Where can I find the Best Bitcoin trading platforms, how can I trade Bitcoin with leverage, what should I look out for?
Bitcoin is one of the hottest assets in the world right now, growing beyond all previous expectations and still gaining more momentum as the days go by. Visit the site to get the complete list of the Top 25 Cryptocurrencies by Market Capitalization.
But with this rising popularity comes a growing demand for knowledge on how to properly invest in the crypto market, trade it with leverage, and navigate it successfully.
In this article, I will be answering important questions like;
- How do you get started in Bitcoin trading as a beginner?
- Differences between Bitcoin trading and Bitcoin Investing.
- What is leverage trading?
- What should you look out for when choosing a trading platform?
- How do you find the best leverage Bitcoin trading platforms for you? And
- My top 10 Bitcoin trading platforms.
- Top 10 Rules for Becoming Profitable In Leverage Trading
Once you are done reading this article, you will be equipped with the knowledge to spot and avoid Bitcoin trading platforms with numerous limits, weaknesses, and red flags.
You will also get the best discounts on fees, commission, and other bonuses for signing up using our link when opening a leverage trading account on any of the Bitcoin trading sites mentioned in our list.
How Do You Get Started in Bitcoin Trading as A Beginner?
Coming into the Bitcoin market as a total beginner can be overwhelming and complicated at first, especially with all the fake news and scams going around in the industry.
But it becomes easier as time goes by and you begin to understand all the steps and processes involved in successfully navigating this industry. Bitcoin 101: What is Bitcoin? is the best Bitcoin Introduction for all beginners.
Step One: Get A Bitcoin Wallet
As a beginner, the first thing you need to get is a Bitcoin wallet. With this wallet, you can store your Bitcoin and keep it safe for quick and easy access whenever you need it.
You can read our beginner’s guide on How To Buy Bitcoin for a detailed explanation on how to go about buying Bitcoin.
There are two popular types of wallets you can choose from;
- Software Wallets:
These are both mobile and desktop applications that offer you an online virtual crypto bank for storing your Bitcoin and accessing it online whenever you need it with no limits.
These software wallets can also be connected to your traditional bank account making it easy for you to buy additional crypto funds online at any time by using a bank transfer.
The only drawback is that you are handing your Bitcoin over to a third-party company like SwissBorg for safekeeping. And while the leading software wallets are trustworthy, it is important to remember that regulation in the Bitcoin industry is still at its infant stage and we have seen several popular third-party crypto companies collapse, get hacked, or vanish with investors’ money.
So, when choosing a software wallet for your crypto needs, you must carry out adequate online research on the company. You can read our guide on regular exchanges like this here.
- Hardware Wallets:
These types of wallets are old school but a lot more secure than the software wallet. With these Hardware wallets, you can store your private key on physical hardware offline.
This puts you in charge of safekeeping your Bitcoin and protecting your Hardware wallets from danger.
The leading hardware wallet maker I recommend as the best for your Bitcoin offline storage is Ledger.
Step Two: Buy Bitcoin
Now that you already have an online/offline Bitcoin wallet to store your Bitcoin, it is time to go out and start buying Bitcoin into these wallets. The way to do this is by simply exchanging your fiat money for Bitcoin of the same value.
This step is very easy as we have a lot of third-party companies and online crypto exchange market place available for you to make use of from anywhere in the world. These Bitcoin exchange sites make it very easy for you to actually Buy and sell Bitcoin online and they do this for a very small commission.
Some online Bitcoin Exchanges also allow you to connect your bank account or a debit card. This way you can easily purchase or withdraw directly to your bank account by using a bank transfer.
For a full list of my top Bitcoin exchange sites, you can read my review “Best Bitcoin Exchanges to Buy Bitcoin Online”.
You can read our beginner’s guide on How To Buy Bitcoin for a detailed explanation on how to go about buying Bitcoin.
Step Three: Find The Best Crypto Trading Platforms
Once you have bought Bitcoin and transferred it into your Bitcoin wallet, it is time to take the next step of finding and opening the best-leveraged Bitcoin trading platforms.
This account gives you access to an online trading platform that allows you to take part in the active trading of Bitcoin with leverage for a small commission.
There are numerous leverage Bitcoin trading platforms to choose from and in this article, I will be giving you the best tips on how to pick out the best and what you should be looking for in any leveraged Bitcoin trading platform.
But before we go into talking about how to find the best Bitcoin trading platforms with an amazing reputation, or how to use leverage to your advantage, I would first like to differentiate between Bitcoin trading and Bitcoin investing.
The Differences Between Bitcoin Trading and Bitcoin Investing?
Understanding the differences between Bitcoin trading and Bitcoin investing is very important for beginners because they both have different strategies and methodologies when it comes to getting involved.
Investing in Bitcoin
Investing in Bitcoin is very different from trading and involves buying and Holding Bitcoin for a very long time. This includes Holding through the price surge and drawdowns that might occur throughout your investment.
The belief is the Bitcoin price will ultimately keep on rising over the years and some time in the long-distance future, they can decide to sell their Bitcoin for profit.
Bitcoin trading on the other hand involves looking to benefit from the short-term price fluctuations In the Bitcoin price. If you correctly anticipate and predict these moves, then you can come out of the trade with a nice profit.
The high volatility in the Bitcoin market makes trading Bitcoin a very popular strategy investors are using to make money from the market. The market also has a high reputation for burning traders with little to no trading knowledge.
Having said that, it is important to understand that people can trade Bitcoin and love it enough to invest in it for the long term too.
What Is Bitcoin Leverage Trading?
Sometimes referred to as margin trading, leverage trading is one of the most attractive things about online Bitcoin trading. With this leverage option, traders can borrow funds from their crypto broker to amplify their buying/ selling power and increase their potential returns.
This way, traders with small capital can participate and take full advantage of leverage trading to open larger positions online in the Bitcoin market.
How does it work?
The amount of leverage you have available for trading is directly set by the Bitcoin exchange you use. My top choice Bitcoin exchange platform Bybit offers its users 100x leverage for trading Bitcoin.
Once you open an account on the Bybit Exchange Platform, you have two options when it comes to leverage trading:
- You can go long: Opening a buy position with the belief that the Bitcoin price will go up.
- You short: Opening a sell position in anticipation of the Bitcoin price move down.
Once your position is opened, a portion of your account balance will be held as collateral for the leverage funds you borrow from the exchange.
If your trade is successful and you close the position at a profit, your collateral is returned to you along with those profits minus any fees and brokers’ commission.
However, if the market moves against you and you’re in a loss, you can close your position at any time and have your collateral returned to you minus the fees and commission or leave your position open until your trade is automatically closed by the Broker and your collateral liquidated – this is known as the liquidation price.
What to Look Out for When Choosing Bitcoin Trading Platforms?
There are many Bitcoin trading exchanges out there, too many to test them all. So, this is why we chose the biggest and safest players in the crypto world and put them on our exchange list. But how should you choose in the list? Well, keep reading below, because we will mention a few key points to think about when you’re looking to trade Bitcoin with leverage.
Reliable and Secure Exchange
The first thing you should keep an eye out for when it comes to picking the best Bitcoin exchange platform for you is online reliability and security. In simple terms, “Can you trust this broker with your funds and your trading?”
Choosing a broker with a trading platform that freezes or crashes every time there is a spike in the Bitcoin market is a recipe for disaster. This is the same for an online broker that does not take the fund security of its traders seriously.
Our top choice is Bybit, this company is one of the oldest, largest, and most reputable crypto exchange brokers in the industry. You can read our complete Bybit review titled Bybit Review 2021 – Is It Safe To Trade On Bybit?
Phemex is also really good but a lot newer. The exchange platform implements a lot of cutting-edge technology when it comes to functionality, reliability, and security. You can read our complete Phemex review titled Phemex Review – Is it Safe To Trade On Phemex?
Cryptocurrency Pricing and Trading Fees
Once the broker can be trusted, the next thing to look out for is the cost of trading on the platform. This commission and cost differ from exchange to exchange, your goal as a trader is to compare and contrast to find an online Bitcoin exchange that offers you the best services but at a low USD cost.
Exchange Sign-up & Deposit Bonuses
This is something that many people overlook. Make sure to always use an affiliate link when signing up for these Bitcoin margin exchanges. The reason for this is that these affiliate links always give you some kind of Bonus.
For example, if you sign up to:
- Bybit with our link you’ll receive up to $600 FREE as a deposit bonus.
- Phemex with our link you can claim up to $130 in bonuses.
- DueDEX offers over $200 in bonus if you sign up with our link
- Binance offers up to a 10% cut on all fees for using our link
- BitMEX with our link you get 10% off the fees.
- If you sign up to FTX with our link you’ll get 5% off the fees.
As you can see in our list, some of these margin exchanges offer 100x leverage when trading Bitcoin and other cryptocurrencies.
Now, it’s very important to understand that higher leverage comes with higher risk. So, it is not advisable to use 100x leverage when trading Bitcoin.
However, if you are an experienced Bitcoin trader looking for Bitcoin leverage trading above 20x leverage, look at our list. Exchanges like Phemex, Bybit, and DueDex offer 100x Bitcoin leverage trading.
This can also be a dealbreaker for some people. Now, most crypto margin exchanges out there are “crypto to crypto” exchanges, but there are also “FIAT to crypto” exchanges out there.
If you look at our list below, you can see that online exchanges like Binance and PrimeXBT offer credit cards as a deposit method. Other exchanges like BitMEX and Deribit are strict “crypto to crypto” exchanges.
So, if you want to trade on these Bitcoin margin exchanges, you’ll have to buy Bitcoin first, and then deposit it to the exchange. If you’re looking for the best place to buy Bitcoin online, read our complete list for buying Bitcoin here.
My number one choice for Bitcoin exchanges that offer traders easy deposits to their trading account is Phemex. Read Phemex Review
Trading Multiple Cryptocurrencies on Margin
You can trade Bitcoin on leverage and margin on all of the margin exchanges in the list below. However, you can also trade other cryptocurrencies on them, called altcoins.
Fiat-Crypto or Crypto-Crypto Trading
Fiat-to-crypto exchanges allow you to trade cryptocurrency against fiat money. You have trading pairs like BTC/USD.
While crypto to crypto exchanges only allow you to trade one crypto against another I.e. BTC/ETH.
Understanding the kind of market, and the kinds of crypto pairs you want to get involved in are very important.
How Do You Find the Best Leverage Bitcoin Trading Platforms for You?
When it comes to picking the right leverage Bitcoin trading platforms for your needs, you must remember that there is no one size fits all for exchanges. Each user has unique needs when trading Bitcoin and each exchange have unique strengths and weakness that can either favor your trading strategy or break it.
Understanding what your needs are is the first step to finding the best Bitcoin Exchange platforms that suit you.
Best Exchanges for Beginners
As a novice Bitcoin trader, your first step in finding the Best Bitcoin trading platform for you is by looking for Bitcoin trading exchanges that support and priorities providing helpful content, videos, and customer assistance to new traders.
Phemex tops the list when it comes to the trading platforms’ ease of use and free training contents for both new and advanced traders. Read the complete review.
Best Pricing for Small Accounts
For small accounts, your number one goal is to reduce the cost of trading. Binance is the best broker for you. The combination of very high leverage of 125x for trading Bitcoin and the lowest trading fees in the industry makes it easy to partake in the crypto market even with little funds.
With Binance you can easily find the support you need to compound your trading account quickly. Read the complete review here.
Get 10% Discount Using This Link
Best for Cryptocurrency Scalpers
Bybit, Phemex, and DueDex are the best Bitcoin exchange choices for scalpers and high-frequency traders. Their top tier liquidity providers combined with a top of the line technologically advanced trading platform makes entering and exiting trades smooth.
Best for High Leverage
Coinflex offers its users the ability to trade Bitcoin with leverage as high as 250x. This is the highest leverage ever offered by any Bitcoin exchange in the crypto industry.
Best for Trading Bitcoin Options
Deribit and FTX are the best Bitcoin exchanges that offer support for Bitcoin options trading. That said, if you are a beginner you should probably go for Phemex or Bybit. Deribits’ interface is more geared towards professionals and Options trading is quite complex.
Best for Trading Multiple Cryptocurrency Assets
Binance and FTX both have the highest amount of tradable crypto pairs in the industry. On Binance, the total amount for all tradable pairs is more than 25 while FTX offers you a wide range of the best crypto markets from Futures to Spot to Options and even Stocks. Read the full FTX review here.
Phemex also stands out by offering users the ability to open trades in Gold on its platform, making it the only Bitcoin exchange platform that does this. Your trades in the Gold/USD derivative can be leveraged up to 100x.
Best for Managing Sub-Accounts
Phemex is the best bitcoin exchange platform for trading sub-accounts. With these sub-accounts, you can better manage your trading accounts, test multiple strategies, segregate your trades, trading funds, and generally perform better in the market.
These sub-accounts also give traders the ability to tweak the trading environment of individual accounts. This way traders can change the permissions, leverage, balances, and margin levels of the individual accounts to better suit the strategy being traded on it without affecting other accounts or open trades.
Best Exchanges for High Withdrawal Limit
These two have one of the highest withdrawal limits of 3 times per day, at specific times. This makes it possible for their users to carry out multiple transactions on the platform, unlike its competitors that usually allow only one withdrawal per day at a specific time.
Best Bitcoin Trading Platforms In The U.S
Because of regulation in the US, Bitcoin leverage trading is generally not allowed for US citizens. However, many Bitcoin traders simply use a VPN to be able to trade on Bitcoin margin exchanges.
You can use a VPN and trade on any Bitcoin exchange from anywhere in the world. The most popular one among Bitcoin traders is NordVPN. Commonly, US traders use NordVPN to trade on these popular crypto leverage exchanges listed in this article.
Of course, as a responsible trader, you would do this at your own risk if you are living in the US. Nothing written here is meant as financial advice.
My Top 10 Bitcoin Trading Platforms
Bybit exchange was launched in 2018 and is growing extremely fast within the crypto community right now. The reason for this is probably their amazing 24/7 customer service and user-friendly website. Furthermore, there are no system overloads on Bybit, which is a huge advantage over its competitors.
Also, the leadership behind Bybit is pushing the boundaries of what a crypto trading exchange can do. For example, on Bybit exchange you can deposit not only Bitcoin, but also altcoins, and trade with them. Now, this is unique for the Bybit exchange right now. Interestingly, the founders of Bybit has an impressive background in companies like Tencent & Morgan Stanley. Make sure to read our complete Bybit tutorial before trading Bitcoin.
Phemex is one of the most advanced Bitcoin derivatives exchanges in the industry. The company implements cutting edge technology on its platform and seeks to provide institutional-level derivatives trading to traders en masse.
Since its launch date, Phemex has experienced an overwhelming amount of support, growth, and patronage from crypto traders all across the globe, thousands of users signing up on the platform from the first day of launch.
The company also offers various types of pricing, fees, and signup bonuses for new users to take advantage of. Read our complete Phemex Review to get more information about this broker.
3. Prime XBT
Prime XBT was founded in 2018 and is one of the many new crypto trading exchanges trying to compete with the big boys like Bybit and BitMEX. On Prime XBT, you can trade Bitcoin and a few selected altcoins on up to 100x leverage on the platform.
PrimeXBT offers very low fees, commission, and pricing.
Get 50% Deposit Bonus
FTX is a relatively new crypto to crypto derivatives trading platform that has taken the cryptocurrency trading industry by storm. The crypto exchange was built above average with a very powerful and versatile trading platform that was designed to suit the needs of both professionals and first-time traders, making the exchange platform an immediate favorite for traders from all around the world.
However, FTX requires you to complete the KYC process. This will involve you submitting identification documents before you can own an FTX trading account.
If you are looking for anonymity, then FTX might not be the Bitcoin exchange for you. Read our complete FTX Review to get more information about this broker.
Get 5% off fees
Founded in January 2019, DueDEX is a new Bitcoin futures exchange platform taking the crypto market by storm. This broker brings an array of sophisticated, user-friendly, and institutional-grade tools, analysis, pricing discounts, and services to its crypto trading platform.
Yes, this unique trading environment makes the DueDEX cryptocurrency exchange platform a perfect alternative to some of the other crypto exchanges in the crypto trading industry like Bybit and Phemex.
DueDex however only supports trading BTC/USD perpetual swap contract. So, if you are looking to place trades on other crypto assets, DueDex might not be the one for you.
Binance was founded back in 2017 and has been an industry leader ever since. However, it was not until 2019 that they started offering margin trading for Bitcoin and a few selected altcoins. Over time it has grown to also become a force to reckon with in the Bitcoin leverage industry, offering users the largest amount of tradable crypto pairs, the highest amount of leverage, and the lowest fee in the industry.
If you’re looking for an exchange with a lot of recognition, a high reputation, and a solid user base, then Binance might be a good choice for you to place your trades with. Read our complete Binance Review to get more information about this broker.
Get 10% Discount Using This Link
One of the most popular exchanges is called Deribit. This is one of the biggest Bitcoin exchanges that offer Bitcoin options trading. The platform is above average and offers one of the lowest pricing fees in the crypto options industry.
That said, if you are a beginner you should probably go for Bybit. Deribits’ interface is more geared towards professionals. Read our Deribit review for more info.
Coinflex is a relatively new cryptocurrency exchange platform that has risen to dominance and gained popularity among crypto traders and enthusiasts. This is because of its high leverage, low pricing fees, numerous trade offers, and multiple account features. This makes trading with Coinflex an easy and straight forward process for both beginners, average traders, and experts.
This is a great alternative to Bybit and Phemex. Read our Coinflex review for more info.
SnapEx is also a great Bitcoin exchange platform and a great alternative to Bybit for traders to use. However, SnapEx requires you to complete the KYC process. This will involve you submitting identification documents before you can own a SnapEx trading account.
If you are looking for anonymity, then SnapEx might not be the Bitcoin exchange for you. Read our complete SnapEx Review to get more information about this broker.
Claim Up To $100 in Bonus
BitMEX was founded back in 2014 and has been an industry leader for a very long time. However, this seems to be changing right now as more competitors enter the space. Exchanges like Bybit has already had many BitMEX traders move over to them.
The main reason why people are leaving the BitMEX exchange is because of the system overload. To explain further, these system overloads happen in highly volatile moments. In these moments many traders are trying to put in their orders at the same time.
Sadly, the BitMEX platform has historically had a lot of problems dealing with the high volume of traders they have. We hope that this will change in the future, but for now, we recommend the Bybit exchange for Bitcoin margin trading. However, if you want to trade on BitMEX, you should read our complete BitMEX tutorial before placing any trades.
Top 10 Rules for Becoming Profitable In Leverage Trading
When trading Bitcoin, it’s important to not use your emotions. Most traders lose money when they panic sell or panic buy. Bitcoin trading is very volatile, so make up a plan and stick to it. Don’t let your emotions change your trading plan.
Don’t Go All In:
It is very important to not use too much of your funds when trading. Why? Because if you risk too much, you will have a hard time not getting emotional about your Bitcoin trade. Never hold more than 50% of your holdings on a trading exchange, and never use more than 5% of your exchange balance in a trade. Learn to diversify by knowing the best crypto asset to buy at any time.
Never Be Greedy:
If your trade is going in the right direction, you can move up your stop loss into the green. Because no matter what happens by now you’ll make at least a small profit. So, it’s better to guarantee a 20% win, than to gamble for 40% and risk losing. Learn how to trade Bitcoin and put in a stop loss on the Bybit exchange in this Bybit tutorial.
Read and Learn from Mistakes:
All Bitcoin traders, even the professionals, have lost trades many times. Now, the important part is to ALWAYS learn from your mistakes. Because, if you do then your trading mistakes will always make you a better trader.
Always Use A Stop Loss:
This goes without saying, but please always put in a stop loss as you enter a trade. Risk management is extremely important when trading. It’s very easy to use stop-losses on the Bybit exchange. In this Bybit tutorial, we show you how to use stop losses step-by-step.
Take A Step Back:
Make sure that you are not staring too much on the lower timeframes like the 15 min or the 1 hour. Instead, now and then you should take a step back and look at the bigger picture. Because, the bigger timeframes are more significant, and identifying the overall trend will help you know the best crypto to buy even in the smaller timeframes.
Place Order Beforehand:
All Bitcoin traders and altcoin traders know that crypto is very volatile. Now, sometimes this creates overloads on the Bitcoin exchanges. So, to circumvent this problem you can put in limit orders in advance, and let them trigger automatically even if you’re not at the computer. If you’ve ever traded Bitcoin on BitMEX exchange then you know how frustrating these overloads can be. If you want to trade on a Bitcoin exchange without system overloads, try Bybit.
Learn Technical Analysis:
This might seem obvious, but make sure to always develop your skills. Everything from learning from your mistakes to reading technical analysis books. This will help you in knowing when is the best time to buy crypto and when to sell.
Set weekly, monthly, and even yearly goals. This will help you to see the bigger picture and to always focus on getting better. Because if you build slowly and target 5% per month, then you’ll be growing exponentially. This is because 5% month over month will create an exponential curve. Eventually, your only problem will be to figure out if you want a green Lambo or an orange one.
Actually, maybe the most important skill a professional trader has is knowing when NOT to trade. Because, professional traders NEVER gamble, and if they are unsure of a trade, they will not take it. Only enter trades where you’ve made your analysis and you’re certain that you have the odds on your side. Because this will ensure that you make money over time.