Leverage trading is one of the most powerful tools skilled investors can use to maximize their returns. Trading with leverage is also accessible in the cryptocurrency market, with many exchanges offering various leverage ratios and limits.
If you are interested in trading cryptocurrencies with leverage, you will need to research thoroughly to find the right exchange that will give you the best terms for your trading strategy.
The article below will present you with the best crypto trading platforms for trading with leverage. We will also demystify the terms leverage, margin, and liquidation and dissect leverage trading in detail so you can better understand its benefits and risks.
After conducting throughout research, we can recommend you the following platforms:
Dive into our concise reviews below, crafted after scouring top sources and analyzing crucial features.
Bitunix, founded in 2021 in Hong Kong, is a crypto exchange designed for convenience, security, and social trading.
The platform supports over 700 crypto trading pairs across over 100 countries. The app is efficient, lightweight, and easy for beginners to jump into.
Bitunix is a jack of all trades, with easy access to P2P trading, futures, and staking. Bitunix’s copy trading feature lets users automatically copy the trades of successful traders on the platform.
The Bitunix academy education platform leans toward beginner and intermediate traders, teaching them all they need to know about the space with L2E(learn-to-earn) rewards.
It also has a variety of rewards programs, ranging from trading volume tournaments to Bitunix Splash, giving rewards to users investing in new tokens.
BTCC Crypto Exchange, originating in China in 2011, is one of the longest-standing platforms in the cryptocurrency industry, offering a diverse range of trading pairs and financial services. BTCC prioritizes privacy by implementing strict security measures, including advanced encryption protocols and secure storage solutions.
Initially established in 2011 and officially launched as a crypto exchange in 2013, Kraken is a crypto trading platform headquartered in San Francisco, California. It is one of the most popular exchanges on the market and consistently generates billions of daily trading volumes.
Kraken offers its services to all but two states in the US and holds the necessary permits to operate globally.
Kraken supports over 300 cryptocurrencies. Its service offerings include spot trading, margin trading with up to x5 leverage, and derivative trading with up to x50 leverage. The platform also offers earning opportunities for a select group of cryptocurrencies.
On Kraken, users can make fiat deposits with six major fiat currencies using several different payment methods. Kraken’s trading fee structure is tiered and offers discounted rates to users who generate large monthly trading volumes.
Initially launched as OkCoin in 2013, and then rebranded as OKEx in 2022, OKX is one of the largest crypto platforms in the world. With offices and licenses for operation all across the world, it has a global presence in the industry.
Even though it does not accept US users at the moment, OKX is registered as an MSB with FinCEN and is working on creating a US version of the platform.
OKX supports over 350 cryptocurrencies and over 500 trading pairs, and offers a wide range of services, including spot trading, P2P trading, futures and options, margin trading, earning and staking, bot trading, crypto loans, and much more. It is a one-stop comprehensive crypto platform.
The exchange also supports a long list of fiat currencies and accepts deposits in various payment methods. OKX’s fee structure is tiered and offers discounts for active traders who generate large monthly trading volumes.
CCN is an educational resource that specializes in providing the latest, unbiased, and fact-checked insights on cryptocurrencies, exchanges, market trends, and everything crypto.
Our expert team is comprised of seasoned professionals who are experienced in blockchain technology, financial analysis, market strategy, and trading. With their help, we were able to research, analyze, and assess numerous crypto exchanges on their performance and security and, of course, evaluate their leverage options.
In addition to reviewing metrics and data points, we personally tested the exchanges to get firsthand impressions of their user experience.
Our goal is not to persuade you one way or another. By sharing our insights with you, we want to help you see things more clearly and make informed decisions when exploring the dynamic world of cryptocurrency.
| Casino | Welcome Bonus | Our Rating |
|---|---|---|
| Bitunix | Receive up to $100,000 worth of exclusive gifts for newcomers upon registration. | 4.0 |
| BTCC | Get up to 10,055 USDT when you register, verify, and make the first deposit and the first trades. | 4.0 |
| Kraken | Get $10 in Bitcoin when you register through a referral link from an existing member. | 4.5 |
| OKX | Verify your account within 7 days for a chance to get a Mystery Box with crypto or rebate cards | 4.7 |
Disclaimer: Investing in cryptocurrencies carries significant risk. Values are highly volatile. Never invest more than you can afford to lose. This site does not provide financial advice. Act based on your own research and consult with a financial professional before making decisions. Don’t invest unless you’re prepared to lose all the money you invest.
Like any other powerful tool, leverage trading must be handled by a skillful professional. While it has the potential to multiply profits, leverage can lead to disastrous losses when mishandled or used recklessly.
To better understand the whole picture, let’s review the biggest benefits and the most significant risks of trading with leverage.
Leverage trading essentially allows you to open positions larger than your capital normally would allow you to. When you have bigger investment capital at your disposal, you can:
Overall, leverage trading can help you double down on your original position and give you the opportunity to explore new positions that are impossible to pursue with limited capital.
Doubling down on positions is one of the primary reasons traders use leverage. Access to larger capital gives you the power to strengthen your position and potentially make larger returns if your trades are successful.
For instance, if you have $1,000 to invest in Bitcoin and its price rises by 10%, your profit would be $100. However, if you leverage your investment at 10x, that same 10% increase would generate profits of $1,000, effectively amplifying your returns tenfold.
Capitalizing on minor market movements is another popular use case for leverage trading. When you have limited capital, you miss out on many opportunities to generate steady returns from small price fluctuations, as they would not be profitable enough to be worthwhile.
For example, if you only have $1,000 to invest, you will naturally look at trade opportunities with more significant price swings. But if you have access to leverage, these minor movements suddenly become more feasible, as they can potentially generate more substantial returns.
In addition to widening your profit potential by making minor fluctuations more opportune, leverage trading can broaden your investment portfolio by allowing you to invest in multiple cryptocurrencies. With limited capital, you can only afford to invest in a few coins.
On the other hand, with leverage, you can open positions across various cryptos and diversify your investments to minimize your risk. What’s more, you will gain exposure to a wider range of market opportunities, improving your potential for returns and profit.
Besides allowing you to better diversify your portfolio, developing more advanced investment strategies, like hedging or arbitrage trading, also becomes possible through leveraged trading.
With access to larger capital, you can consider protecting your positions by taking the opposite position in a related crypto to offset any potential losses.
You can also look for opportunities to profit from buying cryptos on one exchange and then selling them on another, where they have a higher price.
Since trading with leverage gives you access to additional investment capital and bigger buying power, it is only logical that it also exposes you to higher and more serious risks, such as:
Considering that even more experienced traders sometimes struggle with the terms above, let’s discuss each of these risks and explain them in detail.
Losing more money than initially invested is a real risk when trading with leverage. The best way to explain how this can happen is by imagining a hypothetical scenario in which the position you took with leverage goes against you.
Let’s say you invest $100 with x10 leverage in Bitcoin. The crypto’s price drops by 10%. Normally, this would result in a loss of $10, but since you are using x10 leverage, your investment is effectively $1,000. Therefore, your loss is $100.
Add the interest and fees charged by your broker for using leverage, and your losses have already exceeded your initial $100 investment.
Considering the unfortunate turn of events in the scenario above, you may be thinking, what if Bitcoin’s price drops even more, like 20% or 30%, and my initial investment cannot cover my losses? Well, that’s when you receive the margin call.
The margin call is essentially a notification from your brokerage that your investment has turned against you, and you need to add more money to your account just to maintain your position.
Once you receive the margin call, you can either pay the broker the necessary funds to continue supporting your leveraged position, or you can opt to have your position liquidated.
Liquidation means closing the leveraged positions you have taken and losing the money you initially invested to cover your losses. Any funds remaining after selling them will be returned to you.
However, it is important to point out that when a liquidation occurs, the positions are sold at a price much lower than the price you initially bought them at, so you will end up with significantly less money than before you made the investment.
By liquidating your positions, you also forfeit the potential profits you might make if the market eventually turns in your favor.
In extreme situations where liquidating the underperforming position is not enough to cover the leveraged losses, brokers have the right to use other assets in your account to cover the losses, which is called cross-margining.
For example, you invested $100 in Bitcoin with x100 leverage, which means your position is effectively $10,000. If the crypto’s price drops by 10%, like in the scenario above, your leveraged loss would effectively be $1,000 and far exceed your initial investment of $100.
Even if you liquidate your position, you will cover only $90 with the current price and still owe your broker $910. That said, the broker can liquidate other assets in your portfolio to cover your leveraged loss.
Now that you have a better idea of just how devastating leverage trading can be when things go wrong, we can explore some risk management techniques that can help you avoid disastrous scenarios like cross-margining.
One of the simplest and yet most effective risk management techniques is diversification. By spreading your capital among multiple cryptocurrencies, you effectively reduce the impact of a sudden price drop of a single crypto, as gains from other investments can balance it out.
Placing all your eggs in one basket is almost never a good idea, and there is no reason why this principle should not apply to leverage trading as well. To better manage risks, diversify your holdings across the market, look for opportunities in various crypto assets, and gain exposure to different sectors.
In addition to the basic market orders used for buying and selling cryptocurrencies at their current market price, crypto traders can also make use of other types of orders, including:
While the above two are the order types most commonly associated with risk management, there are also stop, limit, stop-limit, guaranteed stop, trailing, and other types of orders that can help you manage risk.
If you are planning on using leverage for your crypto trades, we strongly recommend you learn everything about them and implement their usage into your strategy.
Although this is not a technique per se, adopting the cautious trader mentality may be even more essential to managing risk than any other tool at your disposal. Inexperienced traders tend to get carried away and exhibit reckless behaviors like:
A well-defined strategy that clearly outlines all entry and exit points and the discipline to stick to the plan no matter the circumstances are the best ways to counter losses. Particularly with leverage trading, when there is so much at stake, you must learn to control your emotions to avoid a disaster.

One of the first steps is choosing the right platform to trade and manage your assets. But how do you pick the best crypto exchange with so many options out there? Let’s examine some of the essential criteria.
In the digital world, security isn’t just an advantage; it’s a necessity. While pioneering and technologically advanced, crypto exchanges are not immune to threats. Over the years, several exchanges have fallen victim to hacks, leading to significant losses for traders.
Before committing to a platform, always research its security history and safety measures in place. Platforms with past breaches should be scrutinized, but don’t outright discount them. Sometimes, a past breach leads to tighter, more robust security measures.
Additionally, an exchange’s reputation within the crypto community can provide insight. Is the platform trustworthy? Does it prioritize users’ safety? Leveraging community forums and user reviews can offer some answers. Remember, with leverage crypto trading, security is paramount.
Diving into crypto isn’t just about Bitcoin and Ethereum anymore. The crypto universe has expanded, offering a variety of coins, from mainstream ones to niche altcoins. Consider asset offerings when choosing a platform. Does it support the cryptocurrencies you’re interested in (for example ADA, BTC, XRP, BNB, LTC, ETH, BCH)? If you’re a trader keen on diversification, variety is key.
While crypto offers decentralized finance and trading options, it isn’t free from fees. Platforms might charge for depositing, trading, withdrawing, and even account inactivity. You may notice a range of fees:
Even the simplest crypto trading platform will require some form of fee, simply because those keep it operational. Luckily, you may also find a bonus for the first trade or various types of discounts, depending on the platform.
As someone considering leverage cryptocurrency trading or even just starting with trades, always be aware of the associated costs. Every fee, no matter how minuscule it seems, impacts your bottom line. Some platforms might offer lower trading fees but get you on withdrawal charges. Always assess the entire fee structure.
In today’s fast-paced world, having mobile access to your assets and trades is more of a rule than an exception. Many crypto traders prefer making trades on the go, analyzing charts over coffee, or adjusting market orders while commuting.
When considering a platform, check if they have a functional mobile app. Is it user-friendly? Does it offer the same functionalities as the desktop version? With the increasing demand for mobile staking and trading, ensure your chosen platform keeps up with the times.
When it comes to the best place to leverage trade crypto, nothing beats hearing from those who’ve already ventured into the waters. Previous users have first-hand experience with services and customer support. Therefore, seeking out user reviews and recommendations is paramount.
But remember, the internet is vast, and not every review is genuine. It’s essential to discern between authentic feedback and biased or paid feedback. Look for detailed reviews, preferably from trusted sources or platforms known for their stringent review guidelines.
The learning curve can be steep for anyone new to trading crypto with leverage. Educational resources play a pivotal role in bridging this gap. Comprehensive guides, video tutorials, webinars, and FAQs can make the journey smoother. It’s not just about knowing where to stake leverage trade crypto but understanding market volatility, strategies, and pitfalls. Such resources equip users with the knowledge to navigate the markets more confidently and reduce the chances of making novice mistakes.
A license is like a stamp of approval from regulatory authorities. When a crypto exchange is licensed, the platform has passed the necessary filters and met the regulatory compliance requirements to operate legitimately.
To get its operating license, a crypto exchange must:
The exchanges that can meet all of these requirements get their license, and can be deemed trustworthy and reliable.
It is scarce for crypto platforms to operate solely as an exchange, and most of the well-known names in the blockchain industry usually offer other services besides exchanging coins. Let’s have a look at these additional services.
When thinking about where to trade crypto with leverage, the availability of staking tools comes to mind. Staking is a great way to earn by holding and supporting a blockchain’s operations. You can receive tokens as rewards by holding and locking up a certain number of tokens in a digital wallet. However, the ability to stake and the rewards earned can vary widely across exchanges supporting staking.
Some exchanges offer staking for a select number of coins, while others provide a broader array. The APR and APY numbers also vary. Furthermore, specific platforms offer auto-staking features. These ensure users maximize their rewards without the constant need for manual intervention.
If you’re considering diving into staking, understand the attached terms and conditions. Each exchange has its own set of rules governing this practice.
When you buy a cryptocurrency from a crypto exchange, and the purchase is reflected on your account’s balance, the coin officially belongs to you. However, it is under the custody of the exchange. Let us explain what we mean.
Based on who controls the private keys, there are two main types of crypto wallets:
So, while keeping your cryptocurrency in a custodial wallet can seem convenient and easier to manage, withdrawing your coins and storing them in your crypto wallet is always safer, as it doesn’t rely on trust. Why risk the security of your assets to a third party when you have the option to put matters into your own hands?
Having said that, if you do decide to store your crypto in a non-custodial wallet, be sure to act responsibly and take real good care of your private keys and recovery phrases, as losing them can lead to permanently losing your assets.
Before starting trading, you need to get your money onto the platform. Here’s where things can get interesting. Different platforms accept different payment methods. Let’s get into the details.
If you already own a cryptocurrency, you can use it to purchase other cryptocurrencies on virtually every crypto exchange. That’s why they are called crypto exchanges. You can use them to exchange cryptos.
Trading one crypto for another is a safe, convenient, and cost-effective way to purchase a cryptocurrency, but inaccessible for those who have yet to become crypto owners. For this reason, many exchanges also accept various payment methods that work with fiat, including the ones we mentioned below.
Also a commonly supported payment method, most crypto exchanges accept deposits made with bank transfers.
Although they are infamous for their slow processing times, bank transfers are still a secure and reliable way to transfer money, so it is no surprise most exchanges still accept them.
The fees incurred when making a deposit with a bank transfer are also minimal, so they are also the method of choice for some cost-adverse traders.
Card deposits are the most popular payment method, especially for online purchases, so it is only natural that most crypto exchanges support them.
Cards offer a safe, quick, and most importantly, familiar way to purchase things, so many traders use them to buy cryptocurrencies.
That being said, they are not the most cost-effective method, and cardholders often face unexpected fees when buying cryptos with cards, particularly credit cards.
Many crypto exchanges accept payments from e-wallets, digital payment processors, and other fintech solutions, PayPal being the most widely supported option.
Those who have used it before know about the convenience, speed, and security of PayPal, so it would always be their payment method of choice.
Similar to using a card, PayPal charges extra fees when used to buy cryptos, so we suggest you double-check the terms on its official website before making a final decision.
You probably noticed that different payment methods charge different fees when buying cryptocurrencies. Depending on your plan, this can be insignificant or a big deal.
If you are just looking to buy a small amount of crypto to own, your choice of payment methods should not make that big of a difference.
But if you plan on purchasing a substantial amount, or making regular crypto purchases using fiat, we recommend you carefully compare fees across different payment options.
Even though these fees seem minor when expressed in percentages, they can add up over time and really eat away at your earnings. If you want to trade cryptocurrencies daily, you must find a strategy to stop using fiat currencies altogether and focus on exchanging cryptos instead.
After breaking down benefits, risks, and risk management strategies, it is long overdue we finally address the elephant in the room. What is crypto leverage trading, and how does it work? Let’s find out.
Trading with leverage is a risky type of trading that gives traders the opportunity to control positions larger than their own capital would normally allow. The leverage is essentially capital borrowed from the broker, which allows the trader to take these positions.
Even though the trader who uses leverage doesn’t own the capital borrowed from the broker, they can still use it to amplify their returns and retain the extra profits it generated.
In return for lending the capital to the trader, the broker typically charges interest or fees for the entire duration of the positions being held.
The amount of leverage a trader can utilize to multiply their investments can vary depending on the broker or the trading platform being used. Most exchanges offer leverage options x10, x20, x30, and some even may allow up to x100 of the initial investment.
The higher the ratio, the higher the multiplication factor by which the trader’s profits are amplified. But at the same time, if their trade goes wrong, their losses are also multiplied by that same factor.
Let’s say your investment budget is $1,000, and you want to take a long position on Ethereum because you expect its price to rise. If you buy $1,000 worth of the coin and its price increases by 1%, your profit would be 1% or $10.
However, if you take the long position with your $1,000 and x10 leverage, you effectively invest $10,000 in ETH, even though only $1,000 is from your capital. This means that if the price moves up by 1%, your profits would be 1% from the leveraged $10,000, not the $1,000 you own, so you would earn $100.
On the other hand, if your prediction was incorrect and Ethereum’s price goes down by 1%, your losses are also amplified by a factor of 10. So, instead of losing $10, you effectively lose $100 of your initial investment.
The biggest difference between spot trading and leverage trading is ownership. Namely, in spot trading, you buy and own the assets outright. In leverage trading, you buy positions on the assets to profit from price movements without actually owning the underlying assets.
Here are a couple of practical examples that will help you understand this principle:
Let’s say your investment capital is $1,000, and the price of Litecoin you want to buy is $100. With spot trading, you can buy 10 Litecoins and own them in your wallet. If the coin’s price increases by 10%, your investment’s value increases by $100 to $1,100. If it goes down by 10%, your investment’s value decreases by $100 to $900, but you still own the coins.
In the second example, you have the same budget of $1,000 and want to place an x10 leverage position on Litecoin worth $100. Your position is now effectively $10,000 worth of Litecoin, but you don’t own the actual coin. If its price goes up 10%, you profit $1,000, but if it goes down 10%, your loss would also be $1,000 and wipe your initial investment.
This is why leverage trading is considered to be significantly more risky than spot trading and is only recommended for experienced and cautious traders.

Here’s how to get started with leverage crypto trading.
First, you must create an account on a crypto leverage trading platform. Here’s a quick step-by-step guide:
After setting up an account, it’s time to make your first trade:
Remember, while crypto leverage trading offers an exciting opportunity, always stay informed and trade responsibly.
Earlier, we introduced several risk management techniques to help you mitigate losses when trading with leverage. Let’s take a closer look at some of them and explain exactly how they work, and how you can use them.
Using stop-loss orders and carefully sizing your positions are critical when trading cryptocurrency with leverage. By strategically determining the entry and exit points, you can set effective stop losses that will minimize your potential losses and protect your capital.
Stop-loss orders are conditional orders that allow the trader to specify an exact price point at which their open position will be automatically closed. In other words, they allow the trader to automatically sell their position when its value decreases to a previously determined minimum and thereby avoid losing too much money.
We previously illustrated the huge losses it can lead to when things go wrong, so using stop-loss orders to manage the risk when trading with leverage is a must.
In addition to using stop-loss orders, you also need to learn how to determine the right size for your positions based on your capital and risk tolerance. In simpler terms, if you decide your maximum acceptable loss and at which price point you will place your stop-loss order, you can determine exactly how much you should invest in a single trade.
Sizing your positions based on a previously established formula is necessary when trading with leverage. If you just place your positions based on a hunch or a rumor, it is unlikely that your capital will last long.
While we explored some of the more advanced techniques, it is important to never forget the basic principles of investing, which are essential to any strategy and trading style.
Considering that trading is nothing else but capitalizing on market movements, analyzing the current market trends as well as the underlying factors that cause fluctuations is something you must constantly monitor and adapt to to be successful.
There are tons of tools that can help you gain valuable insights into the crypto market. Use them to draw out the information you need and make better decisions when trading..
By the time you hear about a new investment opportunity, it is probably already too late to capitalize on it. If everyone talks about how a specific crypto coin is skyrocketing, chances are it has already achieved significant growth, and there isn’t much more to gain from it.
Timing is essential in trading, so you must rely on your insights and discover opportunities by yourself. Do your best to stay ahead of the curve and identify your own entry and exit points before anyone else.
Consider the following guidelines to ensure your entry into the cryptocurrency market is as smooth and painless as possible.
We mentioned the importance of choosing a licensed exchange for your trading, but credibility is not the only standard to look at.
Reputable exchanges are known for their user-friendly interfaces, quality-of-life features, and excellent customer support. Try to find an exchange you won’t feel lost at, and one that will go the extra mile to make your experience more comfortable.
Consider reviewing user reviews and expert assessments while searching for the right exchange to learn more before making a final decision.
Blockchain technology takes pride in its decentralized, transparent, and secure nature, but even crypto traders are not immune to cyber threats.
Always use a strong password and enable all of the advanced security measures provided to you by the exchange to secure your assets. Do the same for your non-custodial wallet if you have one, and keep your private keys and recovery phrases in a safe place.
Finally, never share your sensitive data with anyone, and be wary of phishing attempts, scams, and other fraudulent schemes.
In case you were not aware, many crypto exchanges allow users to create a demo account on which they can practice trading without investing any real money.
They are like a simulation, where traders can place trades and experiment with virtual money to see if they can develop their skills and strategies. Getting started with a demo account is always a good idea, especially if you plan on trading with leverage.
Don’t take unnecessary risks. Try your abilities with a demo account to build confidence before becoming an investor.
Leverage trading is highly risky, and carries the potential for massive returns. However, if you don’t place proper risk-management protocols into place, the losses can be just as large. In fact, at some exchanges, you can lose even more than your initial investment.
The best leverage trading exchange is one that fits your needs. Take a close look at your needs and risk appetite, then look through this review again with those in mind. Whether you’re a beginner just starting out with leverage, or a professional trader, we’re confident you’ll find the right fit here.
Unfortunately, even the best exchange won’t be able to make up for a lacking trading strategy. Make sure you’re constantly educating yourself on the market and employing proper risk management in your trading.
Leverage trading works by letting you borrow capital to increase the size of your trades. Therefore, leverage amplifies both your upside and downside by the leverage amount.
Leverage affects both gains and losses proportionally. For example, if you’re using 10x leverage, your gains will be worth 10x, but your losses will be amplified by the same amount. For 10x leverage, what this means is that a 10% reduction in your position’s value will force you to close it, losing all your initial capital.
Generally speaking, the best leverage trading crypto platform is Kraken. This is owed to its mix of security, intuitiveness, low fees, and ample leverage opportunities.
Leverage trading improves your capital efficiency by letting you trade bigger positions with a lower initial investment. This effectively magnifies profits by the leverage multiplier.
Your losses are calculated the same way like your profits. However, many leverage trading platforms will limit your losses to your initial investment. That said, if you’re trading using leverage without this limitation, you may even lose more funds than you initially put into the trade.
The best time to leverage trade will vary based on your trading strategy. However, the peak trading volume tends to occur between 3 and 5 PM CET (9 – 11 AM EST).
