Do you want to trade your cryptocurrencies? Worried about limited capital? Yes! Stop worrying! There is an approach that you can effectively leverage both short and long positions on crypto. Let’s consider, you can leverage your positions on Bitcoin or Ethereum by 2X, 10X or 100X, you don’t need to maintain the capital value that is needed to open short or long positions. This can happen using crypto margin trading.
In this article, let’s discuss the popular crypto margin trading exchanges around the world.
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What is Crypto Margin Trading?
Beginner, intermediate and advanced traders prefer crypto margin trading. They believe that crypto margin trading is an extremely profitable strategy. It enables traders to trade with power by borrowing their funds from top exchange platforms.
How does crypto margin trading work?
Let’s have a look at the crypto margin trading working procedure. Choose the best crypto trading platform for you. Now create an account and deposit initial funds. The next step is to fill out an application form for a loan using initially deposited funds. Keep in mind that you need to pay interest daily. The interest rate may vary from one exchange to another. Thanks to crypto margin trading exchanges! These platforms allow not pose a high risk as each position will be having an individual liquidation price. This price will depend on the leverage level.
Best Crypto Margin Trading Exchanges
Binance
Binance is the one-stop destination to buy, hold and trade cryptocurrencies. Currently, Binance supports over 600 crypto coins. The primary reason to choose Binance is the lowest transaction charges i.e less than 0.10%.
Binance margin trading is probably used to improve trading profits. Yes, you’ve heard it right. Binance margin is the process of using third-party funds to perform asset transactions. When compared with traditional trading accounts, the Binance margin account enables investors to obtain huge funds.
Whether you’re planning to transfer, borrow, trade or repay, you can do this within a few simple clicks. Everything can be accessed on your margin trading account page. Investors choose Binance for various reasons, it offers responsible trading. The platform will control all your transactions effectively and trade in a secure and responsible way.
FTX
Want to start crypto margin trading? Looking for the best place? Yes! FTX can be a suitable option for you. Getting started with FTX margin trading is simple.
FTX is offering excellent features with cutting edge technology. The exchange platform was introduced in 2019. FTX provides a good amount of funds or liquidity to its investors with FTX insurance funds. Every position in the FTX uses a similar collateral pool. Investors will probably use their sub-account, it will have a single central collateral wallet. This will use the cross margin for every account. The good news for all the investors, you will be having an opportunity to use a specific margin in the isolation. FTX is offering leverage upto 101X on their products or services. Just like other exchange platforms, FTX provides a set of leveraged coins. If you’re a resident of the US, you can visit ftx.us.
Similar to other margin trading platforms, FTX charges a fee for margin trading. This fee is included in lending prices.
BitMEX
BitMEX is the popular and advanced cryptocurrency trading destination for Bitcoin and other popular coins. For all Bitcoin users, BitMEX is the right place for you. The platform has introduced two types of margins cross and isolated.
1. Cross margin – Margin that is shared in between open positions that have similar settlement crypto. When required, the position draws even more margin from the existing balance to eliminate liquidation.
2. Isolated margin – This is something interesting! Margin that is assigned to a specific position which is limited to a particular amount.
BitMEX is offering margin trading for digital currencies. It has received an immense amount of respect and popularity within a short time. BitMEX team included experienced developers, traders, economists and more. These people are making BitMEX a powerful product in the crypto space. Keep a note, U.S residents cannot access BitMEX. However, they can use a VPN service to access the BitMEX platform.
The Crypto margin registration method on BitMEX is simple. You only need a registration email to begin the process. You can secure all your funds through two-factor authentication functionality.
Kraken
There are two good reasons to choose Kraken i.e secured platform and a good exchange platform for US residents. Kraken is offering over 65 cryptocurrencies, whether you’re planning to buy Bitcoin or Ethereum, you can purchase them within minutes. Anybody can get started with the platform, most investors are starting with $10 only.
Margin trading is another utmost feature of Kraken, investors can trade with 5X leverage. Margin trading on Kraken is accessible by global users. This sounds amazing! You can simply use Kraken margin in order to go short or long on cryptos with the 5X leverage. The pro trading interface of Kraken can manage all your positions with ease. The advanced ordering option will help you. Kraken doesn’t charge you much, users need to pay 0.02% every hour in rollover charges.
KuCoin
Have you ever heard about the brand KuCoin? Of Course many times! KuCoin is the leading crypto margin trading platform that is offering a massive range of cryptocurrencies and services. If you’re looking for low market capitalization crypto coins, you can find them on the KuCoin platform.
With a user-friendly interface and high liquidity, everybody is considering KuCoin as one of the best crypto margin trading exchanges. The platform is offering a margin upto 10X leverage on spot trading. On the other hand, it is offering upto 100X leverage on derivatives. Similar to other margin trading exchanges, Kucoin is providing a good number of tokens that are the best version of crypto margin trading, as these don’t encounter any risk of liquidation. Every investor needs to keep in mind that the crypto margin trading interest charges may change frequently on Kucoin.
Conclusion
If you’re a newbie to crypto trading, you might be unaware of the crypto margin trading exchange platforms. Let’s keep things simple for you, these exchanges allow crypto traders or investors to trade their crypto coins on margin. All you need to do is create a crypto margin trading account at popular exchange platforms. Later, you need to process a loan request and trade using the funds that you receive. Depending on the margin the risk will be determined. For example, if the margin leverage is 10X, there might be less risk and for 50X, the risk will be higher.
