Crypto Margin Trading

The 10 best Crypto Margin Trading Exchanges:

BitMEX.com

BitMEX BTC margin broker

Leverage BTC/USD: 1:100
Leverage Altcoins: 1:20 to 1:50
Verification: Not by default, but they reserve the right to ask for ID documents, e.g. when traders log in from the US.
US friendly: No – US residents are not allowed to trade on the platform
Countries: worldwide, except USA, Québec (Canada), Cuba, Crimea and Sevastopol, Iran, Syria, North Korea, Sudan
Deposits/Withdrawals: BTC only
Other tradeable Assets: None
PrimeXBT.com

PrimeXBT trading with leverage

Leverage BTC/USD: 1:100
Leverage Altcoins: 1:100
Verification: No ID verification. The platform doesn’t ask for personal information of any kind.
US friendly: No – US residents are not allowed to trade on PrimeXBT
Countries: worldwide, except USA, Québec (Canada), Algeria, Ecuador, Ethiopia, Cuba, Crimea and Sevastopol, Iran, Syria, North Korea or Sudan
Deposits/Withdrawals: BTC only
Other tradeable Assets: Indices (S&P500, FTSE100, JAPAN and more), Forex, Commodities (oil, gold and more)
BitSeven.com

BitSeven Bitcoin trading

Leverage BTC/USD: 1:100
Leverage Altcoins: 1:30 to 1:50
Verification: No ID verification. But you need to provide a valid phone number to set 2FA.
US friendly: There is no statement on the website that US traders wouldn’t be allowed; you can signup with a US phone number
Countries: worldwide
Deposits/Withdrawals: BTC only
Other tradeable Assets: None
Monfex.com

Monfex crypto margin broker

Leverage BTC/USD: 1:50 (accounts start at 1:10, higher leverage by request)
Leverage Altcoins: 1:10 to 1:15
Verification: No ID verification.
US friendly: No – US residents are not allowed to trade on Monfex
Countries: worldwide, excluding USA
Deposits/Withdrawals: BTC, ETH, USDT
Other tradeable Assets: None
SimpleFX.com

SimpleFX broker

Leverage BTC/USD: 1:6
Leverage Altcoins: 1:3
Verification: No ID verification, just for use of fiat money.
US friendly: No – US residents are not allowed to trade on SimpleFX
Countries: worldwide, excluding USA
Deposits/Withdrawals: BTC, ETH, BCH, LTC, XRP, Fiat Money
Other tradeable Assets: Forex, Indices
eToro.com

eToro international broker

Leverage BTC/USD: 1:2
Leverage Altcoins: 1:2 (ETH)
Verification: ID verification, as usual with regulated brokers
US friendly: No – US residents are not allowed to trade on eToro
Countries: worldwide, excluding USA
Deposits/Withdrawals: Fiat Money (No BTC withdrawals although you can “buy” Bitcoin)
Other tradeable Assets: Forex, Indices, Stocks, Commodities
BaseFex.com

BaseFex crypto margin trading

Leverage BTC/USD: 1:100
Leverage Altcoins: 1:20
Verification: No ID verification
US friendly: No – US residents are not allowed to trade on Basefex
Countries: worldwide, excluding USA, Québec, China, Cuba, North Korea, Iran, Syria, Crimea, Sudan
Deposits/Withdrawals: BTC, USDT
Other tradeable Assets: None
Deribit.com

Deribit.com bitcoin futures

Leverage BTC/USD: 1:100
Leverage Altcoins: no altcoins
Verification: ID verification optional, not necessary
US friendly: No – US residents are not allowed to trade on Deribit
Countries: worldwide, excluding USA
Deposits/Withdrawals: BTC
Other tradeable Assets: None
Overbit.com

Overbit crypto brokers

Leverage BTC/USD: 1:50
Leverage Altcoins: 1:50
Verification: ID verification mandatory
US friendly: No – US residents are not allowed to trade on Overbit
Countries: worldwide, excluding USA
Deposits/Withdrawals: BTC
Other tradeable Assets: None

 

Leverage Ratios for each Coin and Exchange:

BTC ETH LTC XRP EOS BCH XMR Other
PrimeXBT 1:100 1:100 1:100 1:100 1:100
BitMEX 1:100 1:50 1:33.3 1:20 1:20 1:20 1:20
BitSeven 1:100 1:50 1:40 1:30
BaseFEX 1:100 1:20 1:20 1:20 1:20 1:20
Deribit 1:100
Monfex 1:50 1:20 1:20 1:20 1:20 1:20 1:20 1:20
Overbit 1:50 1:20 1:20 1:20 1:20 1:20 1:20
SimpleFX 1:6 1:3 1:3 1:3 1:3 1:3
eToro 1:2 1:2 1:2 1:2 1:2 1:2 1:2 1:2

other crypto currencies to trade can be found on this website.

Crypto Margin Trading Exchanges without KYC

( Anonymous Crypto Margin Trading )

There are a couple of cryptocurrency margin trading brokers that don’t have a KYC policy. On such platforms you can trade without ID verification. Of course this means that there are only Bitcoin and altcoins deposits and withdrawals possible, since fiat money transfers would always go hand in hand with the necessity to identify yourself.

The Crypto Brokers without KYC are:

PrimeXBT: Also in PrimeXBT accounts there is no possibility for ID verification. So you trade “anonymously” by default. Of course, it cannot be ruled out that in the case of suspicious activities or an unauthorized origin users could be asked to prove their identity.

BitMEX: There is generally no possibility for ID verification in BitMEX accounts. However, you may receive an email from support asking you to send them ID documents. This is especially the case when they suspect that you are US-American because you’ve logged in from the USA.

BaseFEX: BaseFEX is pretty much the same as BitMEX and PrimeXBT when it comes to ID verification. There is no area for that within user accounts and you can trade entirely anonymously. At signup you’re not even asked for you real name, just a nickname of your choice.

Monfex: Monfex does have a section for ID verification in user accounts, but you can trade without providing any personal data. However, when you signup on Monfex you need to provide at least your full name. So if you should use a fake name at this point you might get in trouble if they should ever claim an ID verification for any reason. But

There are even some more crypto brokers, where you can trade without ID verification in their basic accounts. Those basic accounts are always restricted in one way or another.

SimpleFX: On SimpleFX you can signup without needing to provide any personal information. So basic accounts are anonymous. However, if you want to be able to deposit or withdraw fiat money, which is possible with SimpleFX, then you need to provide your ID documents. But trading is possible anonymously if you only use crypto deposits and withdrawals.

Bitfinex: Bitfinex is another cryptocurrency broker where you can trade without the need to provide any personal data. ID verification is again only required if you want to make fiat deposits or withdrawals. So Bitfinex is one of the crypto brokers that can be used to cash out fiat when selling cryptocurrencies. But you can also just trade cryptos anonymously, the only user data in you account will then be a username, password and email address.

HitBTC: This is another cryptocurrency trading exchange where you can trade without the need to provide any personal data, as long as you don’t want to use fiat money transfers.

Poloniex: This crypto trading platform doesn’t support fiat money transfers, only cryptocurrency deposits and withdrawals. Still you need to provide an ID and personal information for certain withdrawal limits. With unverified accounts you can only withdraw cryptocurrencies worth $,2000.

 

Other tradeable Assets supported by the Crypto Margin Brokers:

Some cryptocurrency brokers not only offer Bitcoin and altcoin trading but also traditional assets trading such as Gold, Crude Oil, Stocks, Forex etc., in the form of Contracts for Difference (CFD). Those margin brokers are PrimeXBT, SimpleFX and etoro.

 

There are a few technical terms that you should know about Crypto trading before you start trading. These include, for example, margin, which is a security deposit. You must deposit this in order to be able to trade currency pairs using a lever.

What is Margin?

The term “margin” is used in credit-financed or leverage-based exchange trading. It is the amount deposited as collateral or pledge for a trade. In return for the margin, the trader receives a loan with which he can trade.

The term margin is commonly used in crypto trading, where leverage is used. “Trade on margin” means nothing other than betting on a certain price performance with a larger leverage amount.

If the bet goes wrong or the price develops unfavorably, it may be that the margin amount is too small and must be increased (margin call) or the position must be closed out. In the worst case, the trader is threatened with high losses, which can far exceed the margin amount.

How does Crypto Exchange Trading work?

In order to understand what margin is, it is important that you are familiar with the basic functioning of crypto trading. This was based on the fact that the broker uses the lever to lend you by far the largest part of the respective trading volume as capital. In this way, it is possible to achieve high profits with little capital investment. But of course there is an equally high risk of losses. It is also important to know that the level of leverage and the margin are directly related.

What is Leverage?

The leverage is a capital loan from the Crypto broker and it is a multiple of the capital that you yourself use Crypto trading. Typical levers range from 10:1 to 500:1, so if we take a leverage of 100:1 as an example, the broker would lend you 100 bitcoin for every bitcoin you use Crypto trading. For example, if the exchange rate were to rise by one percent, you would make a profit of 100 percent on your capital investment.

Margin is a security deposit that you must deposit in your trading account. It is only a very small percentage of the trading volume that the broker uses as collateral. Depending on how high the leverage is, the margin is usually between 0.25 and 10 percent. With a margin of five percent, for example, you only have to keep 500 francs in your trading account as a margin, provided that you want to buy US dollars for 10,000 francs.

What is the relationship between leverage and margin?

There is a close connection between leverage and margin, because both variables depend on each other. To illustrate this, we would like to use the following three examples to show you how the two relate to each other:

  • 20:1 (leverage) – leads to a margin of 5%.
  • 100:1 (leverage) – leads to a margin of 1%.
  • 400:1 (leverage)- leads to a margin of 0.25%.

The calculation is very simple: The leverage multiplied by the margin must always amount to 100. So if you have a leverage of 400:1, as in the example, multiplied by a margin of 0.25 percent, you get 100. So, in principle, based on the leverage estimated by the Crypto broker, you can always calculate what the margin on the trading account must be.

If this is no longer sufficient, which is always the case if the price loss is higher than the percentage margin, many Crypto brokers work with a margin call.

Margin Calculation

In a margin deposit you can use borrowed capital for your own trading. Here we explain the basic functions of margin trading.

In a margin deposit, you have the opportunity to buy shares and other assets with borrowed capital and thus leverage your investment. In addition to the available cash, your eligible securities are used to determine whether a loan is possible. Collateral is generally the total value of all equity positions + the value of your cash holdings. The system requires cover (margin) for each stock position that you open.

If your position runs against you and the collateral deposited is no longer sufficient to meet the required margin, the system can automatically close out positions. There is no separate notification. For more information, see ” Automatic Spending Limitation.

Note: The lending of securities in a margin deposit requires a deposit value (equity incl. loan value, information on this under ” Account window) of at least USD 2000 or the equivalent value in another currency.

Margin cover is the minimum amount of collateral that must be available in your portfolio to cover it:

  • the transaction is executed (initial margin) or
  • the position can be held (Maintenance Margin).

In the trading platform, the value of the total collateral is displayed as Equity incl. Loan Value. This corresponds to the value of all stock positions + the value of your cash holdings.

In order to open a new position, the existing total collateral must be at least equal to the required initial margin. Read more.

 

Enter Crypto Trading on a Stock Exchange

It can be interesting for beginners to trade crypto currency stocks on the stock exchange. GBTC is a trust that owns and sells Bitcoin shares. By buying and selling these shares, no direct investment in Bitcoin is required. The above-mentioned registration with a platform and the wallet are not necessary.

GBTC shares are traded at a premium. This means that Bitcoins are cheaper than buying GBTC Trust shares. Another disadvantage is the trading hours. Crypto Trading is a 24-hour market, whereas the traditional exchange with its fixed trading hours is not.

TIP: If you are looking for comprehensive trader training, you should take a closer look at our training courses. For those who have already gained initial experience but are looking for profitable signals, we recommend the PowerSignale stock round.

Coinbase as an exchange platform for beginners

The easiest place to start crypto trading and buy, sell and store coins is Coinbase. However, you can currently only trade Bitcoin, Ethereum, Litecoin and Bitcoin Cash on this trading platform. If you are serious about trading Crypto currencies, you will choose another trading place like GDAX, Bittrex, Binance or Kraken from Coinbase for more offers and lower transaction costs.