Cryptocurrency margin trading is huge in 2020, with it growing from being a relatively obscure and niche part of the market as little as 5 years ago, to now becoming one of the core contributors to the multi-billion dollar global cryptocurrency trade.
We're going to break down exactly what cryptocurrency margin trading is, looking at a few of the different facets that comprise this important part of the cryptocurrency industry, and then looking at the best cryptocurrency margin trading platforms online in 2020.
What is Cryptocurrency Margin Trading?
Margin trading is the practice of creating trading positions within the cryptocurrency market using either leverage or shorting.
Cryptocurrency shorting is the process of borrowing funds from a broker in the cryptocurrency market in order to create trades that become more profitable as the price of the asset drops, as opposed to becoming profitable when the price rises, as is normal.
Cryptocurrency leveraging is the process of borrowing funds from a broker in order to create large trades that deliver profit variations that are substantially higher than would normally be the case.
With both leveraging and shorting a myriad of new opportunities are open up to traders that are not possible without engaging with margin trading
Where are the Best Cryptocurrency Margin Trading Platforms?
PrimeXBT
PrimeXBT has rapidly grown to become one of the world’s leading cryptocurrency exchanges, and now manages up to $2 billion each day in trade after launching just 2 years ago.
Traders enjoy leverage of up to 100x on all cryptoassets such as BTC, ETH, LTC, EOS, and XRP, as well as leverage of up to 1000x on traditional assets that include commodities and metals, stock indices, and forex pairs.
The platform’s user interface is easy to use and intuitive, with access to advanced tools being possible including margin trading, peer-to-peer investment fund creation, and the platform’s newest addition, Turbo, which is the fastest way to generate profits in the cryptocurrency market today.
PrimeXBT has maintained low fees of just 0.05% flat rate on all trades throughout its life, and also has high quality security that has never been hacked or breached.
Binance
Binance is one of the world's most recognised cryptocurrency platforms and they have achieved this in large part by using the native token, the Binance coin, in order to attract new traders and to incentivise exposure activities.
While Binance does have a wide range of cryptoassets listed, the platform does not provide trading with any kind of fiat assets, and this is somewhat prohibitive to those who would prefer to be able to trade against national currencies.
Binance also has one of the highest fee structures in the cryptocurrency Industry, at roughly 10 times more expensive than PrimeXBT and others, and this is another drawback for many traders.
Saying this, finance is a well-made platform that does work with a good training engine, and so if traders are ok with paying more than they can consider using Binance.
In Conclusion
In 2020 it's important to not only understand what cryptocurrency margin trading is, but to consider whether or not applying margin trading to your existing strategies could lead to substantially higher profits.
While there is a wide body of information available regarding margin trading, this guide is a good starting place if you're searching for cryptocurrency margin trading platforms online.