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Margin Trading is one of the newer ways to make money in the cryptosphere. The concept involves borrowing extra funds by leveraging your crypto trading positions. Simply put, it’s trading with a loan. Brokers and individuals provide the loan based on laid terms and conditions. Margin trading enables traders to trade even when they have limited funds.
Sounds great, right?
While the concept has been around for some time, it is only beginning to develop cryptocurrency trading roots. Again, just like it can lead to high profits, it is also hazardous if done wrongly. This is particularly true for highly volatile cryptocurrencies. Choosing the right exchange goes a long way in helping avoid margin trading loopholes.
Factors to Consider when Choosing a Crypto Exchange for Margin Trading
Leverage size – This is the maximum loan that an exchange offers. Best exchanges offer higher leverage to users. High leverage means higher potential profit. Note, it can also mean high potential loss if a trade goes wrong.
Transactions cost – Exchanges charge different interest rates and fees. You should consider the underlying cost of trading with one exchange compared to others and weigh out the options. The higher the fee, the less the profit.
Trading Options – Cryptocurrency trading takes different forms, such as HODLING, Scalping, day trading, among many others. A good exchange gives traders a wide range of trading options on types of trades and coins supported.
Others – Other important features include security, countries accepted, customer support, user-friendliness, etc.
Crypto Exchanges with Best Margin Trading Feature
So far, we have looked at Margin trading and the factors to consider when choosing the best Crypto exchange for margin trading. Now, we take a step deeper to uncover the best exchanges available for margin trading in 2020.
Launched in May 2019, Bithumb Global is the international arm of Bithumb, a blockchain platform based in South Korea and one of the world’s top crypto exchanges. The rapid growth of the exchange lands in the top position in our top cryptos list. Within one year of existence, Bithumb Global had a market capitalization of $63,559,100, making it one of the fastest-growing global exchanges.
On April 2, 2020, Bithumb Global officially launched the much-awaited Margin Trading services. Currently, Bithumb Global offers five trading pairs for margin trading, including BTC/USDT, ETH/USDT, XRP/USDT, LTC/USDT, BCH/USDT, with up to 10X leverage.
Why Trade with Bithumb Global?
There are many reasons why Bithumb Global is the best crypto exchange to trade Margin trading, including:
Low Fees – Bithumb Global offers the most competitive fees (Maker Fees 0.025% |
Taker Fees 0.075%) in the market. Deposits are free for all supported coins and a withdrawal fee of 0.001 (BTC) and 0.01 (ETH).
Extensive trading options – Bithumb global supports trading in over 100 assets, with five supported pairs for Margin trading and great trading features like staking.
User-friendly platform – The Bithumb Global’s margin trading platform is the best with great functionalities; fast loading, easy to navigate, simple registration process.
Excellent customer support – Bithumb Global stands out for its great customer support 24/7 and in several languages.
BitMEX was founded in 2014, and it’s one of the earliest and largest crypto exchanges. It stands out as an exchange that offers many assets in margin trading. BitMex offers a leverage level of up to 100x for BTC, 50x for ETH, and 33.33x for LTC, among others.
Also, Bitmex’s Auto Deleveraging policy enables leveraged profits to be reduced in rare cases when a liquidated order cannot be executed in the market.
The platform allows trading in futures and perpetual contracts. Bitmex Margin Trading supports BTC, XRP, ETH, EOS, and USDT.
Pros of BitMex Margin Trading
The following are reasons why BitMex ranks among the top crypto exchanges for margin trading.
Excellent leverage – The platform gives up to 100x leverage allowing traders to make substantial trades with fewer resources.
A variety of currencies to choose from – BitMex gives traders a wide range of cryptocurrencies to trade in, including the most obscure.
Simple verification process – Compared to other exchanges, BitMex offers the simplest and most manageable verification process.
Good customer support – BitMex provides customer support 24/7 via their support ticket system and other channels such as Wechat and telegram.
Founded in 2017, Binance is a Hong Kong-based cryptocurrency exchange that offers a margin trading platform. Trading with Binance is less costly and allows a leverage of 5X. On the flipside, Binance block operations in several countries such as the USA, Cuba, and Zimbabwe.
What are the Benefits of Trading with Binance?
Advanced User Interface – Whether you’re an experienced trader or a novice, Binance provides a way for you to change the interface to match your expertise.
Several trading options –Binance offers a wide range of currencies and tokens to invest in, like Bitcoin, Ethereum, Ripple, and Dash.
Low cost of trading – Binance fees is among the lowest going for 0.0004 Withdrawal Fee, 0.10% Taker Fee, and 0.10% Maker Fee. The price is even lower if you use Binance Coin (BNB).
Crypto trading is both profitable and risky. The volatile nature of cryptocurrencies makes people think of investing in it as a “game of chances.” Bitcoin, for example, has seen several crashes since its creation in 2009.
Currently, many cryptocurrencies exchanges are offering Margin Trading services. Picking an exchange that meets your needs is a critical step in crypto trading. Features like leverage level offering, the fee charged, security, and user support, among others, should guide you in this process. Having the right exchange and a great trading strategy is sure to gain big with crypto margin trading. And, always remember to trade wisely!