aware that things can take a nosedive. The ability to short various cryptocurrencies on crypto margin exchanges means that you can make a profit even when the value of crypto dips.
- Safety. The nature of the margin loan means that the risk is clear and limited for both parties, This can avoid you getting into unexpected situations.
What Are The Downsides Of Crypto Margin Trading?
- Quick losses. Just as leveraged trading means that you can make vast amounts of profit quickly, you can also make quick losses. If the crypto market makes a sudden downturn, you might find that the leveraged nature of your losses leads to your position being automatically closed quite quickly.
- Fees. Outside of the world of leveraged trading, fees tend to be quite straightforward, being charged for each trade executed. In the world of leveraged crypto margin trading, additional fees come into play. By borrowing the amount needed for your position, you will often incur a percentage fee on the amount borrowed. This is sometimes charged each day that the borrowing takes place. It’s vital to keep an eye on the fees so that you know exactly how much you will be making and paying at any given moment.
Which Strategies Can I Use In Crypto Margin Trading?
Like any type of serious trading, it pays to have a good strategic approach before getting started.
This is especially true in the world of crypto margin trading. Conventional stocks and shares tend to move in a lot more conservative ways than crypto. Cryptocurrencies are prone to lose or gain massive amounts of value in a short space of time.
The extremely high level of volatility found in crypto trading, when compared to other types of trade, means that there is serious potential to make large levels of profit (or loss) quickly.
It is therefore essential to have a solid strategy in mind before you get started with crypto margin trading.
So what are some of the key strategies you may wish to consider
Crypto Margin Trading Strategy – Long Position
Basically, taking a long position in an asset, including a cryptocurrency, means that you expect the value of that asset to increase in the future.
You are effectively predicting that the price of the cryptocurrency will be greater at some point in the future than it is now.
A leveraged long position allows you to experience a far greater rate of profit from this increase than you would if you made an unleveraged long trade.
Say, for example, you took a long position in a cryptocurrency that was currently worth $1000. At the time you closed your position, the price had increased by 50% to $1500.
If you had made an unleveraged trade, and had invested in a single unit of this cryptocurrency, your profit would be $500.
However, let’s say you had made a leveraged trade at 10x. This would have allowed you to buy $10,000 worth of the cryptocurrency despite only investing $1000 of your actual money. At the time of sale, you would have sold at $15,000, meaning you made a $5000 dollar profit in the same period of time, without spending a penny more of your own money. This doesn’t take into account fees and other unavoidable costs.
Crypto Margin Trading Strategy – Short Position
Short positions involve betting that the value of a cryptocurrency will decrease.
Let’s say, for example, that you have noticed a pattern in cryptocurrency value. It tends to fluctuate fairly predictably, rising in value by 20% before dropping in value by the same amount.
If you felt sure that the price of the cryptocurrency was about to dip, you would open a short position. This would result in your profiting if the cryptocurrency price fell as you had anticipated.
By making a leveraged short trade, you are able to short a larger amount of the crypto than if you were restricted to your own funds. This allows in a higher level of profit.
Crypto Margin Trading Strategy – Hedging
Hedging is a crypto margin trading strategy which seeks to protect you from loss.
Say, for example, that you had a long position in a particular cryptocurrency, and you felt fairly sure that its value would rise over a period of time.
However, you are well aware of the volatile nature of the crypto market. Although you expect the price to rise in the long run, you are well aware that it could dip in the short term. To protect against your losses in such a scenario, you open a relatively small short position in the cryptocurrency. This helps to limit your losses should the crypto lose value before it eventually gains, in accordance with your primary long position.
Most crypto margin trading exchanges don’t allow you to directly hedge. However, there are a couple of ways you can get round this restriction. One is to open conflicting positions in a crypto and currency pairing, using different currencies. For example, you might go long on the value of Bitcoin to the dollar, but short on Bitcoin to the euro. Fluctuations in the currency markets can reduce the predictability of this approach, however.
The other way to get around restrictions on hedging is to open different positions on different exchanges. For example, you take a long position on one exchange, and a short position on another. This is a more predictable form of hedging which gets around any restrictions from a single exchange platform.
What Are The Best Tips For Starting Crypto Margin Trading?
At this point in our guide to crypto margin trading exchanges, you are probably ready to get started! You understand the pros and cons of the various trading exchanges, you know the overarching strategies you can employ, and you are eager to take your first position.
However, there’s never any harm in being equipped with more crypto margin trading information!
With that principle in mind, here are our top tips to allow you to start crypto margin trading in the most effective and enjoyable way possible.
1. Be careful of leveraging.
It can be tempting to go for the highest level of leverage available. After all, the potentially huge profits are one of the main attractions behind crypto margin trading.
However, this isn’t always the best approach. The more leverage you have, the more vulnerable you are. Some exchanges are subject to artificial manipulation of the crypto price in order to hurt overly leveraged traders.
As a guiding principle, if you have experience with leveraged trading of any type, you can afford to take greater levels of risk with the amount of leverage. Also, if the exchange you are trading on has a higher level of liquidity, you can afford to take greater risks in terms of your leverage level.
2. Only risk what you can afford to lose.
Crypto margin trading is a high risk form of trading. Like everything in life, the high level of risk is accompanied by potentially high rewards. However, it’s definitely possible to lose everything you’ve invested, and the loss can come quicker than you ever imagined.
As a result of this, it’s vital to only invest an amount you would be OK with losing. Obviously, losing money on a trade will never be a great situation, but if you can afford to absorb the loss then it won’t put you at peril.
You should never rely on profits from crypto margin trading as a primary form of income, or to meet debt ot any other type of obligation.
However, as a way to potentially make epic levels of profit with your disposable income, go for it! If it’s money you can afford to lose, the potential gains and the thrill of trading is more than worth the risk.
3. Choose your exchange carefully.
The online world if often an unscrupulous place. It’s well worth doing your homework on any given exchange before opening an account.
Not all crypto margin trading exchanges use the same levels or types of security, You want to check out how long any given exchange has been operating, and what its security record is. Has it ever been compromised? What corrective action have they taken to ensure that similar exchanges do not occur?
Do not get drawn in by marketing promises and general popularity. Due diligence about an exchange’s security is your responsibility, and yours alone. Ultimately, the security of your money is far too important to take any shortcuts on.
Be careful, and trade wisely!
In order to trade with margin, you will need to open a margin account. This is different from a regular cash account, in which you trade using the money in the account. You can keep your loan as long as you want, provided you fulfill your obligations such as paying interest on time on the borrowed funds.
A good example is: 50:1 forex leverage represents the ability of trader to place trades 50 times more than their actual capital. In Bitcoin trading market, liquidity providers lets users open leveraged positions by providing their funds.
Leverage is the strategy of using borrowed money to increase return on an investment. If the return on the total value invested in the security (your own cash plus borrowed funds) is higher than the interest you pay on the borrowed funds, you can make significant profit.
Shorting bitcoin on cryptocurrency exchanges functions in the same way as shorting bitcoin using CFDs. When you short sell bitcoin on a cryptocurrency exchange, you are selling bitcoin you do not own.
If your acount’s equity margin goes below the security preconditions then a margin call is issued to your account. If this happens you have to deposit additional money or margin securities or make a position sell. I.e. the trader is expected to free up some of his assets in order to bring his account up.
When you perform cash account trading you can buy/ sell securities cash only. You are not allowed to borrow against securities in order to make a purchase. Nevertheless, when you perform margin account trading you have the option to leverage equity in the securities you have in order to buy more securities.
To buy on margin is to request money from dealer in order to buy some stock. Put differently, it is a loan you are getting from a particular company that is buying/ selling assets or goods for its clients.
Margin trading offers higher profits potential than regular trading therefore it is riskier. When you margin purchase stocks the loss effect is increased.
The return of equity in a company increases as leverage is increasing the volatility of stock, therefore the level of risk is increasing which leads to increased returns