Margin trading is considered as one of the best ways to make money in the cryptosphere. But depending on your trading methods, it can be extremely risky and highly rewarding at the same time. Traders with a limited amount of crypto resources should opt for leveraging investments. This, in turn, increases the amount invested without having to actually hold the assets. If you are unaware of margin trading, then note that it is a form of trading in which you trade with an extra amount of money borrowed from someone else on the basis of your present financial status. For instance, if you have $1000 at hand and you borrow $500 on this basis to trade, it is called margin trading. Remember that margin trading is highly risky, and crypto margin trading even riskier. So, it should be strictly avoided by beginners, considering the fact that even veteran traders also incur huge losses in margin trades. However, if you are good at regular day trading, you can take baby steps towards trying margins for crypto trading.
Read on here to know about four crypto exchanges that allow margin trading on their platform:
BitMEX has gained a lot of respect in the cryptosphere in a short period of time. Its team comprises experienced developers, economists, and high-frequency algorithm traders which make it a reliable product. The company offers margin trading for 6 cryptocurrencies, Bitcoin margin traders being the most famous one. You can also get BitMex deal -10% saving for 6 months on trading if you register via CoinSutra.
- Huobi Pro
It is an international cryptocurrency trading exchange famous for its international multi-language platform and support. The exchange headquarters in Singapore has offices in Hong Kong, Korea, Japan, and the United States and is operating in this space since 2013. To get started on this platform, you need to register with your email ID and get your documents cross-checked for KYC. This platform allows you to leverage up to 5X in Bitcoin and margin trade.
Founded by Tristan D’Agosta, Poloniex is one of the pioneer exchanges out there. Although the registration process is quite simple on this platform, to increase your trading limits, you need to submit KYC documents, which will take hours for approval. Apart from offering normal trading accounts for day traders, Poloniex also offers margin trading features for advanced users. It allows you to leverage up to 2.5X in BTC and margin trade.
Based in San Francisco, Kraken is one of the broadest Bitcoin and altcoin exchanges in the USA. Apart from this, it is also the largest exchange in terms of EUR. To get started with this platform, you need proper KYC verification, which might take up to 7 days. After this, you can deal with fiat currencies like USD, EUR, GBP, CAD etc. One can also margin trade on Kraken and get the benefit of different leverage options that it provides for different pairs.
Crypto exchanges are good, but they are also a honeypot for hackers. And, when we talk about margin trading, the risk of getting attacked by hackers increases manifolds. After all, these exchanges usually have huge volumes of money. Therefore, even if you simply day trade, never keep your money or cryptocurrencies on these exchanges as it’s an unsafe practice. The good news is that the above-mentioned exchanges provide extra security features like 2-FA authentication which are simple to use.