Top 3 Best Margin Trading Platform
Today I will summarize the world's best Margin exchanges for everyone to refer to and trade coins with peace of mind. Let people have a better
I have been involved in cryptocurrency because I see it's potential for financial freedom and reform through Blockchain technology. Regarding the exchanges, I have tried Trade coin on many large and small exchanges, including traditional exchanges and Margin exchanges, so I know the strengths and weaknesses of each exchange.
Today I will summarize the world's best Margin trading platform for everyone to refer to and trade coins with peace of mind. Before summarizing, I want you to understand what is the definition of Margin? Let people have a better view before entering this potential and also full of heat market.
What is margin?
Margin also known as Margin trading allows a trader to open a position with leverage. That is, when traders have a small amount of cryptocurrencies and will borrow money from the house (exchange) to increase leverage (like short selling) for the purpose of increasing the capital to increase profits. Profit, when the user increases the higher the leverage, the greater the risk, the higher the risk, with Margin trading you can make money both when the price increases or decreases, unlike the traditional transaction which is buying cheap sell expensive.
Margin supports leverage X2, X5, X10 even some exchanges support leverage up to X100.
For example, if I own 1 BTC, I open a margin trade with 2 times leverage (X2), then my virtual capital will increase to 2 BTC, for example BTC increases by 10%, then my profit get will be 20% thanks to 2X leverage. Standard trades are traded with 1:1 leverage.
What is Long & Short in Margin?
Long and Short in margin has 2 main positions understood: Long is (buy), and Short is (sell).
- When you enter a Short, you will profit when the price falls and will lose when the price rises.
- Conversely, when you enter a Long position, you will profit when the price is rising and lose when the price is falling.
Advantages and disadvantages of Margin
- Advantages: Margin (margin trading) will help you quickly increase your assets, if you adhere to the principles of capital preservation and are not too greedy in this market (in this market, the will be forever).
- Cons: although this is a way to help us increase assets quickly, on the other hand this is also the way that will help you most likely to lose money (burn out your account) if you increase your leverage up too high.
Top 3 Best Margin Trading Platform
Note: Margin trading (margin trading) is high risk. So not recommended for beginners, with veteran traders also incurring huge losses in margin trading if they don't know how to play.
However, if you are good at day trading, you can start trading with small amounts to get used to it.
Here are the Top three crypto exchanges that allow margin trading on the platform:
- BitMEX: This is the best Margin exchange today, with a large trading volume, fast liquidity. BitMEX supports up to 100x leverage for BTC or 20x for other cryptocurrencies. BitMEX stands for Bitcoin Mercantile Exchange. This is a trading platform for Bitcoin and other derivative cryptocurrencies based on Bitcoin. In addition to Bitcoin, other virtual currencies on BitMex are all derivative virtual currencies, which inherit the value of entity virtual currencies, the altcoin codes themselves on BitMex have no intrinsic value, but all will attributed to Bitcoin.
- BitMax: BitMax.io is a new digital asset trading platform that provides cryptocurrency trading services to a wide range of clients, including professional traders, institutional investors and institutional investors. core. The platform has nearly 20,000 users globally with many active trading pairs and additional listings undergoing approval. Although Bitmax is a new exchange, it has received the same welcome as the BitMEX exchange.
- Poloniex: Poloniex is a cryptocurrency exchange that combines Margin + traditional trade based in the United States. Poloniex was founded by Tristan D’Agosta and has been operating since January 2014 and is headquartered in Wilmington, Delaware, USA. On August 29, 2016, Poloniex was recognized as a money services business after registering with the Financial Crimes Enforcement Network.
Tips for using Margin Trading
- Margin is a potential market but it is also the fastest way to make your account zero, so you should learn about it carefully before stepping into this market.
- You should only use leverage from X2-X5 when you first enter the market, even if you are familiar, you should not use too high leverage because the higher the leverage, the higher the burn rate. your account faster.
- Please split the orders to play and absolutely should not All in One invest in a single order because the risk rate is very high.
- Don't be too greedy in this market, please eat small profits, many small profits will become big profits, professional traders they only profit about 30-50% / 1 month is very high.
- Should learn how to analyze the market, and should not trade coins according to emotions.
- After each successful Margin trade, you should close the order and take profit at that time.
Through the article, you already know what is Margin? Have a better overview of Margin trading, the article on top 3 best Margin exchanges today was compiled by me through the process of trading coins and also synthesized through users' feelings when trading through the above-mentioned exchanges, Hope this article helps you in the process of choosing the best Margin exchange for your peace of mind.