What is Crypto margin trading?
Crypto margin trading is a way of trading digital assets using the funds borrowed from a third party to access greater capital. The process involves opening a larger trade with the borrowed money to gain larger profits. This will allow traders to leverage their positions.
On initiating a margin trade, the trader needs to commit a certain percentage of the total capital which is known as margin. Leverage, the ratio between the borrowed funds and the margin allows making larger trades than using the funds in the trading account. Margin trading can result in greater profits based on the value of the trading positions.
Considering the advantages and disadvantages, an investor or a trader needs to employ proper strategies to avoid or mitigate the risk to avoid losses in trading.
The list below is the top 8 popular crypto exchanges. Make deep research and analyze the features that fit the requirements.
Binance a decentralized exchange based on Hongkong and is one of the popular exchanges for crypto-crypto trade. Binance offers good trading options with all popular crypto pairs. Fiat trading is not facilitated at Binance. A standard trading fee is charged at Binance and it is even reduced when trading with BNB coins (Binance coins). Binance exchange is a good margin trading option for both beginners and advanced traders.
- Easy to set up an account in Binance with limited pieces of information to provide
- Great customer experience is provided and even newbies feel comfortable in trading
- Low fees, high liquidity, and easy transactions.
- Binance offers different levels of account
- In the basic account level, no verification is required and an easy verification process in the higher levels of withdrawal
- Trading experiences with a basic and advanced level of information
- Buy and sell crypto, based on limit order or market order by automated trading.
- Leverage trading is not supported by Binance
Bitmex is one of the most prominent and trusted crypto margin trading exchanges. BitMex offers trading with popular crypto pairs, but withdrawal and deposit are possible only in bitcoin. Complex trade processes create a poor user experience. The fee is not that high, a standard rate is collected for trading at BitMex. But no fees are collected to withdraw or deposit in your account. At the same time, one cannot deposit fiat. Bitmex offers a highly secured trading platform.
- Easy to make large trades with 100X leverage multiplier levels
- The verification process is easy and manageable
- Fiat trading is not possible at BitMex
- US citizens don’t have access to make the trade through BitMex
- People with less experience even can make leverage trade
- Easy and straightforward signup experience is provided at BitMex
- A vast range of order types can be carried out at BitMex
- Plenty of leverage trading option is available at BitMex
Meanwhile, check the cryptocurrency exchange trade with the smallest fees in 2020.
eToro is one of the reputed trading platforms. With an innovative approach called social trading, eToro offers trading in stocks, shares, and commodity trading other than crypto margin trading. The main downside of eToro is that the exchange offers low leverage which is limited to a 2:1 ratio. eToro has a larger fee when compared to other popular exchanges.
- High priority to security, hence account creation or sign up process is a complex process
- eToro offers new traders to learn from other top traders trading pattern and allow to follow the same investments
- eToro supports popular digital wallets for deposits and withdrawals
- eToro strictly follows guidelines and regulations to make the customers confident
- eToro is a highly responsive exchange with great customer service is provided
- A simple and clear customer service interface is a notable advantage at eToro
- The physical presence of the exchange gives the new traders a real and secure feel
A reputed margin trade exchange with user-friendly and ease of use features. Cex.io was previously popular for mining. The experienced ones and the ones with little experience can make the trade easily. Cex.io offers worldwide support and allows the transaction through different mediums. High liquidity and fast trading options with decent exchange rates are the other main advantages of choosing Cex.io.
- The liberal verification process, offering a secure trading experience.
- A wide range of support options including live chat and telephone support
- Transaction fees vary according to the chosen trading pair
- Need to ensure Cex.io supports your country
- Cex.io offers crypto to crypto exchange and with fiat currency
Bithoven is one of the best options among the new exchanges that offer crypto margin trading. Though security is given enough consideration, Bithoven is an unregulated trading exchange. The exchange doesn’t offer different levels of leverage options which is a noticed disadvantage.
Traders can only deposit cryptocurrency to fund their accounts.
- Bithoven supports a wide range of crypto coins
- Proves to be a good option for active trading
- Reasonable withdrawal charges are offered at Bithoven
- Fiat pairs are not supported by the Bithoven exchange.
- Leverage levels only up to 20X multipliers
Kraken has been a popular crypto margin trading platform since 2011. The user-friendly features offered at this exchange make it special as it has undergone a series of improvements since its launch. It provides access to a good number of cryptocurrencies. Kraken is a trading platform for crypto pairs as well as fiat currency. Though it is establishing a good space among the popular exchanges, it is not that fit for new traders. It is a reliable trading platform that follows a relatively low fee structure.
- High liquidity and fast funding are offered at Kraken
- Kraken best suited for the experienced traders
- Proper importance is given to security features
- Trading not limited to specific countries
- Kraken offers good liquidity
Poloniex is one of the best crypto exchanges with the most secure trading opportunity. Noted for its user-friendliness, Poloniex offers unique tools for users like chat boxes and comment boxes to clear any doubts and share the comments. The fee structure is not uniformly fixed for the buyer and the seller. Though it is a user-friendly exchange, it provides very poor customer support.
- It supports Ethereum and BTC markets independently
- The platform offers trading with more than 100 different crypto pairs
- Highest trading volume is one of the best features
- Comparatively, the low fee structure is offered at Poloniex
- Poloniex offers other advanced tools for data analysis for the traders
Bitfinex is one of the oldest exchanges which offers innovative features for the users. A notable feature is the huge trading volume with all major assets. Trading with fiat pairs is possible, but a strong focus is given on crypto pairs. Users can deposit and withdraw fiat currencies directly from the Bitfinex exchange.
- High levels of liquidity
- Wide range of altcoins is available
- Comparatively less leverage option is available
- Bitcoin and Ethereum trading options are highly supported
- Long verification process
The reputation of the crypto exchange must be well considered before starting a trade. The user-friendliness and customer support are the other factors to be considered in choosing an exchange. The exchange must ensure the availability of popular cryptocurrency trading pairs. The accessibility of popular cryptocurrencies is also an important factor to consider.
Going through the feedback and reviews is to be given good importance. Before making an entry into crypto trading, one needs to do a lot of research on the feasibility of features provided by the exchange. One must also know the difference between tokens and coins along with their usage in order to make the best out of trading. Security features need to be ensured when choosing an exchange according to the needs and requirements.
Name: Dhanesh Haridas
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Dhanesh Haridas, a passionate and enthusiastic business person having more than 10 years of experience in management, design, and deployment of enterprise technology solutions. He is the technical head (CTO) of Epixel MLM Solutions, a leading software development company.
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