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 popular crypto exchanges. Make deep research and analyze the features that fit the requirements.
JIDEX is an instant, safe, and trusted cryptocurrency exchange service which plays the role of intermediary between users and crypto exchanges, giving users access to 150+ cryptocurrencies.
Our main mission is to make an exchange process beneficial, effortless, and fast for everyone who wants to invest in cryptocurrency. Our staff members work hard every day to satisfy the needs and demands of our customers for them to have an easy, fast and safe journey through JIDEX. We believe that achieving our mission is the highest leverage way to bring about more integrity, accountability, and efficiency to the exchanging process.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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