Best Leveraged Tokens Crypto Trading Sites

Best Leveraged Tokens Crypto Trading Sites

We list the best Leveraged Tokens crypto trading sites in this article.

Leveraged Tokens are an easier way to trade derivatives contracts with leverage since there are no margin or liquidation risks. Still, they involve risk and are not suitable for long-term investments. 

Compare what trading site has

  • the most listed crypto leveraged tokens
  • the highest leverage
  • the lowest trading fees.

No Financial Advice, Information only. Do your own research. 

Cryptocurrencies are high-risk investments.

We earn an affiliate commission for marketing these sites

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 the adjustable leverage.

T=Trading fees(buy and sell), S=Subscription fees, R=Redemption fees, M=Management fees, F=Funding Fees. You pay either Trading fees or S/R fees, not both. 

Kucoin - Many Listed Leveraged Tokens

Kucoin is one of the best crypto trading leverage platforms with great possibilities for high returns. KuCoin Leveraged Tokens are tradable assets in the KuCoin spot market.

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 if there is no 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 the rate of 0.045% by 23:45 (UTC) every day. 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.

Bybit Leveraged Tokens Pros and Cons

Pros

  • Easy to get leveraged exposure with no risk for liquidation
  • No margin is necessary
  • Kucoin has many listed leveraged tokens

Cons

  • Very high management fee

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’re actually investing in a basket of contracts for the underlying asset. This is similar to all other exchanges as well.

Like with the other trading sites, a Leveraged Token is a derivatives product with no margin or liquidation risks. It provides you with leveraged exposure to the underlying asset and 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:

  1. 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.
  2. Subscription Fee/Redemption Fee: Charged when subscribing/redeeming a leveraged token. The fee is currently 0.1% of each subscription/redemption.
  3. 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 Pros and Cons

Pros

  • Low management fee 

Cons

  • Bybit has a few listed leveraged tokens

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 type of derivative that provide leveraged exposure to the underlying asset.

Leveraged tokens can be traded on the spot market but will move according to its leverage 3x-5x times the spot market. Similar to the other trading sites, each leveraged token 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. When you are investing in them, you must know the benefits and possible risks of this product.

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, etc. This differs from the other exchanges since the common praxis is to charge trading fees for buying and selling a leveraged token.

Gate.io Leveraged Tokens Pros and Cons

Pros

  • Easy to get leveraged exposure with no risk for liquidation
  • No margin is necessary
  • Kucoin has many listed 

Cons

  • Very high management fee

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 maintain a variable target leverage range between 1.5x and 3x. 

Leveraged tokens are tradable in the Binance Spot Advanced trading interface and tracks 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; these are directly between traders.

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

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.

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.

YouHodler Multi HODL is another innovative way to trade crypto leverage with a more straightforward interface.

In contrast to many other leveraged positions in crypto trading, leveraged tokens don’t need margin and can’t be liquidated. However, still they 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

  1. Buy and Sell ins the spot market – You can trade the leveraged tokens in the spot market. This is recommended by us and the exchanges
  2. 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

  • 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.
Derivative trading
  • No rebalancing
  • Margin required
  • Liquidation risk

Crypto Leveraged Tokens Trading Fees

There are many different fees involved in trading with leveraged tokens. This can be confusing.

Here, we have summarized all the different trading fees with crypto-leveraged tokens

Trading Fees: Trading fees are charged when buying or selling tokens in the spot market, and the fee schedule is identical to spot trading;
Subscriptions and Redemption Fees: Subscriptions and redemptions fees are charged when users choose to subscribe/redeem to tokens. 
Management Fees: The exchanges charge a daily management fee for the leverage and for maintaining the product.
Funding Fees are charged for Binance leveraged tokens. The fees are paid to the underlying fund based on the funding rate and reflected directly in the net asset value of the Leveraged Tokens. 

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 fit for medium and long-term investments. Because of the existence 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.

Why do leveraged tokens need the rebalancing mechanism?

Many Leveraged Tokens have a targeted leverage range. The rebalancing mechanism activates when the actual leverage deviates from the target range.

What is net asset value for leveraged tokens?

Net asset value (NAV) refers to the current value of your Leveraged Token.

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