Crypto derivatives such as futures contracts are growing in popularity, with more and more companies launching dedicated crypto derivatives platforms in addition to their spot markets. These products are popular because they allow traders to make profits regardless of the direction of the market, which is not possible with a buy and hold strategy.
On exchanges that offer trading, traders can also use leverage to increase their purchasing power or pursue advanced trading strategies, even though this comes with increased risk.
Bitcoin is the most popular crypto asset for crypto derivatives, but in this article, we will be taking a look at how to leverage trade altcoins on the top cryptocurrency margin trading exchanges. Most exchanges offer lower leverage limits for altcoins when compared to Bitcoin, as smaller cryptocurrencies tend to be more volatile.
Leverage trade Ethereum (ETH)
You can trade Ethereum with leverage on a number of exchanges, including BitMEX, PrimeXBT, OKEx and Kraken. BitMEX offers two types of Ethereum products – a perpetual contract (no expiration date) based on the USD price of ETH and more traditional futures contracts based on the BTC price of ETH. Both products offer up to 50x leverage. PrimeXBT offers 100x leverage on its ETH contracts against USD and BTC.
OKEx also allows enables to trade Ethereum with leverage, and offers both perpetual contracts and traditional futures contracts. On OKEx, traders can go long or short on Ethereum with up to 50x leverage.
Leverage trade Ripple (XRP)
BitMEX offers up to 20x leverage on its XRP futures contract which references the price of XRP against Bitcoin. Traders that want more flexibility can leverage trade XRP against both USD and BTC on PrimeXBT.
On OKEx, traders can speculate on the price of XRP against USD can go long or short with up to 30x leverage via futures and perpetual contracts.
Leverage trade Litecoin (LTC)
Litecoin is one of the most popular alts on the market, and is also easily accessible for leveraged trading. BitMEX offers a LTC futures contract against BTC lets traders speculate on LTC’s price with up to 33.3x leverage. PrimeXBT lists LTC contracts against both BTC and USD.
Similarly to other listed cryptocurrencies, OKEx offers LTC futures contracts and perpetual swaps. Maximum leverage for Litecoin trading on OKEx is 50x.
Leverage trade Bitcoin Cash (BCH)
On BitMEX, traders can speculate on the movements of BCH against BTC with up to 20x leverage on the exchange’s Bitcoin Cash futures contracts. OKEx offers up to 50x leverage for BCH, and its Bitcoin Cash futures and perpetual contracts reference the BCH price in USD.
Leverage trade EOS (EOS)
EOS can be traded against BTC on BitMEX with up to 20x leverage through EOS futures contracts. PrimeXBT lists EOS contracts against BTC and also USD, so it can be considered as an alternative option. OKEx caps its EOS leverage limit at 50x for both perpetual and futures contracts, which should be plenty enough for most traders.
Leverage trade TRON (TRX)
TRON can be traded with leverage on either BitMEX or OKEx. Those who want to trade TRX against BTC should choose BitMEX – its TRX futures contracts reference the price of TRX against BTC, and offer up to 20x leverage.
On the other hand, traders who are more comfortable with USD pairs should consider OKEx, as it lists TRON futures and perpetual contracts against USD. OKEx allows up to 20x leverage for TRON trading.
Leverage trade Cardano (ADA)
Cardano can be traded with leverage against BTC on BitMEX via the platform’s ADA futures contracts. The maximum leverage offered by BitMEX for Cardano trading is capped at 20x.
Leverage trade Bitcoin SV (BSV)
Traders who want to either go short or long on BSV will have to use OKEx, as the coin is not commonly listed on derivatives trading platforms. The leverage limit for OKEx’s Bitcoin SV perpetual and futures contracts is 20x.
Leverage trade Ethereum Classic (ETC)
The story for Ethereum Classic is similar to Bitcoin SV. The coin is not a popular choice at most platforms that feature leveraged trading. OKEx is an exception, and lists both ETC perpetual and futures contracts with leverage limited to 30x.
Trading Successfully in All Market Conditions
Through futures and perpetual contracts, traders can benefit from correctly predicting if a cryptocurrency will either increase or decrease in value. Traders who have their pulse on the different cryptocurrency market cycles can make considerable profits with leveraged trading. For example, there tend to be periods where Bitcoin dominates the market and also periods where altcoins take charge.
As always, be sure to educate yourself about the products you are trading and keep in mind that leveraged trading can not only bring outsized profits, but outsized losses as well.