Investors looking to maximize their returns can do so with leverage. These trading platforms allow investors to amplify their gains by borrowing funds to trade with larger positions.
However, navigating the many options can take time and effort.
This article explores the top crypto leverage trading platforms. Explore their features, benefits, and risks, empowering you to make informed decisions and take advantage of market opportunities.
Unveiling the 7 best crypto leverage trading platforms
Struggling to navigate the complex world of crypto leverage trading? Don’t worry! We’ve got you covered.
Here, we unveil the seven (7) of the highest-rated crypto leverage trading platforms, helping you streamline your trading experiences and maximize your earning potential.
- Coinbase: This secure platform offers leverage trading with various crypto pairs and margin options. Coinbase is also integrating margin lending and educational resources.
- Kraken: Renowned for security, Kraken provides robust margin trading with advanced order types. They also offer margin staking and OTC desks for high-volume leverage traders.
- Paybis: A user-friendly platform with leverage trading, multiple fiat deposit options, and evolving features like crypto bundles makes Paybis a good starting point for beginners.
- Binance: A behemoth with extensive features, margin trading, and deep liquidity for leverage enthusiasts. Binance also offers new features like staking and educational resources.
- OKX: This robust platform offers competitive margin trading rates and a user-oriented interface. It offers tutorials and risk management tools for both beginners and experienced leverage traders.
- Kucoin: This platform boasts extensive margin options, competitive leverage rates, and a strong altcoin focus. While feature-rich, Kucoin might be overwhelming for complete beginners.
- Bitmart: User-friendly Bitmart allows leverage trading with multiple fiat deposit options. They are continuously adding new features like staking and launchpads for diversification.
A trader’s guide: Our 7 favorite crypto leverage trading platforms
The cryptocurrency market is known for its volatility, but what if you could amplify your gains (and losses)? Leverage trading allows you to do just that. Here, we explore the top 7 crypto leverage trading platforms for 2024, helping you choose the one that fits your trading style.
1. Coinbase
How it started: Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. By trading volume, It is the largest US crypto exchange. With 43 million users, it boasts a global presence and a remote-first work model.
Unique features
- Coinbase Earn: Learn and Earn Crypto: Coinbase encourages new investors with its “earn while you learn” program. Users watch videos and take quizzes about cryptocurrencies while earning rewards.
- Naive Wallets: Coinbase Exchange Wallet: This is the default wallet for trades on Coinbase. Private keys are stored on the exchange, reducing security. Coinbase dApp Wallet caters to Ethereum-based ERC-20 tokens. The third choice is Coinbase Wallet, a self-custody wallet stores crypto assets and NFTs, offering users more control over their holdings. (It’s a Separate app; no Coinbase account is required.)
Coinbase Wallet teamed up with Blockaid to enhance security measures and safeguard users from fraudulent activities. By integrating Blockaid technology, Coinbase successfully prevented over $75 million of funds from being stolen. The security tool analyzed 114 million transactions and DApp connections to stop nearly 800,000 wallet connections to harmful decentralized apps.
Crypto leverage trading on Coinbase
While leverage trading was introduced a bit late to the market compared to its platform, its offerings are nothing to frown upon.
Traders who meet the eligibility criteria can access maximum leverage of up to 10x. There are specific limits per contract, and the notional value for all positions is capped at $90,000.
These limits are reviewed frequently, taking into account the exchange’s order book depth, volumes, and insurance fund balances.
How about fees?
Coinbase fees are not displayed upfront. They depend on payment methods, order size, and market conditions. Expect fees to range from $0.99 to $2.99, with an added spread of 0.5%.
While Coinbase offers a user-friendly platform, its fees can be high compared to competitors. Consider exploring Coinbase Pro for a more transparent fee structure.
| Margin trading | Yes |
| Fees | 0% – 0.3% |
| 24hr Spot Trading Volume (As of March 2024) | $5,532,352,153 |
| Leverage | 25:1 / up to 10:1 for perpetual futures |
| Pairs | 396 |
| Founded | 2012 |
Pros
- Choose from secure storage options, including self-custody and exchange wallets
- Earn crypto rewards while learning about different currencies
- Includes FDIC insurance for USD deposits and industry-standard security features
Cons:
- Complex fee structure with variable spreads makes cost confusing for beginners
- Staking fees can be as high as 25% of the staking profits
Sign up today and claim up to $200 in cryptocurrency.
¹Terms: ¹Valid for new users who purchase cryptocurrency on Coinbase. Limited while supplies last, or Coinbase revokes this incentive at its sole discretion. Coinbase reserves the right to change the terms, eligibility criteria, and payouts for all incentives at any time, for any reason—void where prohibited or if Coinbase determines that the customer is not eligible for the offer. Terms apply.
2. Kraken
How it started: Founded in 2013 by Jesse Powell, Kraken is a global cryptocurrency exchange catering to casual and professional investors. They focus on secure trading with low fees for high-volume trades.
Unique features
- Kraken instant buy: Ideal for beginners, allowing quick and easy crypto purchases with fast verification.
- Kraken Pro: An advanced interface for experienced traders. It’s highly customizable and offers spot, margin, and staking features in one place.
Based on security audits by CER.live, a trusted platform, Kraken is ranked second for cryptocurrency exchange security.
Crypto leverage trading on Kraken
Kraken offers leverage through margin accounts (up to 5x) and futures contracts (up to 50x). This lets you control larger positions with a smaller investment, but remember, the risk increases, too.
How about fees?
Kraken offers two interfaces. Kraken Instant Buy charges a flat fee (0.9% for stablecoins, 1.5% for others) for simple purchases. For lower costs, use Kraken Pro, with maker/taker fees starting at 0.16% and 0.26%, respectively.
| Margin trading | Yes |
| Fees | 0% – 0.26% |
| 24hr Spot Trading Volume (As of March 2024) | $1,739,496,128 |
| Leverage | 5:1 |
| Pairs | 671 |
| Founded | 2011 |
Pros
- Kraken prioritizes security, storing 95% of deposits in offline cold storage and using secure facilities with armed guards
- Kraken Pro offers extensive customization and a one-stop shop for spot, margin, and staking
Cons:
- Kraken currently only supports only eight fiat currencies, which can be limiting for some users/li>
- While convenient, Kraken Instant Buy’s fees can be costly for frequent users
3. Paybis
How it started: Paybis was founded in 2014 by Innokenty Isers, Konstantin Vasilenko, and Arturs Markevich, Paybis began as an experiment and has become a global platform.
Critical partnerships with Simplex, a payment processor, and Kraken, a crypto exchange, fuel its services.
Unique features
- Payment methods variety: Paybis stands out in terms of a massive variety of payment methods. Over 40 payment service providers and alternative approaches, including Google Pay, Apple Pay, and credit cards, are ready. They recently launched ACH payments for faster US bank transfers.
- Refer and earn: Paybis also offers a ‘Refer and Earn’ affiliate program. By referring new users, you can earn commissions up to 45% of Paybis’s net profit on their trades. This adds another layer of earning potential for savvy users.
Crypto leverage trading on Paybis
Paybis specializes in buying and selling cryptocurrency but currently does not offer leverage trading. This can be inconvenient for some, but it may be a good fit for beginners seeking a smooth entry into crypto investments.
How about fees?
The first crypto purchase enjoys a waived Paybis fee. Subsequent trades incur fees between 0.99% and 2.59%, depending on the payment method.
Paybis charges withdrawal fees to external wallets, and a $2 service fee may apply based on your chosen payment option.
| Margin trading | No |
| Fees | 0.99% and 2.59% |
| 24hr Spot Trading Volume (As of March 2024) | – |
| Coins | 150+ |
| Pairs | 200+ |
| Founded | 2014 |
Pros
- Users can purchase a fraction of Bitcoin for as little as $5
- Services in nine languages, over 180 countries
- Multi-layered security measures protect your funds
Cons:
- Potentially High Fees: Fees vary based on payment method
- Limited Features: No leverage trading or social features
4. Binance
How it started: Founded in 2017 by Changpeng Zhao, a veteran of high-frequency trading systems, Binance has become the world’s largest crypto exchange by daily trading volume (excluding the US).
The platform caters to global users interested in altcoins, offering over 600 crypto-to-crypto trading pairs and NFT purchases.
Unique features
- Biggest crypto exchange: Binance enjoys the largest trading volumes among all centralized exchanges. Tokens that are listed on Binance benefit from strong liquidity, trust, and an uptick in price upon listing.
- SAFU: Binance utilizes a Secure Asset Fund for Users (SAFU), allocating 10% of trading fees to protect user funds. However, with over 350 cryptocurrencies available globally, only 150 are accessible in the US.
Crypto leverage trading on Binance
Binance allows leveraged trading on over 600 cryptocurrencies, with perpetual futures and options available. This can amplify gains but also magnify losses.
The maximum leverage is 125x risky on BTC and ETH perpetual, with lower leverage on other coins. The higher your balance, the lower the exchange’s leverage will offer.
BTC/USDT perpetuals | Source
Binance faces regulatory scrutiny in several countries, so be aware of potential restrictions.
How about fees?
Crypto trading fees range from 0.05% to 0.1%, but card purchases incur higher fees (1%-3%). Maker-taker fees are 0.40%-0.60%, with free Bitcoin trades under $10,000 monthly volume for Tier I pairs. (Tier I pairs include DOT/USDT, LTC/USDT, SOL/USDT)
| Margin trading | Yes |
| Fees | 0.1% |
| 24hr Spot Trading Volume (As of March 2024) | $2,454,424,058 |
| Leverage | Up to 125:1 |
| Pairs | 1,273 |
| Founded | 2017 |
Pros
- Advanced Features alongside spot, futures, margin trading, staking, and more, all backed by high liquidity for fast order execution
- Binance prioritizes security with 2FA, FDIC-insured USD balances (for Binance.US only), and cold storage/li>
Cons:
- Binance faces potential restrictions due to ongoing regulatory scrutiny
- User data privacy remains a concern for some users
5. OKX
How it started: OKX was founded in 2017 by Star Xu (current CEO), OKX has become a major player. It boasts over 50 million users and partnerships with Manchester City and the Australian Olympic Team. This Seychelles-based exchange offers a comprehensive suite of trading options.
Unique features
- Self-Trade Protection (STP): Traders who execute algorithms for trading will love this feature. STP prevents you from unintentional self-trades. API traders will benefit from STP the most.
- Trading Bots Marketplace 2.0: Crypto trading bots developers can upload their systems to the bots marketplace and enjoy a revenue share from the profits earned by the automated system.
OKX is a one-stop shop for crypto enthusiasts. Trade spot markets, simple and complex options, or delve into derivatives like margin, futures, and perpetual swaps. Explore the NFT marketplace, build trading bots, or participate in block trades.
OKX stands out with its 11 proof-of-work mining pools for Bitcoin, Ethereum, and Litecoin. Tutorials guide users through the mining process, making it easier to earn crypto.
Crypto leverage trading on OKX
OKX offers more than just basic spot trading. You can use your cryptocurrency holdings to access perpetual futures and margin accounts.
Additionally, you can choose from a range of leverage options, from 10x to 100x, and depending on your risk tolerance, you can select either full or partial liquidation modes.
How about fees?
OKX keeps costs low. Spot trading fees start at 0.08% for limit orders and 0.1% for market orders. Futures fees are even lower, at 0.02% and 0.05% respectively. Hold OKB tokens or trade BTC and ETH for further fee reductions. Deposits are free, and OKX only charges network fees for withdrawals.
| Margin trading | Yes |
| Fees | Spot – 0.02% – 0.2%. Futures – 0.01% – 0.05% |
| 24hr Spot Trading Volume (As of March 2024) | $5,414,638,505 |
| Coins | 318 |
| Pairs | 471 |
| Founded | 2017 |
Pros
- Holding OKB tokens reduces trading fees
- Multiple Earning Avenues (Maximize profits with Dual Investment, earn stable returns with Fixed Income, or snag high-reward flash Deals)
- High Yield Earning: Stake dozens of coins for at least 1% APY, with some exceeding 100%
Cons:
- Best suited for experienced traders due to its advanced features
- Fee structure may seem confusing for beginners due to its multiple tiers and discounts
6. Kucoin
How it started: Kucoin was founded in 2017. It has emerged as a top destination for altcoin trading. The exchange, led by CEO Johnny Lyu, offers a massive library of over 840 cryptocurrencies.
Unique features
- P2P and staking support: The exchange supports both staking and peer-to-peer (P2P) trading, which is uncommon among major exchanges.
- Account-bound tokens: KuCoin Account-Bound Tokens (KABT) allow verified user credentials to unlock exclusive benefits within the KuCoin ecosystem, providing a revolutionary step for on-chain identity in the Web3 ecosystem.
Holders can earn passive income through KuCoin’s soft staking program and share a portion of daily exchange profits. Additionally, users receive daily cryptocurrency dividends by holding KuCoin Shares (KCS).
Crypto leverage trading on Kucoin
KuCoin has increased its leverage options for Bitcoin and Tether trades, with users able to amplify gains (and losses) with up to 100x leverage. Margin trading ratios vary by coin, with some reaching 50x.
How about fees?
Fees are competitive. Kucoin uses a maker-taker structure, with a low 0.1% maker fee and a 0.1% taker fee with no account minimum. Holding KCS grants an additional 20% discount.
| Margin trading | Yes |
| Fees | 0.1% |
| 24hr Spot Trading Volume (As of March 2024) | $3,285,626,846 |
| Leverage | 20:1 default, up to 100:1 |
| Pairs | 1,273 |
| Founded | 2014 (Launched 2017) |
Pros
- Holders enjoy benefits such as trading fee discounts, daily crypto dividends, access to more trading pairs, exclusive exchange perks, and a share of exchange profits through staking
- Advanced Features: Staking, P2P trading, and margin trading cater to experienced users
Cons:
- The platform’s advanced features can be overwhelming for beginners
- Some altcoins may have limited liquidity, impacting trade execution
7. Bitmart
How it started: Bitmart was founded in 2017 by Sheldon Xia, a figure involved in blockchain initiatives. Bitmart is a centralized exchange that serves over 9 million users globally. Headquartered in the Cayman Islands, it offers various services beyond trading, including staking, lending, and derivatives.
Unique features
Besides standard trading options, Bitmart distinguishes itself with features like Bitmart Earn. It allows users to earn passive income on their crypto holdings through various savings products.
- Flexible Savings: Earn interest on deposited crypto with the ability to withdraw funds anytime.
- Fixed Savings: Earn a higher interest rate by locking in your crypto for a predetermined period.
Crypto leverage trading on Bitmart
For experienced users, Bitmart caters to margin trading and futures trading. Launched in 2020, the futures market allows leverage of up to 100x on certain assets.
How about fees?
Bitmart employs a tiered maker-taker fee structure with fees starting at 0.25% and decreasing based on 30-day trading volume and holdings of the platform’s token, BMX. Futures trading offers significantly lower fees, with maker fees at 0.04% and taker fees at 0.06%. There are no deposit fees, but withdrawal fees vary by coin.
| Margin trading | Yes |
| Fees | starts 0.25% |
| 24hr Spot Trading Volume (As of March 2024) | $2,766,179,878 |
| Leverage | up to 100:1 |
| Pairs | 1,164 |
| Founded | 2017 |
Pros
- Bitmart offers features like staking, lending, and an Earn program for generating passive income on crypto holdings
- Utilizes multi-layer and multi-cluster system architecture to enhance security
- Boasts significantly lower fees for futures trading than for spot trading, which appeals to experienced users
Cons:
- The tiered maker-taker fee structure with variable rates based on trading volume and token holdings can confuse new users
- Inconvenience can arise due to withdrawal fees that differ depending on the cryptocurrency
News: The SEC is suing Kraken, Binance, and Coinbase for allegedly operating as unregistered securities exchanges, brokers, dealers, and clearing agencies.
Pros and cons of crypto leverage trading
Crypto leverage trading offers the potential for amplified gains, but it also comes with significant risks. Before diving in, understand both sides of the coin.
| Leveraging pros | Leveraging cons |
|---|---|
| Amplify profits: Leverage magnifies potential returns by controlling a larger position with a smaller investment. | Flexibility: Leverage offers greater control over trading strategies by enabling long and short positions. |
| Short selling: Leverage allows traders to profit from falling crypto prices by opening short positions. | Liquidation risk: If the market moves against you, your position could be liquidated to cover losses, wiping out your initial investment. |
| Increased capital efficiency: Traders can maximize the use of their capital by controlling more assets with less upfront cost. | Volatility: The inherently volatile nature of cryptocurrencies can exacerbate losses when using leverage. |
| Flexibility: Leverage offers greater control over trading strategies by enabling long and short positions. | Margin calls: Unexpected price swings can trigger margin calls, forcing you to deposit additional funds to maintain your position. |
| Potential for faster gains: Leverage can accelerate profit accumulation when market movements align with your predictions. | Psychological pressure: The potential for magnified losses can lead to emotional trading decisions and cloud your judgment. |
FAQs
What does trading crypto with leverage mean?
Leverage allows you to amplify crypto trades by borrowing funds from a platform. This lets you control a larger position than your initial investment. While leverage can magnify profits, it also magnifies losses.
What is spot crypto trading?
Spot crypto trading is the most basic form of crypto trading. You buy cryptocurrency outright and own it until you sell it. Spot trades are settled immediately, meaning you receive the crypto you purchase directly into your wallet.
Is it safe to trade with crypto platforms?
The safety of crypto platforms varies. Find reputable platforms with strong security measures, insurance policies, and clear regulations. Research the platform’s history and user reviews before trusting them with your money.
How does crypto leverage trading?
Crypto leverage trading lets you amplify your position by borrowing funds from a broker. Imagine having $1,000 but controlling a $10,000 trade with 10x leverage. This magnifies potential profits but also magnifies losses.
What is 100x leverage in crypto?
With 100x leverage, a $1,000 investment controls a $100,000 position, multiplying profits or losses by 100. While highly risky, this strategy can generate significant gains in a rising market.
What does 10x leverage mean?
10x leverage means your investment controls a position 10 times its size. A $1,000 investment with 10x leverage effectively becomes a $10,000 trade. Remember, this amplifies both potential gains and losses.
Which leverage is best in cryptocurrency?
The “best” leverage depends on your risk tolerance and trading experience. Beginners should start with lower leverage (5x or less) to limit potential losses. Higher leverage (10x or more) is riskier but offers amplified gains for experienced traders with robust risk management strategies.
Do you have to pay back leverage?
Yes. Leverage is a loan; you must repay the borrowed funds plus any interest accrued. If the market moves against you, the broker may issue a margin call, forcing you to deposit more funds or sell assets to maintain your minimum margin requirement.
Sources
- https://cointelegraph.com/news/coinbase-blockaid-security-75-million
- https://www.ft.com/content/c7e4ad29-4bf8-43e3-85dd-cf35585c6ad1
- https://www.okx.com/learn/okx-named-official-sleeve-partner-of-manchester-city
- https://www.prnewswire.com/news-releases/kucoin-unveils-account-bound-tokens-kabt-with-reward-missions-on-mocaverse-and-halo-wallet-302082424.html
- https://www.coindesk.com/business/2024/03/12/coinbase-plans-1b-bond-sale-that-avoids-hurting-stock-investors-copying-michael-saylors-successful-bitcoin-playbook/
