Decentralized Leveraged Trading Platforms for Margin Trading

Who can benefit from this comparison guide? – Any trader interested in DeFi leverage crypto trading

The great thing about our expert guides and comparisons is that they cater to traders of all backgrounds. Of course, each guide offers something different for our readers – this particular guide focuses on decentralized leverage trading. However, the aim of our guides always remains the same: to find our readers the best and safest places to trade online.

If you have a particular interest in keeping your personal information private, making use of blockchain technology, and using leverage to your advantage, then the below guide is certain to have you covered. Our experts have been extremely busy curating reviews and comparisons on the best defi leverage crypto trading platforms around, offering an insightful look at the many pros and cons associated with each.

Irrespective of your own trading background, by the time you reach the end of our guide, you’ll be in the know of how leverage works in DeFi, you’ll be privy to the terminology, you’ll know how to set up your DeFi trading account, and you’ll also know what we at bitstacker.com look out for when curating our in-depth reviews. Like we said, there’s a little something for everyone – you just have to keep reading!

How margin trading works – a generalized look at defi leverage crypto trading

In theory, defi leverage trading revolves around borrowing funds from your chosen broker to help boost your potential profits. Much like when borrowing credit, traders are required to place an initial deposit, often called the collateral. The greater the initial deposit, the larger leverage that can be utilized. However, the limit of your leveraged amount is dependent on the decentralized leverage trading platform you choose.

Traders can look to leverage anything from 2x to 200x and above. Again, this is based on the platform you select and the amount initially deposited. It is important to understand the leveraged position aids potential growth and loss. In other words, if you have opted to execute a trade in a 2x leveraged position, you have doubled your chances of profits and losses, depending on how your trade turns out. Once a leveraged trade has been proposed, traders are expected to keep a set figure in their wallets. Should the value of their wallet decrease, the leveraged trade may be liquidated or fail to execute at all. To avoid any problems further down the line, we suggest making use of a stop-loss or finding a DeFi platform that offers zero balance protection.

Understanding key terminology

• Collateral: A term used to describe the initial deposit. This deposit will determine how much you can look to borrow from your chosen DeFi crypto trading platform.
• Liquidation: Refers to when a trade is automatically closed due to a lack of funds. As a rule, liquidation ensures that traders never lose more than their collateral.
• Stop-loss: A tool used that automatically kicks you out of a trade when a specific value is hit. An ideal feature for those using leverage that want to avoid a negative bankroll.
• Leverage: Usually highlighted as a ration or multiplier, leverage refers to the amount of additional buying power obtained from your borrowed funds.
• DeFi platform: Refers to decentralized finance – a way for traders to transfer and trade funds without the use of a third-party intermediary. A true peer-to-peer platform.

Our favourite providers

1.

96/100

Rating

Coinbase Crypto Exchange

Coinbase Review

***** Visit Site

T&Cs apply, 18+

Highlights

• Loads of crypto options
• Airtight security
• Supports NFT trading

Top attributes of the best decentralized leverage trading platforms – key things to look out for

For those of you looking to make greater use of the decentralized world, we hope that we’ve clearly answered what is margin in crypto trading? for you. With this newfound knowledge, we are confident that you’ll want to head on off to find yourself the perfect place to make your first deposit. However, before you do any of that, let us highlight the top five things we believe help make up the best defi margin crypto trading platforms around.

Reputation

When looking at decentralized leverage trading, reputation speaks volumes about the kind of experience you are going to have online. Here at bitstacker.com, our experts are dedicated to finding safe and secure places to trade online; however, there is something reassuring about reading a fellow trader’s lived experience. It is particularly helpful if you are stuck on the fence and trying to decide between two defi leverage crypto trading platforms. Although our reviews may place them in a similar position, an external viewpoint or established reputation could be enough to seal the deal. We find that reputation has greater sway with selecting a defi leverage crypto trading platform than a centralized platform, mainly due to the P2P approach.

Security

If you are looking at defi margin trading crypto platforms, then security is essential. We are fully aware that your chosen decentralized leverage trading platform isn’t necessarily going to win any awards for its Know Your Customer process; however, it should be looking at winning awards for encryption technology, firewalls, the use of two-factor authentication, custodial storage services, and more. In this section of our reviews, our experts truly do leave no stone unturned and will be quick to point out any areas that they consider to be lacking.

Additional resources

Additional resources may seem fairly vague to most, especially if they are new to trading. What we mean by this is the types of educational and relevant materials made available to users of their chosen defi margin trading crypto platform. This can take many forms, including how-to videos, guides on NFTs, reviews on trading strategies, or a fully functioning demo account. Personally, we feel that a demo account is one of the greatest perks made available by some of the top platforms and is also something that helped us when questioning Is ByBit legit?

Functionality

Following on nicely from the above, our fourth favored attribute is functionality. As you can see, the addition of videos, reviews, guides, and a demo account is all great to have; however, how useful are these resources if they are difficult to access, take a long time to load, or are not regularly updated? This is where functionality comes into play. Functionality refers to the overall usability, design, and layout of your chosen defi platform. Due to the volatility of cryptocurrency, it is important that trades are executed promptly, accounts can be accessed on the go, and all-important facets of the platform are accessible within a few clicks.

Trading fees

When margin trading Ethereum, Bitcoin, Litecoin, or any other popular cryptocurrency, you can expect to find fees attached. These fees can often be increased, depending on the volatility of an asset and how established a coin is too. With this in mind, it certainly pays to double-check the fees associated with your account. Generally, these fees will be set; however, the crypto world is still in its relative infancy and still has a few tweaks that need to be ironed out. In our reviews, we are quick to establish whether any overnight fees are placed on your account, if you can expect a charge for depositing and withdrawing, as well as taking a closer look at ad-hoc charges for buy/sell orders, conversions, and more.

How to get started with a defi leverage crypto trading platform – set yourself up for success

The penultimate section of our defi leverage crypto trading guide focuses on how you can get yourself set up and trading crypto online today. Although different defi leverage crypto trading sites may have a few additional requirements, the below is a solid overview of what you can expect when looking at the decentralized leverage trading platforms featured in our comparisons.

Conclusion – stay safe and make use of our decentralized leverage trading platform comparisons

Decentralized leverage trading is a great way to ensure your anonymity remains while boosting your available bankroll. The idea behind defi leverage is simple enough: trade with greater volume than is currently available to you. The perks of this are evident, but it is important that you remember there are true downsides to this method if not executed properly, too.

That’s why we have created the above guide and tasked our experts with researching the best defi leverage crypto trading platforms around. By making use of our comparison, you put yourself in a far greater position than most of the competition when trying to find the perfect place to trade crypto online. Our reviews are based on reputation, security, functionality, fees, and any uniquenesses that help set a platform apart. We also recommend that all of our readers set up an external crypto wallet, study their chosen cryptocurrencies, and understand the fees involved with leverage trading, before making any kind of financial commitment.

For many, decentralized finance is considered the future and leverage is a great way to take advantage of it, provided you know how and where to do so safely.

Decentralized leverage trading FAQs