When it comes to maximizing benefits from crypto trading, high-leverage platforms emerge as a prominent element in one’s trading journey. Whether it is brokers or exchanges for high-leverage crypto trading that traders are looking for, the brands listed below would satisfy the demands of new and experienced market participants. Stay with us to learn more about the best brokers and exchanges on the crypto market, plus some additional insights into the world of crypto trading with high leverage.
Best Brokers for High Leverage Crypto Trading
In operation since 2017, Fusion Markets is an ideal online trading destination for new and experienced traders. The broker’s crypto trading portfolio includes 13 instruments involving some of the most sought-after cryptocurrencies against the US dollar. There are no commissions charged on crypto CFD trading, with traders being enabled to go long and short and benefit from any price movements. BTC trading fees stand at 0.06%. The minimum spreads for Bitcoin and Ethereum stand at 14.24 and 2.42, respectively. To place their trades on crypto CFDs, they can pick between the widely popular MT4, MT5, TradingView, and cTrader platforms.
Traders can take leveraged positions to increase their exposure and amplify profits. The maximum allowable leverage at Fusion Markets depends on several factors, including traders’ country of residence, retail or professional client status, and type of tradable asset. Fusion Pro Accounts and clients under the FSA and VFSC entities can take leveraged positions of up to 1:10 for crypto. Retail traders under the ASIC entity, on the other hand, are limited to a 1:2 leverage for crypto.
Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.- 2. XTB
XTB premiered on the online trading scene more than 20 years ago and managed to expand its customer base to over 2 million traders across various jurisdictions. The company’s multiple entities comply with the regulatory requirements of several strict financial regulators, including FCA, CySEC, and KNF. The broker supports more than 40 crypto CFDs, including Bitcoin, Ethereum, and Dogecoin, to name a few. Customers can rely on tight spreads, as well as safe and prompt deposits and withdrawals.
BTC/USD spreads, for example, start from 0.22% of the market price. XTB’s award-winning platform, xStation 5, is perfectly suitable for both new and experienced traders, providing live performance statistics and many more handy trading tools. The cap on leveraged positions for clients under the CySEC entity is 1:2. XTB lists 50% margin for the BTC/USD pair, in line with ESMA’s limits of 1:2 crypto leverage to protect retail traders from high volatility risk. Trading LTC/USD entails minimal spreads of 0.45% of the market price.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% 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. BlackBull Markets poses a viable option for high-leverage crypto traders, enabling them to bolster their positions at maximum rates of 1:100 for select markets like BTC/USD and ETH/USD. Contract size varies per instrument, with minimum and maximum volume for BTC/USD between 0.01 and 5 lots. In mid-2024, the broker announced that LMAX Group acquired a minority stake in the company and that the partnership would drastically expand and improve its crypto offering. Currently, BlackBull supports more than 700 coins available for trading via CFDs.
It is important to point out that the maximum leverage customers can access is market-specific, with some digital coins offering considerably higher ratios than others. Leverage for XRP, Ada, and Dogecoin is capped at 1:50, while positions involving Solana against the dollar are restricted to 1:10. The broker is authorized by the regulators of New Zealand and Seychelles. Cryptocurrency traders can place leveraged orders via several robust platforms, including cTrader, MT5, MT4, and TradingView. Spreads are floating as BlackBull Markets uses the ECN pricing model. Traders can view the current live spreads under the Crypto section in the broker’s financial instruments list.
- 4. easyMarkets
EasyMarkets has been catering to traders since 2001, focusing on offering them the most advanced products, trading tools, and services. The broker complies with CySEC’s regulatory requirements, giving its customers the necessary protections and peace of mind. Negative balance protection is available for all customers, and a guaranteed stop loss with no slippage is in place for easyMarkets Web/App and TradingView account holders.
The brokerage charges no account maintenance fees and commissions for all supported account types. EasyMarkets’ portfolio includes 20 crypto instruments, with a maximum leverage of 1:2 for retail clients under the CySEC-regulated entity. The minimum contract size varies per instrument: 0.01 for BTC, 0.1 for ETH, and 0.5 for LTC. Fixed spreads for BTC/USD stand at 85 (for easyMarkets Web/App, TradingView, and MT4) and variable spreads start from 62 for the MT5 platform. Customers can also benefit from the dealCancellation and Freeze Rate features, enabling them to manage risk more effectively.
Trade Responsibly: CFDs and Options are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Options work and whether you can afford to take the high risk of losing your money. Please refer to our full Risk Disclaimer. Easy Forex Trading Ltd (CySEC – License Number 079/07). - 5. FP Markets
FP Markets is another top trading platform supporting crypto CFD trading with no need for a crypto wallet. The brand offers crypto CFDs in assets such as Bitcoin, Bitcoin Cash, Cardano, Litecoin, and Ethereum for positions against the US Dollar. With 12 of the most traded cryptocurrencies on the market, traders will be able to diversify their portfolios and benefit from rising and falling prices in a 24/7 market.
Retail clients registered under the CySEC and ASIC entities of the broker can trade cryptocurrencies with leverage of 1:2, competitive spreads, and zero commission. Professional traders can use maximum leverage of 1:5. The broker supports the world’s most popular trading platforms, MT4 and MT5, WebTrader, TradingView, and cTrader, equipped with a helpful suite of tools and features. The minimum threshold for deposits via credit, debit cards, and eWallets is $50, while bank transfers require at least $100.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.92% 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. - 6. ActivTrades
ActivTrades is a broker that boasts over 20 years of experience, bringing its clients a wide selection of tradable instruments, catering to the preferences of different traders. Cryptocurrencies are also among the markets available to the majority of ActivTrades’ clients, bar those who register with the FCA and BACEN-regulated entities. Members of the broker can trade over a dozen crypto CFDs, available on MT4, MT5, and ActivTrader.
Bitcoin, Ethereum, Cardano, and XRP are just a few of the crypto assets you can trade as CFDs with ActivTrades. Traders who wish to get bigger exposure can trade crypto pairs like BTC/USD, ETH/USD, and many more with leverage of up to 1:20. Certain crypto pairs’ leverage is capped at 1:10, with examples being BCH/USD and DOGE/USD. These ratios are available to crypto traders who register with the entities regulated in the Bahamas and Mauritius. Additionally, EU crypto traders can access a higher leverage of 1:20 on crypto CFDs if they qualify for professional trading.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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.
Comprehensive Comparison of the Top 5 High Leverage Crypto Trading Platforms
| Broker | Account Minimum | Regulators | Spread | Other Fees | Leverage | Instruments | Cryptocurrencies | Account Types | Negative Balance Protection | Trust Pilot Rating |
|---|---|---|---|---|---|---|---|---|---|---|
| 1. FP Markets | $100 | ASIC, CySEC, FSA (Seychelles), FSCA, FSA (St. Vincent and the Grenadines), SCB (Bahamas) |
|
| Up to 1:2 (Retail); Up to 1:5 (Pro) | CFDs | 12 | Standard, Raw, Demo, Professional, Islamic | Yes (Retail traders) | 4.9 ⭐ |
| 2. Fusion Markets | $0 | ASIC, FSA (Seychelles), VFSC (Vanuatu) |
|
| 1:2 (ASIC), 1:10 (FSA, VFSC) | CFDs | 13+ | Zero, Classic, Islamic, Demo, Professional | Yes | 4.8 ⭐ |
| 3. IC Markets | $200 | FSA (Seychelles), CySEC (Cyprus), ASIC (Australia), SCB (Bahamas), CMA (Kenya) |
| Raw Spread Account (cTrader) - $3 commission per $100k; Raw Spread Account - $3.5 commission per lot per side; Swaps on long and short positions of -15 points; No deposit and withdrawal fees | Up to 1:2 (Retail); Up to 1:5 (Pro) | CFDs | 23 | Raw Spread cTrader, Raw Spread MT, Standard MT | Yes (European and Australian Retail traders) | 4.8 ⭐ |
| 4. Axi | ASIC, FCA, CySEC, DFSA, FSA (Saint Vincent and the Grenadines), FMA | $0 on crypto CFDs; overnight funding fees are listed in the platform; No deposit fees; No withdrawal fees for transactions above $50 | 1:2 | CFDs | 30 | Standard, Elite, Professional, Demo, Islamic | 4.2 ⭐ | |||
| 5. easyMarkets | $25 for Web/App Standard Accounts | CySEC (license no. 079/07), ASIC (license no. 246566), FSA (license no. SD056), FSCA (54018), and FSC (license no. SIBA/L/20/1135) | BTC/USD - 85 | No account maintenance fees | 1:2 | CFDs | 20 | easyMarkets Web/App, TradingView, MT4 VIP, MT4 Premium, MT4 Standard, MT5 | Offered as a standard feature on easyMarkets accounts. | 4.0 ⭐ |
| 6. XTB | $0 | FCA (License No. FRN 522157), CySEC (License No.169/12), FSC (FSC License No.: 000302/438), IFSC (License No.: 000302/46.), KNF (N/A), CNMV (N/A), BaFin (registered), FSCA (N/A), FSA Norway (registration ID - FT00118162), DFSA (License No. F006316), CMF (Chile) | BTC/USD target spreads from 0.22% of the market price | No deposit fees; No withdrawal fees for transactions over €100 | 1:2 | CFDs | Bitcoin, Binance Coin, Bitcoin Cash, Cardano, Dogecoin, Ethereum, Litecoin, Ripple, Solana, Tron, and more | Standard, Pro, and Islamic Accounts | Available for UK, EU, and MENA retail customers under XTB Ltd and XTB MENA Ltd | 3.5 ⭐ |
Best Exchanges for High Leverage Crypto Trading
| Exchange | Tradable Coins | Maker/Taker Fees | Interest Rates | Wallet Service | Staking | Max Leverage | Min Order | Payment Methods | Regulators | Trust Pilot Rating |
|---|---|---|---|---|---|---|---|---|---|---|
| 1. Bybit | 2,350+ |
| BTC Est. APR - 0.05% | Yes (Self-Custody) | Yes | 1:200 | USDC Perpetual Contracts and USDC Futures Contracts min order size - 0.001 BTC | Debit/Credit Cards, SWIFT Trasnfer, Bank Transfer, PIX, SEPA, Zen.com, iDEAL, BLIK | VARA (Dubai), CySEC (Cyprus), AFSA (Kazakhstan) | 3.4 ⭐ |
| 2. OKX | 350+ |
| Yes (Non-Custodial) | Yes | 1:100 for futures; 1:10 for spots | Spot/margin BTC/USDT - Min trade amount 0.00001 BTC | Debit Cards, Credit Cards, Mobile Wallets, SEPA, iDeal, Pix, Bank Transfer, Crypto, Bancontact, PayNow | FSA (Seychelles), VARA (Dubai), MFSA (Malta) | 2.0 ⭐ | |
| 3. MEXC | 4,200+ |
| BTC - Up to 1.80% | Yes | Yes | 1:200 | 0.00001 BTC | Bank transfers, bank cards, Skrill, Apple Pay, crypto | Registered in Seychelles | 1.8 ⭐ |
| 4. Kraken | 560+ | Spots: from 0.25% / 0.40% to 0.00%/0.08% (depends on tier); Margin: 0.02% opening fee; Futures: from 0.0200% / 0.0500% to -0.0030%/0.0100% (depends on tier) | 0.02% on every 4 hours | Yes (Self-Custody) | Yes | 1:50 | $1 | Visa, Mastercard, PayPal, Wire Transfer, Etana Custody, Apple Pay, Google Pay, Crypto, iDeal | FinCEN (US), FINTRAC (Canada), FCA (UK), FSRA (Abu Dhabi), AUSTRAC (Australia), CBI (Ireland), DNB (the Netherlands), BoS (Spain), OAM (Italy), CBB (Bahrain), VARA (Dubai), AUSTRAC (Australia), BAPPEBTI (Indonesia), SEC (Thailand), SAT (Mexico), CNAD (El Salvador), Registered FSP in South Africa | 1.7 ⭐ |
| 5. KuCoin | 1,000+ | Spots: from 0.100% / 0.100% to -0.005% / 0.025%; Futures: from 0.020% / 0.060% to -0.008% / 0.025% | Projected Funding Rate for BTC Perpetual/USDT - 0.0073% | Yes (Custodial) | Yes | Up to 1:100 for futures contracts | 0.000001 BTC | Credit/Debit Card, SEPA Transfer, Bank Transfer, ApplePay, GPay, Revolut, PaySera, Skrill, Advcash, Interac, and more | SFSA (Seychelles), FIU (India) | 1.6 ⭐ |
MEXC
Established in 2018, MEXC remains a leading global centralized exchange, powered by mega transaction matching technology. It has significantly expanded its global reach, now serving nearly 40 million users across more than 170 countries. The platform offers approximately 2,700 spot markets and 1,500+ futures markets, providing traders with a wide range of opportunities. Minimum order size varies per different crypto assets, whereas the maximum allowable leverage reaches 1:200.
Users will benefit from competitive spot maker fees of 0.0000% and taker fees of 0.05% (for most trading pairs). As for futures, the maker and taker fees stand at 0% and 0.02%, respectively.
The exchange does not charge fees on deposits. Traders can easily check the minimum withdrawal amounts and the withdrawal fees for each of the supported cryptocurrencies. Some of the digital currencies do not entail withdrawal fees either. MEXC Savings enables traders to stake and profit from their cryptocurrency assets. There are two types of products available – locked savings and flexible savings. There are several main features to guarantee asset security at MEXC, including the $100M Guardian Fund and the Futures Insurance Fund.
Bybit
With 78M+ users worldwide, $35B+ in daily average trading volume, and a presence in 241 countries and territories, Bybit is a strong contender in the crypto trading world. The exchange launched its operations in 2018 and quickly gained traction among crypto traders and investors. The Virtual Assets Regulatory Authority (VARA) of Dubai, the National Bank of Georgia, and the Astana Financial Services Authority (AFSA) of Kazakhstan are among the regulators in charge of monitoring its operations. In 2025, in a substantial move, Bybit reinforced its commitment to global compliance by securing a MiCAR license through its subsidiary, Bybit EU GmbH, enabling it to offer regulated services across the EEA countries.
The company offers a transparent fee structure across its products, covering both crypto-to-crypto and crypto-to-fiat pairs. Pricing for crypto-crypto pairs varies across user types, with VIP fees and PRO fees applicable. Fees for crypto pairs vary by user type, with VIP and PRO levels determined based on a trader’s available assets or their 30-day trading volume. For non-VIP accounts, Bybit charges a 0.0200% maker fee and 0.0300% taker fee on spot markets; 0.0200% maker and 0.0550% taker fees on perpetual and futures contracts; and 0.0200% maker and 0.0300% taker fees on options trading.
Bybit is widely recognized for its user-intuitive interface, with leverage of up to 1:200 on a varied range of crypto assets. The company offers high-end security measures and provides helpful educational resources.
KuCoin
Founded in 2017, KuCoin is a trustworthy crypto exchange, enabling traders to buy, sell, and trade Bitcoin and nearly 1,000 altcoins in a secure environment. The exchange caters to 40+ million users in over 200 markets and territories in over 20 languages. It has gained a strong reputation for its user-friendly, customizable interface, fast transaction speeds, and comprehensive mobile app, making it accessible to both beginners and experienced crypto traders alike.
One of the stand-out features of the exchange is its staking program. More than 40 coins are supported, enabling traders to earn rewards by holding particular crypto assets. Annual Percentage Rates vary from 0.3% to 13% depending on the crypto asset. In addition to staking, KuCoin offers flexible savings products and liquidity mining opportunities, giving users multiple ways to earn passive income on their holdings.
Active traders can take advantage of competitive fees based on their trading volume. Maker/taker fees vary according to traders’ VIP Level (from LV0 to LV12) and their 30-day trading volume. As soon as traders load the website of the exchange, they will see a list of the hot coins and those that have been added soon. Beyond offering a vast selection of supported digital coins, KuCoin is known for listing new and promising tokens early, providing users with exposure to emerging market opportunities. The platform also supports margin, futures, and spot trading with leverage options, helping traders diversify their strategies and maximize potential returns.
Kraken
Kraken is another trustworthy exchange enabling traders to explore various investment opportunities. The online exchange has been servicing investors since 2011 and has accumulated a customer base of 10+ million clients in more than 190 countries and territories. The 24-hour trading volume at Kraken stands at over $1 billion at the time of writing, and investors can buy and sell more than 560 crypto assets. They can build a diversified portfolio including various coins such as Bitcoin, Ripple, Cardano, Solana, and Ethereum. A maximum allowable leverage of 1:50 is available for Kraken Futures.
Kraken allows users to automate recurring buys of hundreds of supported cryptocurrencies, daily, weekly, monthly or on a custom schedule, solving the problem of trying to pick the perfect timing. With this strategy, they can spread their purchases over time and reduce the negative effects of volatility, while retaining flexibility to edit the amounts or payment methods used at any time.
Crypto traders get rewards on a varied range of crypto assets, with $800 M+ paid in rewards. Their earnings are paid each week in the same asset that earned the rewards. Cosmos holdings enable users to earn up to 21% APR. Staking Ethereum, meanwhile, can bring traders rewards from 2.25 to 6.5%. The exchange supports 20 crypto assets for staking, but geographic restrictions may apply. One of the new features of the crypto trading platform enables US clients to invest in north of 11,000 stocks and ETFs directly in the Kraken app and on Kraken Pro, with trades involving $0 commissions. Note that this feature may not be available in all states.
OKX
Established in 2017, OKX is a Seychelles-registered company delivering advanced trading services for a diverse range of crypto assets to customers from more than 180 regions. The platform is available globally, except in the US and several other restricted countries. It supports thousands of trading pairs across spot, margin and derivatives markets and offers a professional-style interface with access to algorithmic orders, institutional-grade liquidity and an advanced API. A major advantage of the exchange is the TradingView Platform implementation, enabling its customers to trade crypto directly from charts and apply a wide range of technical indicators and drawing tools.
The company offers different trading fees for users depending on their level, which is determined by their assets under management and 30-day trading volume. Level 1 users with assets of up to $100,000 or a 30-day trading volume below $5,000,000 need to pay maker fees of 0.080% and taker fees of 0.100%. As customers’ AUM or trading volume increase, their trading fees become more attractive with each new VIP level.
The 24-hour crypto withdrawal limit for regular users stands at $10,000,000. Meanwhile, VIP 8 clients can cash out up to $80,000,000 within the same timeframe. The exact limits and network fees vary according to the crypto asset and blockchain network used. The minimum withdrawal amounts and the applicable network cost are clearly listed per asset at the time of withdrawal.
How Does Leverage Work in Crypto Trading?
If you are interested in trading cryptocurrencies but have a limited budget, leverage can be a helpful tool. It enables traders to boost their trading power by utilizing borrowed funds in their crypto trading without committing the full amount of capital upfront. However, they must remember to use it with utmost caution, since their enhanced exposure to the crypto market can entail both profits and losses.
Leverage is utilized to increase one’s buying power beyond their actual investment by borrowing funds from trading platforms. For instance, with a 1:10 leverage ratio, a $1,000 investment can increase a trader’s exposure to the market to $10,000. In other words, for every $1 staked, they control $10 worth of trading funds. If the market moves favorably, traders can increase their gains. Assuming the trading positions are profitable, a 10x-leveraged trade would generate 10x the profit compared to a non-leveraged trade.
Unfortunately, the opposite is also true. While it can be tempting to use the maximum allowable leverage, investors should align their trading goals with their budget. They risk losing their entire stake if their position drops by a certain percentage. For instance, if you stake $1,000 at a leverage of 1:200, the position size becomes $200,000, and the margin is $1,000, or 0.5%. If the market moves unfavorably and the trade drops by just 0.5%, your entire $1,000 stake will be wiped out.
As of 2025, the maximum allowable leverage limits vary across platforms and crypto assets. Trades involving major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) typically offer the maximum allowable leverage, whereas trades involving altcoins offer lower leverage levels. Additionally, regulatory developments in certain jurisdictions have resulted in some platforms adjusting their leverage offerings based on their customers’ position sizes and risk profiles.
In summary, while leverage offers a higher profit potential, it requires strict discipline, risk management, and a clear understanding of how market movements can impact one’s position.
What Is Margin in Crypto Trading?
Traders can think of margin requirements as the initial capital they need to open a leveraged position. They need to pay attention to the margin requirements of different platforms, as they have their own terms. Similarly, leverage ratios also vary, based on the regulatory requirements of the financial bodies that oversee the particular trading platform, the status of traders (retail or professional accounts), and the margin applied. For instance, leverage of 1:10 corresponds to a margin of 10%.
Leverage ratios can vary between 1:2 and 1:200 across most of the trading brokers and exchanges we have reviewed in the current publication. Crypto traders must be aware of what these ratios represent. As established, they denote how much they control for each cryptocurrency unit in their trading account. A 1:50 leverage, for instance, denotes that for every $1 in a trader’s account, they can control $50 worth of a crypto trading pair.
Margin calls are an important aspect of leveraged positions. As margin calls typically occur during periods of extreme volatility, traders are either required to add extra funds to their accounts or close the leveraged positions.
Margin and leverage are often used interchangeably as they refer to the same concept and allow traders to control larger positions in the market, yet there is a subtle distinction between the two. While leverage is the multiple traders increase their position by, margin is the amount of money necessary to open a leveraged position.
Risk Management for High Leverage Crypto Trading
In the potentially profitable yet unpredictable world of crypto trading, investors can utilize a suite of important protection mechanisms to mitigate the associated risks and reduce losses. With prices that fluctuate significantly within minutes, traders need to be aware of effective risk management methods.
They are advised to approach crypto trading with leverage in a disciplined and responsible manner. The following risk management tools and strategies can be valuable in cutting losses to a minimum when using leverage:
Reliable Crypto Trading Platforms
Choosing a reliable crypto trading platform is one of the fundamental steps in effective risk management in crypto trading. Opting for brokers and exchanges with robust security and proper regulation is highly recommended.
Careful Research
Before investing in a particular cryptocurrency, traders are advised to conduct careful research, involving fundamental analysis, technical analysis, and sentiment analysis.
Portfolio Diversification
Spreading risk across different cryptocurrencies can effectively reduce losses. Besides crypto assets such as Bitcoin and Ethereum, crypto traders may consider altcoins such as Solana and Cardano. Portfolio diversification can reduce the negative impact of a single asset’s underperformance.
Stop-Loss Orders
A Stop-Loss order can be regarded as a safety net designed to limit a trader’s loss on a position by auto-closing it at a specific price if the market moves in an unfavorable direction. Setting stop loss orders is essential in effectively managing risks associated with crypto trading with high leverage.
Take-Profit Orders
Take-Profit orders are used when a specific profit level is reached. In other words, setting take profit orders is designed to help traders lock in their profits automatically and close trades. They are often used in conjunction with Stop Loss orders.
Avoiding Excessive Leverage
Traders may be tempted to use 100x leverage, as it may magnify their 1% profit to 100% profit. However, if trades move unfavorably, a decline of just 1% will wipe out the entire position.
How to Pick the Best Crypto Trading Platform for High Leverage Trading?
If you are willing to benefit from the exhilarating opportunities that crypto-asset trading with high leverage brings but find it challenging to pick a trustworthy trading platform, we can give you some directions on the most important aspects to look for.
Trading Fees
Whether you prefer trading with a crypto broker or an exchange, you might want to check the associated trading fees. When trading CFDs, beyond the bid/ask spreads, traders need to check the overnight funding charges, inactivity fees, deposit and withdrawal fees, and guaranteed stop order fees. Crypto exchanges generate profits by taking a percentage of every trade; hence, traders must check the maker and taker fees. Typically, exchanges offer a tiered fee structure whereby traders with larger trading balances and trading volumes are compensated with lower fees.
Crypto Assets Available for Trading
A broad enough selection of cryptocurrencies is of vital importance as it enables traders to diversify their portfolios and thus spread risk across different assets. While crypto brokers tend to offer fewer coins, predominantly focusing on major market-cap assets, exchanges offer a wider variety of crypto assets, spanning new and niche coins, stablecoins, and trading pairs.
Types of Trading Accounts
Crypto trading brokers typically offer several account types to cater to as many traders as possible. Retail and professional traders will find the account types that align with their trading goals. Demo accounts allow traders to practice trading without investing any real funds.
Exchanges, on the other hand, organize their pricing structures based on traders’ available assets under management and trading volume for the last 30-day period. With several different tiers of VIP status, traders get access to more competitive fees as their assets and trading volume increase.
Supported Deposit Methods and Withdrawal Speed
The range of supported deposit methods is also an important factor to consider. The process of depositing and withdrawing funds should be prompt and effortless, with minimal or no transaction costs involved.
Regulation
Licenses and a secure trading environment are other important aspects to look for in crypto trading platforms. Most brokers and exchanges hold licenses from multiple financial regulators, depending on the countries and regions they operate in. Some of the top-tier regulatory bodies within the financial industry are the FCA, CySEC, ASIC, and CFTC. Platforms operating under reputable regulators must comply with strict transparency, fund segregation, and reporting standards, which provide traders with additional safety.
Risk Management Tools and Investment Protections
As already mentioned, risk management tools for trading in crypto with high leverage are a fundamental aspect of responsible trading. Trading brokers provide various investment protections, such as negative balance protection and compensation funds. In addition, some exchanges offer automated margin call systems and liquidation alerts to help traders monitor their positions more effectively.
Educational Resources
Successful crypto trading requires quite a lot of learning and processing information, and trading platforms that offer educational resources can be very helpful in this respect. The resources may include video tutorials, webinars, articles, and demo accounts, which can help traders acquire the necessary skills.
Trustpilot Score
Last but not least, when picking a crypto trading platform, traders must look for reviews and feedback from other users that clearly manifest their satisfaction with the particular company and the way it handles negative feedback. Trustpilot is a reliable platform in this respect, with reviews and ratings for multiple crypto trading brokers and exchanges.
Leverage Trading in Spot vs Derivatives Markets
Top-tier crypto trading platforms enable investors to trade cryptocurrencies in various ways. Some of the most common instruments to trade digital currencies are spot trading and derivatives such as CFDs, options, and futures. We will briefly cover these instruments and the leverage that traders can use to potentially maximize their profits.
Spot trading in cryptocurrencies involves the actual buying and selling of digital assets at their current market price. Novice traders typically go for this method as it is uncomplicated, and they actually own the underlying assets. To generate profit, traders aim to sell the crypto assets at a price higher than the one they paid. Spot trading is typically done without leverage. Those who prefer trading on the spot market with leverage should note that it is lower, and commissions are higher.
Crypto contracts for difference (CFDs) have quickly gained popularity among traders as they enable them to profit from price fluctuations, without the need for ownership of the underlying assets. With no need to buy or own crypto, traders simply speculate on rising and falling prices. With crypto CFDs, traders can leverage their positions and increase their exposure to the market. Leverage ratios vary, based on jurisdiction and the status of traders (retail or professional). Additionally, trading crypto CFDs eliminates the need to store coins in crypto wallets.
Futures are derivative contracts that require the parties involved to buy or sell a crypto asset at a preset price and date in the future. Traders can resort to leverage to maximize their potential profit if the markets move in their favor.
Options are derivative instruments enabling investors to buy or sell assets at a preset price on a particular date, with no obligation to do so. The usage of leverage is also allowed.
Pros and Cons of High Leverage Crypto Trading
Crypto trading with high leverage comes with a set of advantages and disadvantages. Below are the main pros and cons of trading cryptocurrencies with high leverage.
Key Pros
- Increased market exposure and potential profits: As a result of gaining access to the broker’s borrowed capital, traders increase their market exposure and potential profits. They can multiply their gains by 2x, 10, or as much as 200x on their successful crypto trades.
- Less capital required: By using leverage, traders can enter the market with less capital. They can control a larger amount of assets with a smaller initial investment.
- Volatility: Cryptocurrencies are among the more volatile financial assets but their volatility is not necessarily a setback. Swift price variations provide favorable trading conditions for experienced investors, enabling them to achieve quick profits.
Key Cons
- Magnified risk of losses, margin call risk, liquidation risk: Just as leverage increases the potential for magnified profits, it does the same for the risk of potential losses resulting from small fluctuations in asset prices. Besides the initial margin requirement, leveraged trades also involve maintenance margin requirement. The latter is the amount of collateral needed to keep the position from liquidation. Margin calls occur when there is a need for additional margin to keep the position open. Liquidation is the largest risk traders face when trading crypto with leverage. It happens when traders have insufficient funds to keep a leveraged position open.
- Choosing the optimal leverage ratio: Novice traders may find it challenging to pick a suitable leverage ratio. Going for lower leverage ratios is recommended, so new traders reduce the associated risks to a minimum.
- Crypto trading regulations vary across jurisdictions: Crypto trading regulations vary across different jurisdictions and traders must be aware of the permitted and prohibited crypto trading instruments, as well as the maximum allowable leverage for the country they reside in. For instance, top-tier regulators such as the CySEC (EEA) and the ASIC (Australia) have set a maximum crypto trading leverage of 1:2 for retail customers.





