With the recent resurgence in the crypto market and the price of Bitcoin improving, many people are once again becoming interested in buy, selling, trading and investing cryptocurrency. There are those who have never invested before, looking to get involved, and those who left when the market struggled and are now returning.
However, just like with fiat currency investments, there is a number of different ways to invest in cryptocurrency like Bitcoin. While many people will either day-trade or simply buy bitcoin and hold to sell in the future, there are several other methods that see widespread use. One of these methods is margin trading. Margin trading is when an investor or trader leverages their capital and is able to participate in larger trades than they would have been able to afford without the leverage.
Essentially, you are using borrowed money from a broker or the exchange itself to make investments and hoping for a positive outcome. But as you could imagine, this is riskier. For example, if you have 5 BTC and want to make larger trades, you may be able to borrow another 5 BTC by leveraging your funds.
Now, if this goes well and the price of Bitcoin increases, you will make a huge amount of profit, even after fees and paying back what you borrowed. However, if Bitcoin price falls, you could run the risk of losing most (or all) of your initial investment. Because of this inherent risk, margin trading and using leverages are generally not recommended for beginners. Only those who truly understand the market and have a lot of Bitcoin or crypto trading experience should participate.
Also, the volatility of Bitcoin and other cryptocurrencies makes margin trading by using leverages incredibly risky. Sure, it allows people with limited capital to make larger trades and potentially hit it big, but the risks can be enormous.
Now, not all exchanges allow for margin trading, and each exchange has different terms and rules. For example, some exchanges will allow you to trade with 5x leverage, while others will allow you to trade all the way up to 100x or more. It is important to know which exchanges are best for margin trading, and the benefits and features they offer.
If you are interested in using leverage to trade or participating in margin trading, this is the article for you. We are going to look at a few of the Bitcoin exchanges out there with the highest leverage for trading, and talk about why they are good options.
In addition to being seen as one of the most secure and reputable exchanges on the market, CEX.IO is also great for those looking to participate in margin trading. CEX offers leverages up to 10x on both Bitcoin and Ethereum. In addition to that, they also offer several other benefits for traders.
They offer several different variants of leverage, automatic fund borrowing and returning, automatic closure of position and protected stop loss. Also, while most exchanges may require you to open a new account to engage in margin trading, CEX allows you to trade on margin with your standard account.
While margin trading can sometimes be complex, CEX really does a great job at simplifying and demystifying the process. They feature a simple interface and making your trades quick and easy.
One of the most advanced trading platforms out there, BitMex has quickly burst onto the scene and has become very popular for margin traders. It is quite easy to use, and they have a great support team to ensure you get all of the help you need. Also, if you are looking to make a big splash, BitMex might be the option for you. They offer up to 100x leverage for their investors. Of course, this is a huge amount and is quite risky, so be careful.
Security is also a great concern for BitMex and they have never been hacked throughout their lifetime, which is great news. They also have many other inherent features and benefits and an account Is quite easy to sign up for. In addition to their advanced trading engine, BitMex also offers relatively high leverage on Altcoin contracts.
Binance is far and away one of the most popular and successful cryptocurrency exchanges out there. It serves many people from all over the world and recently. In early July 2019, they began to offer margin trading. They offer up to 3x leverage, which is more than enough for many investors.
Though you will need to open an account specifically for margin trading, it is quite simple to do so. They also take security seriously to ensure all margin trading is done legitimately and safely. Because this is a new feature they offer. They have a handy guide on their website to help you every step of the way. They offer margin trading on six different assets, including Bitcoin.
Like BitMex, Prime XBT has become popular among margin traders for their 100x leverage. This allows traders to magnify their profits and potentially make more than they could have on nearly any other exchange. Of course, this also means more risk. A Prime XBT account is completely free to sign up for, and there are no requirements to actually make any trades.
So if you want to sign up to explore the platform. See their benefits before deciding whether to trade. You can do just that. Another great thing about Prime XBT is that their trading fees are low and fair. This is incredibly helpful for both veteran traders and rookies alike, as no one likes paying large fees for trading.
Unfortunately, there are no fiat deposits available at Prime XBT. So, be aware of that before signing up for an account. Thankfully, in addition to Bitcoin, Prime XBT also allows margin trading on various different assets.
Each of the listed platforms has its own advantages and disadvantages. It is your decision which one to choose. Nevertheless, we hope that this article has helped you to learn a little more about the Bitcoin exchanges with the highest leverage for trading. That is supposed to help you in selecting the best platform.