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Best Cryptocurrency Exchanges with Margin Trading

Introduction:

Since the inception of Bitcoin in January, 2009, cryptocurrency has been gradually making its way in the global economy. The market that started with only one coin now consists of nearly eighteen hundred different currencies with numerous ICOs ready to be tokenised at any moment. Therefore, it is not really a surprise that a significant number of investors and foreign exchange traders are showing their interest for this ingenious and perpetually growing market. The fact that all of these digital coins offer a completely decentralised system that can be operated from any part of the world is making them even more popular across various countries.

Nowadays you would find a myriad of cryptocurrency exchanges around the world that allow a vast range of trading strategies such as margin trading. Since margin trading is one of the most frequently used methods among investors, here some important aspects of margin trading would be discussed with the top ranked cryptocurrency exchanges that offer them.

Margin Trading and Bitcoin:

Margin trading is a trading process where you can use borrowed funds from a certain broker to trade a financial asset. The financial asset is practically the collateral for the loan taken from the broker. Using financial leverage of such magnitude can either provide an unimaginable amount of profit to the trader or can bring upon utterly devastating outcomes. Because of this risk factor, margin trading can be only conducted in exchanges where margin accounts can be created conveniently.

Margin accounts differ from the regular cash accounts in several ways as they allow short sales along with traditional stock trading. Also, investors can use various instruments like futures and commodities in margin accounts.

As Bitcoin is the most valued cryptocurrency till date, the cryptocurrency margin trading is generally based on this currency. In this case, Bitcoin or any other cryptocurrency can be used as a valid financial asset.

Top Ranked Cryptocurrency Exchanges for Margin Trading:

Choosing the best cryptocurrency exchange for margin trading can be a bit tricky at times as it is not entirely dependent on the 24 hour trading volume which you can easily find in reputed websites like Coinmarketcap or Coingecko. There are several factors that require to be examined thoroughly before making a decision including security, corresponding trading options other than margin trading, whether suitable for novice traders or not, previous hacking incidents, amount of minimum deposit and many more. Below, you would find a list of the best cryptocurrency exchanges for margin trading, based on the aforementioned parameters.

incidents, amount of minimum deposit and many more. Below, you would find a list of the best cryptocurrency exchanges for margin trading, based on the aforementioned parameters.

  1. BitMEX: As far as cryptocurrency margin trading is concerned, BitMEX is unarguably one of the best cryptocurrency exchanges at the moment. This exchange has managed to gain the trust and respect of a considerable number of crypto-experts and traders with its unique features. The team behind this exchange comprises of high-frequency algorithm traders, reputed economists, and skilful developers adding to its reliability.

    Figure 1: Margin Trading on BitMEX

    BitMEX is tailor-made for experienced traders and offers margin trading in six cryptocurrencies including Bitcoin. It has an outstanding security system and has remained unscathed by hacking or other malicious cyber activities heretofore.

    Figure 2: BitMEX Logo

    This exchange comes with several competitive advantages like high leverage, numerous advanced tools with innovative features, decent liquidity, and many more. Below, you would find out the fee and leverage schedule of all six cryptocurrencies for margin trading on this exchange:

     

    Cryptocurrencies Leverages Maker Fees Taker Fees Settlement Fees
    Bitcoin 100x -0.0250% 0.0750% 0.0500%
    Bitcoin Cash 20x -0.0500% 0.2500% 0.0000%
    Cardano 20x -0.0500% 0.2500% 0.0000%
    Ethereum 50x -0.0500% 0.2500% 0.0000%
    Litecoin 33.33x -0.0500% 0.2500% 0.0000%
    Ripple 20x -0.0500% 0.2500% 0.0000%
  2. eToro: eToro is another very popular cryptocurrency exchange as well as trading platform that traders all across the globe use nowadays. Besides margin trading, eToro is also known for their futures trading. Despite the fact that this exchange does not accept Bitcoin deposits or withdrawals, millions of traders choose this exchange because of the features like professional and user-friendly website interface, several educational videos suitable neophyte traders, copy trading, and a hassle free verification process. This currency offers a leverage of 5x for cryptocurrency margin trading.

    Figure 3: eToro Official Logo

    Like BitMEX, eToro also have an impregnable security protocol extremely difficult to get through and has not been hacked till date. eToro does not charge any deposit fees. However, there is a small amount of withdrawal fee which is significantly less than that of BitMEX.

  3. Bitfinex: Bitfinex is one of the oldest and most reputed exchanges in the crypto-world. Till date, it is the biggest cryptocurrency exchange in terms of total USD volume. Investors have been using this exchange since 2014. The purview of Bitfinex covers all countries excluding the United States, North Korea, Bosnia and Herzegovina, and some other countries like Iran, Iraq, Ethiopia, Syria, Uganda, etc.

    Figure 4: Official Logo of Bitfinex

    Bitfinex offers a decent leverage of 3.33x for margin trading to their traders. It has many other advantageous features such as high liquidity of US Dollar, exceptionally low trading fees, various useful tools, and many more. Since the unfortunate hacking incident, the Bitfinex development team has been constantly upgrading the security system almost nullifying any possibility of future hacks. Bitfinex also does not charge their traders for deposits or withdrawals which makes this exchange even more convenient.

  4. Huobi Pro: Huobi Pro is one of the few decentralised international cryptocurrency exchanges that offer a multi-lingual platform for the convenience of their traders around the world. This exchange has been operational since 2013 and has several offices across the globe such as in the US, Hong Kong, South Korea, and Singapore (Head Quarter).

    Figure 5: Huobi Pro Symbol

    Registering in this exchange is fairly uncomplicated as the applicant can register by submitting KYC documents and a valid email id. The registration and subsequent verification process usually takes two days.

    Huobi Pro offers a healthy leverage of 5x for Bitcoin margin trading. Besides BTC, this exchange offers margin trading options for ten more cryptocurrencies like Bitcoin Cash, Ethereum, Litecoin, OmiseGo, and many more.

    Figure 6: Margin Trading Schedule on Huobi

    Huobi is well known for its high liquidity and constant phone support. Its deposit, withdrawal, and trading fees are also fairly reasonable.

  5. Whaleclub: Whaleclub is a relatively newer exchange which has been operational since 2016. This Hong Kong based exchange is known for offering margin trading is various assets like cryptocurrency, foreign exchange, and commodities.

    Figure 7: Whaleclub Official Logo

    Besides Bitcoin, Whaleclub offers margin trading for four more cryptocurrencies including Litecoin, Ethereum, Monero, and Dash with a leverage of 20x for BTC/USD. Below you would find the margin trading schedule for various cryptocurrency trading pairs:

    Figure 8: Whaleclub Margin Trading Schedule

    The exchange also comes with various other features like an impenetrable security, no trading fees, hassle-free verification process without any identification code, decent user experience, and many more.

  6. Kraken: Kraken is one of the largest and oldest American cryptocurrency exchanges. Based in San Francisco, this exchange has been offering its service to the traders since 2011. Till date, it is the largest exchange in terms of EUR volume.

    Figure 9: Official Kraken Symbol

    Registering in Kraken is a seven day long process that includes submission of KYC documents and verification. It is evidently one of the most secure exchanges that currently exist in the crypto-world with no hack attacks so far. This exchange is also known for its low trading fees.

    Kraken offers margin trading for six different currencies in sixteen different pairs and a leverage of 5x for Bitcoin. The margin trading schedule for these sixteen pairs is given below:

    Figure 10: Trading Pairs on Kraken

  7. Poloniex: Poloniex is one of the pioneer cryptocurrency exchanges and does not offer any fiat currency for trading. This exchange has been operational since 2014 and is very secure since the hack attack in the same year.

    Figure 11: Poloniex Logo

    The registration procedure in this exchange is fairly uncomplicated as it can be done by only submitting a valid email id. However, for reaching higher levels, KYC documents are required. Poloniex is known for its Ethereum margin trading, liquidity, and a significant number of altcoin options for this kind of trading. It does not charge ant deposit or withdrawal fee as well.

    Poloniex offers margin trading in 11 different digital currencies with leverage up to 2.5x for Bitcoin.

  8. HitBTC: It is another very popular cryptocurrency exchange that has been operational to the investors around the world since 2013. HitBTC offers a demo mode for an inexperienced investor which is very effective for knowing the nuances of margin crypto-trading.

    Figure 12: HitBTC Official Logo with Symbol

    HitBTC is one of the most secure cryptocurrency exchanges with no hack attacks so far along with a huge trading volume. For Bitcoin, this exchange offers leverage up to 3x in margin trading.

  9. Deribit: Deribit is another very secure and efficient cryptocurrency exchange that offers margin trading for Bitcoin and some other Altcoins. Deribit comes with several irrefutable advantages like fast account creation, insurance, efficient Bitcoin trading platform, and many more.

    Figure 13: Deribit Symbol

    For Bitcoin margin trading, Deribit offers leverage up to 10x.

  10. SimpleFX: This cryptocurrency exchange offers a very interactive website interface with multiple other features like easy account creation process, no deposit fees, and many more. Besides Bitcoin, this exchange offers margin trading for Litecoin and Ethereum as well. SimpleFX offers leverage up to 500x for Bitcoin margin trading.

Figure 14: SimpleFX Logo

Conclusion:

Despite the high risk factor, a large number of crypto-traders are opting for margin trading nowadays for its leverage and profit. Although there is no certainty that getting yourself involved in a margin trading would pay off rather than bringing drastic consequences, it is safe to say that with the aforementioned exchanges, the probability of a lucrative outcome would be much more.