If you are a crypto investor or a day trader you must have heard the term leverage trading. Leverage allows you to multiply your asset and invest it which increases the reward as well as risk. So it is the perfect way through which you can increase your profit by increasing the purchases ability. The increase in purchases ability also increases the chance to lose the money that you invest.
What is leverage trading in crypto?
Leverage is the tool that allows you to increase your investment ability by borrowing money from the broker. Generally, the broker is the app that you use for trading such as Binance, By bit. For example, if you can $10 in your wallet you can increase it to $20,$30,$40, and so on and invest it. The borrowed money can only be used for trading purposes it means you can’t withdraw the money unless you close the trade that is performed from the borrowed money. With the increase in investment ability the probability to lose money increases. If you increase the money by 200% then you can lose all your money if the market or the coin you invest goes down by 50%. Leveraged trading is a high-risk high-reward trading tool. If you are new to trading then leverage trading is not recommended since expert trader also goes into big losses sometimes. However, the expert trader or a regular trader invests a small amount of their investment in leverage trading.
Top Exchanges For Crypto Leverage Trading.
Binance :
Binance is the world’s largest and most popular crypto exchange platform. Over 500+ of crypto are available in Binance for trading you can choose any one of them and start trading on Binance. It was developed in china later it is expanded all over the globe. Binance is available in most of the countries of the world. Binance provides the leverage feature for the user. In order to use leverage trading, you need to do KYC verification which is a simple and easy process. You can use leverage on many coins listed on Binance after you do KYC verification. The leveraging power depends upon the coin that you choose. You can use 20X leverage on most of the coins and even 100X on some coins. The trading fee is quite expensive in Binance than other exchanges if you use Leverage. So if you want to make more money and minimize trading fees Binance is not recommended.
Bybit :
Bybit is developed after the Binance with most of the features of Binance and less trading free Bybit is getting more popular in recent days. It is more popular for leverage trading because the fee in Bybit is less than the fee in Binance. So, if you are interested in leverage trading then Bybit is recommended. One of the major disadvantages of Bybit is there are fewer coins available in Bybit than Binance . More than 20 cryptocurrencies are available in Bybit for trading which is quite less. So most of the traders prefer Binance over Bybit since there are more coins in Binance.
QNA:
- Which trading platform is best for leverage trading?
Bybit is best for leverage trading since you don’t need to pay much trading fee on Bybit than Binance. But one of the major disadvantage of Bybit is there are fewer coins available for trade.
