Best Crypto Exchanges for Margin Trading
Many investors are hesitant about jumping into crypto trading, especially due to high volatility. However, investing in crypto does not have to be a risky venture. Most investment strategists recommend diversifying your portfolio. While crypto is speculative, many indicators point toward it being the future of currency.
Smart Billions is among the best resources for beginner and professional traders alike. Each day, we post new informative articles on the latest trends in Bitcoin (BTC), Ethereum (ETH), and other altcoins such as USDT, BNB, FTX, LTC, BCH, Ripple, and more.
You can receive daily updates on crypto by subscribing to our email list, and we will keep you up-to-date on the latest happenings in the world of digital currencies. Read on to learn more about the best Bitcoin and crypto exchanges for margin trading.
- Margin Trading Definition
- #1 - Bybit Cryptocurrency Trade Exchange
- #2 - BitMEX’s Crypto Trade Exchange
- #3 - Binance Crypto Margin Trading Exchange
- #4 - Kraken’s Digital Currency Exchange
- #5 - eToro’s Crypto Exchange
- #6 - Bitfinex’s Cryptocurrency Exchange
- #7 - Poloniex’s Digital Currency Exchange
- #8 - Deribit’s Trade Exchange
- #9 - BaseFEX Crypto Trade Market
- #10 - PrimeXBT’s Cryptocurrency Trade Market
- Learn More About the Best Crypto Exchanges for Margin Trading
Margin Trading Definition
The topic of this comparison article revolves around margin trading. Margin trading is how many professional crypt traders make eye-catching profits. The basis of crypto margin trading is borrowing money from a broker to invest in securities.
Only experienced crypto traders should attempt margin trading. There is a sizable chance that margin trading can lead to critical financial loss.
Another way to look at margin trading is as if you were buying something on credit. Margin money is like having a loan with an attached interest rate and collateral.
Typically, margin crypto traders will use cash as a form of collateral. Therefore, it is a risky endeavor. You could make a lot of money or lose thousands.
Margin traders must have a maintenance margin amount to cover any losses incurring from margin trading.
There are a couple of reasons why some crypto investors love to margin trade. First, many traders use margin trading when shorting stocks. Shorting refers to betting against a security, hoping its value sinks.
Many experts view shorting stocks as unethical. However, there is a lot of money to be made by shorting stocks. A few people who bet against the housing market before the mortgage crash of 2006 generated millions of dollars.
Some investors also use margin trading as a risk management tool. When you know you are going to lose money in a trade, you can shrink the amount you owe by shorting the stock that you are losing money on. Traders will ask their broker for margin money and use it to short their security. However, this move can backfire and leave you with even more losses.
Margin trading is hard to do with cryptocurrency for many reasons. First, there are different codes and regulations in each country. Because crypto is a digital currency, it does not have a singular authoritative body that oversees it, which can complicate your margin trading.
Also, cryptocurrency is hard to predict. It is still a new form of currency, meaning there are not any long-term trends or historical patterns to refer to. Expert stock shorters rely on these trends to find success in margin trading.
The amount of cryptocurrencies also poses questions for professional margin traders.
Crypto traders must understand the global digital currency marketplace to find success in margin trading. Many crypto trading platforms are unreliable and can cost you a lot of money.
There are a couple of terms you should familiarize yourself with before reading through our top 10 list.
- Maker Fee Structure – A maker fee refers to a charge associated when a crypto trader buys or sells a digital currency. Whoever completes this order is the party responsible for paying the maker fee.
- Taker Fee Structure – Alternatively, a taker fee is when a crypto investor puts in a trade order, and a party matches that offer. In such a case, all orders execute immediately, and both parties pay a taker fee.
Without further ado, here is our list of the ten best crypto exchanges for margin trading.
#1 - Bybit Cryptocurrency Trade Exchange
Taking the top spot on our list of the ten best crypto exchanges for margin trading is Bybit, a platform based out of Singapore and has offices in different countries. This trading engine is super fast, and in fact, the fastest-growing margin trading crypto exchange in the worl.
One of the impressive things about Bybit’s platform is it is not even four years old. Therefore, it is among the fastest-growing crypto brands globally. Bybit is ideal for both new and experienced traders. The interactive user interface allows novices to transition into more sophisticated trading strategies. There is also a demo mode (testnet platform) that mirrors the main website.
The British Virgin Islands company is among the most private crypto exchanges. All you need to open an account is a valid email address. Therefore, not even the executives at Bybit will have your personal information.
Bybit allows crypto traders to invest in perpetual contracts. A perpetual crypto contract enables investors to hold on to an asset indefinitely.
Bybit is focused on margin trading and offers up to 100x leverage. This is a lot considering other exchanges offer only 5x leverage. There are three types of derivatives markets: USDT Perpetual, Inverse Perpetual, and Inverse Futures contracts.
One of the things that makes Bybit the best crypto exchange for margin trading is it offers a $90 credit for new users that they must use on margin trading. Also, you can deposit USD to buy coins, such as Bitcoin, Ethereum, and many more.
Here are some of the fees associated with Bybit perpetual contracts.
- Bitcoin: up to 100x high leverage, -.025% maker’s rebate, .075% taker’s fee
- XRP: up to 50x leverage, -.025% maker’s rebate, .075% taker’s fee
- EOS: up to 50x leverage, -.025% maker’s rebate, .075% taker’s fee
Bybit gives an incentive for Bitcoin margin trading on its platform. Therefore, it had to be at the top of our list of the best crypto exchanges for margin trading. However, it still has some things to improve, such as its lack of trading pairs. Also, its unregulated nature scares many investors away.
However, if you to start trading on a trading platform that supports margin trading and leverage trading, Bybit is the one.
AUD, EUR and GBP
#2 - BitMEX’s Crypto Trade Exchange
Not far behind Bybit in our rankings is BitMex’s crypto trade exchange. BitMEX specializes in margin trading, making it an ideal platform for experienced cryptocurrency traders.
The Seychelles crypto brand has over seven years of professional digital currency trade experience. It offers many asset classes that are appealing to experienced crypto traders.
Its transaction fees are dependent on which cryptocurrency you trade with. BitMEX focuses on derivative trading, meaning that investors trade cryptocurrencies and Bitcoin for cash or cryptocurrency contracts.
These contracts have a value representative of the assets they stand for. If the assets become valuable, investors can make a lot of money margin trading. If not, they can lose thousands of dollars in the trade.
All you need to open a crypto investment portfolio on BitMEX is a valid email address. Users can retain their anonymity on the crypto platform. Critics rave about BitMEX’s top-notch security.
Here are a few of the margin trading rates for the cryptocurrency types that BitMEX offers.
- Bitcoin: up to 100x leverage, -.025% maker fee, .075% taker fee, .05% settlement fee
- Cardano: up to 20x leverage, -.05% maker fee, .25% taker fee, 0% settlement fee
- Litecoin: up to 33.3x leverage, -.05% maker fee, .25% taker fee, 0% settlement fee
Overall, BitMEX is an exceptional choice for crypto investors who want to trade on margin. The thing holding BitMEX back is its lack of non-crypto trading. Also, it lacks regulatory compliance that would bring some legitimacy to its operation.
Still, leverage rates and high liquidity make it a top 2 crypto margin trading company. Once BitMEX comes to the United States (USA), it could be a problem for its competitors.
Does not support fiat directly
#3 - Binance Crypto Margin Trading Exchange
Binance may be the best overall international crypto exchange. After a rough first few years of existence, the Chinese crypto brand is making a resounding comeback.
Binance is among the most widespread crypto brokers, operating in almost every country. It has its own U.S.-based subsidiary, Binance U.S.
Binance offers over 600 different cryptocurrencies to its users. You can find rare cryptos and popular ones, such as Bitcoin, on the Binance platform.
Users can make deposits on Binance’s trade platform with an eligible Visa debit card. You can instantly transfer your cryptocurrencies from your digital wallet to your bank account.
Binance sees more daily transactions than any other crypto trading platform such as Coinbase on the digital currency market. Because it offers many digital assets, there are limitless opportunities to margin trade with Binance.
An added incentive to trading on Binance is the brand offers its own digital coin entitled Binance Coin. When you own a Binance coin, you receive 25% off crypto trading fees. Binance also offers Leveraged Tokens as an alternative to margin trades. These tokens enable traders to take short or leveraged positions, without the need to margin trade.
One of Binance’s biggest strengths is it offers a margin trading wallet for its users. Cryptocurrency investors can transfer funds from their Binance digital wallet to a margin trading one at no additional cost. Binance’s 5 to 1 margin ratio affords traders more leverage when margin trading.
Despite a few complaints about account verification, Binance remains one of the few household names in crypto, which is why it is on our list of the best crypto margin trading platforms. Also, take note that Binance has a mobile app, which is very helpful for trading even while on the go!
Over 42 currencies
#4 - Kraken’s Digital Currency Exchange
With over ten years of crypto experience, Kraken is a reliable digital currency broker perfect for veteran crypto investors. It showcases some of the best advanced trade features on the crypto market.
Unfortunately, New York and Washington State residents (US residents) cannot currently access Kraken’s digital platform. Aside from that, most states and countries have access to Kraken’s currency exchange market.
One of the benefits of Kraken’s digital currency exchange is it supports large trading volume. If you are a crypto investor who likes to be active on the trade floor, Kraken’s exchange is an ideal trading destination. Plus, it is available on two order types: market orders and limit orders, with extremely low fees.
Jesse Powell is the founder of Kraken and is one of the most trusted cybersecurity experts in the industry. Therefore, the crypto brand features one of the most secure digital wallets in the crypto game.
You can margin trade with Kraken with many digital currencies, including Bitcoin, Bitcoin Cash, and Ethereum. However, be wary of the rollover fees that Kraken charges. Currently, Kraken charges you every four hours for open margin accounts.
Margin fees are slightly different from those in the futures market. Margin trading (i.e. Margin trades (i.e., using borrowed funds) are subject to an opening fee and a rollover fee each 4 hours. The entry-level fee to trade futures on Kraken is 0.02% or 0.05% for amounts up to $100,000 per month in trading volume. This fee is slightly lower than Binance Futures or FTX. These platforms allow staking coins for BNB or FTT, and earn additional margin trading fees discounts.
Kraken also offers corporate crypto investment accounts. Many business owners are expanding their investment strategies to the crypto world.
Kraken has ways to go to catch the top names in the crypto industry. However, it seems poised to make a run at the top in the coming years. Its reliability and increasing margin trade capability make Kraken a solid crypto exchange.
CAD, USD, GBP & EUR
0.9% to 1.5% fee
#5 - eToro’s Crypto Exchange
eToro is a company to watch out for in the coming years. It is one of the only crypto companies that opened its doors before digital currency was a thing.
Now, the finance brand is turning its attention to crypto and has the resources to make a splash in the 2022 crypto market. One of the strengths of eToro is it follows many different regulatory codes. For example, if you are a U.K. investor, its trading platform will abide by U.K. rules and regulations.
You can expect eToro to offer over 100 cryptocurrencies by year’s end. Also, the company takes deposits for free, which you can make with a Visa debit or credit card.
Investors can develop a successful trading strategy on the eToro crypto platform. The digital currency brand allows you to copy the moves of the most successful crypto margin traders. Doing so may net you a profit.
Please note that eToro does not offer margin trading to U.S. investors. However, they are the creators of social trading, one of the most popular trading tools that makes trading on the margin more efficient for digital currency traders.
There is a $10 account minimum for trading on eToro. It also offers a secure digital wallet to its millions of users.
Along with crypto margin trading, eToro also offers a range of derivative offerings such as CFDs, forex, stock leverage trading and more!
Overall, eToro has a proven track record of excellence, and it should come as no surprise if they become one of the leaders in cryptocurrency by the end of 2022. eToro is an ideal platform for beginner crypto investors, and now it is appealing to more experienced traders.
EUR, GBP & USD
#6 - Bitfinex’s Cryptocurrency Exchange
Offering over 100 crypto coins, Bitfinex is an emerging powerhouse in the crypto trading space. The Hong Kong crypto company has exceptional transaction rates that make it appealing to many crypto investors. Today, its taker rate is .1%, and its maker rate is .2%.
Bitfinex’s advanced trading features make it appealing to veteran crypto buyers. Margin trading is a prominent example of one of Bitfinex’s premium services.
Bitfinex is an ethically-strong crypto business. In 2016, a sizable crypto hack caused millions of investors to lose money. Bitfinex made sure that its customers got their crypto back.
You can also have Bitfinex choose the best price point for your margin order. It is one of the only crypto brands that offer this automated service.
Alternatively, you can control the variables of margin trading, such as the borrowed funds, rate, and duration of the order.
Bitfinex is an exceptional crypto trading platform that should grow in popularity in the coming years. Its fast withdrawal times make trading seamless on the crypto platform. However, it does not yet support U.S. trading. Once it does, expect business to boom for Bitfinex.
AUD, EUR and GBP
#7 - Poloniex’s Digital Currency Exchange
Poloniex is an intriguing addition to our best crypto exchanges for margin trading list, and many veteran crypto investors will recognize the name Poloniex. In 2017, it was among the best global crypto trading platforms.
However, as it became more popular, there was trouble keeping up with demand. Thus, customer support satisfaction rates dropped substantially.
Plus, security was a sizable concern for investors. The company underwent a couple of security breaches in 2017.
Now, Poloniex is on the rebound, bolstering an impressive collection of cryptocurrencies. Circle is the new owner of Poloniex, and they are turning things around for the company.
One of the policies that Circle put in place was mandating KYC verification. Doing so adds to the legitimacy of Poloniex, bringing more customers to the platform.
Currently, you cannot margin trade in the U.S. on Poloniex. However, Poloniex offers peer-to-peer lending for margin trading for its global customers. This margin trading strategy is one of the most successful and can generate a sizable profit.
Poloniex will benefit from its new ownership. With a sizable collection of crypto assets, it has the resources to make a splash in the industry. However, there is steep competition in the crypto margin trading industry, so only time will tell where Poloniex fits in the picture.
Global (except certain countries such as USA)
USD, EUR, AUD, CAD, CHF, CZK, DKK, GBP, and a few more
#8 - Deribit’s Trade Exchange
Deribit is a crypto broker making waves in the digital currency industry. The world-renowned Jansen brothers are behind Deribit, transforming it into a leader in the margin trading industry.
Its affordable transaction fees stand out to professional crypto traders. Also, the company offers up to 100x leverage in Bitcoin, a number that is turning heads for margin traders.
One thing that is holding Deribit back is it does not accept fiat deposits. Traders can only invest with cryptocurrencies, such as Bitcoin Cash and Ethereum.
If you verify your Deribit account, there are unlimited maximum withdrawals. If you remain anonymous, you can only withdraw 1 BTC per day.
Currently, United States crypto traders cannot access Deribit’s cryptocurrency platform. However, it remains one of Europe’s most popular Bitcoin exchanges.
Deribit has potential, but its lack of digital currencies is holding it back. Currently, it only supports Bitcoin and Ethereum transactions.
Also, it is not available in Japan, the United States, or Canada, which are three major crypto markets. Still, there are opportunities to make money on the platform through margin trading.
USD, EUR, AUD, and a few more
BTC, ETH, USDC
#9 - BaseFEX Crypto Trade Market
BaseFEX is an intriguing option for cryptocurrency traders. It is one of the few crypto trade markets ideal for beginner traders and experienced crypto investors alike and made our list of the best crypto exchanges for margin trading for a few reasons.
It features an easy-to-use web design, making trading a seamless experience for its users. Also, BaseFEX’s executives aim to make its trading platform the fastest on the crypto market.
The brand’s maker fee is .02%, and its taker fee is .07%. BaseFEX also incorporates many trend forecasting indicators that suggest where the crypto market is heading. Therefore, the crypto brand is a reliable source of information.
BaseFEX is a crypto-to-crypto exchange, meaning it does not support fiat transactions. Your collateral for your margin trading must be a digital currency. However, it offers one of the highest leverage rates for margin trading in the derivatives market.
BaseFEX’s crypto platform offers anonymity for its users and features a cold storage security presence that keeps your data safe. However, you can only do futures trading in Bitcoin.
Also, it is an unregulated platform, which carries some risks, but margin trading is inherently risky. You may find success in margin trading with BaseFEX.
Not supported directly
#10 - PrimeXBT’s Cryptocurrency Trade Market
The final spot on our top 10 list goes to PrimeXBT’s crypto trade market. The Seychelles crypto conglomerate is gaining popularity each year.
PrimeXBT finalizes 12,000+ orders per second, making it one of the fastest crypto services on the crypto market. Also, the crypto brand works with the likes of Forex, NASDAQ, and other brand name institutes.
Its exchange market is easy to navigate, and the crypto brand is accessible in eight different languages. Also, you can make deposits with over ten types of fiat currencies such as EUR.
One of the complaints users have about PrimeXBT’s trade market is not offering advanced trading options. PrimeXBT is still growing, but it shows signs that it can be a player in the future.
PrimeXBT’s registration process is user-friendly and fast. You can create a crypto investment portfolio in seconds, and you do not need to go through the KYC verification process.
PrimeXBT’s lack of spot trading keeps it at number ten on this list. However, there is a lot to like about this crypto trading platform. The ability to margin trade with cryptocurrencies and fiat is a sizable plus. Also, its affordable fees will keep new customers signing up for the platform.
PrimeXBT is a crypto service to keep an eye on in the future.
AUD, GBP, EUR, NZD, CHF, USD
Learn More About the Best Crypto Exchanges for Margin Trading
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Smart Billions has the resources to help you learn more about the best crypto exchanges for margin trading. You can call our Jackson, WY, office at (619) 407-8546 for more information.