Welcome; in this article, we compare some of the top Bitcoin and altcoin crypto trading sites to list the best crypto leverage trading platforms in terms of
- credit card deposit fees
- highest leverage
- futures and perpetuals markets listed
- trading volumes in derivative markets
- futures and perpetual trading fees
Many traders are looking for Bitcoin leverage trading to maximize their profits. It would be best if you did margin trading or crypto derivative trading to get leverage.
Remember that leverage trading imposes a higher risk trading. So always commit time to proper risk management. We created a guide for crypto trading risk management.
Best Crypto Leverage Trading Platforms
Bybit: Offers high leverage, decent trading fees, and significant trading volumes. If you are trading large marketcaps, Bybit is a great place to be. In addition, many of the most prominent crypto influencers are selling on Bybit or promoting Bybit(Ivan on tech, Bit boy, The Moon, etc.). Bybit is available in more goes than Binance, and this is especially true for leverage since Binance spot trading can be available but not futures for specific jurisdictions.
What is crypto leverage trading?
Crypto leverage trading is a trading instrument that allows you to trade with the help of borrowed capital.
Here, it´s essential to understand the trading risks and that you have to pay interest on the borrowed capital.
Also, you can be forced to close your position if there is a risk that you can´t afford to pay back the borrowed capital.
Crypto Leverage Trading Calculation Example
- You hold 1 Bitcoin in your account, but you want to go long 2 Bitcoin
- Now, you need to borrow 1 Bitcoin from the trading platform (You will probably borrow USDT). It corresponds to 2x leverage
- Once you have made the trade, you now have to pay interest on 1 Bitcoin every eighth (This is a regular interval but can be every hour as well. Still, the interest rates are yearly numbers, so you can easily compare them)
- You also need to understand that there are margin calls where your position might liquidate. For example, if the Bitcoin price decreases by 50%, your trading position is worth 1 Bitcoin, but you also owe your borrower 1. Hence, your loss is 100%, and your trading position will probably liquidate before this occurs.
Credit Card Deposit Fees on Crypto Exchanges
The table below lists the best crypto leverage trading platforms offering credit card deposits as an option.
Credit cards are expensive to use, and you can see this since fees start from 1.8%.
*It´s possible to deposit via credit cards but you must go via a 3th party service and they charge their fees.
Highest Futures Leverage Crypto Trading Platforms
The table below lists the highest leverage you can trade on futures and perpetuals (futures without an expiration date).
Make sure to understand that these are incredibly high leverage and could potentially eliminate your portfolio in minutes, if not seconds.
Perpetual and Futures markets with crypto leverage
The table below lists the number of markets supported by each crypto leverage trading platform.
Here, you can compare the number of perpetuals and futures markets available on each platform.
Can I stake a short position on perpetuals and futures?
Yes, shorting a Bitcoin or any other crypto asset is available with perpetuals and futures as long there is a market. Read more about how to short on Binance and Bybit.
Crypto Derivative Trading Volumes
The table below lists the derivative trading volumes for the best crypto leverage trading platforms. As you can see, Binance is the dominant one offering the best trading volumes.
You should be aware that smaller trading volumes can create larger spreads and more slippage, which can be very important. Crypto trading slippage will only hurt you if you trade huge volumes, while high spreads will impact even traders with low trading volumes.
Futures Trading Fees
Here, we have compared the different trading fees for futures contracts. First, it´s essential to understand the difference between maker and taker fees.
Also, all platforms have different VIP levels; if you belong to a higher VIP level, you pay lower fees. The table below lists the highest trading fees (the lowest VIP level) and the lowest futures trading fees (the highest VIP level).
For Binance, this is not 100% accurate because you can pay even lower fees if you pay your Binance trading fees with the Binance coin BNB. In addition, they have BUSD settled futures which are cheaper to trade in terms of fees (Table is USDT futures). Also, you can further reduce the Crypto.com exchange trading fees by staking CRO or becoming a VIP tier.
What risks are associated with Bitcoin Leverage Trading?
Although many would benefit from this tool, lenders and borrowers alike, there are high crypto trading risks associated with bitcoin leverage trading.
Cryptocurrencies are a very volatile market, where changes and trends occur in a few hours, if not minutes. Thus, as one can earn 10x more profit, they can also lose. For example, if a trade for $100 occurred under a 10x rate with a 10% of negative price trend, the entire order would be lost.
Beginners should first educate themselves about the market before using this tool. Many starters lost entire savings by trading with emotions while using significant leverage rates.
Also, it’s essential to understand how the trading site charges the fees. Since you borrow money when you are trading with leverage, you must pay a fee, or interest, on the borrowed money.
Look on our favorite Youtube crypto channel describing what Bitcoin leverage trading is.
Binance Crypto Leverage Trading Review
Binance is the best crypto exchange because they offer the lowest fees and the best trading features. However, some other trading platforms have found their niche. We discuss and present those trading platforms later in this article.
On Binance, you can trade with leverage with several different products. Binance has margin trading, derivative trading, and leveraged tokens.
In the screenshot below, you can see the different derivative products on Binance. You can get up to 20x leverage on Binance.
Binance Referral Code: -20% on all commissions with our link
Kucoin Crypto Leverage Trading Review
Kucoin is one of the best crypto leverage trading platforms. Kucoin is the closest you can get to Binance regarding features and liquidity. In addition, Kucoin offers higher leverage and approved US customers.
The best part is that you also receive -20% on all trading fees ever charged by Kucoin with our referral code.
ByBit Crypto Leverage Trading Review
ByBit is a pure cryptocurrency derivative trading platform. It means you don’t go to Bybit if you are looking for a simple crypto exchange.
If you are looking for a simple crypto exchange you go to Coinbase if you are a US citizen and Binance if you live outside US.
With ByBit you can do leverage trading with up to 100x leverage on BTC/USD and ETH/USD trading pairs. The derivatives exchange offers perpetual contracts that follow the cryptocurrency spot price, not the actual cryptocurrency assets.
Read more about Bybit in our Bybit review.
Kraken Crypto Leverage Trading Review
Kraken Margin Trading Markets
The screenshot below shows all the available crypto margin trading markets on Kraken with up to 5x leverage.
Kraken Futures Trading Markets
The screenshot below shows all the available crypto futures trading markets on Kraken with up to 50x leverage.
Most User-Friendly Crypto Trading Leverage Platform
Do you think crypto leverage trading is complicated and hard to understand?
YouHodler has created a crypto leverage trading feature called YouHodler Multi HODL, which is crypto leverage trading with an easy-to-use interface.
The fees are a bit higher than Binance and Bybit, but if you want to try crypto leverage trading as a beginner, it might be worth it.
Check out our YouHodler Multi HODL review to explore an easy way to start with crypto leverage trading.
How to report tax on crypto leverage trading?
Reporting tax on crypto leverage trading can be time-consuming and complex since there are many different things to consider.
We are using crypto tax software which automatically imports all your transactions from the trading platform, categorizes them, and calculates your taxes.
We use Koinly as we think they have the best crypto tax software for an affordable price.
Best Crypto Trading Bot for Leverage Trading
We think Coinrule is the best crypto trading bot for leverage trading.
With Coinrule, you can connect to Binance, Binance US, Poloniex, Bitpanda Pro, Coinbase Pro, Bitstamp, HitBTC, Kraken, Liquid, and OKex.
If you trade on Kucoin or ByBit, you might want to try the Wunderbit crypto trading bot.
Conclusion - Where to trade crypto with high leverage?
This guide gives our readers the answer to where I can trade crypto with the highest leverage.
Again, it is essential to mention that high leverages can lead to big profits and crippling losses. Also, we recommend readers learn more about the crypto trade by reading our articles regarding the lowest deposit and lowest trading fees.