Margin trading has become increasingly popular among cryptocurrency traders over the past years. However, this can be a confusing topic, so I’ll guide you in the right direction by explaining what margin trading is and covering the best crypto margin trading exchanges out there.
By leveraging borrowed funds to open larger positions, traders can increase their potential profits – but with greater potential rewards also come greater risks, especially if you don’t get yourself informed about the best crypto margin trading platforms available.
Undoubtedly, we're all familiar with the giants of the crypto space, such as Binance, KuCoin, and Huobi, among others. However, with numerous factors to consider when investing your hard-earned money, I'm here to assist you in analyzing the top exchanges that offer margin trading.
In this article, I've compiled a list of the best crypto margin trading exchanges available today. Whether you're a seasoned trader or just starting out, these platforms offer all features that will help you succeed. So, let's dive in and explore your options for maximizing your trading potential with these top-rated exchanges.
To help you find the best crypto margin trading platform, I've researched and reviewed the following cryptocurrency exchanges:
Without further ado, let's get onto it!
Best Crypto Margin Trading Exchanges: What is Crypto Margin Trading?
Knowing the best crypto margin trading exchanges is an important part of the process, but you also need to understand how margin trading works before starting this adventure.
In summary, crypto margin trading is a way to buy or sell cryptocurrencies using borrowed funds. Unlike spot trading, which requires traders to pay the full amount from their own pocket, margin trading allows traders to open a position with borrowed funds.
To get started with margin trading, you need to understand the key concepts of leverage, margin, collateral, and liquidation. Only after that should you look into the best crypto margin trading platforms available.
Before jumping to these terms it's important to note that margin trading is often mixed up with leverage trading. Despite the fact that these two concepts are linked, they do not mean the same thing. You see, leverage trading is an umbrella term for margin trading, futures trading, and leveraged tokens.
So, for what it's worth, you ought to see margin trading as a type of leverage trading rather than as a synonym for it.
Now, the word leverage itself refers to the amount of borrowed funds used to pay for a trade. It varies between exchanges, cryptocurrencies, pairs, and trading platforms. There are many different ratios of leverage, including 5x (1:5), 25x (1:25), 125x (1:125), and so forth. The leverage ratio tells you how many times your initial capital will be increased.
For example, if a trader wants to buy $500 worth of Bitcoin with 5x leverage, they only need to pay $100, while the remaining $400 is borrowed.
Moreover, margin refers to the amount of funds a trader needs to maintain in their account to keep their position open. The margin requirement is set by the exchange or trading platform. If the equity level drops below the margin requirement, the trader receives a margin call and needs to sell some (or all) of their positions or add more funds to their account.
Furthermore, collateral refers to the assets in a trader's account that serve as security for the borrowed funds. If the trader cannot meet a margin call, the exchange or trading platform can sell the assets in the account to pay down the loan.
Lastly, note that there are two main types of margin trading: cross margin and isolated margin. Cross margin allows traders to share margin balances across different positions, while isolated margin is the margin assigned to a single position and, thus, cannot be shared.
So, now that we've covered the basics of crypto margin trading, you might be eager to get started. If so, you'll need to find a reputable exchange that offers margin trading. Below are some of the best crypto margin trading exchanges. After you explore your options, you'll be able to begin your margin trading journey in no time!
1. Bybit – User-Friendly, Competitive, and Feature-Packed
Ranks #1 out of 7 Crypto Exchanges
- + Very low trading fees
- + Exceptional functionality
- + Mobile trading app
- + Helpful customer support
- + Up to 100x leverage
- - Might have a steep learning curve
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With more than 10 million users, Bybit surely deserves to be mentioned when discussing the best crypto margin trading exchanges.
Bybit is a cryptocurrency derivatives exchange that offers margin trading for Bitcoin, Ethereum, Ripple, EOS, and other cryptocurrencies. Launched in 2018, the exchange has quickly become popular among cryptocurrency traders due to its user-friendly interface, competitive fees, and advanced trading features.
One of the key features of Bybit is its highly customizable trading interface, which allows traders to adjust settings such as leverage, order types, and risk management tools according to their preferences. This makes it a great choice for both beginners and experienced traders alike.
The margin trading option offered by Bybit is spot margin trading. It allows up to 5x leverage, and traders can choose from both isolated and cross margin modes. Spot margin trading allows users to trade with leverage on trading pairs on the Bybit spot market.
The exchange also provides a liquidation engine that helps protect traders from extreme price movements and automatically closes out positions if they fall below the required margin level. It surely is an advantage when searching for the best margin trading platform crypto.
In terms of fees, margin trading fees on Bybit consist of three types of fees – spot trading fee, interest fee, and liquidation fee. While the exact fees may vary depending on the trading pair and trading volume, for spot trading fees, Bybit typically charges a maker fee ranging from 0.01% to 0.10% and a taker fee ranging from 0.06% to 0.10%.
Moreover, the interest fee, as the name suggests, is based on the interest you generate, while the liquidation fee is a flat fee of 2%. The latter goes to the margin insurance fund pool that insures traders' funds.
These fees are relatively low compared to other margin trading exchanges, making Bybit an attractive option for traders looking to minimize their trading costs. Additionally, Bybit offers various bonuses and incentives for users, including a welcome bonus and a referral program, to further enhance the trading experience.
One area where Bybit stands out is its customer support, which is available 24/7 via live chat, email, and social media. The exchange also offers a comprehensive knowledge base and tutorial videos to help users learn how to use the platform and maximize their trading potential.
Additionally, it's worth noting that Bybit also offers perpetual and futures trading with up to 100x leverage, as well as leveraged tokens with up to 3x leverage. So, if the margin trading option offered by Bybit does not seem like the best option for you, you can choose from other leverage trading options.
For all of those reasons and more, Bybit surely is one of the best Bitcoin margin trading platforms out there. And, overall, Bybit is a great choice for traders looking to engage in any type of cryptocurrency trading. Its user-friendly interface, competitive fees, and advanced trading features make it a popular choice among both beginners and experienced traders alike.
2. Binance – One of the Leading Crypto Exchanges
Ranks #2 out of 7 Crypto Exchanges
- + A very well-known crypto exchange platform
- + More than 500 different cryptos available
- + Two-factor authentication
- + P2P trading option
- + Emphasis on security and KYC
- + Supports fiat-crypto acquisitions
- - Might be a bit difficult for beginners
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Binance consistently ranks high if you type in “best crypto margin trading exchanges” or “best Bitcoin margin trading platform” into Google, and there’s a reason for that.
Binance is a cryptocurrency exchange founded in 2017 by Changpeng Zhao. It has quickly become one of the largest and most popular exchanges in the world, offering a wide range of trading services, including margin trading.
With trading fees of up to 0.1% and over 600 supported assets, Binance’s popularity guarantees an abundance of buyers and sellers, which makes orders fill rather quickly.
Margin trading on Binance allows users to borrow funds to increase their trading power and potential returns. To start margin trading on Binance, users need to transfer funds to their Margin Wallet and select their desired trading pair.
Binance offers both isolated and cross margin trading. Isolated margin trading allows users to trade with up to 10x leverage. Cross-margin trading, on the other hand, provides users with the option of choosing up to 3x leverage.
Binance margin trading also offers a flexible interest rate system, which is based on a tiered system depending on the amount borrowed and the duration of the loan. The longer the borrowing period, the lower the interest rate. Binance charges interest on a 24-hour basis, and interest is calculated based on the amount borrowed.
When selecting a margin trading platform to invest in, it's crucial to assess its risk management capabilities. Binance stands out as an excellent option due to its range of features designed to mitigate potential losses. These features include stop-loss and take-profit orders.
Stop-loss orders allow traders to set a predetermined price at which their position will be automatically closed if the market moves against them. Take-profit orders allow traders to set a target price at which their position will be automatically closed to lock in profits.
Moreover, Binance also offers a liquidation system to prevent traders from losing more than their initial margin. When a trader's margin balance falls below a certain level, Binance will automatically liquidate the trader's position to prevent further losses.
Overall, Binance has a robust security system in place to protect user assets. The platform uses multiple layers of security, including two-factor authentication, SSL encryption, and cold storage to keep user funds safe. So, it surely is one of the best crypto margin trading exchanges when it comes to security.
Additionally, note that Binance also provides users with the possibility of trading options, USDⓈ-Margined futures contracts, and Coin-Margined futures contracts. These contracts fall into the category of futures trading and allow even up to 125x leverage.
Besides that, if you're not sure that you want to step fully into margin trading, Binance offers leveraged tokens (BLVT) that provide exposure to 4x leverage. In essence, they allow you to trade with leverage on the spot market without running into liquidation risks.
In summary, Binance is surely worth being among the best crypto exchanges for margin trading. It is an ideal platform for it, as it offers a wide range of trading pairs and features to help traders maximize their profits. Besides, its flexible interest rate system, risk management features, and liquidation system make it reliable and trustworthy.
3. Coinbase – Great for Beginners
Ranks #3 out of 7 Crypto Exchanges
- + Fiat currencies - accepted
- + Simple to use
- + Accepts only the most trustworthy cryptocurrencies
- + Very secure
- - Some of the less-known coins aren't supported
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Anyone who’s not new to the crypto world knows this: Coinbase could never be left out of the best crypto margin trading exchanges list.
Coinbase is a San Francisco-based cryptocurrency exchange that has been around since 2012. It's one of the most well-known and trusted exchanges in the industry, with a strong focus on security and compliance.
The prominent position Coinbase occupies within the crypto space makes it a top search result when typing in "best margin trading platform crypto," or related topics on Google. As an established company in the industry, Coinbase has rightfully earned its spot in the limelight.
The platform allows users to buy, sell, and trade a variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, among others.
Coinbase also offers margin trading, which allows users to borrow funds to trade cryptocurrencies. Margin trading on Coinbase is available for selected cryptocurrencies, with leverage of up to 3x. In order to access margin trading, users must first apply and be approved for a margin trading account.
Talking about margin trading fees, Coinbase charges a fixed annualized interest rate of 8%.
Do note that the margin trading option was a part of the Coinbase Pro platform made for advanced users. However, since Coinbase announced the end of Coinbase Pro in June 2022, its features will be migrated to the Advanced Trade tool on Coinbase, including the margin trading option.
Overall, the margin trading option offered by Coinbase is known for its user-friendly interface and simplicity. Users can easily view their margin positions and monitor their margin requirements. The platform also offers margin call notifications, which notify users when their margin level drops below a certain threshold.
One of the advantages of margin trading on Coinbase is the platform's high liquidity. With a large user base and deep order books, users can easily enter and exit margin positions with minimal slippage. Additionally, Coinbase's strong security measures provide peace of mind for users concerned about the safety of their funds.
However, it's important to note that margin trading is a high-risk activity and can lead to significant losses. Thus, it's recommended that users thoroughly understand the risks involved and use caution when engaging in margin trading on Coinbase or any other platform.
In addition to margin trading, Coinbase offers a range of other features and services, including staking, crypto lending, and a mobile app for easy trading on the go. Besides that, it provides users with a futures trading option that allows opening futures contracts on BTC and ETH, as well as other types of assets (equities and energy).
Overall, with its strong reputation and user-friendly interface, Coinbase is a popular choice for both beginners and experienced traders alike.
Did you know?
Compare Crypto Exchanges Side by Side With Others
All Crypto Exchanges may look similar to you but they're NOT all the same!
4. Kraken – Innovation and Security with a Long History
Ranks #4 out of 7 Crypto Exchanges
- + Secure and reliable
- + Low fees
- + A good amount of fiat currencies accepted
- - Not the most helpful customer service
Kraken is one of the oldest and most respected cryptocurrency exchanges in the world, so it could not be left out of any “best crypto margin trading exchanges” list.
Founded in 2011, merely two years after Bitcoin’s debut, the exchange has been at the forefront of innovation and security in the crypto space. Kraken offers a wide range of trading pairs, including fiat-to-crypto and crypto-to-crypto options.
Kraken is known for its high levels of security and reliability. The exchange has implemented a number of measures to protect its users' funds. This includes storing the majority of user funds in cold storage, using two-factor authentication for account access, and requiring users to pass a thorough verification process before trading.
Thus, it's a great choice when searching for the best margin trading platform crypto if security is your top priority (which it should be).
In addition to its standard trading options, Kraken also offers spot margin trading, allowing users to borrow funds to increase their trading power. Kraken's spot margin trading feature allows users to leverage up to 5x on certain trading pairs, meaning they can trade with up to five times the amount of their initial investment.
Kraken also offers a wide range of advanced trading tools, including advanced order types and charting tools, making it a popular choice for experienced traders. The exchange's user interface is also easy to navigate, with a clean and intuitive design.
Besides all that, Kraken offers competitive trading fees for opening a spot margin trading position. They vary depending on the trading pair, though, they do fluctuate between 0.01% and 0.02%. In addition to that, you also must pay a rollover fee. It is the same amount as the initial fee, and it is charged every four hours to keep your positions open.
Do note that the exchange also offers a number of incentives to encourage users to trade on the platform, including a loyalty program that rewards users with discounts on trading fees.
In addition to that, if you're wondering about other types of trading with leverage, Kraken also allows users to participate in futures trading. Though, it is not clear how high your leverage can be, as Kraken does not indicate this publicly.
Overall, Kraken is one of the best crypto exchanges for margin trading. It is also a reliable and secure option for traders looking to buy and sell cryptocurrencies. With a wide range of trading pairs, advanced trading tools, and competitive fees, Kraken is a good choice for both new and experienced traders alike.
5. KuCoin – Automated Trading and Diverse Portfolio
Ranks #5 out of 7 Crypto Exchanges
- + Strong security measures
- + Over 700 supported cryptocurrencies
- + A variety of trading and earning features
- + Competitive fees
- - Not available for US traders
- - Might be somewhat complicated for beginners
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When discussing the best crypto margin trading exchanges, KuCoin could never be left out of the list, as it supports more than 200 distinct cryptocurrency pairs.
Founded in 2017, KuCoin is a popular cryptocurrency exchange headquartered in Singapore. The platform has grown to become one of the largest cryptocurrency exchanges globally, with an average daily trading volume of $3 billion as of April 2023.
KuCoin offers a wide range of cryptocurrencies to trade, including popular coins like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), as well as some lesser-known altcoins. With a diverse portfolio, KuCoin has grown to be one of the best crypto margin trading platforms available.
KuCoin's margin trading feature allows traders to borrow funds to open larger positions and amplify their potential profits. The the cross margin option offered by the platform allows a maximum of 5x leverage, while the isolated margin allows a maximum of 10x leverage.
Regarding margin trading fees, they are based on the user's trading fee level. The level is determined by the maker-taker mechanism, the asset in question, trading volume, and the quantity of KCS tokens (the native KuCoin token) held.
To start margin trading on KuCoin, traders need to first enable their margin account and transfer funds into it. Once they have sufficient funds in their margin account, they can select the cryptocurrency they want to trade and choose the desired leverage.
In order to inform traders better, KuCoin also offers a liquidation price calculator to help investors manage their risk and avoid margin calls.
KuCoin's margin trading feature also includes an auto-borrow function, which automatically borrows funds when a trader opens a position if their margin balance is insufficient. This feature can help ensure that traders always have the necessary funds to execute their trades without having to manually manage their borrowing. This surely is a handy feature that makes KuCoin one of the best crypto margin trading exchanges.
Additionally, KuCoin also offers a futures trading option for BTC and ETH. These contracts on KuCoin have two types of leverage - the initial leverage (up to 100x) and the actual leverage (over 100x). Besides that, KuCoin also provides users with leveraged tokens.
In summary, KuCoin is definitely among the best crypto exchanges for margin trading, as well as for trading overall. Besides, KuCoin's auto-borrow function and liquidation price calculator make the process of increasing potential profits while managing risk much easier.
6. Huobi – Customization, Security, and Education
Ranks #6 out of 7 Crypto Exchanges
- + Very low fees
- + User-friendly interface
- + Most crypto assets are stored offline
- + 24/7 customer support
- - Only crypto assets available to be exchanged
Huobi is a leading digital asset exchange that offers its users a wide range of trading services for cryptocurrencies and digital assets, and is definitely among the best crypto margin trading exchanges available today.
The Huobi platform was founded in 2013 by Leon Li, and has since then grown to become one of the largest cryptocurrency exchanges in the world, with a presence in more than 130 countries. The exchange supports over 300 cryptocurrencies, granting its users access to a very diverse portfolio.
As a reputable crypto investment hub, Huobi offers its users a wide range of features, including spot trading, margin trading, futures trading, and options trading. The platform also offers staking services, allowing users to earn rewards by holding certain cryptocurrencies on the exchange.
One of the standout features of Huobi is its user-friendly interface, which is designed to be easy to use for both beginner and advanced traders. The platform offers a variety of trading tools and charting options, allowing users to customize their trading experience to their individual preferences.
Huobi's margin trading feature allows users to trade cryptocurrencies with leverage, increasing their investment potential. The platform offers isolated margin trading with up to 5x leverage and cross margin trading with up to 3x leverage. Besides, users can choose from a variety of different cryptocurrencies to trade with leverage.
Talking about the fees charged for margin trading, they depend on your tier. For one, note that there are two types of users – normal and professional traders. Both types have different fee tiers that are based on their margin trading interest rate, 30-day trade volume, and the amount of native Huobi tokens (HT) they hold.
Another notable feature of Huobi is its security measures. The platform uses advanced encryption and multi-factor authentication to protect user accounts and funds. Huobi also stores the majority of its users' funds in cold storage, which is kept offline and therefore less vulnerable to hacking attempts.
Besides that, there is also the option of futures trading on Huobi. It allows up to 100x leverage for all tokens, except for BTC and ETH. For these two, Huobi allows up to 200x leverage. That's a lot! Just don't forget – the higher the leverage, the higher chance of forced liquidation.
In addition to its exchange services, Huobi also offers a range of educational resources for users, including trading guides, market analysis, and tutorials on blockchain technology.
Overall, Huobi is a comprehensive and user-friendly platform that offers a wide range of trading services for cryptocurrencies and digital assets. Its margin trading feature and security measures make it an attractive option for traders looking for the best margin trading platform crypto.
7. Bitfinex – Margin Trading and Margin Funding in One Place
Ranks #7 out of 7 Crypto Exchanges
- + More than 170 crypto assets to trade with
- + Supports fiat deposits
- + Advanced trading tools
- + Small fees
- + Highly-improved security features
- - Controversial past
- - Might not be suitable for beginner traders
Bitfinex, one of the best crypto margin trading exchanges, is a cryptocurrency exchange that was launched in 2012, and it is based in Hong Kong.
The Bitfinex platform is known for its advanced trading features, such as margin trading and margin funding, which have made it popular among professional traders and investors.
Bitfinex's margin trading option allows traders to increase their buying power by borrowing funds from the exchange. Bitfinex offers up to 10x leverage for margin trading, which means that traders can increase their profits by up to 10 times. Margin trading on Bitfinex is available for a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and others.
In terms of fees charged for margin trading, Bitfinex requires traders to pay an interest rate. This rate can either be determined by the traders themselves or through the finance matching system offered by Bitfinex.
Margin funding is another feature that Bitfinex offers, which makes it stand out among the best crypto margin trading exchanges. This feature allows users to lend funds to margin traders and earn interest on their holdings. Margin funding and lending are complementary activities because funds contributed through the P2P funding platform are used by borrowers in margin trading.
Note that margin funding is a great way for investors to earn passive income while margin traders borrow funds to increase their buying power. Besides, lenders can choose from different margin funding rates and time periods.
Now, for those who like trading with leverage, it's also worth noting that Bitfinex offers a futures trading option with up to 100x leverage. Though this feature is only accessible to intermediate and higher-level verified users.
In addition to that, Bitfinex is a great exchange overall, not only for leverage trading. It provides users with advanced trading options, various order types, low trading fees, and advanced security measures.
So, Bitfinex surely is one of the best crypto exchanges for margin trading, as well as is a popular choice for professional traders and investors who are looking for a platform that offers advanced trading capabilities.
Conclusions
To sum up, margin trading has become a popular feature among cryptocurrency traders, providing the opportunity to increase potential profits by using borrowed funds to open larger positions. In this scenario, it’s important to know everything there is to know about the best crypto margin trading exchanges available.
However, it's also important to note that margin trading carries higher risks, and traders should always exercise caution and do their research before engaging in this type of trading.
The seven exchanges discussed in this article are some of the best crypto margin trading exchanges available. You can rest assured that whether you choose Binance, Bybit, Coinbase, or other platforms mentioned above, you’ll be in safe hands.
Overall, you should carefully consider your trading goals, risk tolerance, and preferences when choosing a margin trading platform. Also, always remember to practice proper risk management techniques to minimize potential losses!
Fortunately, many platforms that provide margin trading also include useful risk management tools. By taking advantage of these features, you can help safeguard your investments. With all those resources at your disposal, you can begin your margin trading journey with confidence and peace of mind! So, good luck trading!
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