28 November 2022
We can all agree that the Bitcoin market is the most unpredictable market in existence. Hence, trading Cryptocurrency is a great strategy to generate money in the Crypto space. Day trading is a kind of investing that is both high-risk as well as potentially lucrative. Successful trading may provide a broker with a substantial income, but only if they are knowledgeable and utilize a variety of strategies. Dealing on margin has the highest level of risk since it involves using borrowed funds. You'll require collateral in order to borrow this sum of money. Leverage refers to the practice of trading with borrowed funds.
Also Read: Top 10 Crypto Apps For Beginners In 2022
In this year, these are the 5 Cryptocurrency margin trading exchanges you need to be familiar with:
The greatest Cryptocurrency margin trading platform is Capital.com. The main cause is because Capital.com is strictly regulated, whereas many other exchanges in this field are not. The network has numerous licenses from regulatory bodies such the Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), and also the National Business Reporting Bureau (NBRB). Therefore, traders may have accessibility to leverage in a risk-free environment. The finest low profit margins rates broker may provide leverage of up to 1:2 for retail customers trading Cryptocurrencies. In other words, with only one mouse click, traders may increase their investment by a factor of two. In addition, Capital.com is a top platform for Crypto margin trading on the listed marketplaces. It is due to the approximately 500 different virtual resource pairings available on the marketplace. Coins including Bitcoin as well as Ripple's XRP may be exchanged for US dollars. Cryptocurrency-crosses, such as ETH/BTC, also are available to traders. However, traders using the Capital.com platform may access all Cryptocurrency trading markets with zero fee and narrow spreads.
Also Read: 10 Cryptocurrencies To Avoid Buying In 2023
As far as volatility, trade volume, as well as customer count are concerned, Binance is unparalleled. Margin trading is available on the platform, as well as the process is straightforward and easy to grasp. If you intend to participate in Binance margin trading, you'll need to go through the identity verification i.e., Know Your Customer process and make sure your nation isn't banned. Binance's Margin Trading service is not available to US citizens at this time. The marketplace also protects its overall liquidity through a Margin Insurance Fund. In the event of a trader's bankruptcy while margin trading and insufficient resources, the exchange will reimburse the dealer from the Insurance Fund.
In addition to equities and Cryptocurrencies, eToro also facilitates trading in foreign currency, resources, exchange-traded funds, as well as exchange-traded notes. To start off in the world of Cryptocurrency margin trading, such service is highly recommended. In particular, that's also true if you're utilizing the Copy Trading feature, which enables hands-free Cryptocurrency investment. Simply put, customers have the option of mirroring the trades of a seasoned Cryptocurrency dealer. It implies that anybody, regardless of expertise level, may dive headfirst into the Cryptocurrency market. Independent traders may purchase Bitcoin and then almost 80 additional Cryptos for a price of only 1% above the marketplace difference.
If you're looking for a platform designed specifically for trading futures, go no further than Bybit. Over 2 million people have signed up since the exchange's inception in 2018. Bybit offers a wide range of futures and perpetual contracts. This site has begun testing spot trading that will eventually be made accessible to all customers. You may also get a free signup bonus of up to $90 to utilize in margin trading. In addition to having a low price, this market does not need any personal information to be entered. An individual would be required to complete their KYC on the platform before using a third-party service, such as fiat trading. It is widely acknowledged that Bybit's industry breadth as well as volatility are exceptional. Accordingly, it serves as a fantastic venue for margin trading.
5. Huobi Futures
If you have expertise dealing with complicated futures, you may want to check out Huobi Futures. Such a platform's focus on futures implies that it facilitates financial wagers on the worth of electronic tokens without requiring the participant to actually acquire any digital currency. Rather, it'll be up to the user to forecast whether the worth of each currency will grow or decline by a specific date. Huobi allows for leveraged trading across all futures markets, with assistance for both short and long positions. The platform facilitates many varieties of Cryptocurrency futures. Futures contracts without a termination date are included in this category. Futures may also have weekly, bi-weekly, quarterly, or bi-quarterly settlement durations. Huobi Futures is an important option for elevated-limit Cryptocurrency traders since it provides leverage of up to 1:200.
Therefore, that's what I found to be the top Cryptocurrency margin trading platforms. You need to realize that although these exchanges are convenient for making trades, they are also a tempting target for cybercriminals. Since these markets handle such large amounts of money, the stakes are much higher for margin or leveraged trading. Thus, regardless of whether you are day trading or margin trading, you should be careful about storing your money on these exchanges. It is imperative that you always utilize the additional security measures, like 2-factor authentication, that are offered by the aforementioned transactions.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.