Welcome, in this article we list the best crypto leverage trading platforms.
Many traders are looking for Bitcoin leverage trading to maximize their profits. You must do margin trading or crypto derivative trading to get a leverage.
Many people start to trade crypto with very high leverage too early. They are trading without having the knowledge of what leverage is and what fees are associated with leveraged products.
However, this will no include you since you will learn the basics in this crypto trading guide.
In this article, we will guide you through what crypto leverage is, where you can find the highest leverage and what are the risks associated with leverage trading.
Remember that leverage trading impose higher risk for trading. Always commit time for proper risk management. We created a guide for crypto trading risk management.
What is crypto leverage trading?
Crypto leverage trading is a tool that allow you to trade with the help of borrowed capital. Here, it´s important to understand that you have to pay interest on the borrowed capital. Also, you can be force to close your position if there is risk that you can´t afford to pay back the borrowed capital.
An example is
- 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). This corresponds to 2x leverage
- Once you have done the trade you have now to pay interest on 1 Bitcoin every 8h (This is normal interval but can be every hour as well. Still the interests are given as yearly so you can easily compare them)
- You also need to understand that there are margin calls where your position might be liquidated. For example, if the Bitcoin price decreases with 50% your position is worth 1 Bitcoin but you also owe your borrower 1 Bitcoin so your loss is 100% and your position is probably forced to liquidation before this occurs.
Where can I Trade Crypto with the Highest Leverage?
So, there are many trading sites offering crypto with high leverage. However, there are many new and shady business offering such products as CFD Bitcoin trading and Binary options. We recommend to stay with the largest trading sites because you will get the best security, the best trading features and the lowest fee.
Here we list the platforms where we have traded with Bitcoin leverage products.
*Signup bonues and codes are available below.
What risks are associated with Bitcoin Leverage Trading?
Although many would benefit from this tool, lenders and borrows alike, there are high crypto trading risks associated with bitcoin leverage trading as well.
Cryptocurrencies are a very volatile market, where changes and trends occur in the matter of few hours, if not minutes. Thus, as one can earn 10x more profit so can he/she lose as well. If a trade for $100 occurred under 10x rate with 10% of negative price trend, entire order would be lost.
Beginners should first educate themselves about the market before using this tool. Many a starter lost entire savings by trading with emotions while using large leverage rates.
Also, its important to understand how the fees are charged by the trading site. Since you borrow money when you are trading with leverage you must pay a fee, or a interest, on the borrowed money.
Look on our favorite Youtube crypto channel describing what Bitcoin leverage trading is.
Bitcoin Trading Sites with the Highest Leverage
Binance Crypto Leverage Trading
Binance is the best crypto exchange because they offer the lowest fees and the best trading features. However, there are some other trading platforms that 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
Kucoin is one of the best crypto leverage trading platforms. Kucoin is the closest you can get to Binance in terms of features and liquidity. In addition, Kucoin offers higher leverage and approve 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
ByBit is a pure cryptocurrency derivatives trading platform. It means you dont 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 follows the cryptocurrency spot price, not the actual cryptocurrency assets.
Read more about Bybit in our Bybit review.
Morpher leverage trading
Morpher trading platform is where to start if you have very low capital to start trading with.
Morpher is a great option if you want to start learning trading crypto with zero risk.
Sign up with Morpher and get 100 free MPH tokens. With the MPH tokens you can speculate on around 1000 different assets including approximately 100 different cryptocurrencies. You can trade up to 10x leverage on Morpher.
Read more about Morpher trading platform or sign up using the button below.
How to report tax on crypto leverage trading?
Reporting tax on crypto leverage trading can be time consuming and complex since there are so many different things to consider.
We are using a crypto tax software which automatically imports all your transactions from the trading platform, categorize them, and calculate your taxes for you.
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, OKex.
If you trade on Kucoin or ByBit you might want to try Wunderbit crypto trading bot.
Conclusion - Where to trade crypto with high leverage?
Through this guide, our readers have the answer to where can I trade crypto with the highest leverage.
It is important to mention once again that high leverages can lead to big profits but also crippling losses. Also, we recommend readers to learn more about the crypto trade by reading our articles regarding lowest deposit and lowest trading fees.