As we continue to see new all-time highs in a broad range of cryptoassets, margin traders are back in full force, attempting to capitalize on a bull market that still might trick and liquidate many inexperienced traders.
In this guide, you will discover five trading platforms that you can use to trade crypto on margin.
Binance
Launched in 2017, Binance has emerged as arguably the most dominant crypto exchange in the world. With trading products ranging from a simple crypto conversion tool that buys/sells “at market” to a futures trading product for experienced traders, BINANCE is popular among beginners and professional traders alike.
Margin traders on Binance can choose from a broad range of digital asset futures and use bitcoin (BTC), binance coin (BNB), stablecoins, and fiat currencies as base currencies.
For traders who have garnered experience in spot trading crypto, Binance provides a good platform to level up onto margin trading without overcomplicating the process. However, total liquidations of trading positions on this platform were the highest during a bloodbath in February.
Leverage: up to x125
Margin Products: Margin trading, futures trading
Fees: Tiered
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Bitfinex
Launched in 2012, Bitfinex is one of the oldest and most established leverage trading platforms in the crypto capital markets.
Despite suffering from a large-scale hack in 2016, Bitfinex remains a go-to exchange for margin traders that want to benefit from the platform’s professional trading software and wide range of tradable assets.
Bitfinex is not an entry-level trading platform. Instead, it targets more experienced traders who want to make use of the platform’s advanced features.
Leverage: up to x10
Margin Products: Margin trading, futures trading
Fees: Tiered
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FTX
Launched in 2019 as “a cryptocurrency exchange built by traders, for traders” with a derivatives-first focus, FTX has managed to position itself as one of the leading crypto margin trading platforms for experienced traders.
The platform offers a range of leverage trading products, including futures, options, and leveraged tokens. While spot trading is also on offer, this exchange targets experienced traders who want to capitalize on the volatility found in the crypto capital markets.
FTX is one of the best platforms available today for margin traders who want to explore a range of different leverage products and trading strategies.
Leverage: up to x101
Margin Products: Margin trading, futures trading, leverage tokens, volatility products
Fees: Vary from product to product
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Kraken
Launched in 2012, Kraken was one of the first exchanges that experienced crypto traders really trusted.
Unlike many of its peers, Kraken always stuck to its guns and only listed digital assets that met the exchange’s strict listing criteria. As a result, you will not find the latest micro-cap altcoins that have spring out of nowhere. Instead, you can trade digital assets (on margin) that should stand the test of time.
Kraken is an exchange for “grown-ups” who want to trade established digital assets with responsible leverage.
Leverage: up to x5
Margin Products: Margin trading, futures trading
Fees: Tiered
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Poloniex
Launched in 2014, Poloniex is another well known platform in the crypto exchange ecosystem. The exchange gained notoriety as an altcoin exchange at a time when most exchanges were bitcoin-only.
Today, Poloniex has a broad offering of trading products, predominantly targeted at more advanced traders. Margin traders, for example, can trade between 25 digital assets to trade using leverage and a futures trading offering.
Similar to Bitfinex and Kraken, Poloniex is for experienced traders who understand the ins and outs of leverage trading as opposed to beginners who just want to dip their toes in.
Leverage: up to x100
Margin Products: Margin trading, futures trading
Fees: Tiered
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Margin trading carries substantially more risk than spot trading and should only be carried out by traders who have taken the time to understand how these financial products work and the risks involved in trading crypto.
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Learn more:
- This Is The Biggest Risk To Crypto Market According to Pantera Capital CIO
- Overleveraged Crypto Traders Lost USD 2B In One Hour, Binance Leads Again
- What Are Leveraged Tokens And Should You Trade Them?
- Cryptoasset Margin Trading: How Safe is it?
- Crypto Traders Warn Newbies About New & Super Risky Binance Feature
