Decentralized Leveraged Trading Platforms for Margin Trading

Best platforms for decentralized crypto leverage trading

There’s no denying that the buzz around cryptocurrencies just keeps on growing. If the anonymity of trading crypto is something that has piqued your interest, then this defi leverage crypto trading guide is a must-read.

Below, you can unlock industry insight on how to find and set yourself up on the best decentralized leverage trading platform around. Before all of that, we give you a full rundown of what leverage is, the perks of using a defi leverage crypto trading site, and plenty more.

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Compare the best platforms for margin trading

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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.

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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.

Research into cryptocurrencies

We start our how-to guide right at the beginning: focusing on which cryptocurrencies you plan to trade. Before searching for the perfect defi leverage crypto trading platform, it makes sense to have an understanding of which types of crypto you wish to trade. Primarily, you will find that almost all trading platforms offer Bitcoin, Ethereum, Ripple, and other major digital assets; however, if you fancy trading something a little lesser-known, then make sure you’ve checked the whitepaper, understand the roadmap, backing, market cap, and supply, before moving on to step number two.

Making use of bitstacker.com

Okay – there may be a little bias here; however, it pays to make use of any crypto guides, reviews and comparisons of platforms, as well as any further reading that could help uncover the perfect defi trading platform for you. Our experts are tasked with the goal of keeping our on-site reviews as honest, updated, and authentic as possible, meaning our readers receive nothing but the best. In turn, they’ll be able to judge which platform works for their needs.

Choosing an external crypto wallet

Although many defi leverage crypto trading platforms offer their own on-site storage, we believe that an external wallet is critical in ensuring that your crypto experience remains in your hands at all times. Naturally, a deposit onto a defi site is needed to buy, sell, convert, and make use of leverage; however, once your leveraged trades have finalized, it is worth moving your funds back into the safety of your own hands. All defi platforms that we at bitstacker.com review are all trusted and legit; but, the risks of hacks and scammers are still around, and your safety is our main concern.

Make an account

DeFi trading platforms make the signup process a breeze, relying on the anonymity and security of the blockchain to ensure identities are kept safe. Unlike centralized platforms, you will find there is little need to input personal details. Of course, you may need to link your online/hot wallet or sign up using an email address; however, the process is usually painless and allows you to quickly start sending or receiving the crypto of your choice.

Place your leveraged trades

Once your chosen crypto has been received into the wallet of your chosen defi leverage crypto trading platform, you can begin to focus on placing your leveraged trades. Depending on the approach you wish to take, trading fees and rollover fees may be applicable – please make sure that your wallet is sufficiently filled. If your wallet does not hold sufficient collateral, you will find that your trade will either not be executed or will be closed should the market move in the opposite direction. We would also advise making use of stop-losses and any other tools that can help with damage control along the way.

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

🚀 How do I start leverage crypto trading?

Before you start leverage crypto trading, it makes sense to do some research into the types of assets and instruments you wish to trade. If you are looking for a well-established cryptocurrency, then centralized exchanges may offer greater security. If it’s up-and-coming crypto you are searching for, then a decentralized crypto trading platform may be the most viable option. If you are currently unsure if it is prohibited according to your faith, then we advise checking out our guide answering is crypto margin trading halal? 

💯 What is defi leverage crypto trading?

When it comes to finding the perfect defi leverage crypto trading platform for you, there are many different things to consider. Here at bitstacker.com, we focus our goals on security, accessibility, support, fees, and availability; however, there are many personal touches that help traders find their perfect home. Not sure where to start your search? Check out our guide, is Phemex legit? next.   

🔓︎Is defi leverage crypto trading legal?

Cryptocurrency is still a relatively new entity that has caused much controversy around the globe over recent years. While it is 100% legal and live in some countries, others have opted to prohibit it entirely. However, due to the decentralized nature of crypto, traders from all over the world can still access it. We would advise checking the laws and legislation in your jurisdiction before attempting to deposit on the highest margin crypto trading platforms.

📱Can I use my phone to trade crypto?

In terms of popularity, there is no doubt that there has been a positive shift in mobile usage when looking at crypto trading. Due to this positive trend, most top online platforms are now opting to provide dedicated apps for traders to make use of. While this is great news in many respects, it has led us to create reviews and question is Prime XBT legit? You can find out by checking out our latest comparison! 

💲What strategies are most profitable when trading crypto?

Unless you are social trading, the crypto world is a very personal and individual thing. Some may be obsessed with margin trading Bitcoin and all that the #1 crypto offers, while many others will be looking for the next big thing. Regardless of your interests, it pays to have a strategy in place. Not only will this make spotting entry points much easier, it will also allow you to reflect on profit/loss and make adjustments to your approach much more straightforward.

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