Best Bitcoin Broker with High Leverage

Bitcoin and cryptocurrency market has historically shown that there is much more volatility on these cryptomarkets compared to that is observable for traditional assets. Bitcoin price can fluctuate more than +/- 25% within a given day with just reacting to the unexpected news. But other cryptocurrencies can move even more, three digit percentage moves intraday happened multiple times in this market in the past.

Considering the high amount of price fluctuations on the bitcoin trading market it prevails that even without using leverage investors can gain a high amount of profit during a short amount of time if the market moves into the favorable direction. At the same time, due to the high volatility, catastrophic losses can happen within an hour on the market if no specific risk management is applied for an open position.

Many brokers, therefore, are reluctant to provide a high amount of leverage to cryptocurrency and bitcoin trading as even during normal market conditions, the positions can quickly result in significant losses that the account holder might not be able to bear.

The average amount of leverage offered on the trading market for platforms where cryptocurrency and bitcoin trading is available as well is 1 to 5. It means that you can multiply your profit (and your losses!) up to 5 times of your original investments. However, there are bitcoin brokers on the market which offers even higher leverage for bitcoin trading.

Top 3 Bitcoin Exchanges with Margin Trading:

The highest amount of leverage you can reach on the bitcoin broker market is 100x at the moment. This means, that for 1% change in price your portfolio movement is 100%. Considering that the bitcoin and cryptocurrency markets often move much more than 1% intraday, high leverage can result in significant gains or losses during a short amount of period.

The following bitcoin brokers offer high leverage on their platform along with useful risk management tools which are crucial to a long-term profitable investment strategy.

PrimeXBT – 1:100 – PrimeXBT is among the cryptocurrency margin trading brokers with the highest leverage. The broker was founded in 2018 and could already attract a huge amount of traders to use their platform. With 100:1 leverage and a quite easy to use trading interface the broker offers an interesting alternative to other crypto margin brokers offering a perpetual contracts trading system for Bitcoin and major altcoins. Besides BTC you can trade ETH, XRP and EOS on high leverage.

PrimeXBT also offers a range of Commodities, Indices and Forex majors, all in the form of derivatives. Since they don’t claim KYC the signup is very fast.

 

BaseFEX – 1:100 – BaseFEX is another crypto margin trading with high leverage that come up in 2018. Just like PrimeXBT they offer a maximum leverage of up to 100:1.

The creators of BaseFEX followed the approach to make a trading platform that is “finally usable”, in contrast to the well known performance glitches, complicated usability or security issues of competitors. The very clean and simple interface allows a comfortable trading experience where users can focus on their strategies rather than being distracted by complicated trading platform interfaces.

 

OVERBIT – 1:50 – OVERBIT is a pure cryptocurreny margin trading broker offering relatively high leverage of 50:1. Bitcoin, Ether, Litecoin, Cardano, NEO, Ripple and Bitcoin Cash can be traded in the form of perpetual contracts for difference. Deposits and withdrawals are only made in BTC, no fiat money. Still, the margin broker claims ID verification for all user accounts, otherwise trading won’t be enabled. One of the big benefits of Overbit is their no fees policy. But they do have funding fees ocurring 3 times a day, at specific hours and only affect positions held over those hours: 01:00 UTC, 09:00 UTC and 17:00 UTC.

 

BitSeven – 1:100 – BitSeven is another new and promising Bitcoin margin trading broker providing 100:1 maximum leverage. They promote their especially glitch free and stable trading engine as they have a most advanced trading system based on one of the best technologies in the industry.

BitSeven only allows BTC deposits and withdrawals which is usually the case with high leverage Bitcoin margin brokers. Also, there is no KYC which means that traders aren’t asked for an ID verification which is a big plus for privacy fans.

 

Deribit – 1:20 – Deribit offers up to 20x leverage for their Futures and up to 10x for their Options trading.

The website is known for being the first in the world that offers “Vanilla” European Options as well as BTC Options with leverage. They also do no skimp on their available features since their platform is well designed and includes all the important aspects that an exchange should have. Traders will get access to training videos and their fees are far lesser than their counterparts.

 

As mentioned, the amount of leverage depends on the market you are looking to trade at. Leverages can be set once you click on the chosen market by clicking on the pre-selected leverage. In addition, the website is currently at the helm of proving not only an awesome exchange experience but they also have the “Copy People” feature wherein traders will be able to copy trade from successful veteran traders of the website.

As mentioned, the amount of leverage depends on the market you are looking to trade at. Leverages can be set once you click on the chosen market by clicking on the pre-selected leverage. In addition, the website is currently at the helm of proving not only an awesome exchange experience but they also have the “Copy People” feature wherein traders will be able to copy trade from successful veteran traders of the website. More on margin trading can be found on marginbull.com

Leverage and Bitcoin Trading

Just like with trading any instrument on the market, brokers which offer bitcoin trading opportunity usually allow its clients to benefit from high leverage available on the platform. The higher the leverage you can obtain at a given bitcoin exchange the higher your profit can be, if the market moves in the desired direction. At the same time, leveraged positions can results in significant losses, therefore this trading strategy is only suggested to more experienced traders who know the market.

What is Leverage?

Leverage allows investors to increase the potential return on an investment through using various financial instruments. Investors can use options, futures and margin accounts to multiply the possible profit on a portfolio. During trading, investors use leverage to profit from the fluctuations in the price of an asset achieving a greater amount compared to trading without leverage.

The amount of leverage available to investors is depending on the market they are trading. Common exchange ratios include 1:50 or 1:100 depending on the actual size of the positions. The leverage ratio means that for 1 unit of leveraged investments the P&L on the position is multiplied by the amount of leverage, in this case by 50. The amount of leverage offered on a given market is depending on the usual price fluctuation on the market. If prices move just slightly on average, the leverages offered are usually higher to be able to monetize even tiny market movements. More on leveraged bitcoin trading.

To utilize leverage, investors trade on margin accounts which lends them money that they can invest in further on the market. Utilizing a margin account cost money, so the profit from leveraged trading should cover the fees paid for being able to use margins.

Leveraged positions can results in significant gains or losses as it enlarges the price effect on the underlying positions. Therefore it is very important to understand the risk associated with high leverage and employ specific risk management measures. The most popular risk management technique is to apply stop-loss or limit orders to prevent unexpected high losses on a leveraged position.

It is always important to make sure you are familiar with the assets you are investing into. Learn about the different types of orders, derivatives and also about the various cryptocurrencies before engaging in any real trading activity. Demo accounts are best to learn about cryptocurrency trading. Don’t forget, your capital is at risk after all.