Best Crypto Leverage Trading Platforms
The best crypto leverage trading platforms and margin exchanges in the USA and the rest of the world for 2023, were gathered by our professional testing team through the analysis of 50+ platforms.
Crypto leverage trading offers some of the most skewed risk-reward situations for day traders with the opportunity to amplify returns, and of course, increased risk. However, choosing the right crypto exchange is crucial for any trader to achieve success in the markets.
In this guide, our expert will share our top picks along with all the necessary information that you need to make the best decision possible.
In our guide, we have reviewed the platforms listed below.
Out of the 50+ platforms analyzed, here are our top picks:
- BYDFi – Best crypto leverage trading platform overall. Accepts US traders, offers 200x leverage, and has the lowest fees out of all at 0.02%.
- Bybit – Best crypto margin trading exchange with 100x leverage offers several different derivatives markets including options with a fee of 0.075%.
- Binance – Best platform to trade altcoins with leverage that offers 125x leverage in futures and other derivatives with a fee of 0.10%
- PrimeXBT– Best Bitcoin leverage trading platform with up to 200x leverage offers multi-charting and a fee of 0.075%.
- Phemex – Best leverage trading app for crypto offering 100x leverage and no KYC trading through derivatives with a fee of 0.05%
Affiliate and investment disclosure: This article contains links to some of our partners and we receive a commission when you click those links. However, this is at no extra cost to you. This information is not financial advice or a recommendation to trade. Always consult with a financial professional and do your own research before trading.
- BYDFi ranks number one as the most popular exchange thanks to great trading tools, low fees, government regulation, and a user-friendly interface.
- The tests we have conducted to find the top performing platform are our own and are based on 50 different crypto exchanges that offer leveraged products.
- Anton, an expert on leverage trading, has conducted the testing and reviewing of all the platforms in this guide.
What is the best crypto leverage trading platform and margin exchange?
The brands in our list will be discussed in this section and we’ll break down the technical specifications and features and what we like about these exchanges after having tested them.
A helpful guide to read as well is our article on why brokers offer leverage. This will help you understand more about how they operate.
By evaluating these platforms, we aim to help you select the platform that aligns with your own style of trading and preferences.
1. BYDFi – Crypto leverage trading USA
Ranks number 1 of 5 with a rating of 5.0/5.
BYDFi is the best crypto leverage trading platform in the USA and was established in 2020. It has its headquarters in Singapore but operates in all corners of the world, including the United States.
BYDFi is regulated by FinCEN in the United States and is considered to be the best US crypto exchange with up to 200x leverage.
The platform features over 400 altcoins and many of them are available to trade with margin.
As well, there is no requirement to go through the KYC process when you sign up which makes the registration quick and easy.
In addition to this, BYDFI offers several different products to trade cryptocurrencies including COIN-M futures, Perpetual contracts, USDT-M Trading contracts, and Inverse perpetual contracts.
Keep in mind that BYDFi also offers margin trading through their demo account where you can test out your crypto leverage trading strategies before going live with real money.
At a glance, BYDFi is a regulated crypto exchange that offers leverage in the US and globally, has a strong trading platform, and has a wide range of trading options for all types of traders.
Leverage on BYDFi
BYDFi crypto exchange offers 200x leverage and when it comes to choosing crypto leverage ratio it is very straightforward.
The maximum ratio offered on BYDFi is 200x but the option to trade with less leverage is easily accessible through the bar inside the trading interface.
The screenshot below shows exactly where to change the margin when you are inside the trading platform.
Simply click the button and then choose your preferred ratio.
A higher leverage ratio always increases both the potential for profit and loss.
One of the key features that made us rank BYDFi as the best crypto leverage trading platform in the USA is thanks to its government regulation by FinCEN.
Few established platforms in the United States offer margin-traded products and BYDFi is trying to break the barrier safely.
Other important security features include 2-FA, email verification, fund password, and other advanced safety measures such as withdrawal address whitelisting and phone number verification.
All of these security features are not enabled when you first sign up.
You have to go to the security page as you can see on the screenshot below to enable these features.
Once you enter the security page you can toggle on each feature.
In my experience trading on BYDFi, I’ve always used the Google authenticator to protect the account against immediate threats.
Enabling the withdrawal address whitelist is also a great way to make sure that your funds can only be withdrawn to your own wallet addresses.
What makes BYDFi one of the top high leverage crypto exchanges is the low trading fee.
The leverage trading fee on BYDFi is 0.050% when using market orders.
This goes for both opening and closing trades.
Check the explanation that BYDFi gives on its trading fee page:
Now, the transaction fee for leveraged tokens on BYDFi is slightly higher at 0.20%.
This has to do with the lowered ratios offered through these contracts.
BYDFi also charges a management fee of 0.03% every day at midnight.
This means that a total value of 0.03% of all leveraged positions will be charged from your trading account every day you keep positions open overnight.
Liquidity and order execution
The order book on BYDFi has extremely high liquidity and you can trade very large positions even if you are a scalp trader.
During our testing, we managed to easily enter and exit with position sizes worth over $100,000.
Here is a screenshot from the live order book at BYDFi in the COIN-M contracts.
The first buy order is worth $118,480 and the first sell order is worth $59,892.
The spread in this trading pair was $0.20 which stayed the same and even lower during our assessment of BYDFi.
This is a very favorable spread for a crypto leverage trading platform.
User interface and available trading tools
BYDFi strikes me as one of the most modern exchanges and my experience is that the designers of the platform are traders themselves.
The charting interface is distributed with the indicator tab to the left and the order execution and order book to the right.
The charting interface is powered by TradingView charts which ensures charts are 100% free from lag.
Here is a screenshot of the whole trading interface.
One thing that stuck out to me while analyzing the BYDFi platform was the option to convert, transfer, or buy crypto directly from the charting interface.
In the bottom right corner of the trading platform, you can swap, buy crypto with fiat money, or convert your cryptocurrency for any other asset on the platform without leaving your trading setup.
The option to go long and short can be done with just one click once you have entered the charting interface.
Another thing I found very useful is the option to choose between cross and isolated margin.
The difference between leveraging your trades with cross and isolated margin is how the trading platform can access your margin capital.
Isolated margin is the safer option and keeps the margin capital limited to one position only to prevent a full account liquidation by leverage.
Why we like it
|Lowest fees||No customer support phone number|
|Offers up to 200x crypto leverage||No crypto market news source|
|Stop loss and take profit orders directly in the trading interface|
2. Bybit – Crypto margin trading
Ranks number 2 of 5 with a rating of 4.7/5.
Bybit is the best crypto margin trading exchange according to many professional traders offering up to 100x leverage and was launched back in 2018, one year after the big boom when Binance came to the market.
With over 10 million users, Bybit has become a household name on the cryptocurrency scene due to the vast variety of trading assets and products.
These assets range from margin trading products to spot and investment-like vehicles.
Many reviews about Bybit in community forums often praise the platform for evolving with the crypto market and shaping the crypto landscape.
What caught my attention when testing the Bybit platform was the professional-grade trading and matching engine which makes day trading extremely favorable.
Also, the competitive fees for both maker and taker transactions are among the lowest in the industry.
Leverage on Bybit
The Bybit crypto exchange offers 100x leverage which can be accessed through the derivatives contract BTC USDC Perpetual.
This contract is only trading Bitcoin against USDC and is the only way to access 125x on Bybit.
The rest of the contracts offer up to 100x leverage and can be found in the USDT perpetual, USDC contracts, and Inverse perpetual contracts.
As you can see on the screenshot below taken during the testing of Bybit, the exchange also offers both cross and isolated margin.
The arrow points to the bar where you can change the leverage ratio directly from the charting interface.
And in the top right corner is where you access the panel to swap between cross or isolated margin.
This feature can be found just to the right of the panel in the top right corner of the charting interface.
Bybit is a very secure crypto margin trading exchange even though the platform lacks government regulation.
Through their account security page, you have the option to enable several features to strengthen the overall safety of your account.
The fund password requires a password to move and transfer funds on the platform which prevents hackers from ever withdrawing your funds.
The SMS authentication feature is also very strong since you need to have access to your own mobile phone to make changes or send funds off the exchange.
The third security feature that I found very useful when analyzing the security of Bybit was the withdrawal address whitelist.
The screenshot below is taken from the Bybit security page and shows the withdrawal address whitelist setting.
I highly recommend enabling as many of these safety features to ensure that your account is 100% secure.
Leverage trading fees
Bybit employs a trading fee system that rewards higher trading volume.
When you first join the platform you will start as a non-VIP member and your taker fee rate is 0.06% for margin trading.
As you gradually increase your trading volume the trading fee starts falling.
The image below explains the full transaction table on Bybit taken from their website.
I have highlighted the leveraged contract fees in blue.
Liquidity and order execution
Bybit is competing with Binance for having the highest liquidity in the world.
Even trades who trade large volumes will not have any problems with getting in or out of their traders at any time of the day.
Take a look at this image of the order book from Bybit.
The first sell order in the BTCUSDT trading pair in the Perpetual contract pit is worth 42 Bitcoins.
The first buy order is worth over 17 Bitcoins.
These numbers get even higher during high-volume periods during the day.
I found that between 08.00 and 10.00 European time was the period with the highest volume.
The period with the second-highest volume came in at around 15.30 in the afternoon when the American trading session started.
User interface and available leverage trading tools
Bybit has a massive toolbox when it comes to trading tools through its trading interface.
Here are some of the best tools for active traders that I used when I tested the platform.
- Indicators (50+)
- Fib retracement lines
- Gann fan
- Parallel channels
This and plenty more are available through all charting interfaces on the Bybit exchange.
As I was analyzing the charting interface I took a screenshot to highlight some of the more important tools, take a look below.
Highlighted in the image are the toolset to the far left, the order selections in the top right corner, and the take profit and stop loss setting above the buy and sell buttons.
These tools are what make Bybit one of the optimal choices for traders with different trading styles.
Why we like it
|Real stop loss and take profit orders||Non-regulated|
|Very high liquidity for leverage trading||There is no demo account on Bybit|
|Great trading interface for day traders|
3. Binance – Trade altcoins with leverage
Ranks number 3 of 5 with a rating of 4.6/5.
Binance offers you to trade altcoins with leverage and is known as the most versatile and largest crypto exchange and app that offers margin trading products.
With nearly $40 million of daily trading volume and nearly 400 cryptocurrencies listed, Binance is the perfect platform to trade altcoins with margin and amplify returns.
It is seen as one of the most trusted non-regulated exchanges on the market and it has won several awards.
The platform often gets recognized by its users on community forums such as in this thread on Reddit where a user explains why he likes Binance in particular.
Binance supports several different fiat payment methods and pretty much all major currencies which makes depositing super easy.
The exchange is only about 5 years old and was first launched back in 2017 during the big bull run when Bitcoin hit $20k for the first time.
Binance is a popular choice among many beginners due to low trading fees, a great variety of trading assets, a state-of-the-art charting interface, and bank-grade security.
Leverage on Binance
Third on our list is Binance which offers a maximum ratio of 1:125.
Binance has a positioning bracket that prevents traders from overleveraging.
It works by lowering the ratio when traders take larger and larger sizes.
This makes sense since the risks of leverage increase the risk of loss.
Below is an image of the positioning bracket and how much buying power you are allowed to use for each position size.
I have highlighted the leverage bracket to showcase how the ratio changes as you increase your position.
The rule is different for every asset which has to do with the individual volatility of each coin.
As I was assessing the platform, I found this very useful, especially when trading larger trades.
Binance security is very strong and is considered one of the safest non-regulated crypto leverage trading platforms.
Through their security page, you can enable several different security features that will instantly protect your account against outside threats.
Binance has written a guide on how to increase security on Binance which I found very helpful.
Except for all the standard security features such as 2FA verification codes and phone number verification, Binance also offers advanced safety features as seen in the screenshot below.
I have circled the withdrawal whitelist option because I think it’s a very useful tool to prevent hackers from ever leaving the platform with your funds.
The third-party account connection is also a very useful feature that I used when I analyzed the platform.
It lets you connect Binance to either your Apple ID or your Google account for an extra security layer.
Binance also adheres to strict KYC and AML rules and all traders are obligated to identify themselves before starting out.
Leverage trading fees
Compared to other margin trading exchanges, Binance has highly competitive fees.
Binance has a complex trading fee structure that traders should be aware of as you can see below.
I’ve highlighted the trading fee I used when I was testing the platform which was in the USDS-M Futures trading.
Depending on your chosen market you will be given a certain transaction fee.
For example, USDS-M Futures on Binance have a basic trading fee of 0.04% for taker trades.
However, if you choose to trade with the native coin BNB there is a 10% cut to the rate.
Additionally, if you trade with the native stablecoin on Binance called BUSD, your fee for opening trades as a market taker is 0.03%.
Liquidity and order execution
Liquidity on Binance is as good as it gets and it is currently ranked as the crypto exchange with the highest volume.
Getting in and out of positions on Binance even with huge leveraged positions is not a problem.
When testing the platform I could easily scalp trade the BTCUSDT perpetual contract with $100.000.
Here is a screenshot from the order book liquidity.
As seen above, the first buy order is worth $21,766 and the first sell order is worth $185,380.
User interface and available trading tools
The user interface and the crypto leverage trading platform on Binance are very easy to navigate and a great choice for beginners.
The trading interface looks different the most other platforms.
Binance has chosen to include a smaller chart from TradingView while focusing on the order book and the market trades.
All necessary trading tools are available such as:
- All timeframes
- Trading indicators
- Open orders in the chart
- Depth chart
- Limit, market, and stop-limit orders
- Access to all trading pairs
Something that Binance also has incorporated into its trading interface is a beginner tutorial video that I watched before I started testing the exchange features.
It’s professionally made and will teach you the basics of the platform.
Where to trade altcoins with leverage?
To trade altcoins with leverage your best option is to sign up with Binance which is known for its massive list of altcoins that are available to trade with up to 100x.
Altcoin trading works the same way as any other cryptocurrency that you can find on the platform.
To trade altcoins with leverage, follow these steps:
- Sign up with Binance.
- Make an initial deposit.
- In the main menu, hover over Trade.
- Click Margin.
- In the right-hand side menu, select altcoin.
- Choose your ratio.
- Select position size.
- Add take-profit and stop-loss orders.
- Click Buy.
Monitor your trade and make sure you keep an eye on the liquidation price of the open position.
Why we like it
|High leverage in for Bitcoin trading||Non-regulated|
|High volume and great liquidity||Withdrawal fees are expensive|
|Easy to use for beginners|
4. PrimeXBT – Use high leverage and multi-charts
Ranks number 4 of 5 with a rating of 4.5/5.
PrimeXBT is a high leverage crypto exchange that accepts US traders and supports up to 200x leverage in an ultra-fast trading interface built for day traders.
Regulated by the Australian government agency ASIC, PrimeXBT is considered to be a highly secure platform the best crypto leverage trading platform in Australia.
The platform is built for fast-paced traders that move large volumes several times per day and order execution is the top-performing process on the platform.
The most popular coins to trade on PrimeXBT are Bitcoin and Ethereum.
I consider the platform to be an advanced choice for more experienced traders as the charging interface can be a little bit intimidating.
Each crypto asset has its own ratio which can be seen on this page.
The max ratio for each asset can be seen on the right-hand side after you click Crypto in the top tab as seen on this screenshot.
PrimeXBT offers a max buying power of 1:200 in Bitcoin trading and a minimum of 1:10 in smaller crypto assets that are more volatile.
KYC is not obligatory on PrimeXBT, however, it is necessary if you want to withdraw more than $20,000 per day.
Other safety features on the platform include:
- Email notifications of sign-in, trade liquidations, trade margin calls
- Google Authenticator
- Government regulation by ASIC
It is considered a safe and trustworthy platform according to many reviews I read online.
Additional security features that are worth mentioning are SSL protection to protect your data and a cold storage Bitcoin wallet.
PrimeXBT is one of the top choices due to its low fee structure.
Leveraged trading fees are favorable on PrimeXBT and start at 0.05%.
There is a financing fee of 0.0167% that is charged for every trader who holds their positions overnight.
This goes for both long and short positions.
Below is a summary of the trading fees on PrimeXBT.
It’s worth mentioning that PrimeXBT notifies that their trading hours are always 24/7 for cryptocurrencies.
Liquidity and order execution
PrimeXBT operates with a market-making system that allows for uninterrupted trading no matter how large your trades are.
This is one of the big perks of margin trading cryptocurrencies on this platform.
Traders who want to size up and trade larger positions will have no problem getting in and out of the market, even during high-volatility periods.
The order matching engine on PrimeXBT is of the latest technology and has so far proven to be error-free during our assessment of the platform.
User interface and available trading tools
PrimeXBT offers a great trading interface and their flagship 4-chart trading platform is what attracts most users.
The multi-chart offers an overview of four different assets at different timeframes.
You can also buy and sell directly inside the chart giving you control over several different assets at the same time as seen in the image below.
This is a great trading tool for traders who are managing several positions at the same time and I don’t know any other platform that offers this feature.
You can also change the market and trading pair directly from the top of the chart.
All charts come built-in with market volume.
Should you want to focus on one chart at a time you can do that by clicking the Trade button in the top left corner.
From here you have more trading tools at your disposal such as all trade indicators, different chart styles, and drawing tools that are not offered in the multi-chart.
Why we like it
|Great for high-volume leverage traders||Can be difficult for complete beginners|
|Great charting interface||Few altcoins avialble|
|Regulated by the Australian government||Slow charting interface|
5. Phemex – Trade anonymously with leverage
Ranks number 2 of 5 with a rating of 4.5/5.
Phemex is a top 100x leverage crypto exchange in the USA and offers trading through perpetual contracts with USD, cryptocurrencies, or USDT as margin collateral.
On Phemex you can make your deposits with fiat money in an instant using credit cards, debit cards, Apple Pay, Bank Transfer, and several other minor payment methods.
The exchange sticks out to me as a new and modern platform with plenty of trading tools for traders who are looking to boost their capital.
Phemex is headquartered in Singapore making it a global exchange and is registered as a Money Service Business in the United States which adds to its legitimacy.
The platform offers a large variety of tools for short-term scalpers or day traders through advanced charting interfaces, stop losses, take profit orders, isolated margin, cross margin, and a lightning-fast order matching engine.
The order book is always full of liquidity which is good for users since there will always be someone on the buy and the sell side to meet your trade.
Leverage on Phemex
Phemex offers perpetual crypto contracts with up to 100x leverage.
You can access these contracts by first allocating a small percentage of your own capital as a fiat or cryptocurrency deposit.
On the Phemex leverage page, they explain how they adjust their liquidation price based on the level of margin, and the more buying power you use the smaller the distance between your entry price and the liquidation price
The leverage is available through both cross and isolated margin which gives traders different options on how they want to allocate their account balance.
See the image below for a detailed description of the Phemex security page.
In addition to this, Phemex operates with a trading engine safety protocol to match clients’ orders based on price and time.
This engine is responsible for doing a quick risk analysis of the trading account of each trader.
These checks include:
- Computing in real-time
This is to make sure that no trader is taking on too much risk without being fully aware of the situation.
I found it very useful when I tested the Phemex exchange as it enables for up to 10x faster trading even in volatile market conditions.
Leverage trading fees on Phemex
As a contract trader on Phemex without VIP status, you will have a 0.06% taker fee.
The market fee is slightly cheaper at 0.01%.
As your trading volume increases the trading fee gets reduced according to this table taken from the Phemex fee page.
Below is a screenshot of the Phemex fee page to illustrate the costs.
The lowest possible fee you can acquire through the VIP system is 0.0325%.
In comparison to other competitors, it’s rather cheap.
Liquidity and order execution
The liquidity on Phemex is slightly lower than other margin trading crypto exchanges.
However, when conducting live testing on the platform, I found now problem entering and exiting the market with $100,000 lots.
Below is a screenshot from the Phemex order book from when I analyzed the liquidity.
During my testing period, there was a bullish pressure in the market which can be seen in the buy side of the order book.
The first buy block was worth roughly 12 Bitcoins which is not a low number by any means.
Throughout the trading session, it stayed stable at around 12 to 15 Bitcoins on both sides of the order book meaning.
This means that traders can easily enter and exit with leveraged positions of up to $400,000 without any slippage.
User interface and available trading tools
The charting interface is very manageable and there are different options when it comes to the layout of the chart.
You can choose between having the chart on the right or the left side with the order selection and order book on the opposite side.
It’s also possible to deactivate parts of the trading interface.
For example, if you would like to disable the recent trades box to open up more space, that’s an option.
In the image below, I’ve highlighted the stop loss, take profit, and the drawing tool area that I used when assessing the platform.
A tip that will help you along the way that I used frequently was the advanced option below the Open Long and Open Short buttons.
This will open up a new tab where you can choose between more order types such as GTC, IOC, and FOK.
Why we like it
|Great tools for day traders||Non-regulated|
|Demo account||The platform has a lot of functionality that takes time to learn|
|Options to buy crypto with fiat vendors|
Where to trade crypto with high leverage
A high leverage crypto trading platform is the best place to trade crypto with high leverage.
It offers leveraged crypto products such as Swaps, Perpetuals, Futures, Options, and Lite contracts.
When choosing a crypto exchange to trade on you always want to join one that fits your needs and is not too expensive.
If you don’t know where to start, here are some of the more favored names:
All these platforms offer high leverage up to 125x or 200x, low fees (0.075% – 0.10%), and great user interfaces.
Both BitYard and PrimeXBT are regulated which increases their trustworthiness and cements their credibility for users that want to focus on security.
The most important thing to look out for is that the platform you choose has a protective stop-loss functionality.
This is an essential part of protecting your downside risk while trading with large positions.
While you are researching your crypto exchange make sure that it is also equipped with a good charting interface, 2FA verification, and most of the top 100 altcoins available.
CFD platforms also offer leverage for crypto assets which is another good option if you don’t want to use a crypto exchange.
How to get started with leverage trading in crypto
After you select a broker from our list above it’s time to sign up and get started trading.
To get started on BYDFi, follow these steps:
- Sign up on BYDFi.
- Complete the verification process.
- Deposit funds in your trading account.
- Learn how the trading interface works.
- Practice with a demo account.
- Choose a trading strategy.
- Start by opening a position.
When depositing funds you can choose between transferring cryptocurrencies or making a deposit with your fiat cash.
You must understand the risks of trading with margin before increasing your size.
We recommend starting with the demo account to see the effect leverage has on losses.
What is a crypto trading platform with leverage and how does it work?
After finding your pick in the list above we want to inform you what you are getting yourself into.
A crypto leverage trading platform is a contract-based crypto exchange that allows traders to borrow money against their capital.
Through these platforms, traders can increase the potential for profit with the added risk of larger losses.
Margin contracts are mirrored contracts that exchanges create where the price is derived from an underlying asset such as Bitcoin.
When trading on these exchanges you do not own the underlying asset, instead, you stand to earn the price difference when the contract moves up or down.
The way that leveraged brokers make money is through increased fees and management fees that are applied as overnight interest payments.
When trading on a margin-traded platform you need to maintain a certain amount as a margin requirement to first open your position and then keep your position open.
Exchanges normally provide leverage of up to 200x.
Another option that these platforms give you the option to short-sell the market.
This means that you borrow money to bet on a negative price movement and in the price falls you earn a profit.
This would not be possible on a spot exchange and that is one of the main differences between spot and leveraged trading.
How we tested and reviewed these exchanges
To find the best crypto margin trading platform among hundreds of alternatives we have tested plenty of the most reputable brands out there.
To provide an objective review, we followed a comprehensive live testing process.
Here is an overview of the steps involved:
- Research and selection
- Account creation and KYC-verification
- Platform feature testing
- Trading experience overall
- Security and Compliance
- Customer support
- Fees and costs
- User feedback and reputation
By following this rigorous testing process, we aimed to deliver an unbiased view of the exchanges in our top lists.
All platforms have been thoroughly tested by Anton, our leverage expert with over 10 years of experience in the trading field.
What crypto exchange gives the highest leverage?
Many consider the best crypto leverage trading platform to offer the highest margin-ratios and therefore we have decided to include two platforms that offer up to 200x.
BYDFi currently offers 200x buying power which is the highest ratio of all centralized exchanges.
PrimeXBT also offers 200x but is considered a multi-platform and doesn’t qualify as a pure crypto exchange.
Next on the list is Binance which offers 125x.
Some off-shore brokers offer much higher ratios but they are not considered safe to trade on and we have therefore decided not to include them in this review.
How to choose the right crypto trading platform
Selecting a crypto margin trading platform to trade cryptocurrencies is a critical decision that can greatly impact your trading experience.
Below are some key factors that will help you when choosing a crypto exchange with leverage.
- Reputation and security: Prioritize an exchange with a solid track record of keeping customer funds safe. Look for a platform that has previously not suffered from hacks or other breaches.
- Regulatory compliance: A regulated exchange will always be a better option because you know that it has gone through harder scrutiny and implementation of KYC processes to protect users. Regulators also require Anti-Money Laundering procedures to be in place to operate under such licenses.
- Leverage options: Ask yourself how much you are going to need from your crypto exchange. Not all traders should opt in for the maximum of 200x immediately. Instead, focus on the appropriate ratio for your needs.
- Trading fees: Leverage is surely going to increase your fees and I would say that choosing an exchange with the lowest fees possible is a great start. If you are an active scalper this will be your best way to save cash.
- Available assets and trading pairs: If you are looking for more trading pairs than just BTCUSDT it’s wise to take a look at the coin page and see just how many assets are listed on the exchange. Not all exchanges have the same assets and some prioritize newly listed coins.
- Liquidity: Liquidity and margin go hand-in-hand and your exchange must have deep order books. Higher liquidity reduces slippage, especially during turbulent market situations.
- User interface and trading tools: Asses the user interface and the available trading tools such as drawing tools, charts, indicators, order types, and risk management tools. Most technical traders need a steady chart and a fast matching engine to operate.
- Customer support: Carefully consider the quality of customer support. If you ever get in trouble with lost funds or for some reason lose your account login, a fast customer support agent will be your best friend.
- Educational resources: Choose an exchange that can help you along the way with guides, videos, and tutorials. These resources are valuable for both beginners and seasoned traders.
- User reviews: Take into consideration what feedback the crypto community is giving to each exchange. While your experience might be completely different from other traders it’s still worth taking a look online to see what they are saying.
What are the differences between the exchanges?
Spot exchanges and margin exchanges are two distinct types of crypto trading platforms.
Each serves a different purpose and understanding the differences between them is essential for traders looking to engage in margin-based contracts.
A spot exchange offers trading in the spot market which is direct access to the underlying asset where there is a physical exchange of the asset.
For example, if you trade the Ethereum spot market and buy a contract of two Eth, you will then own those Eth coins until you sell them.
Spot exchanges are often more simple as they tend to be more used by long-term investors.
Margin exchanges on the other hand are known for their derivatives exchange where the market prices are mirrored through margin contracts.
The name derivatives exchange means that the prices are derived from an underlying asset but there is no physical delivery taking place.
Once you buy a leveraged contract you do not own the underlying asset, instead, you are speculating on the price of that asset moving up and down.
These exchanges also offer the key feature of borrowing money to traders to enable larger trades.
When a trader opens a position, he borrows a certain percentage of the total trade size.
Once he closes out the trade, the margin requirement is returned to his account, and the leverage used is paid back to the exchange.
Crypto exchanges offer between 100x up to 200x depending on the trading pair. Most Bitcoin trading pairs offer higher ratios due to lower volatility.
When using 10x on a crypto exchange it means that you are borrowing 10 times the money you have in your account. For example, if you have $500 in your account, adding 10x leverage would mean that you now control $5000.
Cryptocurrencies are a volatile asset and it’s not wise to overleverage due to the risks of large price swings. Therefore we recommend not using more than 1:10 or 1:50 if you are a beginner.
All crypto exchanges in this article offer 100x but only BYDFi and PrimeXBT offer up to 200x margin.
To trade altcoins with leverage, sign up on BYDFi.
To engage in Ethereum leverage trading, sign up with BYDFi or Bybit.
Among the platforms that I have recommended in this article, StormGain and PrimeXBT give the highest leverage of 1:500 and 1:1000.
We consider BYDFi to be the best crypto leverage trading platform due to its flawless interface, low fees, and great tools for active traders.
Some other platforms to consider are Bybit, Phemex, and Binance which all have great reputations both in reviews online and also from community forums.
Trading in the cryptocurrency market offers the potential for increased profits but it also comes with higher risk.
When choosing a crypto exchange, consider the factors outlined in this article.
By conducting thorough due diligence, you will be able to select the platform that matches your preferences.
Our assessment and analysis in this article of the best crypto margin trading platforms is a good way to start your research.
Additional reads and helpful links
Please note that the information provided in this article is for informational purposes only and should not be considered financial or investment advice.
Crypto markets are highly volatile which increases the risk of loss.
Always do your own research and consult with a professional financial advisor before making any investment decisions.