What is margin trading crypto?

Margin trading crypto involves borrowing money in order to make larger or more trades. But an important factor to keep in mind is what’s called the liquidation price. When the market reaches the liquidation price, the exchange will automically close a position.

How does cryptocurrency trading work?

In traditional markets, the loans used by traders are sourced from investment brokers, while in cryptocurrency trading, fellow traders provide the funds. In some cases, albeit rare, crypto exchanges also help their users with margin funds.

Where can I invest in crypto?

There are several ways and places to invest in cryptocurrency. Our list considers crypto exchanges, platforms and online brokers that offer crypto, as well as cash and payment apps that let you buy and sell Bitcoin, Ethereum and other digital assets. NerdWallet's ratings are determined by our editorial team.

What is the leverage of cryptocurrencies?

In the aspect of cryptocurrencies, the leverage ranges from 2:1 to 100:1. The ‘x’ terminology is often used to describe leverage in the crypto trading community, for example, 2x, 5x, 10x, 50x, etc. Naturally, margin trading comes with a lot of risks when compared to regular trading, but in cryptocurrency trading, the risks are even greater.