Cryptocurrency Trading Platforms with Leverage 2020 [TOP 7]
Bitcoin trading and altcoin trading are getting attention all over the world. In just a few years, cryptocurrency became a popular topic for people to invest in or trade in. As a result, newer and newer products such as margin trading, are being offered to traders. Innovative technology and new methods, such as margin trading are getting introduced to give traders a competitive edge in a highly lucrative and volatile market. But traders need to be careful when selecting the best cryptocurrency trading platforms with leverage for 2020 if they want to profit from crypto.
While margin trading has its benefits, you need to approach it with caution and find a reputable and reliable exchange. To help you make an informed decision, our review covers 8 of the best cryptocurrency trading platforms with leverage. We have analyzed their features and compared their benefits.
Before we dive into the features, functionality, pros and cons of each exchange, here is a list of our choice for the best cryptocurrency trading platforms with leverage for 2020:
|Kraken||2 – 5%|
Important to realize is that not all crypto trading platforms allow users to trade with margin. This is due to the fact that margin trading is highly risky, and trading crypto with leverage is even riskier. So some brokers don’t want to cover the margins of traders especially if their audience consists mostly of beginner traders.
For this reason, we have only focused on the best cryptocurrency trading platforms with leverage in our review.
What is Leverage Trading
Trading crypto with a margin is the practice of ‘borrowing’ funds from a broker or a platform to use for a trade. This is known as ‘leverage’. On the positive side, leverage can have a great impact on gains, as users are essentially trading with more money than they actually own. However, it can also result in larger losses to traders’ capital.
The crypto market is notoriously volatile and trading crypto with leverage puts traders at risk of a margin call. This is when the ‘account value’, their original funds plus any unrealized profit or loss, falls below a certain unsustainable threshold.
When this happens, the margin call then liquidates their position. Sometimes this results in losses of a greater magnitude than crypto trading without leverage. For this reason, traders should be careful to observe their limitations and only trade on the best cryptocurrency platforms with leverage.
If you’re from the US, there are some other options for you in this article.
ByBit is a relatively new exchange as it was launched in 2018. But this hasn’t stopped it from amassing a considerable user base. It rose to fame quickly because it gives traders the ability to trade Bitcoin and Ethereum perpetual contracts with up to 100:1 leverage. In their short time in operation, ByBit managed to build up sizable liquidity.
With headquarters in Singapore, the exchange is open to almost everyone with the exception of residents of the USA, Syria, and the Canadian province of Quebec. Notably, security is pretty solid with SSL encryption, two-factor authentication and funds kept in cold wallets.
A unique feature of ByBit is the so-called “insurance fund”. In the case that a trader gets liquidated at a level that is below their “bankruptcy price”, this fund can be used. Another key point of using ByBit is that leverage is freely adjustable. Because of this, it can be changed even in an open position. This is something that cannot be done on other exchanges.
All in all, the platform is easy to use and intuitive. And the fee model is smart with what is called a “maker-taker” fee mechanism. This means that ByBit charges traders a fee if they take liquidity off their books. But gives them a rebate if they provide liquidity to the exchange.
- Up to 100x leverage
- Multiple supported cryptocurrencies
- No KYC required
- Not as liquid as competitors like BitMEX
- US citizens not accepted
Binance is routinely voted as one of the world’s best cryptocurrency platforms with leverage for a reason. Although their margin trading feature is brand new on their platform, the exchange itself has been around since 2016. Users should be able to perform 125x leverage on Binance when margin trading. However, they will have to complete the identity verification (KYC) and be from a country that hasn’t been blacklisted.
After registration, users can enable margin trading from their main dashboard. Presently, margin trading on the Binance platform is available for Bitcoin and XRP. By volume of trades, Binance is the largest so liquidity is strong.
With over 5 Million registered users, Binance has a quality reputation from around the web for crypto exchanges.
- low fees
- more than 80 altcoins accepted and tradeable
- stable mobile apps
- anonymous accounts with a generous limit (2 BTC/day)
- US citizens restricted from margin trading
- buggy platform
- no support for fiat
Deribit is a popular margin trading platform that is open for citizens of all countries including the USA. Users who want to trade Bitcoin futures can take advantage of up to 100x leverage. The company is based out of the Netherlands and its CEO is John Jansen. Significantly, Deribit is the only platform that offers Bitcoin Option trading to date. In addition to that, it is the second biggest (after BitMEX) exchange that offers Bitcoin Perpetual Swap Contracts.
Since all transactions are done with Bitcoin, the level of anonymity Deribit offers is higher compared to an average exchange. Coupled with a good set of features, Deribit gives users some competitive advantage while margin trading.
However, the platform has some limitations. Presently, the only method for deposits is in BTC. But registration is quick and easy, and there is no ID verification.
- Anonymous accounts allowed
- Fast trading
- Low fees
- Solid security
- Test platform for getting used to the site
- No mobile app
- Bitcoin-only site
- Liquidity issues
BitMEX it is the most popular exchange for crypto leverage trading and has a 24hour volume of around 746,725 XBT (Bitcoin). Liquidity is one of its greatest assets. Together with other exchanges in this list, BitMEX offers 100x leverage trading.
BitMEX boasts a unique trading engine. It is written in kbd+ – a lot of major banks use this tool frequently in high-frequency trading applications. Not to mention that the platform is really serious about security. They protect their data with AWS (Amazon Web Services) Cloud Security.
Notably, there is PGP encryption for all automated emails, a two-step verification process and also a bug bounty program. As a result of these steps, BitMEX is able to dramatically minimize vulnerabilities in the code and updates.
On the negative side, the interface is a bit overwhelming for first-time users and there have been several controversies. Not to mention that some users have reported their stop orders getting moved or changed. Notably, the platform has frozen several times during the highest volumes of trading. These are some of the most notable flaws in this 2 billion dollars+ exchange a day platform.
- high volume
- high leverage
- full package of order types
- good customer support
- major altcoins tradable
- high security
- supports anonymity
- Restricted for US traders
- Only 6 cryptocurrencies supported
- No fiat
- No mobile app
Huobi Global is the world’s safest BTC, ETH & LTC exchange. It recently added margin trading to its long list of services. Huobi is one of China’s largest cryptocurrency exchanges. With this in mind, it has an extremely high trading volume. Huobi supports 3x leverage trading.
Because of its ample functionality and high security, Huobi has catapulted to the fourth place of the world’s largest cryptocurrency exchanges. It has offices in Japan, Hong Kong, Mainland China and Korea.
Huobi is quite an advanced and established cryptocurrency exchange. Despite that, it retains one of the most reasonable fees. The wide range of cryptocurrency assets of Huobi puts it at the top of exchanges in terms of service offerings. And opening an account is easy although users need to go through identity verification as part of the KYC process.
Huobi has a separate ‘margin’ platform for users who want to trade crypto with leverage. For this reason, it is different from the other exchanges as they merely have a margin order form on the standard crypto exchange platform. When it comes to Huobi the leverage varies depending on the coins you trade.
All in all, the platform is efficient, secure and versatile. Furthermore, it is incredibly beginner-friendly and easy to use.
- Wide selection of coins
- Good liquidity
- Packed with features
- Loosely regulated
- Not beginner-friendly.
Poloniex is a pure crypto to crypto exchange based in the United States. The addition of margin trading expanded the functionality and wealth of its features. As a result, the platform provides a fully immersive trading experience.
It offers a secure, stable trading environment with 2.5X in BTC leverage and 11 BTC margin trading. With this in mind, Poloniex is the most liquid cryptocurrency exchange on the internet today. For this reason, the company has the largest exchange volumes in most markets.
Registration is easy and straight-forward. However, users who want to increase their trading margins need to submit KYC documents. But the good news is that they usually get approved in hours.
Important to realize is that Poloniex is only a cryptocurrency exchange. It does not support fiat deposits or withdrawals. Only exchanges. Its trading platform is secure and stable and offers diverse cryptocurrency services and competitive pricing for high-volume traders.
- wide selection of altcoins
- margin trading for altcoins
- high liquidity
- tends to load slowly compared to others
- no advanced order types
- poor support
- has been hacked in 2014
Kraken is one of the few US-based cryptocurrency exchanges with a good reputation. Based in San Francisco, it is the biggest exchange in terms of EUR volume. Notably, there are no registration restrictions. It is open to any user who can register using an email ID and pass KYC verification.
Margin trading on Kraken offers different leverage options for different pairs. All in all, users can trade a total of 6 cryptocurrencies with leverage on Kraken in 16 different pairs. Since 2011, Kraken has been going strong and appeals to a larger audience as it is internationally accessible.
Kraken has a large variety of cryptocurrencies, even more so than Coinbase. And it is easily accessible for international traders. Because it spent a long time establishing its reputation, Kraken remains the first choice of many international cryptocurrency traders.
The combination of lower fees and access to a much more robust trading platform makes the exchange a preferred choice for normal and margin trading. Overall, Kraken offers a 2 – 5% margin depending on which cryptocurrency traders want to use.
- high liquidity (especially in EUR and JPY)
- cheap/free deposits in EUR
- margin trading and short selling
- customizability and variety of order types and position options
- low fees
- buggy sites at peak performance
- can be expensive to deposit currency for US/Canada
- poor customer support
- limited selection of crypto pairs
- errors in order execution
Risks and Rewards of Leveraged Crypto Trading
Margin trading can be a very profitable endeavor when done right. But it’s not without its risks. When we talk about margin trading and leverage exchanges, it’s important to stress the need for a solid security framework in place. As a result of operating with huge volumes of money, the risk of hacking attacks has increased significantly in recent years.
Therefore, it’s better to look for crypto exchanges that keep the majority of their funds in cold storage and only keep a small amount to cover open positions. In addition, exchanges that only require an email for registration are the prime targets of hackers. The best cryptocurrency trading platforms with leverage in 2020 employ extra security features. Specifically, 2-FA authentication, which you should never forget to use.
All in all, though crypto margin trading can be risky due to market volatility. But using the best cryptocurrency trading platforms with leverage in 2020 is one way to feel more secure and improve your chances.