Crypto trading has had a good take off since the beginning of 2020. Given the explosive growth of leverage traders, most crypto platforms have relaxed their outlook on time duration. This is because crypto trading requires a crypto trader to take advantage of asset performance over a given session. As a result, the process has become simpler and provided traders with a wealth of assets they can trade in at one given session.
There are various types of exchange platforms in the market and it is difficult for traders to decide on one. Some platforms offer crypto margin trading, others offer crypto CFD trading and others offer both. It’s important for traders to learn the difference between the two to decide which platform suits their needs. Obviously, a trader will always select a cryptocurrency trading platform that caters for all their needs.
What is crypto CFD trading?
CFD trading refers to derivatives, which enable you to predict crypto price movements without having to own the underlying currency permanently. Traders can decide to go long if they think a certain cryptocurrency will appreciate, or short if they think the price will drop. Profits and losses are determined by the extent of your losses. CFD trading is suitable for short term traders unlike investing and owning cryptocurrencies like bitcoin.
The cryptocurrency market is entirely decentralized, which means they are not issued or overseen by any central authority. They run through interconnected computer systems and their prices are determined by the law of supply and demand. Digital assets exist as a digital record of ownership which is recorded on the blockchain network. Some traders prefer speculating on crypto CFDs instead of going through the tiresome process of purchasing and holding cryptocurrencies until their value increases.
What is Crypto Margin trading?
Margin trading is a key part of leveraged trading. Margin trading allows crypto traders to gain experience and exposure with a given asset by borrowing capital from an exchange or from other traders on the exchange. The only difference between margin and regular trading, is that regular traders use their own funds. Margin traders use borrowed funds through which they are able to fund and multiply their investments. This method is also referred to as leverage trading. Leverage is the number of times a trader will multiply his/her position. Take for example a trader who opens a position with a 100X leverage. Their position will multiply the potential profit by a hundred times.
We dissected the best crypto platforms that offer trading services and came up with the following list. Remember we assessed these platforms on the basis of usability, reputation, leverage, charting, deposit methods, customer support and security features.
PrimeXBT is a multi-asset margin trading software with a huge consistent trade volume that passes the $400 million limit a day. The platform has an assortment of powerful features built upon the vision to provide smooth trading on crypto, commodities, stocks and forex. PrimeXBT can execute trades within 7.12ms. A feature that makes it one of the fastest, most accurate and stable crypto trading platforms. You will also enjoy low fees and an industry leverage of upto 100X and X500 on both cryptocurrencies and other asset classes respectively.
Bitcoin Digital offers exclusive automated trading services to its users. The platform leverages computer algorithms to evaluate the market and conduct fundamental analysis to identify productive trading opportunities on behalf of the trader. Some of the benefits of using Bitcoin Digital includes no commissions charged, effortless deposits and prompt withdrawals, reliable customer care, and working with regulated brokers. Bitcoin Digital is among the new innovations specifically designed for trading Bitcoin and other crypto assets, and promises to keep improving on results.
This is one of the most popular cryptocurrency exchanges in the world. The platform is a nice destination for traders looking for margin trading opportunities. You will find a wealth of innovative trading solutions such as crypto staking, spot exchanges and a savings account to earn interest on your digital assets. The exchange has millions of active users from multiple regions across the world. Furthermore, Binance has high liquidity and provides a reliable bridge between crypto and fiat. Traders also enjoy a 25 percent cut on trading fees. Besides, the interface is intuitive, stable and friendly.
Bybit blends the best features of both cryptocurrency and traditional finance to deploy a safe, reliable and user friendly exchange. The platform has a smooth interface and reliable charting. You will benefit from the trading platform either as a beginner or professional trader. ByBit has over 100,000 active traders and the number keeps growing. Daily trading volume has witnessed an upward trend for the past few months. As a trader on the platform, you will not experience any server downtimes. The engine is fast and convenient with a transaction speed of 100,000 executions per second. ByBit will successfully execute a trade within 10 microseconds.
Cryptocurrency trading is complex and it is essentially characterized by high volatility. As such, it is of key significance for you to have all the information possible to make the best decision possible when executing orders. That’s why knowledge is by far the most important resource any trader needs, and the learning is a continuous process. Even the most elite traders keep learning as a way to keep their trading instincts sharp, and avoid any unintended bad habits at bay.