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Top 3 Platforms for Crypto Margin Trading

13 November, 2020 By Chris Roper

Crypto margin trading can be an amazing way to bolster your investments. In this article, I will try to dispel some of the mystery surrounding this and provide you with three platforms that I feel is great for leveraging on the cryptocurrency you want to trade. 

Margin trading is a form of borrowing, where investors can leverage on the crypto assets they possess, or buying a small percentage of cryptocurrency and having the broker lend you the rest.

To give you an example; let’s say that the price of Bitcoin is $10,000 and you only have $5,000 of trading money available. With margin trading, you can use this five grand and have the broker lend you the rest. Now, if the price of Bitcoin goes up to $11k and you close your position, you repay the five thousand that you borrowed and take your initial investment along with the entire $1k return.

This means that you have made a 20% ROI. Without margin trading, you would have had to invest the entire $10k and as such, only made a 10% return under the same conditions.

Obviously, this can be a fantastic trading tool, but it must be said that with the potential for greater returns also comes higher risk. You can lose just as much and end up paying interest on your loan besides. For this reason, it is of paramount importance that you do your research to fully understand margin trading before you begin to use it.

If you feel confident that you are familiar with the mechanisms involved, you’re going to need a platform to trade on. Here are my top three platforms for margin trading on cryptocurrencies.

#1: eToro

Founded in 2007, eToro has become one of the leading trading platforms around. The company launched its cryptocurrency wallet in 2018 – offering 10 leading coins for trade. This list has now been expanded to 15 crypto offerings including Bitcoin, Ethereum, Litecoin, Ripple and even the privacy-based coin Zcash.

Users of the eToro platform can apply x2 leverage to all cryptocurrency trades, and enjoy other unique aspects including the Copy Portfolio™ feature, where investors can copy the successful trades of others.

As online brokerages go, eToro has a solid reputation with over 13 million users across 200 different countries worldwide.

For those who are new to investment trading, eToro provides a wealth of educational resources, which you should take full advantage of before getting into margin trading.

1
Min. Deposit
$50
Exclusive promotion
Our score
10
Accepts customers from the USA
Offers 15 crypto coins to buy&sell including BTC, LTC, ETC, NEO and more
Trade on the world's leading social trading and investing platform
Start trading
Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.

#2: Pepperstone

The Australian-based brokerage platform, Pepperstone, earns the second spot on our list today. This highly regulated site is known for its robust security and high leverage options. Popular among scalpers due to its fast executions, tight spreads and automated systems, Pepperstone also requires the smallest minimum deposit of any trading platform in this listing.

Pepperstone offers CFD’s on 6 leading cryptocurrencies:

  • Bitcoin
  • Bitcoin Cash
  • Ethereum
  • Dash
  • Ripple
  • Litecoin

A massive 20:1 leverage can be applied to any of these digital assets, which is a great attraction to investors who are already confident with margin trading. The brokerage allows trading through web, mobile and desktop and is available in 41 different languages.

1
Min. Deposit
$200
Exclusive promotion
Our score
10
ASIC and FCA regulated broker
Trade the hottest cryptocurrencies
No commission fees
Start trading
Description:
Pepperstone was founded in 2010 in Melbourne, Australia by a team of experienced traders with a shared commitment to improve the world of online trading. Frustrated by delayed executions, expensive prices and poor customer support, they set out to provide traders around the world with superior technology, low-cost spreads and a genuine commitment to helping them master the trade. Their mission is to create a world of tech-enabled trading where ambitious traders can embrace the challenge and opportunity of global markets.
Payment methods
Visa, Mastercard, PayPal, POLi & BPay, China UnionPay, Wire Transfer, Skrill, Fastapay
Full regulations list:
FCA, ASIC
CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

#3: Skilling

The official partner of the Premier League football club, Aston Villa! Skilling is a Scandinavian-owned platform with a vision of simple and accessible trading in a safe and transparent environment.  Based in Cyprus, Skilling is regulated by CySEC and operates in all EEA countries. The broker is also regulated by Seychelles FSA, allowing further operations outside of the EU.

Skilling offers 5:1 leverage on all of its available cryptocurrency CFD trades which include:

  • Bitcoin
  • Bitcoin Cash
  • EOS
  • Dash
  • Monero
  • IOTA
  • NEO
  • Ripple
  • Ethereum
  • Litecoin

In just a few short years, Skilling has managed to establish itself as one of the world’s leading brands. With a fantastic user-interface, comprehensive trading tools and an array of educational resources, this brokerage attracts investors of all levels of experience.

1
Min. Deposit
$100
Exclusive promotion
Our score
10
Licensed and regulated by CySEC and FCA authorised UK Branch
Trade Bitcoin CFDs as well as more lucrative altcoins like Ethereum and Ripple
Offers 800+ instruments
Start trading
Description:
Skilling is a CFD trading platform that offers instruments from markets around the world (Cryptos, Forex, Commodities, Indices, Stocks). Our proprietary platform has been designed to be both intuitive and user-friendly to ensure that anybody who wants to start trading the world’s markets, can feel confident and secure enough to trade without being apprehensive or intimidated when confronted by numbers, graphs and acronyms.
Payment methods
Credit Card, Neteller, Skrill, Trustly, Bank Transfer
Full regulations list:
CySEC, FCA, FSA
74-89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

A final note on Margin Trading…

As mentioned above, margin trading can be a superb tool to improve the gains made through CFD trading when used responsibly.

A key reason why these three platforms made it to our list today, is that they are all reputable, regulated, and offer a vast range of educational resources. You should learn all you can from these and make use of the demo account that allows you to put into practice all you have learned safely.

Margin trading provides us with fantastic opportunities to earn from the price movements of these new and exciting digital assets but also carries greater risk. Learn all you can to be able to trade with confidence, and never invest more than you can afford to lose.

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