New to the forum and to Trading crypto. I’m looking to start trading on margin.

[joshtheflu]

  So I’m based in the United States, and would like to start trading with margin. I understand the risks involved as I currently trade forex. What I’m not too sure of is how to actually start trading, I have accounts with Binance, Kraken, and KuCoin where I hold several crypto’s. Just wanted a crash course, so to speak, on how people in the US are able to trade on margin, and also recommendations on which exchange is the best to use and why.

Thanks.

[JeromeTash]

You can't trade derivatives in Binance and Kraken without KYC verification. I don't know about Kucoin. You can try derivatives exchanges that are still not strict with KYC verification like Bybit, but there are also starting to become strict. So it just a matter of time before they remove stop accepting no KYC accounts to trade

[Findingnemo]

Actually margin trading is prohibited in some states of US, so you need to look at the terms of the platforms about the legality of such trading in your location.

Coinbase does have their own margin trading service which allows people from 23 stated to trade with slight leverage and Kraken also offers Margin trading for US customers.

[sheenshane]

I have accounts with Binance, Kraken, and KuCoin where I hold several crypto’s. Just wanted a crash course, so to speak, on how people in the US are able to trade on margin, and also recommendations on which exchange is the best to use and why.

If you're using Binance exchange make sure it is on Binance.us but I think this platform has a margin trading.
I heard Kraken and Coinbase pro are good exchanges in the US but it has a light restriction that must be found of the Term of use.  This is very important because the margin or trading of CFDs is generally prohibited.

Kraken

• Min investment- $20
• Initial margin- 20%

Coinbase Pro

• Min investment- 0.001 Bitcoin
• Initial margin- 33.33%

My source is here, read furthermore for more details.

[JeromeTash]

Actually margin trading is prohibited in some states of US, so you need to look at the terms of the platforms about the legality of such trading in your location.

Coinbase does have their own margin trading service which allows people from 23 stated to trade with slight leverage and Kraken also offers Margin trading for US customers.

Not just some, I think all of them. I am yet to see a derivatives exchange offering services for the US citizens.

If you're using Binance exchange make sure it is on Binance.us but I think this platform has a margin trading.

Binance.us don't offer margin trading

I heard Kraken and Coinbase pro are good exchanges in the US but it has a light restriction that must be found of the Term of use.  This is very important because the margin or trading of CFDs is generally prohibited.

Kraken

• Min investment- $20
• Initial margin- 20%

Coinbase Pro

• Min investment- 0.001 Bitcoin
• Initial margin- 33.33%

My source is here, read furthermore for more details.

I think that information is either outdated or just wrong. Both platforms nolonger offer trading derivatives to US citizens

1. https://support.kraken.com/hc/en-us/articles/360023786632-Kraken-Futures-eligibility-and-availability

Kraken Futures are NOT available to clients residing in the United States as well as the following areas:

2. Coinbase Pro disables margin trading

[BitMaxz]

I searched a bit and confirmed that you can't able to margin trade to all exchanges you mention.

I found this article on Google

In the USA trading of CFDs is generally prohibited. US American assets, indices etc. can be traded on many derivative platforms with leverage, but this never applies to US citizens and residents of the USA.

So margin trade is prohibited that is why most of the big exchanges don't offer margin trade in the US but I think you can able to margin trade on the Coinex exchange.

[Findingnemo]

I searched a bit and confirmed that you can't able to margin trade to all exchanges you mention.

I found this article on Google

In the USA trading of CFDs is generally prohibited. US American assets, indices etc. can be traded on many derivative platforms with leverage, but this never applies to US citizens and residents of the USA.

So margin trade is prohibited that is why most of the big exchanges don't offer margin trade in the US but I think you can able to margin trade on the Coinex exchange.

The same article explains about doing leveraged trading from US when I scrolled down, I am not sure the information is outdated or not but as per the article few exchange offers small leverage.

[mk4]

I always recommend new traders to not trade with real money right away. There are a good number of trading/investing platforms that has a "virtual portfolio" feature whereas you can trade using fake money. With virtual portfolios, you can learn without actually putting your money at risk since you're new.

My personal pick is eToro[1], but DYOR.

[1] https://etoro.com/

[Kittygalore]

You're new you say? Why start trading? I think you will only suffer losses, better if you learn something first and practicing trading before anything else. Trading isn't easy and a lot of newbie like you got cocky too and they paid the price in the end.

[Kyraishi]

eToro works, but remember that you are probably trading derivatives of derivatives here. Not likely to get fantastic customer service, nor any good fee structures.

Anyhow, I think that you should definitely stay away from leveraged trading if you are a newbie. Even for the most experience investors leverage have generally brought about their downfall (just take a look at the likes of Bill Hwang).

Beating the market is extremely hard, much harder than you would think imo.

[JeromeTash]

The same article explains about doing leveraged trading from US when I scrolled down, I am not sure the information is outdated or not but as per the article few exchange offers small leverage.

Well, maybe back then before regulations became tight on crypto exchanges operating in the US. I don't think Commodity Futures Trading Commission (CFTC) can let an exchange they regulate offer trading crypto derivatives to the US residents.

eToro works, but remember that you are probably trading derivatives of derivatives here. Not likely to get fantastic customer service, nor any good fee structures.

Well this is new to me. Are use sure US residents can trade crypto derivatives on the Platform?

[joshtheflu]

You're new you say? Why start trading? I think you will only suffer losses, better if you learn something first and practicing trading before anything else. Trading isn't easy and a lot of newbie like you got cocky too and they paid the price in the end.

I’m Not new to trading on margin,  I’ve been forex trading for 3 years, I can stomach losses easily and understand how my greed in my thoughts. I’m trying to get into crypto because the future is looking bright for this asset class.

[Taskford]

You're new you say? Why start trading? I think you will only suffer losses, better if you learn something first and practicing trading before anything else. Trading isn't easy and a lot of newbie like you got cocky too and they paid the price in the end.

I’m Not new to trading on margin,  I’ve been forex trading for 3 years, I can stomach losses easily and understand how my greed in my thoughts. I’m trying to get into crypto because the future is looking bright for this asset class.

But crypto is so different with forex that's why you need to learn and start from the basic so that you can see the best possible position of your trades. By the way you can start up by searching those information in this forum many people talk about there experiences and strategies maybe try to visit the trading discussion since maybe from there you can learn something. Also there are video tutorial over the net and this could provably help you to.

[joshtheflu]

But crypto is so different with forex that's why you need to learn and start from the basic so that you can see the best possible position of your trades. By the way you can start up by searching those information in this forum many people talk about there experiences and strategies maybe try to visit the trading discussion since maybe from there you can learn something. Also there are video tutorial over the net and this could provably help you to.

I appreciate the good advice. I think that the psychology aspect of trading is a bigger factor to ones success when trading any asset class as opposing to learning how to identify good positions. I’m definitely going to be learning as much as I can. But I will still need to know how to get approved for margin being in the US.

I know people use VPNs, but I don’t know what exchanges to use, or what a good vpn service is.
I was more looking for people who are trading in the US to tell me about their experience with different platforms and vpns. The good, The bad, and the ugly. Thanks