High Leverage Crypto Trading

Written by Zornitsa Stefanova

Zornitsa Stefanova

Zornitsa Stefanova is experienced forex and crypto analyst. She also covers various financial topics such as stocks trading and retirement investments.

, | Updated: October 22, 2024

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 investors. Stay with us to learn more about the top 10 brokers and exchanges on the crypto market plus some additional insights into the world of crypto trading with high leverage.

1Fusion Markets

Rating: 4.9 ⭐

74-89% of retail CFD accounts lose money

Top Rated

2FP Markets

Rating: 4.8 ⭐

73.85% of retail investor accounts lose money

3IC Markets

Rating: 4.6 ⭐

70.64% of retail investor accounts lose money

4easyMarkets

Rating: 4.4 ⭐

71% of retail investor accounts lose money

5XTB

Rating: 3.6 ⭐

80% of retail investor accounts lose money

Best Brokers for High Leverage Crypto Trading

1. TRADE NOW READ REVIEW
   1. Fusion Markets

   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 crypto trading instruments involving some of the most sought-after crypto pairs. Traders can expect no-commission trading with tight spreads for Bitcoin from 0.04% and Ethereum spreads from 0.09%. To place their trades on crypto CFDs, they can pick between the widely popular MT4, MT5, TradingView, and cTrader platforms.

   Traders can go long and short and 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. Clients 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. TRADE NOW READ REVIEW
   2. XTB

   XTB premiered on the online trading scene more than 20 years ago and managed to expand its customer base to over 1 million 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 and 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.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% 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.
3. TRADE NOW READ REVIEW
   3. IC Markets

   IC Markets is another trustworthy broker, bearing the seals of approval of renowned financial regulators such as the ASIC, the CySEC, and the FSA of the Seychelles. The broker supports MT4, MT5, and cTrader platforms plus advanced trading tools and a multi-channel customer support department. Based on their trading preferences, customers can opt for Standard and Raw Spread accounts.

   Under the CySEC entity of the broker, trading crypto CFDs with leverage is limited to a 1:2 leverage for retail customers. Markets are accessible 7 days a week, with real live support at customers’ disposal. Traders can pick between more than 20 crypto CFD trading tools, including Bitcoin, Ethereum, Litecoin, and Ripple, to name a few. The company has a transparent pricing structure, with detailed information on minimum spreads and average spreads based on the data from the last three months.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.64% 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.
4. TRADE NOW READ REVIEW
   4. easyMarkets

   EasyMarkets has been catering to traders since 2001, with a pronounced focus on offering them the most advanced products, trading tools, and services. The broker complies with the regulatory requirements of CySEC, giving its customers the necessary security and peace of mind.

   Easy Markets charges no account maintenance fees and commissions for all supported account types. Negative balance protection is available for all customers and guaranteed stop loss is in place for easyMarkets Web/App and TradingView account holders. The broker supports 20 crypto instruments, with a maximum leverage of 1:2 for retail clients under the CySEC-regulated entity. Spreads for BTC/USD start from 85, for XRP/USD – from 0.006, and for ETH/USD – from 6.

   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. TRADE NOW READ REVIEW
   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, 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 24/5 market. Retail clients registered under the CySEC and ASIC entities of the broker can trade on leverage of 1:2 with competitive spreads.

   The broker supports the world’s most popular trading platforms, MT4 and MT5, equipped with a helpful suite of tools and features, including customizable interface, one-click trading, and MarketWatch.

   10 per quarter for non-AU traders; 20 per quarter and notional volume of AU$1,000,000 per 4 quarters in the last 1 year 73.85% of retail CFD accounts lose money

Comprehensive Comparison of the Top 5 High Leverage Crypto Trading Platforms

Best Exchanges for High Leverage Crypto Trading

1. MEXC

   Established in 2018, MEXC is a reliable centralized exchange, powered by mega transaction matching technology. The platform offers leverage on more than 100 cryptocurrencies, including Bitcoin, Ethereum, Ripple, and Dogecoin. Traders will benefit from the competitive 0% Spot Maker Fee, 0% Spot Taker Fee, and 0% Futures Maker Fee, 0.01% Futures Taker Fee.

   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. Minimum order size varies per different crypto assets, whereas the maximum allowable leverage reaches 1:200.

2. Bybit

   With 30+ million users worldwide, $25+ billion in daily average trading volume, and a presence in 230+ countries, Bybit is a strong contender in the crypto trading world. The exchange’s taker and maker rates depend on traders’ VIP Levels. There are 12 VIP levels, ranging from VIP 0 to Pro 5. The company offers a transparent fee structure for the various products it supports, including spot trading, perpetual and futures contracts trading, and USDC options trading. As for the VIP levels, they are determined based on traders’ available assets or their trading volume for the last 30-day period.

   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.

3. KuCoin

   Founded in 2017, KuCoin is a trustworthy crypto exchange, enabling traders to buy, sell, and trade Bitcoin and more than 700 altcoins in a secure environment. The exchange caters to more than 30 million users in over 200 markets. One of the stand-out features of the exchange are the attractive staking opportunities, enabling traders to earn rewards by holding particular crypto assets.

   Active traders can take advantage of competitive fees based on their trading volume. Maker/taker fees vary based on traders’ VIP Level (from LV0 to LV12) and their 30-day trading volume. Besides offering a great variety of supported digital coins, KuCoin is often among the first exchanges to add new cryptocurrency tokens.

4. 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. The quarterly trading volume at Kraken is $207+ billion and investors can buy and sell more than 200 crypto assets. They can build a diversified portfolio including various coins such as Bitcoin, Ripple, Cardano, Solana, and Ethereum.

   Crypto traders get rewards on a varied range of crypto assets. Their earnings are paid each week in the same asset that earned the rewards. Bitcoin (BTC) holdings enable users to earn 0.1% APY. A maximum allowable leverage of 1:50 is available for Kraken Futures.

5. OKX

   Established in 2017, OKX is a Seychelles-registered company delivering advanced trading services for a diverse range of crypto assets. The platform is available globally, except in the US and several other restricted countries. 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 ranging from 0 to €20,000 and a 30-day trading volume between 0 and €100,000 enjoy maker fees of 0.140% and taker fees of 0.230%. As customers’ AUM and trading volume increase, their trading fees become more attractive with each new VIP level.

How Leverage Works in Crypto Trading?

If you are interested in trading cryptocurrencies but have a limited budget, leverage can be a helpful tool. Traders are empowered to boost their trading power by utilizing leverage in their crypto trading. However, they must remember to use it with utmost attention, since their enhanced exposure to the crypto market can entail both profits and losses.

Leverage in crypto trading is a valuable instrument that enables crypto traders to increase their buying power beyond their actual investment by borrowing funds from trading platforms. For instance, with a 10x leverage, a $1,000 investment can increase a trader’s exposure to the market to $10,000. In other words, for every $1 staked, they take $10 worth of trading funds. If the market moves favorably, traders can increase their gains. Assuming the trading picks 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 200x, 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.

The maximum allowable leverage varies by platform and crypto asset. Trades involving Bitcoin typically offer the maximum allowable leverage, whereas trades involving altcoins offer lower leverage levels.

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 and the status of traders (retail or professional trading accounts).

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. 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 oftentimes used interchangeably as they refer to the same concept and allow traders to control larger positions on 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 resort to 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.

Investors 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 regulation is highly recommended.

Careful research

Before investing in a particular cryptocurrency, traders are advised to conduct a 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 oftentimes used in conjunction with Stop Loss orders.

Avoiding Excessive Leverage

Traders may be tempted to use a 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 overnight funding charges, inactivity fees, deposit and withdrawal fees, and guaranteed stop order fees. Crypto exchanges generate profits by taking a percentage on 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 volume 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.

Types of trading accounts

Crypto trading brokers typically offer several account types to be able 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 policy 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 minimum or no transaction costs involved.

Regulation

Licenses and a secure trading environment of crypto trading platforms are other important aspects to look for. 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.

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.

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 the digital assets at their current market price. Novice traders typically go for this method as it is uncomplicated and they actually own the assets they acquire. 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 it is lower and commissions are higher.

Crypto Contracts for Differences (CFDs) have quickly gained popularity among investors 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.

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 it. The usage of leverage is also allowed.

Pros and Cons of High Leverage Trading in Crypto

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.

Written by Z. Stefanova