6 Best Crypto Leverage Trading Platforms 2024 USA Accepted

The cash you borrowed could be used for a real estate investment or buying more BTC. Once you pay back the loan, you will receive the BTC you put up as collateral. If the price of BTC has increased by that time, you still reap the benefits. Some trading platforms even offer a risk-management strategy called negative balance protection. Negative balance protection stops you from losing more money than what is in your account.

Kraken charges 0.02% on leveraged tokens, plus rollover fees of 0.02% every four hours. It processed more than $70 billion worth of leveraged trades in the past 24 hours. Traders not only benefit from huge liquidity levels but also competitive fees.

If the market however falls just minutes into your trade it shows that your analysis was wrong and it is time to cut the loss. If you spend time mastering a few coins you will start finding new opportunities and make more money than you made before just by focusing your energy on a few price charts. These are some of the biggest factors that will affect a retail trader when choosing a smaller batch of markets. On the contrary, if you used crossed margin, one single position could liquidate your whole account due to a big loss.

These trading platforms allow investors to amplify their gains by borrowing funds to trade with larger positions. With hundreds of leverage trading platforms out there, it can be daunting to select the exchange for you. I’ll briefly cover a few exchanges I think are excellent and highlight some key differences between the two.

This lets you control a larger position than your initial investment. For experienced users, Bitmart caters to margin trading and futures trading. Launched in 2020, the futures market allows leverage of up to 100x on certain assets. To come back to the simple explanation, if you use leverage without any additional risk management, it does indeed amplify your position size, but the percentage of moves too. In spot trading, this risk does not exist, but you are limited to your capital alone. The maximum leverage available is often the first feature traders interested in the technique look for from a platform.

Let’s assume in this case that you want to open a $10,000 short position on Bitcoin with 10x leverage. You borrow Bitcoin from someone else and then sell it at the current market price. Because you chose to trade on 10x leverage, you’ll have the chance to sell $10,000 worth of Bitcoin while only having a $1,000 collateral.

Kevin started in the cryptocurrency space in 2016 and began investing in Bitcoin before exclusively trading digital currencies on various brokers, exchanges and trading platforms. He started Hedge With Crypto to publish informative guides about Bitcoin and share his experiences with using a variety of crypto exchanges around the world. Like the Spot Trading Vs Margin Buying And Selling Pros And Cons For Binance other margin platforms reviewed in this list, OKX boasts an impressive selection of spot trading pairs that can be bought and sold with borrowed funds. There are even unique tokens that follow popular soccer teams in the world. The pairs can be traded with margins up to 10X using Bitcoin (BTC) or 5x with Tether (USDT) as the base collateral.

• For example, if you have $500 in your account, adding 10x leverage would mean that you now control $5000.
• It’s a trap that can ensnare even the best of us, since we’re working with borrowed money.
• Binance is one of the best platforms I know of which allows you to do this, it’s under COIN-M Futures.

I’ve highlighted the trading fee I used when I was testing the platform which was in the USDS-M Futures trading. Binance also adheres to strict KYC and AML rules and all traders are obligated to identify themselves before starting. I have circled the withdrawal whitelist option because I think it’s a very useful tool to prevent hackers from ever leaving the platform with your funds.

• Implements robust security protocols such as multi-factor authentication and cold storage to protect user assets. • Allows users to swiftly convert one cryptocurrency to another, facilitating easier portfolio management. • Features additional elements like market sentiment indicators and trending sectors, providing users with more in-depth market data and insights. • Allows the automation of trading strategies using different types of trading bots, such as Grid Spot, Futures, and Inifnity bots. • Allows users to buy cryptocurrencies through third-party service providers like Banxa and Xanpool.

• Provides tools for easy conversion between different cryptocurrencies and fiat to crypto conversions. • Provides various DeFi strategies, such as staking crypto tokens and joining mining pools to generate passive income. • Coinbase is one of the most reputable and regulated exchanges globally, ensuring a secure and compliant trading environment. Here’s a snapshots of some of the reasons that each crypto exchange made the list.

When trading with leverage, you can speculate product price movements which then inform your decision to either buy or sell. If you buy an asset because you believe the price would rise, this is termed ‘going long’ and when you sell it is called ‘going short’. In addition to margin deposits, you need to be aware of the broker’s margin threshold, also known as maintenance margin, which is designed to keep your positions from being liquidated. If the margin falls below the maintenance threshold with price fluctuations, you will have to deposit extra funds into your account. Kane Pepi is an established financial and crypto content writer who has an impressive portfolio of over 2k articles, guides, and market insights. Kane’s experience in the world of finance make him a valuable resource for those looking to navigate the world of finance and cryptocurrency.

Like the other platforms, Bitfinex is fully integrated with TradingView for the best charting package and suite of indicators. Bitfinex is one of the few margin exchanges that has live data of market liquidations for each trading pair. In addition, the market depth chart is highly accurate and useful to identify buy and sell walls. It includes live Bitcoin and crypto prices, the ability to execute orders, manage each digital asset, view P&L and search trade history. Navigating the world of crypto leverage trading requires a blend of knowledge and caution, especially for newcomers. It’s vital to approach trading strategies with a clear understanding, employing both technical and fundamental analysis to guide decisions.

Still, there is always a high level of risk when margin trading crypto. Keep in mind that the higher the leverage you use means you have a lower margin of error to reach your liquidation point. In some cases, a 1% difference in price could be all you need to be liquidated and suffer a massive loss of funds. Crypto leverage trading lets you amplify your position by borrowing funds from a broker.

Most leverage positions are short-term trades since you’re paying interest on the leverage taken from the exchange. As a result, keep a close eye on your positions so you can react quickly to either lock in gains or limit losses. Trading in the cryptocurrency market offers the potential for increased profits but it also comes with higher risk. This is a great trading tool for traders who are managing several positions at the same time and I don’t know any other platform that offers this feature.