We list the best Leveraged Tokens crypto trading sites in this article.
- Leveraged Tokens make it easier to trade crypto derivatives.
- The leverage ranges from 1.5 to 5x, with no liquidation risk.
- Binance and Bybit have low trading fees
- Gate.io has the maximum leverage, 5x.
Leveraged Tokens involve risk and are not suitable for long-term investments.
List: Best Leveraged Token Crypto Trading Sites
- Kucoin has the 2nd most listed leveraged tokens with 29 cryptocurrencies in both directions
- Bybit has few listed leveraged tokens but the 2nd lowest management fees after Binance.
- Gate.io has the most listed leveraged tokens markets and the highest leverage. Also, they have the lowest fees for very short trades since they don’t charge any trading fees for opening and closing a trade.
- Binance has the lowest management fees and adjustable leverage.
- BYDFi is one of the best crypto trading sites still accepting traders from the USA.
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Bonus: See all free crypto sign-up bonuses 2023 with terms and conditions.
What are Leveraged Tokens?
➤Crypto leveraged tokens are a crypto trading instrument that gives traders a leveraged position in trading. Many experience this way as a simplified version of crypto leverage trading.
The above images are taken from Bybit Learn, which offers some of the best free crypto trading courses and educational material. Here, you can see how Leveraged Tokens are an intermediary between the spot and derivative markets.
In contrast to many other leveraged positions in crypto trading, leveraged tokens don’t need margin and can’t be liquidated. However, they still involve risks, and you might want to read more about crypto trading risk management.
Crypto Leveraged Tokens Trading Methods
There are usually two different trading methods connected to leveraged tokens.
- Buy and Sell ins the spot market – You can trade the leveraged tokens in the spot market. We and the exchanges recommend this.
- Purchase and Redemption – The exchanges process subscription and redemption requests each day. However, these are often limited in number per day.
Crypto Leveraged Tokens VS Derivative Trading
Leveraged Tokens summary
- Rebalancing – Rebalance is a process where leveraged tokens increase or decrease their futures positions in the underlying asset to achieve the target leverage. As the price of its underlying asset goes up, it will take on more positions. Likewise, if prices go down, it will reduce positions.
- No margin required
- No liquidation risk – Note: The net asset value of a Leveraged Token could still fall to zero, in which case it would be unrecoverable.
- No rebalancing
- Margin required
- Liquidation risk
Crypto Leveraged Tokens Risks
Leveraged tokens are only fit for professional investors to use for risk hedging or short-term one-sided market investment.
They are not suitable for medium and long-term investments. Because of the position adjustment mechanism, the risk of holding leveraged tokens for a long time is extremely high. The longer the holding time, the greater the volatility and friction costs.
Leveraged Tokens Calculation Example
Suppose the spot price of BTCUSDT rises from $10,000 to $10,500 in one day, a 5% increase.
• If you’ve bought the BTC3L (long with 3x leverage) Leveraged Token, you’ll have a 15% return.
• If you’ve bought the BTC3S (short with 3x leverage) Leveraged Token, you’ll incur a 15% loss. Read more about how to short Bitcoin on Binance.
With the correct prediction of the underlying token’s price movements under suitable market conditions, you can significantly magnify yield compared to a spot trading position.
Kucoin Leveraged Tokens – 3x
Kucoin is one of the best crypto trading leverage platforms with great possibilities for high returns.
The leveraged tokens can go long and short in the underlying cryptocurrency and will move 3x the spot market in any direction.
The great benefits of leveraged tokens are
- No collateral or margin maintenance is required to hold leveraged tokens
- There are no liquidation risks
Note that leveraged tokens may experience high price volatility, and the risk is still high even without liquidation risk.
Read more about the Kucoin exchange.
Kucoin Leveraged Token Trading Fees
1. Trading Fees: For buying or selling at the spot market. Starts at 0.1% but can be lower.
2. Subscription Fees/Redemption fees: Subscription and redemption fees are charged when users subscribe and redeem tokens. Currently, the fee rate is 0.1% per subscription/redemption.
4. Management Fees: Management fees are charged at 0.045% by 23:45 (UTC) daily. The fee will be incorporated into the net asset value of the Leveraged Tokens.
The management fee of ADA3L and VET3L is 0.1% due to the large fluctuations in the recent market.
Kucoin Leveraged Token List
ALGO, ETH, PEPE, ADA, BCH, SOL, APT, BLUR, ARB, FLOKI, SUI, FTM, JASMY, DNDR, BTC, EOS, VET, XRP, DOGE, BNB, LINK, MATIC, DOT, UNI, AXS, NEAR, SUSHI, SAND, AVAX, GALA, GMT, OP, SHIB, GRT, ID, CFX, ARB, SXP, MASK, STX, LINA, INJ, ETC, CTSI, ICP. KAVA, LUNC, CIL, WOO, FIL
Bybit Leveraged Tokens Pros and Cons
Pros
- Easy to get leveraged exposure with no risk of liquidation
- No margin is necessary
- Kucoin has many listed leveraged tokens
Cons
- Very high management fee
- Trading Fee: 0.1%
- S/R Fee: 0.1%
- Management Fee: 0.045%
- Number of markets: 50+
- Leverage: 2-4x
You pay either trading or S/R (subscription/redemption) fees. Note that the management fee will hava a serious impact on your total holdings if you hold the position for more than a few days.
Bybit Low Management Fees – Leveraged Tokens
Bybit Leveraged Token represents a basket of perpetual contract positions. When you trade a Leveraged Token, you invest in a basket of contracts for the underlying asset. This is similar to all other exchanges as well.
Like other trading sites, a Leveraged Token is a crypto derivative product with no margin or liquidation risks. It provides you with leveraged exposure to the underlying asset. It is suitable for short-term investments in a one-sided market since, in a volatile market, your position will decrease due to the management fees.
Bybit Leveraged Tokens Trading Fees
The fees involved with Bybit Leveraged Tokens are as follows:
- Trading Fees: Charged when buying/selling the leveraged tokens on the spot market. The fee level is the same as that of spot trading and starts at 0.1% but can be lower.
- Subscription Fee/Redemption Fee: Charged when subscribing/redeeming a leveraged token. The fee is currently 0.1% of each subscription/redemption.
- Management Fee: The management fee of 0.02% will be charged daily at 12 AM (midnight) UTC. It will be reflected in the net asset value of the Leveraged Token.
Bybit Leveraged Tokens List
ADA, APE, ATOM, AVAX, BTC, DOGE, DOT, EOS, ETC, ETH, FTM, GMT, LINK, LTC, MATIC, SAND, XRP
Bybit Leveraged Tokens Pros and Cons
Pros
- Low management fee
Cons
- Bybit has a few listed leveraged tokens
- Trading Fee: 0.1%
- S/R Fee: 0.1%
- Management Fee: 0.02%
- Number of markets: 17
- Leverage: 2-3x
You pay either trading or S/R (subscription/redemption) fees. Note that the management fee will hava a serious impact on your total holdings if you hold the position for more than a few days.
Gate io Lowest Trading Fees – Leveraged Tokens
Gate.io Leveraged Tokens are a derivative that provides leveraged exposure to the underlying asset.
Leveraged tokens can be traded on the spot market but will move according to their leverage 3x-5x the spot market. Like other trading sites, each leveraged ticket represents a basket of perpetual contract positions.
The price of a leveraged token moves along with price changes in the perpetual contract market, and the leverage level moves up and down accordingly. Investing in them requires knowing this product’s benefits and possible risks.
Gate.io Leveraged Tokens Trading Fees
Gate.io’s leveraged tokens come with a daily management fee of 0.1%. The daily management fee includes all costs incurred by trading leveraged tokens, including handling fees of contract trades, funding fees, and frictional expenses due to price differences when opening positions. This differs from the other exchanges since the everyday praxis is to charge trading fees for buying and selling a leveraged token.
Gate.io Leveraged Tokens List
ETH, FIL, LINK, AXS, DOGE, LTC, XRP, YFI, XEC, BTC, COTI, APE, UNI, RUNE, SHIB, DOT, ROSE, ENJ, GALA, ETC, SUSHI, EOS, FTT, CHZ, AAVE, SLP, MASK, BCH, KSM, HT, WAVES, FITFI, BAL, ALGO, NEAR, BSV, XTZ, GST, JASMY, DASH, GLMR, HT3, BSW, LRC, MANA, LIT, AR, APT, ANC, 1INCH, SNX, YFI, COMP, CRV, RACA, SKL, EGLD, MKR, XMR and more…
Gate.io Leveraged Tokens Pros and Cons
Pros
- It is easy to get leveraged exposure with no risk of liquidation
- No margin is necessary
- Kucoin has many listed
Cons
- Very high management fee
- Trading Fee: -
- S/R Fee: -
- Management Fee: 0.1%
- Number of markets: 50+
- Leverage: 3-5x
You pay either trading or S/R (subscription/redemption) fees. Note that the management fee will hava a serious impact on your total holdings if you hold the position for more than a few days.
Binance Leveraged Tokens
Binance Leverage Tokens (BLVTs) differ from conventional leveraged tokens (LT). Instead of maintaining constant leverage, BLVTs carry a variable target leverage range between 1.5x and 3x.
Leveraged tokens are tradable in the Binance Spot Advanced trading interface and track the underlying perpetual contracts on Binance Futures.
BTCUP allows you to generate leveraged gains between 1.5 to 3x when Bitcoin goes up and vice versa with BTCDOWN.
Read more about Binance margin trading.
Binance Leveraged Tokens Trading Fees
The fees associated with Binance Leveraged Tokens are as follow:
Trading Fees: Trading fees are charged when buying or selling tokens in the spot market, and the fee schedule is identical to spot trading;
Subscription Fees/Redemption Fees: Subscription and redemption fees are charged when users choose to subscribe or redeem to tokens. These are currently set at 0.1% per subscription/redemption.
Management Fees: A daily management fee of 0.01% will be charged at 00:00 UTC and reflected directly in the net asset value of the Leveraged Tokens;
Funding Fees: Funding fees are paid (or paid to) the underlying fund based on the funding rate and reflected directly in the net asset value of the Leveraged Tokens. Binance takes no fees for funding rate transfers, now between traders.
Binance Leveraged Tokens
ADA, BNB, BTC, ETH, 1INCH, BCH, DOT, EOS, FIL, LINK, LTC, SUSHI, SXP, TRX, UNI, XLM, XRP, XTZ, YFI
Binance Leveraged Tokens Pros and Cons
Pros
- Binance has Variable leverage vs Fixed Leverage (as most other exchanges have)
- Rebalancing
- Market Liquidity
- Transaction and Related Fees
Cons
- Lower leverage than the other trading sites
- Trading Fee: 0.1%
- S/R Fee: 0.1%
- Management Fee: 0.01%
- Number of markets: 20
- Leverage: 1.5-3x
You pay either trading or S/R (subscription/redemption) fees. Note that the management fee will hava a serious impact on your total holdings if you hold the position for more than a few days.
BYDFi Leveraged Tokens
BYDFi is a one-stop social trading platform for individual investors. BYDFi has been offering professional, convenient, and innovative trading solutions to global users since 2020, including spot trading, lite contracts, perpetual contracts, and copy trading.
BYDFi Leveraged Tokens trading fee:
The transaction fee for leveraged tokens is charged separately when buying or selling (USDT), and the transaction fee rate is 0.2%.
Management Fee:
The management fee is charged daily at 00:00:00 (UTC+8) and will be reflected in the net asset value of the leveraged tokens, which means 0.03% of the true value of the leveraged tokens will be deducted and no deduction will be made to users’ current positions. No management fee will be charged if users do not hold any leveraged tokens at that point.
BYDFi Leveraged Tokens List
Allt he below-listed currencies are available as 3xLong and 3x Short as you can see in the BTC example.
BTC3xLong, BTC3xShort, ETH, ETH, XRP, DOT, LINK, AAVE, ADA, ALGO, ATOM, AVAX, AXS, BCH, BNB, DOGE, EOS, FIL, FLOKI, FTM, GALA, HBAR, JASMY, ETC, LUNA, MATIC, NEAR, QNT, SHIB, SKL, SOL, TRX, UNI, XLM
- Trading Fee: 0.2%
- S/R Fee: 0.2%
- Management Fee: 0.03%
- Number of markets: 20
- Leverage: 1.5-3x
You pay either trading or S/R (subscription/redemption) fees. Note that the management fee will hava a serious impact on your total holdings if you hold the position for more than a few days.
About Leveraged Tokens
Why do leveraged tokens need the rebalancing mechanism?
Many Leveraged Tokens have a targeted leverage range. The rebalancing mechanism activates when the real leverage deviates from the target range.
What is the net asset value for leveraged tokens?
Net asset value (NAV) refers to the current value of your Leveraged Token.
