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What is Leverage Trading or Margin Trading Crypto?

What is Leverage Trading or Margin Trading Crypto?
Photo by Dylan Calluy / Unsplash

Crypto trading has gained popularity rapidly. Considering crypto as the future, a large number of people are investing in it. Those who deal in cryptocurrency daily must have heard about ‘Leverage trading’. We hear many things but know about few. Similarly, many people don't know what leverage trading crypto is. So let's talk about leverage and its importance in the crypto world.

What is Leverage?

Leverage trading is also known as margin trading in crypto. To increase the transactions, investors borrow capital from brokers. It is the best way of increasing profit. When investors are running short of profit, leverage trading is the best tool to speed up the process of profit generation.

In this process, the investment rate increases. Investors want to put large inputs which automatically lead to high profit. Investors borrow capital from brokers to increase the account balance. With borrowed capital, investors perform a large number of transactions. Grater transactions generate greater output.

On one side, where leverage trading provides huge profit it is risky as well. Beginners who don't have enough experience in trading should not use this technique. The probability of failure and loss is also high.

Why Do Companies Use Leverage Trading?

Companies that are running out of capital can use leverage trading. It acts as a revenue booster. Companies invest borrowed capital in the market. In case of a higher transaction rate, companies are capable of generating high revenue which is utilized in paying off borrowed capital. Nevertheless, the crypto market doesn't work the way you want. In case of a fall down, instead of getting profit, the company will move towards loss.

Therefore, predicting the future flow of the market before leverage trading. Invest capital only when you expect a future rise. In business, we need to take calculated risks to prevent heavy losses.

Best Exchange for Leverage Trading

Many exchanges support leverage trading crypto. Below is the list of a few trusted exchange platforms:


Binance was produced in 2017. It gained huge popularity and progress in a short span. Binance is a renowned cryptocurrency exchange platform that has a record of more than 1.4 million transactions.

Binance leverage trading is accessible on android as well as on IOS. Easy to use interface of Binance is the main attraction of beginners. A new person with less knowledge of leverage trading can use Binance very easily.


  1. 200 cryptocurrencies available for trading
  2. Secure and safe transaction
  3. Better transaction fee and exchange rate


ByBit is the most trusted and worthy platform for leverage trading. Due to maximum liquidity for margin trading, ByBit falls under the list of ideal exchange platforms. It was established in 2018 and currently has 2 million active users.

Complex exchange platforms usually get low traffic. People prefer and like platforms that have user-friendly interfaces. ByBit due to its easy-to-understand platform common among people.


  1. Offer 24/7 customer support in different languages to entertain customers from any part of the world
  2. Offer insurance to provide a customer protection
  3. Fastest transaction processing exchange platform


We now leverage trading as the final option of people or companies who run out of capital. But do check out the cons of using leverage trading before using it. Also, read market trends to estimate the amount of profit or loss.