10 Best Crypto Leverage Trading Platforms & Exchanges in 2024

Why Trust Techopedia Crypto
Why Trust Techopedia Crypto

If you’re looking to trade cryptocurrencies but you have limited funds, leverage could be the solution. While risky, the best crypto leverage trading platforms will give you access to a much larger amount of capital – allowing you to amplify profitable trades.

This guide compares the top leverage trading platforms for 2024 including their leverage limits, fees, commissions, supported markets, safety, and much more.

The Best Leverage Trading Crypto Platforms Ranked

  1. PrimeXBT: Best crypto leverage trading platform with low fees and 200x leverage.
  2. Margex: Innovative leverage trading crypto platform offering 100x leverage & copy trading.
  3. Kraken: Leveraged crypto trading with margin accounts and leverage of up to 5x.
  4. MEXC: Top crypto leverage trading platform with leveraged futures across many different cryptocurrencies.
  5. OKX: Popular crypto leverage trading platform with fully-fledged options chains for BTC and ETH.
  6. Bybit: Popular crypto derivatives platform supporting perpetual and traditional futures.
  7. Binance: Best crypto exchange for leverage trading with more than 600 cryptocurrencies.
  8. KuCoin: Top crypto leverage platform with up to 3x leverage on multiple cryptocurrencies without loans or liquidation.
  9. Gate.io: Leverage trading crypto platform for more than 100 cryptocurrencies via perpetual futures contracts.
  10. Coinbase: Trading crypto with 10x leverage on more than 250 cryptos.

Reviewing the Top Crypto Leverage Trading Platforms

Let’s move on to our comprehensive reviews of the best leverage trading crypto platforms, including what kind of leverage they offer, what the fees are, and what crypto markets they support.

1. PrimeXBT – Best Crypto Leverage Trading Platform With Low Fees

  • Leveraged Crypto Markets Supported: Crypto futures, including Bitcoin, Ethereum, Solana, Dogecoin
  • Leverage Trading Fees: Market takers pay just 0.02% per trade
  • Maximum Leverage Limit: 200x

PrimeXBT is a cryptocurrency leverage trading platform that offers high-leverage trading (up to 1:200) on over 40 cryptocurrency futures, including Bitcoin and Ethereum. The platform provides competitive fees, starting at just 0.05% for margin trading and 0.02% for other cryptos, making it stand out among its competitors. With a range of technical indicators available and support for margin trading, PrimeXBT allows users to potentially generate higher returns than their initial investments, albeit with increased risk.

This leverage trading crypto platform offers customizable charting software with over 50 technical indicators and fast transaction times, averaging 7.12ms for order execution. The platform prioritizes security through multi-signature access and cold storage for user funds. New members can take advantage of a $100 welcome bonus when depositing $500+ within 48 hours of account creation. For risk-free practice, PrimeXBT provides a demo account with paper funds, allowing users to familiarize themselves with leverage trading before committing to real capital.

Pros pros

  • Apply up to 200x leverage crypto trading
  • Low trading fees starting at 0.02% per transaction
  • Fast order execution speed
  • Uses multi-signature access

Cons cons

  • Gives access to a limited number of cryptos

2. Margex – Innovative Leverage Trading Crypto Platform Offering 100X Leverage

  • Leveraged Crypto Markets: Supported 55+ crypto pairs
  • Leverage Trading Fees: From 0.019% for makers, 0.060% for takers
  • Maximum Leverage Limit: 100x

Margex is another top crypto leverage trading platform that offers up to 1:100 leverage on over 55 crypto pairs, including Bitcoin and Ethereum. It features competitive fees starting at 0.019% for makers and 0.060% for takers, with no charges for payments or withdrawals. The platform caters to both novice and experienced traders with its user-friendly interface and advanced tools, including innovative features like copy trading and the MP Shield system. Margex’s combination of high leverage, low fees, and diverse trading options makes it an attractive choice for those looking to amplify their returns in the cryptocurrency market.

The platform features “one-click copy trading” that allows users to replicate successful traders’ strategies. The platform incorporates an MP Shield system to protect against price manipulation and employs multi-signature technology and cold storage for enhanced security. With over 500,000 users from 153 countries, Margex caters to a global audience and offers a demo account for risk-free practice, enabling traders to familiarize themselves with leverage trading before committing to real funds.

Pros pros

  • Up to 100x leverage on crypto trading
  • Trading fees starting from 0.019%
  • Copy trading feature
  • MP Shield system to prevent price manipulation

Cons cons

  • Not available in some jurisdictions, including the US

3. Kraken – Leveraged crypto trading with margin accounts and leverage of up to 5x

  • Leveraged Crypto Markets Supported: Margin trading accounts for over 100 cryptocurrencies. Also supports leveraged futures on 95 cryptocurrencies
  • Leverage Trading Fees: Margin accounts come with an opening/closing fee of between 0.01% to 0.02%. Plus, 0.02% rollover fee every 4 hours. Futures commissions start from 0.05% without rollover fees
  • Maximum Leverage Limit: 5x (margin accounts) and 50x (futures)

Kraken offers traditional margin accounts that will appeal to short-term traders. The minimum margin requirement is just 20%, which translates to a leverage of 5x. More than 100 cryptocurrencies are supported, including Bitcoin, Ethereum, Cardano, Dash, Solana, Arbitrum, and Dogecoin. Margin accounts support both limit and market orders. Kraken also has crypto leverage trading in the USA, including other countries.

They also provide diverse trading options, including short-selling and leveraged futures markets with up to 50x leverage on 95 cryptocurrencies. While margin trading incurs higher fees (0.02% every four hours plus opening/closing commissions of 0.01-0.02%), futures trading is more cost-effective at 0.05% per position without rollover fees. This mix of features allows traders to speculate on both rising and falling cryptocurrency prices. However, the platform’s leverage fees for margin trading are considered relatively high compared to some competitors.

Pros pros

  • An established crypto exchange that was founded in 2011
  • Offers margin accounts with leverage of up to 5x
  • Increase leverage limits to 50x when trading futures
  • Available in more than 190 countries

Cons cons

  • Doesn’t offer crypto options
  • Margin accounts are charged rollover fees every 4 hours

4. MEXC – Top Crypto Leverage Trading Platform With Leveraged Futures Across Many Different Cryptocurrencies

  • Leveraged Crypto Markets Supported: Perpetual futures covering Bitcoin, Ethereum, Tether, Solana, Sandbox, Axie Infinity, and other popular altcoins
  • Leverage Trading Fees: Market takers pay just 0.02% per trade
  • Maximum Leverage Limit: 200x

MEXC is a top leverage trading platform that has a diverse range of trading options, including futures, spot trading, and monthly futures competitions. It supports leveraged cryptocurrency futures without expiry dates, allowing traders to maintain open positions indefinitely. MEXC stands out with its industry-leading leverage limit of 200x, meaning a $100 stake can access up to $20,000 in trading capital. The platform covers a wide array of markets, from stablecoins to web3.0, metaverse, and NFTs. Additionally, MEXC features its native MX token, which provides holders with rewards and airdrop opportunities, further enhancing its appeal to crypto enthusiasts.

MEXC offers versatile trading options, including long and short positions on futures, with high liquidity and the capacity to handle 1.4 million orders per second. The platform boasts competitive fees, with 0% futures maker fees, 0.01% futures taker fees, and only a 0.1% spot taker fee for spot trading. MEXC is also one of the top no-KYC exchanges since it is only required for fiat deposits or increased trading limits. While globally accessible, MEXC is not available in the US or Canada. This combination of features, including low fees, high leverage, and optional KYC, makes MEXC an attractive option for many crypto traders seeking flexibility and cost-efficiency.

Pros pros

  • Maximum leverage limits of up to 200x
  • Offers leveraged futures that never expire
  • Supports Bitcoin and plenty of altcoin markets
  • Futures trading commission of just 0.02%

Cons cons

  • Is not available in the US, Canada, or China

5. OKX – Popular Crypto Leverage Trading Platform With Fully-Fledged Options Chains for BTC and ETH

  • Leveraged Crypto Markets Supported: Bitcoin and Ethereum options. Also supports dozens of perpetual futures and margin accounts
  • Leverage Trading Fees: Commissions start from 0.05% (futures) and 0.03% (options)
  • Maximum Leverage Limit: 20x (full liquidation mode) and 100x (partial liquidation mode)

OKX is one of the best crypto leverage trading platforms for options. Although it only supports Bitcoin and Ethereum, you’ll have access to a fully-fledged options chain. This includes a wide range of maturity dates that start from November 2023 to September 2024. Within each maturity date, OKX offers plenty of strike prices.

The platform also has a diverse range of leveraged trading products, including options with strike prices on Bitcoin ranging from $5,000 to over $140,000 for September 2024 expiry, as well as perpetual futures and margin accounts for a wide variety of cryptocurrencies. The platform provides flexible leverage options, with up to 20x in ‘full liquidation’ mode and up to 100x in ‘partial liquidation’ mode. OKX maintains competitive fee structures, with perpetual futures fees starting at 0.05% and options fees from 0.03%, catering to traders seeking diverse cryptocurrency exposure and leveraged trading opportunities.

Pros pros

  • Best crypto leverage trading platform for options
  • Full options chain with a wide selection of maturity dates and strike prices
  • Also supports perpetual futures and margin accounts
  • Offers one of the top decentralized crypto wallets for desktop and mobile users

Cons cons

  • Does not accept US clients
  • Leveraged crypto markets are not available to UK traders

6. Bybit – Popular Crypto Derivatives Platform Supporting Perpetual and Traditional Futures    

  • Leveraged Crypto Markets Supported: USDT-backed perpetual futures on dozens of cryptocurrencies. Traditional futures and options cover Bitcoin and Ethereum. Also offers inverse contracts
  • Leverage Trading Fees: Commissions start from 0.055% (futures) and 0.02% (options)
  • Maximum Leverage Limit: 125x

Bybit is also worth considering when exploring crypto trading with leverage. Traders have access to significant liquidity levels and a wide range of leveraged products, including perpetual futures where the maximum leverage on Bitcoin is 125x. Bybit provides leveraged trading on various cryptocurrencies, including Bitcoin, Ethereum, Solana, Dogecoin, and XRP, with altcoins having lower leverage limits.

The platform supports traditional crypto futures for Bitcoin and Ethereum, with contract maturities extending to June 2024. Bybit stands out for its ‘inverse’ contracts, settled in the underlying cryptocurrency rather than USDT. The fee structure is competitive, with futures commissions starting at 0.055%, options at 0.02%, and spot trading at 0.1% for market takers, making it an attractive option for diverse crypto trading strategies.

Pros pros

  • Get up to 125x leverage on perpetual Bitcoin futures
  • Supports long and short positions
  • Also supports traditional futures and options
  • Inverse contracts are settled and margined in the underlying cryptocurrency

Cons cons

  • Slightly higher futures trading fees than other platforms
  • Regulatory status remains questionable

7. Binance – Best Crypto Exchange for Leverage Trading With More Than 600 Cryptocurrencies

  • Leveraged Crypto Markets Supported: Offers leverage on more than 600 cryptocurrencies. Leveraged products include futures and options
  • Leverage Trading Fees: Commissions start from 0.05% (futures) and 0.03% (options)
  • Maximum Leverage Limit: 125x

Binance is also one of the best crypto leverage trading platforms, as it supports more than 600 cryptocurrencies, all of which come with leverage facilities. In this regard, there are a couple of different products to choose from. First, most traders will speculate on perpetual futures. Binance offers leverage of up to 125x on Bitcoin futures and less on other cryptocurrencies.

You can get up to 100x leverage on Ethereum and 20x on Uniswap through Binance, with options requiring a small upfront ‘premium’ and allowing you to choose a strike rate and expiry date. Fees vary by product and trading volume, with futures starting at 0.05%, options at 0.03%, and spot trading commissions from 0.01%.

Pros pros

  • Get premium liquidity at the world’s largest crypto exchange
  • Supports more than 600 leveraged markets
  • Access leverage through futures or options
  • Very low trading commissions
  • Live chat support is available 24/7

Cons cons

8. Kucoin – Trade Leveraged Tokens Without Loans or Liquidations  

  • Leveraged Crypto Markets Supported: Leveraged token markets without loans or liquidations. Also offers futures, including perpetual and inverse contracts. Supported cryptocurrencies depend on the contract type
  • Leverage Trading Fees: Commissions start from 0.06%
  • Maximum Leverage Limit: 3x (leveraged tokens) and 100x (futures)

KuCoin will appeal to traders who are concerned about liquidation. It offers leveraged token markets that do not require loans, where instead, the markets are created by KuCoin itself. Some of the most popular cryptocurrencies to trade are supported, including Bitcoin, Ethereum, Bitcoin Cash, Solana, and Arbitrum. Each supported cryptocurrency comes with a long and short market.

KuCoin offers 2x or 3x leverage depending on the cryptocurrency, with actual leverage slightly varying based on market conditions (e.g., Ethereum 3x currently offers 2.992x). It also supports over 245 crypto futures contracts, including USDT, USDC, and inverse contracts, with a maximum leverage of 100x. Fees start at 0.06% for market takers, with discounts for larger volumes.

Pros pros

  • Get up to 3x leverage without loans or liquidations
  • Perpetual and inverse futures with 100x leverage
  • Lots of advanced trading tools – including technical indicators

Cons cons

  • Commissions of 0.06% are higher than other providers
  • Mandatory KYC requirements for all new users

9. Gate.io – Leverage Trading Crypto Platform for More Than 100 Cryptocurrencies via Perpetual Futures Contracts

  • Leveraged Crypto Markets Supported: Perpetual and delivery futures markets on over 100 cryptocurrencies. Options can be traded on Bitcoin, Ethereum, and Dogecoin. Also supports leveraged tokens
  • Leverage Trading Fees: Commissions start from 0.05%
  • Maximum Leverage Limit: 100x

Although Gate.io is best known for its spot trading platform, it also offers a comprehensive margin facility. You’ll find perpetual futures contracts on over 100 cryptocurrencies. This includes everything from Bitcoin, Ethereum, and Solana to Chainlink, Dogecoin, and SushiSwap.

The platform also supports a wide range of cryptocurrency futures, including newer assets like ORDI, with leverage up to 100x, which may be reduced on less liquid markets. The platform also offers options trading and leveraged tokens, with interest rates derived from the peer-to-peer market. Trading fees are competitive, starting at 0.05% of the contract value for futures and options, with further discounts for users reaching $60,000 in monthly trading volume, making Gate.io a versatile choice for leveraged crypto trading across a diverse asset selection.

Pros pros

  • Offers futures markets on over 100 cryptocurrencies
  • Maximum leverage limit of 100x
  • Also offers options markets for Bitcoin, Ethereum, and Dogecoin
  • Earn passive income by funding futures loans

Cons cons

  • Lower leverage limits are offered on less popular altcoins

10. Coinbase – Apply Up to 10x Leverage on 250+ Cryptos

  • Leveraged Crypto Markets Supported: Margin trading accounts supported
  • Leverage Trading Fees: Variable fees per transaction ($0.99 fees up to $10 traded + spread)
  • Maximum Leverage Limit: 10x

As one of the world’s largest cryptocurrency exchanges with over 100 million users, Coinbase offers crypto leverage trading of up to 10x on a diverse selection of over 250 digital assets, from major cryptocurrencies like Bitcoin and Ethereum to popular meme tokens like Dogecoin and Shiba Inu, making it a versatile platform for both novice and experienced crypto investors seeking leveraged exposure across a broad range of assets.

As one of the world’s largest and most popular crypto exchanges, it offers leveraged trading up to 10x on over 250 digital assets, alongside variable trading fees based on transaction size and opportunities for passive income through staking and the “Coinbase Earn” educational program. Maintaining high security standards with 98% of user funds in cold storage, Coinbase is a publicly-listed NASDAQ platform that supports diverse deposit methods, including P2P, debit/credit cards, and bank transfers, though the latter incurs a 3.99% fee.

Pros pros

  • Trade over 250 cryptos
  • Stores 98% of assets in cold storage
  • Publicly traded platform
  • Access staking options

Cons cons

  • Maximum leverage of 10x

Offer: Sign up and get up to $200 in crypto¹

Terms: ¹Valid for new users who make a cryptocurrency purchase on Coinbase. Limited while supplies last or Coinbase revokes this incentive at its sole discretion. Coinbase reserves the right to change the terms, eligibility criteria, and payouts for all incentives at any time, for any reason. Void where prohibited or if Coinbase determines that the customer is not eligible for the offer. Terms apply.

What Is Crypto Leverage Trading?

Leverage in cryptocurrency trading allows investors to amplify their positions, accessing up to 100x their staked capital. While this can boost potential profits, it also magnifies losses, leading to increased risk of liquidation if a position declines by a certain percentage, resulting in the trader losing their entire stake. Leverage is a powerful but double-edged tool, requiring careful risk management by investors.

Leveraged cryptocurrency trading can amplify both profits and losses – for instance, 50x leverage provides $50 in trading funds for every $1 staked, but a $1 decline in the position can trigger liquidation. To mitigate this risk, traders can utilize perpetual futures, options, or leveraged tokens offered by leading crypto platforms, which provide diverse leveraged products, some without direct liquidation risks, though overall leverage remains a double-edged sword requiring careful management.

What is the Difference Between Leverage and Margin Trading?

‘Leverage’ and ‘margin’ trading refers to the same concept; they both enable you to trade with more money than you have in your exchange account.

The difference between the two terms is in the calculation:

  • Leverage is the multiple that you are amplifying your position by. For example, staking $10 at leverage of 10x would increase the position to $100.
  • Margin is the amount of money you need to put up to access a leveraged position. For example, if the margin requirement on a $100 position is 10%, you need to put up $10.
  • In both instances, a $10 stake is being amplified to $100.

How to Pick the Best Crypto Leverage Trading Platforms for You

This section will help you choose a crypto leverage platform that aligns with your goals. Read on to discover the most important metrics when selecting a provider.

Type of Leveraged Trading Products

When exploring leveraged crypto trading, it’s important to first understand the different product types available, as each carries distinct characteristics. The most common options include perpetual futures (leveraged positions without expiration), traditional futures (with set expiry dates), options (limited downside risk), and leveraged tokens (no liquidation risk). Thoroughly learning the mechanics of these leveraged products is crucial before engaging in any trades, as the amplification of both profits and losses requires careful risk management.

Safety and Reputation

When selecting a crypto leverage trading platform, it’s crucial to prioritize security and transparency, as many such platforms operate in unregulated spaces. Key factors to assess include the exchange’s proof of reserves, with a preference for significant holdings in Bitcoin, Ethereum, or liquid stablecoins like USDT, as exemplified by MEXC’s $6.1 billion reserves.

Additionally, robust security measures like two-factor authentication and cold storage of the majority of client funds are essential safeguards against potential hacks or breaches, which can be particularly detrimental in the context of leveraged trading.

Tradable Cryptocurrencies

The next step is to explore which leveraged cryptocurrencies the platform supports. Margex supports a huge range of cryptocurrencies. This includes everything from Solana and Ethereum to Bitcoin, Cardano, and Dogecoin. You should also ensure your preferred cryptocurrency is available for the leveraged product you want to trade. For instance, while the platform might support Solana futures, this might not extend to options.

Leverage Limits

Each trading platform will set its own leverage limits. This can also vary depending on the cryptocurrency being traded. In most cases, Bitcoin comes with the highest leverage limits, as it’s the largest cryptocurrency by market capitalization.

Leverage limits are also dependent on the market. For instance, leveraged token markets are created by exchanges themselves, so limits will be much lower. A good example of this is KuCoin. While it offers 100x leverage of crypto futures, leveraged tokens are capped at 3x.

Fees

Leverage fees differ from spot trading, as they include standard trading commissions charged when opening and closing positions, calculated as a percentage of the total trade size. Platforms like MEXC offer competitive fees at 0.02% for futures trades, but traders should also account for funding fees on borrowed capital, which can impact long-term profitability, making it crucial to consider the platform’s complete cost structure before trading.

Wallet

In between trades, you’ll likely store your cryptocurrencies in the exchange’s web wallet. This is convenient, as you won’t need to keep depositing and withdrawing funds. That being said, it’s important to research whether or not the wallet is safe.

    Some platforms also offer a mobile wallet app. This should have biometric logins, such as facial or fingerprint ID. Ultimately, if the wallet doesn’t have sufficient security features, your funds are at risk.

    Investors can also use third-party wallets such as Best Wallet, which offer multiple features, including security and staking ones.

    Tools & Features

    Most Bitcoin leverage trading platforms offer advanced tools like customizable charts for setting up your ideal trading screen, support for drawing tools and indicators for technical analysis, and risk management tools such as stop-loss orders to help minimize potential losses.

    Payment Methods

    In order to trade crypto with leverage, you’ll first need to deposit some funds. Some traders like to deposit cryptocurrencies, as this usually enables them to remain anonymous. However, if you’re looking to deposit funds with a debit/credit card, KYC will be required.

    Check what payment fees are charged if you’re using fiat money. This averages 3-5% but can be higher depending on the exchange. You should also check the minimum deposit requirement. We’d also suggest checking online reviews for the average withdrawal time frame. We prefer platforms that process payouts on a same-day basis.

    Customer Service

    If you need assistance with your account, you’ll want access to top-notch customer service. The best crypto leverage trading platforms offer 24/7 live chat. Ideally, you’ll be connected with an agent in seconds. If you find that customer service is only available via support tickets, it’s worth choosing another platform.

    User Experience 

    Leveraged futures and options are complex, so your trading platform should be user-friendly, with clear displays of key metrics like maturity dates and strike prices, and seamless order setup, including risk management tools like stop-losses.

    A good user experience should also include a quick account opening process, with KYC verification completed in minutes, and easy deposit and withdrawal procedures.

    Bonus & Incentives

    Many crypto futures platforms offer bonuses like high-leverage trading incentives, reduced fees for high-volume traders, or referral programs. Look for platforms with ongoing incentives, but prioritize core features and reliability over initial sign-up bonuses to ensure a better trading experience.

    Benefits of Leverage Trading Crypto

    While leverage trading comes with high risk, there are several reasons why experienced traders choose to use leverage for their investment strategies.

    • Increased Buying Power: With leverage you can open positions that are much larger than your initial margin. You can also diversify your portfolio across multiple currencies more easily.
    • Potential for Higher Profit: Leverage can magnify profits (or losses). It can be useful for making large gains on day trading, where you can capitalize on small market movements.
    • Liquidity: Leverage allows you to free up capital for other investments while still having open positions.
    • Advanced Trading: With leverage, you can use more advanced trading strategies like arbitrage or hedging.
    • Capital Efficiency: Leveraging your investment lets you use your money more efficiently, keeping a flexible cash balance instead of locking all your funds in one position, allowing you to seize other trading opportunities as they come.

    Risks of Crypto Leverage Trading

    Crypto leverage trading can amplify both profits and losses, making it a double-edged sword. Understanding and managing these risks is essential to protecting investments in the volatile cryptocurrency markets:

    • Amplified Losses: The main risk of leverage is that losses are magnified, allowing traders to lose more than their initial investment with even a small price movement in the wrong direction.
    • Risk of Liquidation: If the market moves against a leveraged position and the balance drops below the maintenance margin, the position may be automatically liquidated at a loss, especially in volatile conditions.
    • Interest fees and costs: Leveraged positions often involve borrowing funds, which incurs interest that can accumulate over time, reducing profits or increasing losses, particularly in long-term trades.
    • Volatility: Cryptocurrency markets are highly volatile, offering opportunities but also increasing the risk of rapid, significant price changes that can negatively impact leveraged positions.

    How to Leverage Trade Crypto

    Now that we understand how to pick a reliable leverage trading platform, let’s look at how to leverage trade crypto on your chosen platform.

    Note: You should always do thorough research before leverage trading crypto. This should include technical analysis, market research, and understanding the risks.

    1. Sign Up and Verify Your Account: You’ll need to create an account on your chosen platform. Most likely, you’ll need to complete some form of verification or KYC.
    2. Deposit or Buy Funds: Depending on the platform, you’ll either be able to buy crypto using fiat or you can deposit crypto into the platform from your crypto wallet.
    3. Select Your Trading Pair: Head to the trading page and choose a cryptocurrency pair to trade, such as BTC/ETH.
    4. Place Your Leveraged Trade: Now you can enter your trade details. This will include the order type (market, limit, top-limit), the amount, desired leverage (2X, 10X, 100X), and price levels. Always double-check this and make sure to review any fees. Once you’re satisfied, you can execute the trade.
    5. Monitor and Manage Your Trade: You should keep a close eye on your open positions and modify your margin or leverage as needed. As crypto markets are volatile, you should be ready to close your position if the market drops. Risk management tools can be useful here.

    How to Calculate Crypto Profit With Leverage

    Leveraged crypto trading can result in both amplified profits and losses. Let’s look at an example to demonstrate this point:

    • Say you invest $200 in crypto, and the price of the token goes up 10%. Your investment would now be worth $220, resulting in a $20 profit minus fees.
    • Now, if you invested a $200 margin at a 5X leverage in crypto, you would have a $1,000 leveraged investment.
    • Then, when the price of the cryptocurrency went up 10%, you closed your position. This would result in a final amount of $1100. Your profit on this would be $100 minus any fees.
    • However, if the token price went down, you would lose $100 rather than $20. You would be left with half your initial investment of $200.

    Is Cryptocurrency Leverage Trading Legal?

    It’s important to understand the legalities of leveraged crypto trading before proceeding. Regulations will vary depending on the jurisdiction.

    In the US, cryptocurrency futures and options are regulated by the CFTC. This means that US clients wondering where to leverage trade crypto in the US must use exchanges that are approved by the CFTC – such as the CME Group. However, the CME Group has a minimum Bitcoin contract size of 5 BTC.

    This is why most US traders use offshore crypto exchanges to access leveraged products. These exchanges do not have a KYC process, so US clients simply use a VPN to hinder their true location.

    Ultimately, outside of the markets discussed above, the vast majority of countries do not have any specific regulations on cryptocurrency leverage.

    Tips for Safe Crypto Leverage Trading

    Gains and losses are inevitable in crypto trading, but the goal is to maximize gains. While crypto advertising networks offer tips for better outcomes, they don’t guarantee success. The advice here is designed to help mitigate losses and improve trading safety and profitability:

    Only Risking What You Can AffordSticking to Major CryptosStaying InformedStaring With Low RatiosManaging Risks

    Cryptocurrencies are highly volatile and can experience significant value fluctuations in a single day. Therefore, the key principle is to invest only what you are prepared to lose.

    Established crypto assets like BTC and ETH have large market caps, are linked to financial products, and have proven resilient through market downturns, unlike smaller-cap coins.

    Staying informed about the volatile cryptocurrency market’s trends and news is crucial for making well-informed trading decisions, including opportunities like crypto affiliate programs that can potentially increase returns.

    When starting with leveraged crypto trading, it’s best to use low ratios like 2x or 3x to test strategies, understand volatility, and build confidence. As you gain experience, you can gradually increase leverage, reducing risks while refining your skills.

    To manage risks, set clear stop-loss and take-profit orders to limit losses and secure gains. Consider hedging by taking opposite positions in related assets to reduce overall risk.

    Conclusion

    After considering the risks – such as liquidation and increased fees, crypto leverage trading can be beneficial. This is especially the case if you only have access to a small amount of trading capital.

    Overall, we rate PrimeXBT as one of the best crypto leverage trading platforms as it provides leverage of up to 200x and also has a copy trading feature.

    FAQs

    What platforms can you leverage trading crypto on?

    Which exchange offers 1,000x leverage?

    Where can I trade crypto with 100x leverage?

    What is the maximum leverage in crypto trading?

    Which crypto exchange is best for leverage trading?

    Is Binance good for leverage trading?

    Does Coinbase allow leverage trading?

    Is 10x leverage safe?

    What platform is best for leverage crypto?

    Which trading platform gives best leverage?

    Which leverage is best in cryptocurrency?

    Is 1/500 leverage good for a beginner?

    What is 100x leverage on Binance?

    How much can I lose with crypto leverage trading?

    Is trading crypto with leverage more risky?

    Alan Draper
    Editor
    Alan Draper
    Editor

    Alan is the Editor-in-Chief of Techopedia and is responsible for ensuring all the content is accurate, up to date, and relevant. Alan has previously worked in writing and editorial capacities for several leading websites, such as Business2Community and TechReport.