Trading Bitcoin with leverage offers a huge opportunity to amplify your potential profit in the volatile market. Here is the list of top crypto exchanges that provide it.
In recent years, Bitcoin and other cryptocurrencies have been on the rise, attracting all types of investors worldwide. As of August 2021, the total market cap of the crypto market hits an all-time high of $2 trillion. Such an enormous number has caused some traders to develop a fear of missing out on possible huge profits from cryptocurrencies. As a result, they wanted to trade even more in order to pursue maximum gains.
To fulfill such needs, many crypto exchanges have introduced margin trading, which allows traders to trade with leverage in hopes of magnifying gains. Margin trading can increase traders' purchasing power. So even with limited capital, traders can open large positions and get even greater profits than usual if they are successful. This is possible due to the relationship between margin and leverage.
For example, a trader can use a 1:100 leverage so he only needs $10 as a margin to trade an asset with a $1,000 position size. However, you should note that leverage trading is not only multiplying profits but also increasing risks. That is why this type of investment is considered unsafe, even for experts, so it is not necessarily beginner-friendly per se.
In addition, the crypto market is highly volatile, so it's already risky in itself to trade without leverage, let alone amplifying the trade size with borrowed money. Therefore, before you decide to try crypto leverage trading, make sure to take as much time you need to learn about it and consider the risks.
Should you come to a conclusion in which you decide you try trading Bitcoin with leverage even after learning about all of the risks, here are some top exchanges to try:
Bybit is a crypto derivatives exchange platform that offers a wide range of advanced trading tools and top-notch security. If you're not familiar with the term "derivatives", they are essentially financial instruments known as contracts that base their value on a specific asset (in this case, cryptocurrency).
Bybit offers a seamless experience of margin trading with leverage of up to 100x for some popular cryptocurrencies including Bitcoin, Ethereum, Tezos, and Litecoin. The exchange also claims to have "no server downtime" and system functionality of up to 99.99%. With its state-of-the-art matching engine, Bybit claims to be able to handle 100,000 transactions per second, which is pretty fast compared to its rivals. In addition, Bybit guarantees to bear the total cost of the financial loss due to system error or downtime.
PrimeXBT is a top crypto exchange where traders can speculate on various markets, including cryptocurrency, most major stock indices, commodities, and foreign currencies. PrimeXBT offers margin trading of up to 100x your initial investment and offers a "covesting" feature that allows you to see and mimic the trading moves of top investors on the platform. There is also the "turbo" trading option that allows you to make short-term price predictions. If your analysis is correct, you can make a quick double-digit profit.
Another benefit of using PrimeXBT is the technical analysis platform, which runs on Tradingview. It contains hundreds of popular indicators, more than 50 intelligent drawing tools for in-depth market analysis, and many educational resources to improve one's trading skills. The chart also offers basically any leverage trading tool that you would expect in modern trading platforms such as rectangles, horizontal, arrows, text, Fibonacci retracement, and so on. Conveniently, the platform lets you open multiple charts so you can either view one asset across numerous time frames or monitor several assets at the same time.
Binance is the largest virtual currency exchange in the world at the moment with more than 200 different cryptocurrencies as tradable assets. The exchange supports at least 1.2 billion daily trading volumes and 1.4 million transactions per second, which is very impressive. Recently, Binance launched a futures trading platform called Binance Futures, which allows traders to trade with leverage to open short and long positions.
The distinctive platform allows Bitcoin futures trading with up to 125x leverage and up to 75x leverage for other cryptocurrencies, such as Ethereum, Ripple, Binance Coin, EOS, etc. Trading in Binance Futures is considered pretty simple and you can choose between four types of orders that include limit order, market order, stop-limit order, and take profit limit order. Moreover, users can easily access the platform from mobile phones. The mobile app is highly intuitive, easy to navigate, runs smoothly, and includes all the essential features necessary for trading.
Huobi Global, often known simply as Huobi, is a popular crypto exchange where you can safely buy, trade, sell, and earn 348 cryptocurrencies. It also supports 57 fiat currencies to fund an account and around 60 payment options in total, including bank transfers, debit/credit cards, AliPay, and more. The exchange was initially founded in China in 2013 but is currently based in Seychelles. Over the years, the company has grown rather dramatically until it reaches clients spread in 195 countries and is currently ranked #5 in the top cryptocurrency derivatives exchanges based on trading volume.
Huobi offers tons of crypto markets that can be traded using the same user account. Individual traders can trade cryptocurrencies by using spot exchange, margin exchange, futures market, options, and USDT-swaps with leverage of up to 125x. In order to minimize the risk of leverage trading, the exchange allows customers to hedge spot their positions by short-selling Bitcoin so they can balance their portfolio and exposure to market conditions.
Plus500 is a well-known CFD broker that was established in 2008 in Israel. The company is regulated by several top-tier institutions like the FCA (UK) and ASIC (Australia). In Plus500, traders can open buy and sell positions on various crypto CFDs with margin, including Bitcoin, Ethereum, Litecoin, EOS, Cardano, Tron, Neo, and more.
Plus500 is a UK-based company with its main offices located in the city of London. The company is authorized and regulated by FCA. For traders who are looking for a broker with top-tier regulators, Plus500 can be the right choice.
Plus500 offers 2,000 instruments to over a million clients. List of instruments available for trading with their CFD service include forex currency pairs, indices, cryptocurrencies, commodities, shares, and ETFs. Traders can choose instruments suitable for their needs.
Regardless, beginners should be extremely cautious while choosing their assets, as it can get daunting, confusing, and inherently risky.
When traders open an account, Plus500 will hold traders' funds on a segregated basis, following FCA's client money rules. Traders do not need to worry about Plus500 using their funds for hedging, as it is strictly prohibited to use clients' funds for this purpose.
Other advantages when trading in Plus500 are tight spreads and no commissions. The company only offers a single type of account, but traders can update the account from Retail to Professional by following some standards.
To apply Professional Accounts, traders have to fulfill at least 2 of the following 3 criteria eligible, such as sufficient trading activity in the last 12 months, financial instrument portfolio of over 500,000 Euro, and relevant experience in the financial services sector.
Plus500 is well-regarded for its services through the market spread, leverage up to of 1:30 for Retail Accounts, and leverage up to of 1:300 for Professional Accounts. Plus500 tries to give a sensible choice of leverage, which not only controls the risk but also helps novice traders to exercise more control over their trading emotions.
Founded in 2008, Plus500 provides almost the same features to both Retail and Professional account, including clients' money protection, negative balance protection, best execution for orders, clear and transparent information, as well as financial services compensation scheme. Still, Professional account is more advanced as it has access to FOS.
Based on the statistics, 76.4% of Retail account owners in Plus500 lose money when trading CFDs. Because of that, Plus500 always warns traders to consider their understanding of how CFDs work and their affordability to take high risk of losing money, before starting a trade in Live Account.
Even so, Plus500 has gained the trust of traders throughout the world. They have around 39 million positions opened, 304,000 active customers, and billions of volume trading processed by their system.
Plus500 always tries to give the best services to their clients. One of the ways to reach their goals is by making clients feel confident in their trading activity. They have a simple and easy-to-use trading platform, with an especially well-designed mobile platform. Traders can access the Plus500 platform via web-trader, iPhone/iPad, and Mobile App.
In their platform, traders will get advanced tools such as stop limit, guaranteed stop, free email and push notifications on market events, and alerts on price movements. All of these tools can help traders to navigate the market with better understanding.
As for payment methods, Plus500 provides various choices like Visa or MasterCard, electronic wallets (PayPal and Skrill), and bank transfer (direct bank to bank funds transfer).
For any concerns, troubles, or trading issues, traders can contact Plus500's customer service that is available 24 hours a day and 7 days a week. The official website of Plus500 can be accessed in 24 languages.
Overall, Plus500 has some advantages and disadvantages. As it has a license from an elite regulator, traders can feel safe when trading in Plus500. It also provides a 24/7 support team to help traders. But, offering leverages up to 1:300 is not suitable for high-risk traders, such as scalpers, who indulge in high-frequency trading that holds positions in the market for a brief period and typically use high leverage.
Since margin trading is considered highly risky, Plus500 offers a series of risk management tools such as stop-loss orders, trailing stops, and guaranteed stop-loss orders. So even if the price moves against your favor, your order will automatically be closed at a predetermined price with no risk of slippage.
BitMEX is one of the most advanced crypto peer-to-peer trading platforms that support margin trading with the latest technology and advanced trading tools. In BitMEX, both beginners and expert investors can purchase and sell contracts for cryptocurrencies with leverage of up to 100x. Apart from the high leverage, the platform also offers high reliability and fast transactions. Despite the volatility risk in the crypto market, BitMEX is able to provide liquidity as it is backed by several hedge funds from around the world.
Trading Bitcoin with leverage offers many benefits, such as reducing the amount of capital you need to invest and increasing the potential profit from the amplified trade size. This is also an excellent opportunity to make more significant gains than regular crypto trading. However, it requires huge responsibility and is incredibly risky. Losses can pile very quickly, so it's generally not recommended for beginners.
If you think you are experienced enough to understand the crypto market and regularly able to make accurate predictions of price movements, then crypto leverage trading can dramatically lead you to even bigger success. The exchanges above can be a good place to start if you want to try trading Bitcoin with leverage. But keep in mind that it will be more complicated if you're from the US.