A Complete List Of The Best Crypto Margin Trading Platforms In 2020
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In case you are a novice and just stepped into the crypto industry, we suggest you give this a pass. As a beginner, you should read our guide on how to invest in Bitcoins and best cryptocurrency exchanges for beginners. However, if you still want to give Margin trading a try, don’t invest too much amount initially and until you gain proper experience.
Margin trading is also known as day trading which is used by institutional and seasonal traders to gain high profits from financial assets. Margin trading in itself is highly risky and when combined with cryptocurrencies it makes it even riskier.
What is Margin Trading?
Margin trading allows traders to access greater sums of assets by paying just a portion of them and hence earn more profits. For example, if an exchange is providing leverage of 100x on lending assets then you can get access to $1000 by paying a mere $100. However, it depends on the platform how much leverage it is offering. This method is used in almost all financial markets but it is most popular in the international forex.
Today, in this article, we are going to provide you with a list of the best crypto margin trading platforms that lets you make the most out of your cryptocurrencies.
Best Crypto Margin Trading Platforms In 2020
Binance
Founded in 2017, Binance won the heart of all crypto traders in no time. It secured the place as the best crypto trading platforms and is still on the top among all. The exchange only allows crypto-to-crypto trading with some of the advanced options like leverage trading.
The reason we’ve put Binance on the top of the best crypto Margin trading platform is its excellent reputation in managing the security of the platform. Furthermore, it provides leverage up to 125x.
On Binance platform you get an intuitive interface with the option to choose among the interfaces. You can set the complexity of the platform according to your understanding. Moreover, it supports almost all the major cryptocurrencies you could even want to trade in along with the ICO tokens.
If we talk about the weak points of the exchange, you can only get support only by submitting tickets. Besides, if you have any issue with KYC regulations, you should give this a pass as Binance have strict verification policy.
Bitmex
When it’s about crypto margin trading platform, it would be not good if we won’t mention the name of Bitmex. Bitmex is one of the oldest crypto-to-crypto trading exchange that allows you to access advanced tools like leverage, futures trading as well as derivatives. Unlike other platforms, Bitmex is specially made with institutional traders and seasonal investors in mind. Bitmex also provides high leverage up to 100x and supports many cryptocurrencies. If you are hesitant with providing your ID verification than Bitmex is the perfect match for you.
Before you start trading on Bitmex, let us inform you that it doesn’t serve US residents anymore. Moreover, the platform sometimes undergoes errors and can become a huge barrier in your trading schedule.
PrimeXBT
PrimeXBT though is not that famous like Binance and Bitmex but it certainly provides good margin/leverage trading services. The leverage rate on PrimeXBT is 100x and you can trade with many major currencies like Bitcoin, Ethereum etc.
The crypto margin trading platform started in 2019 and currently, it is known for providing liquidity, advanced trading tools to more than 150 countries in the world. Before you go on and start trading on PrimeXBT, make sure to check if it is available for your area or not. The base trading fee of the exchange is flat 005%.
At the moment you can only trade a few cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple and EOS on PrimeXBT. But it is expected that the platform will add support more cryptocurrencies very soon.
Etoro
Etoro, unlike other crypto margin trading platforms, provides trading services for a wide range of markets that includes, Stocks, ETFs, Forex, Indices, Crypto as well as Commodities. eToro continuously ranks among the top cryptocurrency trading exchange and is most known for its social platform.
Recently the exchange expanded its support for cryptocurrencies beyond Bitcoin and Ethereum to XRP, Litecoin and other famous altcoins. On eToro, you won’t actually own your cryptocurrency but take benefit through CFD trading. As long as the interface of the platform matters, it is easy to understand for those having knowledge about CFD and leveraged trading.
EToro also allows you to interact with other crypto-traders which makes it unique and one of the best crypto brokers in the industry.
Other Famous Crypto Margin Trading Platforms
The list doesn’t end here as there are many other platforms such as Deribit that provides 100x leverage on cryptocurrencies and also supports Futures trading and ByBit which supports both Future and derivatives and lets you leverage up to 100x. Besides, these you can also access Margin trading on the top crypto exchanges like Huobi, Poloniex, and Kraken. However, in these exchanges, you will only get the option to leverage up to 5X.
Conclusion:
All these above-mentioned crypto margin trading platforms have their pros and cons. Before you go on and put any money into these platforms, make sure you do proper research and compare all their services. Cryptocurrency Margin trading is subjected to high market risks and we suggest if you don’t have enough knowledge about the same, then you should give it a pass. If it’s your first time with margin trading, read out guide about the same before you start trading.
Beginners should instead buy crypto from traditional and simple cryptocurrency exchanges and make profits by either HODLing or day trading. Always prepare your trading strategy beforehand to increase your profits and decrease the chances of losses.