Leverage Crypto Trading

[Krypto.Franz82]

Hi everyone,

I’m based in Germany and I’m trying to better understand how leverage trading with cryptocurrencies works here.

A few questions:

Are there any leverage limits or other restrictions for retail investors in Germany?
What are the main providers available to German users?
Which cryptocurrencies do these providers typically support for leveraged trading?

I would appreciate hearing from people who have experience with this topic, especially from a German perspective.

Thanks in advance.

[Oshosondy]

Leverage trading is available to the German people.

You can make use of sites like Bybit, Binance, Bitget for it. You can use noncustodial option like Hyperliquid.

You can read more about margin trading and derivative trading. Both make use of leverage but margin trading follow spot price while derivatives are derived prices.

Trading is very risky. Leverage trading is far riskier. Derivatives are the riskiest, but depending on the leverage used.

[Krypto.Franz82]

Thanks, that’s helpful.

I’ve seen Bybit, Binance and Hyperliquid mentioned quite often, but I’m a bit cautious about using offshore or non-EU platforms, especially from Germany.
Do you have any experience with regulated alternatives, for example Turbo or Knock-out products offered by my broker?
I just found examples of leverage over 20 even in Solana and Ripple.

[jossiel]

Based on quick researching, bison and bitcoin.de are the popular ones in your country. I'm not familiar with both of them so, you got to know more about it through your local community.

I just found examples of leverage over 20 even in Solana and Ripple.

That's quite high already.

Start it low. Maybe don't go over 3x to 5x and it's best for you to start in the spot rather than leverage.

[asriloni]

I’ve seen Bybit, Binance and Hyperliquid mentioned quite often, but I’m a bit cautious about using offshore or non-EU platforms, especially from Germany.
Do you have any experience with regulated alternatives, for example Turbo or Knock-out products offered by my broker?
I just found examples of leverage over 20 even in Solana and Ripple.

The better for you to never use those Global CEXs and DEXs. It's because they're all have no licensed issued by BaFIN. If you're doing trade there, your account potentially to be restricted due to this.

However, some sites listed above such as Bybit and Kraken has its EU version. So you can legally trade crypto with leverage in these exchange sites.

[shinratensei_]

You should adhere to your country's regulation especially in EU have leverage caps, try to use exchange that provide perpetual trading in your country, the one that's most used in there.
I heard that you need Professional Client status to break free from the retail protection caps.

[Krypto.Franz82]

Thanks shinratensei_ , very interesting.
yes, I am based in Germany and CMC for example is Bafin regulated. They have products on their page which don't seem to fall under the leverage cap restrictions for retail and products and are listed on an exchange in Stuttgart. Are they new? Does anyone have experience with them?

[JeromeTash]

I’ve seen Bybit, Binance and Hyperliquid mentioned quite often, but I’m a bit cautious about using offshore or non-EU platforms, especially from Germany.

Offshore or non-EU platforms simply offer more freedom and fewer restrictions as compared to those that are regulated. So you are going to compromise one of the needs. Regulations/safety vs restrictions Less freedom.

I don't know much about the regulations regarding trading derivatives in Germany, but I believe they are not so different from those in the UK, for example.

[shinratensei_]

Thanks shinratensei_ , very interesting.
yes, I am based in Germany and CMC for example is Bafin regulated. They have products on their page which don't seem to fall under the leverage cap restrictions for retail and products and are listed on an exchange in Stuttgart. Are they new? Does anyone have experience with them?

CMC you talked about seems to be using work around to allow retail trader higher leverage through turbo certificate (securitized derivative) unlike CFD. However, BaFin is trying to close that loophole and will probably get the same treatment and retail cap protection enforced.
Use popular exchange that provides derivative market in german like Coinbase Germany if you want protection from BaFin(have retail caps). Outside that, no protection and more complex taxes.

[Dunamisx]

Leverage trading is possible and some exchanges are doing this as long as you are willing to go for them, but is it more about this leverage trading or the risk that is even involved, you can't see someone like me trying to make more research on doing it when I can't even perform the normal trade on my own and be successful to that extent, just have it in mind that you will get what you want but to risk will also remain constant.

[Odusko]

Leverage trading is available to the German people.

You can make use of sites like Bybit, Binance, Bitget for it. You can use a noncustodial option like Hyperliquid.

German citizens are exposed to both German financial supervisory regulations (BAfin) and EU rules for crypto retail users, which limit their leverage position to a low of 2:1 leverage, this means that German retail traders can't use anything above that leverage number like 10x-150x leverage we are open to, even exchanges are faced with a lot of regulatory conditions like market protection.
Lastly, those exchanges you mentioned are not among those offering leverage services to the German market, the most popular exchange we know among the top few exchanges operating leverage market in Germany is Coinbase, OKX, Kraken, etc.