9 Best Crypto Leverage Trading Platforms & Exchanges in 2024

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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. Our reviews explore leverage limits, fees, commissions, supported markets, safety, and much more.

The Best Cryptocurrency Leverage Trading Platforms Ranked

Listed below are the 9 best crypto leverage trading platforms in the market today:

  1. Coinbase: Apply up to 10x leverage on more than 250 cryptos. 98% of assets are stored in cold storage.
  2. PrimeXBT: Get up to 200x leverage with this top crypto platform. Low fees, starting from 0.02% per slide.
  3. MEXC: Offers leveraged futures across many different cryptocurrencies. Maximum leverage limit of 200x.
  4. Kraken: Kraken offers margin accounts with leverage of up to 5x. Apply 50x leverage on futures.
  5. Binance: More than 600 cryptocurrencies can be traded with leverage. Binance supports perpetual futures and options.
  6. OKX: Traders will find fully-fledged options chains for BTC and ETH, maturity dates extend to September 2024.
  7. Bybit: Popular crypto derivatives platform supporting perpetual and traditional futures.
  8. KuCoin: Offers leverage of up to 3x on multiple cryptocurrencies without loans or liquidation.
  9. Gate.io: Trade more than 100 cryptocurrencies via perpetual futures contracts. Offers leverage of up to 100x.

Reviewing the Top Bitcoin Leverage Trading Platforms

Let’s move on to our comprehensive reviews of the best platforms offering crypto trading with leverage.

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

Coinbase is one of the biggest crypto exchanges in the world, with more than 100 million users. With this crypto trading platform, investors can apply up to 10x leverage on their trades. 

Coinbase stands out for its variety of trading options – offering over 250+ digital assets to choose from. You can invest in large-cap cryptos like Bitcoin and Ethereum, as well as popular meme tokens such as Dogecoin and Shiba Inu. 

coinbase homepage

High-risk investors can heighten their trades by applying leverage. Coinbase implements a variable pricing structure, where you pay a fee depending on the amount traded. For instance, a $0.99 fee is charged for trades up to $10. If you trade between $50 – $200, you pay a $2.99 fee. A spread is also charged per transaction. 

Coinbase is one of the best crypto exchanges for generating passive income. Investors can also stake their cryptos on Coinbase to earn returns. The platform offers innovative features such as ‘Coinbase Earn’ – where you are rewarded with cryptos by learning new concepts and completing modules. 

A secure trading platform, Coinbase stores 98% of all user’s funds in cold storage. In 2021, Coinbase listed shares on the US Nasdaq exchange. 

Investors can deposit cryptos through P2P trading, debit/credit cards, and bank transfers. A 3.99% fee is charged when using debit/credit cards. 

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

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.

2. PrimeXBT –  Leverage Crypto Exchange, Offering 200x Leverage & 50+ Technical Indicators

The overall best leverage trading platform in 2024, PrimeXBT, offers up to 1:200 leverage on trades, low trading fees, and a range of technical indicators at your disposal. 

PrimeXBT supports margin trading on its platform. Margin is the initial investment required to leverage a trade. Thus allowing users to leverage their trades to generate a higher return than their initial investment. On PrimeXBT, you can apply leverage on more than 40 cryptocurrency futures, such as Bitcoin and Ethereum, among other assets.

PrimeXBT crypto futures platform

This crypto platform stands out for its low fees – starting at just 0.05% when trading on margin and 0.02% for other cryptos. Compared to some of the other trading platforms on our list, PrimeXBT’s fees are among the most competitive. 

As one of the most popular crypto leverage trading platforms for advanced traders, PrimeXBT gives users access to customizable charting software packed with more than 50 technical indicators. Among other features is PrimeXBT’s fast transaction times, with an average order execution speed of 7.12m.

PrimeXBT uses multi-signature access to secure investors’ funds from security threats. It also stores a portion of users’ funds in cold storage, protecting them from online hacks.

New members can benefit from PrimeXBT’s welcome package – a $100 bonus upon depositing at least $500 into their trading account within 48 hours. Before investing with real funds, you can practice leverage trading on PrimeXBT with its demo account, which is equipped with paper funds. 

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

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

3. MEXC – Trade Crypto Futures With Leverage of 200x and 0.01% Futures Taker Fees 

MEXC is one of the most popular crypto exchanges offering futures, monthly futures competitions, spot trading, as well as its own native MX token, which allows holders to earn rewards and participate in airdrops.

In terms of supported markets, MEXC offers leveraged cryptocurrency futures and crypto spot trading. However, unlike conventional futures, there is no expiry date. This means that you can keep leveraged positions open for as long as you wish.

MEXC offers some of the highest leverage crypto trading limits in the industry at 200x. This means that for every $100 staked, you can access up to $20,000 worth of trading capital. We like that MEXC supports a wide range of leveraged futures markets covering everything from stablecoins, web3.0, the metaverse, NFTs, and much more.

MEXC leveraged futures

What’s more, MEXC futures support long and short positions, enabling you to make profits even when market prices are declining. There is a huge amount of liquidity available, and the MEXC platform can handle up to 1.4 million orders per second. MEXC is also one of the best crypto exchanges for low fees, with a 0% futures maker fee and a 0.01% futures taker fee.

Alternatively, if you want to use MEXC for its spot trading features, you’ll pay no commissions at all other than a small 0.1% spot taker fee. Another benefit is that the KYC process isn’t mandatory at MEXC, just like other popular exchanges that don’t need KYC. The only exception is if you deposit funds with fiat money or you need to increase your 24-hour trading limits to 80 BTC. Finally, although MEXC is a global crypto exchange, it isn’t available in the US or Canada.

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 slide.
Maximum Leverage Limit 200x

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

4. Kraken – Go Long or Short on Cryptocurrencies With a Margin Requirement of 20%   

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.

Moreover, short-selling is also permitted, so you can speculate on cryptocurrency prices declining. The main drawback of Kraken is that leverage fees are considered high. Every four hours, your margin position remains open, and you’ll be charged 0.02% of the trade value. In addition, you’ll pay a commission to open and close leveraged positions.

Kraken futures review

This varies depending on the cryptocurrency and ranges from 0.01% to 0.02%. Kraken also offers leveraged futures markets. 95 cryptocurrencies are supported, and the maximum leverage limit is 50x. Futures come with lower fees, too; you’ll pay just 0.05% of the position amount. Crucially, unlike margin accounts, rollover fees do not apply.

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).

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

5. Binance – Leveraged Markets on Over 600 Cryptocurrencies With Low Fees  

Binance is also one of the best crypto leverage trading platforms. 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.

For instance, you’ll get up to 100x on Ethereum and just 20x on Uniswap. The second option on Binance is leveraged options. These require a very small upfront payment known as the ‘premium’. What’s more, you can select a strike rate and expiry date based on your preferred strategy.

Binance margin trading

When it comes to fees, this depends on the leveraged product and your monthly trading volume. For instance, futures can be traded from just 0.05% per slide. Options are slightly cheaper, starting from just 0.03%. Outside of its leveraged products, Binance also offers spot trading markets. Commissions start from 0.01%.

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

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

6. OKX – Comprehensive Range of Bitcoin and Ethereum Options Markets   

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.

For example, strike prices on Bitcoin options with a September 2024 expiry range from $5,000 to over $140,000. In addition to options, OKX also supports other leveraged markets, including perpetual futures and margin accounts. These products support a much wider range of cryptocurrencies, including Polygon, XRP, and Solana, as well as Dogecoin, Aave, and Cardano.

OKX leverage trading

In terms of limits, OKX offers limits of up to 20x under ‘full liquidation’ mode. This means your entire trade will be liquidated if it declines by a certain percentage. Alternatively, you can get up to 100x when trading in ‘partial liquidation’ mode. Perpetual futures fees start from 0.05% per slide. Options fees start from 0.03%.

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).

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 best decentralized crypto wallets for desktop and mobile users

Cons cons

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

7. Bybit – Perpetual and Traditional Futures Contracts With 125x Leverage    

Bybit is also worth considering when exploring crypto trading with leverage. More than $2 million worth of cryptocurrencies were traded on Bybit in the last 24 hours. Therefore, you’ll have access to significant liquidity levels. Moreover, Bybit offers a wide range of leveraged products, including perpetual futures; the maximum leverage on Bitcoin is 125x.

Other cryptocurrencies are supported, including Ethereum, Solana, Dogecoin, and XRP. However, altcoins come with lower leverage limits. Bybit also offers traditional crypto futures, but only Bitcoin and Ethereum are supported. Contract maturity dates range from December 2023 to June 2024.

Bybit futures leverage

Bybit is also one of the best crypto leverage trading platforms for ‘inverse’ contracts. These are similar to futures, but they’re settled and margined in the underlying cryptocurrency – rather than USDT. Commissions start from 0.055% (futures) and 0.02% (options). Bybit also offers competitive spot trading fees; market takers pay just 0.1% per slide.

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

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

8. Kucoin – Trade Leveraged Tokens Without Loans or Liquidations    

KuCoin will appeal to traders who are concerned about liquidation. It offers leveraged token markets that do not require loans. 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.

Leverage of 2x or 3x is available, depending on the cryptocurrency. You’ll get just above or below the stated leverage amount, depending on how many traders are going long and short. For example, the long Ethereum 3x market is currently offering leverage of 2.992x. In addition to leveraged tokens, KuCoin also supports crypto futures.

KuCoin leveraged tokens

More than 245 different contracts are available, covering USDT and USDC-settled markets. Inverse contracts are also available should you want your position settled in the underlying cryptocurrency. The maximum leverage available on KuCoin is 100x. Leverage fees start from 0.06% for market takers, but discounts are available when trading larger volumes.

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)

Pros pros

  • Get up to 3x leverage without loans or liquidations
  • Perpetual and inverse futures with 100x leverage
  • $1.3 billion worth of derivative trades were processed in the prior 24 hours
  • 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 – Perpetual Future Markets on Over 100 Trending Cryptos

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.

Gate.io also supports futures on new cryptocurrencies like ORDI. The maximum leverage limit is 100x, but this will be reduced on less liquid crypto markets. Gate.io is also one of the best crypto leverage trading platforms for options.

Gate.io futures markets

It’s also possible to access leveraged tokens. Interest rates are extracted from the peer-to-peer market. When it comes to trading fees, futures and options positions are charged 0.05% of the contract value. Once you hit monthly trading volumes of $60,000, you’ll get reduced commissions.

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

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

What is Cryptocurrency Leverage Trading?

Leverage allows traders to amplify their positions – meaning you can access more capital than you have in your exchange account. In simple terms, leverage is determined by a multiple – such as 100x. This means for every $1 staked, you can trade with $100.

However, it’s important to remember that leverage will not only boost profits but losses too. If your leveraged position is ‘liquidated’, it will be closed by the exchange. This means you lose your entire stake. Liquidation occurs when your position declines by a certain percentage.

MEXC futures trading

For example, suppose you trade with a 50x leverage. This means for every $1 staked, you’re getting $50 worth of trading funds. If the position declines by just $1, it will likely be liquidated. The only way to avoid liquidation is by adding more funds to the position.

Many different crypto trading products support leverage trading. One of the most popular is perpetual futures. These operate like traditional futures contracts but without an expiry date. The best crypto leverage trading platforms also support options. You might also find leveraged tokens, which come without liquidation risks.

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

The first step is to assess the type of leveraged products that you seek. This is very important, as each product varies in how cryptocurrencies are traded.

Here’s an overview of the most common crypto leverage markets

  • Perpetual Futures: The most popular leveraged product is perpetual futures. Just like traditional futures, you can go long or short with leverage. The key difference is that perpetual futures never expire, making them ideal for longer-term holdings.
  • Traditional Futures: Some crypto exchanges also support traditional futures. You can normally choose from a range of expiry dates, including the latter half of 2024.
  • Options: Another popular way to trade crypto with leverage is via options. You only need to put a small amount of the trade size up front, known as the ‘premium.’ If your strike price isn’t triggered, the premium is all that you will lose.
  • Leveraged Tokens: Some platforms offer leveraged tokens, which are created internally. For instance, suppose you buy long 3x Bitcoin contracts. If the Bitcoin price increases by $100, your contracts will rise by $300. Leveraged tokens do not require loans, meaning you won’t be liquidated.

We’d suggest learning how each leveraged product works before proceeding.

Safety and Reputation

We’ll start by saying that many crypto leverage platforms are unregulated. This is how they’re able to offer such high leverage limits without conducting KYC checks. With this in mind, you should research the platform’s reputation and assess its security tools.

A good starting point is to assess the exchange’s proof of reserves. Not only in terms of the total value but the type of cryptocurrencies being held. Preferably, you’ll want to choose an exchange with significant reserves in Bitcoin or popular stablecoins.

The best leverage trading platforms also offer two-factor authentication. Nobody will be able to access your account without your registered smartphone. Another important safeguard is cold storage.

The exchange should keep the vast majority of client-owned cryptocurrencies offline. In doing so, even if the platform was hacked, they wouldn’t be able to access the cryptocurrencies held in cold wallets.

Tradable Cryptocurrencies

The next step is to explore which leveraged cryptocurrencies the platform supports.

PrimeXBT supports a huge range of cryptocurrencies. This includes everything from Solana and Ethereum to Bitcoin, Cardano, and Dogecoin.

primexbt cryptos

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.

At PrimeXBT, you’ll get leverage of up to 200x when trading Bitcoin futures. But on altcoins like Axie Infinity and Solana, lower limits are offered.

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.

The Risks of Leverage Trading Crypto

  • Although it can be tempting to use the maximum leverage available, you should proceed with caution.
  • In a nutshell, the more leverage you apply, the higher the liquidation risk.
  • For example, suppose you stake $1,000 at leverage of 200x. The position size is $200,000, and your margin is $1,000, or 0.5%.
  • This means that if the trade declines in value by 0.5%, you’ll lose your $1,000 stake.

Fees

Leverage fees will always differ from spot trading markets. First, you’ll need to explore the standard trading commission. This will be charged when you open and close positions. The commission is usually expressed as a percentage. This is then multiplied by the total trade size.

For example, MEXC charges just 0.02% per slide on leveraged futures. Suppose your leveraged position is worth $5,000. In this instance, you’ll pay just $1 to enter the trade. We’ll then suppose that you close the leveraged position when it’s worth $7,500. You’ll again pay a commission of 0.02%, which is $1.50.

MEXC trading fees

In addition to commissions, you might need to pay funding fees. This is the interest rate payable on leveraged positions. After all, you’re effectively borrowing money from the platform. This will usually be charged for the duration of the trade. So, if you’re planning to keep a leveraged position open long-term, make sure the interest rate is competitive.

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.

  • For example, you’ll want the wallet to come with ‘whitelisting’ features.
  • This requires additional security steps if you log in from a new IP address or device.
  • Two-factor authentication is also important, as we stressed earlier.

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.

Tools & Features

Most Bitcoin leverage trading platforms come with advanced tools. This helps you make smart trading decisions. For instance, the platform should come with customizable charts, allowing you to set up your ideal trading screen.

If you’re looking to perform technical analysis, ensure that drawing tools and indicators are supported. PrimeXBT is a good option in this regard, as the platform has integrated TradingView. This means you’ll have access to thousands of analysis tools without leaving the PrimeXBT interface.

primexbt charts

It’s also important that the platform supports risk management tools. This should include stop-loss orders. This will ensure your leveraged trades do not result in catastrophic 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 financial instruments. Therefore, your chosen trading platform should offer a user-friendly experience.

  • For instance, maturity dates, strike prices, and other core metrics should be clearly displayed.
  • Setting up orders should also be seamless, especially with risk management tools like stop-losses.

A positive user experience should also extend to the account opening process. If KYC documents are required, they should be verified within minutes – not hours or days. Moreover, depositing and withdrawing funds should be a simple procedure.

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.

margin trading primexbt

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.

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.

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.

Conclusion

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

Overall, we rate Coinbase as the best crypto leverage trading platform. It offers leverage of up to 10x across 250+ cryptocurrencies.

FAQs

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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.