In this review, we will present the best Bitcoin margin trading platform 2020 by analyzing different margin trading sites.
We will only compare some of the largest and what we think are the absolute best margin trading platforms and we will focus on fees.
We only review platforms we have traded on ourselves.
Stay tuned as we list out security features, trade functions, fees, deposit and withdrawal methods of each individual bitcoin trading platform.
The platforms analyzed by this guide are Binance, BitMex, Bitfinex, and Kraken. The information provided by this guide has an aim to guide you towards the best Bitcoin trading platform 2020 for you.
What is Bitcoin Margin Trading?
Bitcoin margin trading, is also known as Bitcoin leveraged trading. This is a form of trading that uses borrowed funds in order to trade larger amounts of a specific asset.
For example, if you have 1 Bitcoin on Binance, you can borrow up to 2 Bitcoins more and trade as if you had 3 Bitcoins.
Remember, leverage trading always mean higher risk. Also, when you borrow Bitcoins from someone else you need to pay fees (interest) for this lending. You must understand how such fees are charged since they can eat up your position over time.
Margin trading is a wide term and can include trading with products like Bitcoin perpetual swaps and Bitcoin futures. These are complex trading products and we have a dedicated guide on Bitcoin perpetual swaps VS Bitcoin futures.
Short Intro About Bitcoin
Created by an anonymous developer called Satoshi Nakamoto in 2009, bitcoin became the pioneer of the cryptocurrency world.
The coin has been and is still the largest digital coin in the world due to its decentralized nature. No one controls Bitcoin, which is used to transfer money around the world for low network fees.
We have a complete guide about it, so make sure you check the page “Everything you need to know about Bitcoin“.
In recent months, its value skyrocketed due to the increased market awareness and forks implemented in 2017.
Adding to that is increased difficulty for mining and lower supply. Thus, bitcoin is expected to grow in value though large energy consumption for its production still remains an issue.
How to know which is the best Margin Trading platform for bitcoin in 2020
Almost every crypto trading platform out there offers bitcoins for trade. Thus, you have numerous choices when it comes to buying and selling BTCs. The best way to differentiate them from each other is to use following indicators of great trade platform:
- Deposit and withdrawal methods
- Fiat currencies available
- Margin trading functions
- Registration, identity checks and verification
- Security and support features
- Regional service availability
- Exchange rate and fair fee structure
If you are interested in shorting Bitcoin we recommend this article instead, How to short Bitcoin.
Binance Bitcoin Margin Trading
Binance is probably the best margin trading platform for Bitcoin in 2020. They have established their position as the number one exchange and trading platform in the cryptocurrency space. Also, they have a nice and intuitive interface and they offer leverage trading up to 125x.
For margin trading, you browse to the to Trade in the header menu and from there you go down and click on Margin in the drop down menu. You can see this in the screenshot below.
BitMEX Bitcoin Margin Trading
If you are looking for a variety of margin trading functions, then BitMex is a place for you to start. The platform offers bitcoins with the help of limit, market and stop loss functions. You also have several other tools that would help you create an appropriate order, such as fill or kill and Reduce-only. Leveraging is available for up to 100x, providing a large rate of profit or loss activities.
Service is available globally while the interface is geared towards experts. The fee structure is organized through maker or taker costs, ranging from 0% to 0.075%.
Bitfinex Bitcoin Margin Trading
Bitfinex is the largest USD to BTC trade platform that offers services globally. Its margin trading and interface are oriented towards experts, while beginners might find the trading platform a bit confusing to use. The accepted deposit method is bank transfer only with fees ranging between 0% and 0.2% depending on the volume achieved.
You can check out the BTC margin trading functions in the snapshot below.
Security has been upgraded following the hacking incident in 2016, with several safety tools now available. These are 2FA, email encryption, IP whitelists, email notification system and session management. You do need to provide proofs of identity and address before you are able to trade with bitcoins at Bitfinex.
Kraken Bitcoin Margin Trading
Kraken exchange and trading platform offer functions for both starters and experts from the cryptocurrency industry. The available deposit methods are bank transfers only while trades form around the world can make USD or EUR payments for bitcoins. Margin trading is available for unverified users though verification would bring about larger trade limits. You can check out the trade widget ion a picture below.
As for the security, you have cold storage, 2FA, PGP/GPG email encryption and global settings lock at your disposal. Fees range from 0% to 0.26%, depending on the monthly achieved trade volume.
Summary – Best Margin Trading Platform for Bitcoin in 2020
Taking everything into account, we deem that starters can try out Coinbase or Kraken. It is easy to understand the functions and the interface are geared towards beginners with these platforms.
Bitfinex is probably best for more expert traders due to a large number of functions and volumes available for trade. Apart from Bitfinex, advanced users might find Bitstamp or BitMEX interesting as well.