Buying and selling cryptocurrency on margin is a legitimate way for responsible investors to maximize returns.
Source: Pixabay
What if someone can go back in time and buy bitcoin or any of the other hot Cryptocurrencies three or four years ago? What if the same person would have been able to borrow funds from a broker to amplify the investment's return?
Such a scenario was very realistic thanks to the growth in demand for trading cryptocurrency on margin.
Trading on margin is an industry-standard practice across all asset classes. Many investors have been using margin to trade stocks, buy gold, or speculate on oil future contracts for decades.
While the introduction of margin in the cryptocurrency universe is fairly new by comparison, the concept is identical to all other asset classes.
But just because an investor can buy cryptocurrency on margin, it doesn’t mean they should.
What Is Cryptocurrency Margin?
Trading cryptocurrency on margin is becoming a more important feature that brokers are offering clients and investors can find relevant information from a cryptocurrency margin trading guide.
In essence, the broker loans funds to the client to use in their trading or investment account. Buying cryptocurrencies on margin is often interchanged with other terms like leverage or buying on credit.
The amount that is loaned is expressed as a multiplier on the cash balance. For example, a $5,000 deposit onto a brokerage account that offers a margin of 10 times would let the client have access to $50,000 to trade or invest.
The amount of leverage provided will certainly vary by broker and level of experience.
The amount loaned to the investor will be subject to interest or other fees. After all, the broker has no real motivation to hand out free money to clients. As such, providing margin to clients is becoming a bigger source of revenue for brokers.
Europe-based cryptocurrency brokers are known to offer much higher leverage rates than their American rivals. It wouldn’t be uncommon for some traders
Tip #1: Do You Even Need Margin To Trade Cryptocurrency?
Since borrowed capital comes at a cost, many investors or traders can avoid unnecessary fees if they don’t need access to margin or leverage in the first place.
If someone wants to sell part of their stock portfolio to gain exposure to a portfolio of cryptocurrency, there isn’t much of a need for margin.
Tip #2: Use Margin Wisely
It needs to be emphasized that margin is borrowed money so the investor or trader should treat it as if it is their own money. Trading and investing with someone else’s money could deceive novice individuals into thinking they can take unnecessary risks since the money isn’t theirs.
Anyone that can't respect this basic principle may want to think twice about borrowing funds.
The growing competitive landscape in the cryptocurrency industry means many brokers are trying to carve out a niche for themselves by specializing in one aspect of the business.
Some brokers cater specifically to day traders looking for access to trade cryptocurrency on margin.
Their margin rates will drastically differ from other brokers that offer rates and features for buy-and-hold investors looking to invest for the longer-term.
Tip #4: Understand The Loss Potential
Cryptocurrency brokers aren’t in the business of deceiving their customers -- at least the majority aren’t. The honest brokers will make it abundantly clear to customers that trading cryptocurrency on margin or leverage can result in losses above and beyond the initial investment.
The math behind this statement makes it easy to understand how this is possible.
Suppose an investor deposits $10,000 and is offered a margin rate of 10 times their deposit. The entire $100,000 is invested in a cryptocurrency and one week later it suddenly losses 15% in value.
The position is now worth $85,000, representing a loss of $15,000 to the customer.
Cryptocurrency brokers do make use of advanced and sophisticated risk management tools that liquidate a position when it approaches a loss equal to the cash deposit.
But in many cases due to Liquidity issues in a fast-moving market, it may not be possible to get out of a position without extra losses.
In this case, the customer would need to pay the broker an additional $5,000 to cover their losses. Brokers can and will use all legal measures at their disposal to recover the funds they are rightfully entitled to.
Anyone who will stress about this very realistic and common scenario should avoid buying cryptocurrency on margin in the first place.
Tip #5: Please, Please Don’t Take Out A Second Loan
Investors that want to take out a second mortgage on their homes or secure a large line of credit to buy cryptocurrency on extreme margin are discouraged from doing so under all circumstances.
As hard as it may be for many investors to owe a cryptocurrency broker an extra $5,000 because of a large loss, it is a whole different scenario if an investor owes a bank $50,000 or more because of losses.
When it comes to legal recourse, banks have what seems like unlimited resources at their disposal to recover money owed to them.
Joseph Borg is the President of the North American Securities Administrators Association, an organization devoted to investor protection.
His comments in 2018 give the impression he is a friend of the cryptocurrency industry and recognizes an individual’s rights to invest their money how they see fit.
He said:
“It’s not the first time mania such as bitcoin has reached out and touched folks to the point where they’re like ‘I gotta get in, I gotta get in—let me go tap my line of credit in my bank,’” said Borg. “It’s the same thing that got people in trouble in ’06 and ’07.”
Conclusion: Use Common Sense
Like everything else in life, common sense more often than note prevails. If buying cryptocurrency on margin is something that would cause undue stress then by all means avoid all temptations.
But sophisticated traders and investors with many years of experience buying stock or other asset classes on margin have no reason not to do the same with cryptocurrency.
What if someone can go back in time and buy bitcoin or any of the other hot Cryptocurrencies three or four years ago? What if the same person would have been able to borrow funds from a broker to amplify the investment's return?
Such a scenario was very realistic thanks to the growth in demand for trading cryptocurrency on margin.
Trading on margin is an industry-standard practice across all asset classes. Many investors have been using margin to trade stocks, buy gold, or speculate on oil future contracts for decades.
While the introduction of margin in the cryptocurrency universe is fairly new by comparison, the concept is identical to all other asset classes.
But just because an investor can buy cryptocurrency on margin, it doesn’t mean they should.
What Is Cryptocurrency Margin?
Trading cryptocurrency on margin is becoming a more important feature that brokers are offering clients and investors can find relevant information from a cryptocurrency margin trading guide.
In essence, the broker loans funds to the client to use in their trading or investment account. Buying cryptocurrencies on margin is often interchanged with other terms like leverage or buying on credit.
The amount that is loaned is expressed as a multiplier on the cash balance. For example, a $5,000 deposit onto a brokerage account that offers a margin of 10 times would let the client have access to $50,000 to trade or invest.
The amount of leverage provided will certainly vary by broker and level of experience.
The amount loaned to the investor will be subject to interest or other fees. After all, the broker has no real motivation to hand out free money to clients. As such, providing margin to clients is becoming a bigger source of revenue for brokers.
Europe-based cryptocurrency brokers are known to offer much higher leverage rates than their American rivals. It wouldn’t be uncommon for some traders
Tip #1: Do You Even Need Margin To Trade Cryptocurrency?
Since borrowed capital comes at a cost, many investors or traders can avoid unnecessary fees if they don’t need access to margin or leverage in the first place.
If someone wants to sell part of their stock portfolio to gain exposure to a portfolio of cryptocurrency, there isn’t much of a need for margin.
Tip #2: Use Margin Wisely
It needs to be emphasized that margin is borrowed money so the investor or trader should treat it as if it is their own money. Trading and investing with someone else’s money could deceive novice individuals into thinking they can take unnecessary risks since the money isn’t theirs.
Anyone that can't respect this basic principle may want to think twice about borrowing funds.
The growing competitive landscape in the cryptocurrency industry means many brokers are trying to carve out a niche for themselves by specializing in one aspect of the business.
Some brokers cater specifically to day traders looking for access to trade cryptocurrency on margin.
Their margin rates will drastically differ from other brokers that offer rates and features for buy-and-hold investors looking to invest for the longer-term.
Tip #4: Understand The Loss Potential
Cryptocurrency brokers aren’t in the business of deceiving their customers -- at least the majority aren’t. The honest brokers will make it abundantly clear to customers that trading cryptocurrency on margin or leverage can result in losses above and beyond the initial investment.
The math behind this statement makes it easy to understand how this is possible.
Suppose an investor deposits $10,000 and is offered a margin rate of 10 times their deposit. The entire $100,000 is invested in a cryptocurrency and one week later it suddenly losses 15% in value.
The position is now worth $85,000, representing a loss of $15,000 to the customer.
Cryptocurrency brokers do make use of advanced and sophisticated risk management tools that liquidate a position when it approaches a loss equal to the cash deposit.
But in many cases due to Liquidity issues in a fast-moving market, it may not be possible to get out of a position without extra losses.
In this case, the customer would need to pay the broker an additional $5,000 to cover their losses. Brokers can and will use all legal measures at their disposal to recover the funds they are rightfully entitled to.
Anyone who will stress about this very realistic and common scenario should avoid buying cryptocurrency on margin in the first place.
Tip #5: Please, Please Don’t Take Out A Second Loan
Investors that want to take out a second mortgage on their homes or secure a large line of credit to buy cryptocurrency on extreme margin are discouraged from doing so under all circumstances.
As hard as it may be for many investors to owe a cryptocurrency broker an extra $5,000 because of a large loss, it is a whole different scenario if an investor owes a bank $50,000 or more because of losses.
When it comes to legal recourse, banks have what seems like unlimited resources at their disposal to recover money owed to them.
Joseph Borg is the President of the North American Securities Administrators Association, an organization devoted to investor protection.
His comments in 2018 give the impression he is a friend of the cryptocurrency industry and recognizes an individual’s rights to invest their money how they see fit.
He said:
“It’s not the first time mania such as bitcoin has reached out and touched folks to the point where they’re like ‘I gotta get in, I gotta get in—let me go tap my line of credit in my bank,’” said Borg. “It’s the same thing that got people in trouble in ’06 and ’07.”
Conclusion: Use Common Sense
Like everything else in life, common sense more often than note prevails. If buying cryptocurrency on margin is something that would cause undue stress then by all means avoid all temptations.
But sophisticated traders and investors with many years of experience buying stock or other asset classes on margin have no reason not to do the same with cryptocurrency.
Beyond the Prompt: Solitics’ VP Product, Guy Shemer Exposes ‘Traditional’ AI Flaws and Reveals New Product: the AI Expert
Marketing in 2026 Audiences, Costs, and Smarter AI
Marketing in 2026 Audiences, Costs, and Smarter AI
As brokers eye B2B business and compete with fintechs and crypto exchanges alike, marketers need to act wisely with often limited budgets. AI can offer scalable solutions, but only if used properly.
Join seasoned marketing executives and specialists as they discuss the main challenges they identify in financial services in 2026 and how they address them.
Attendees of this session will walk away with:
- A nuts-and-bolts account of acquisition costs across platforms and geos
- Analysis of today’s multi-layered audience segments and differences in behaviour
- First-hand account of how global brokers balance consistency and local flavour
- Notes from the field about intelligently using AI and automation in marketing
Speakers:
-Yam Yehoshua, Editor-In-Chief at Finance Magnates
-Federico Paderni, Managing Director for Growth Markets in Europe at X
-Jo Benton, Chief Marketing Officer, Consulting | Fractional CMO
-Itai Levitan, Head of Strategy at investingLive
-Roberto Napolitano, CMO at Innovate Finance
-Tony Cross, Director at Monk Communications
#fmls #fmls25 #fmevents #FintechMarketing #AI #DigitalStrategy #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
As brokers eye B2B business and compete with fintechs and crypto exchanges alike, marketers need to act wisely with often limited budgets. AI can offer scalable solutions, but only if used properly.
Join seasoned marketing executives and specialists as they discuss the main challenges they identify in financial services in 2026 and how they address them.
Attendees of this session will walk away with:
- A nuts-and-bolts account of acquisition costs across platforms and geos
- Analysis of today’s multi-layered audience segments and differences in behaviour
- First-hand account of how global brokers balance consistency and local flavour
- Notes from the field about intelligently using AI and automation in marketing
Speakers:
-Yam Yehoshua, Editor-In-Chief at Finance Magnates
-Federico Paderni, Managing Director for Growth Markets in Europe at X
-Jo Benton, Chief Marketing Officer, Consulting | Fractional CMO
-Itai Levitan, Head of Strategy at investingLive
-Roberto Napolitano, CMO at Innovate Finance
-Tony Cross, Director at Monk Communications
#fmls #fmls25 #fmevents #FintechMarketing #AI #DigitalStrategy #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
Much like their traders in the market, brokers must diversify to manage risk and stay resilient. But that can get costly, clunky, and lengthy.
This candid panel brings together builders across the trading infrastructure space to uncover the shifting dynamics behind tools, interfaces, and full-stack ambitions.
Attendees will hear:
-Why platform dependency has become one of the most overlooked risks in the trading business?
-Buy vs. build: What do hybrid models look like, and why are industry graveyards filled with failed ‘killer apps’?
-How AI is already changing execution, risk, and reporting—and what’s next?
-Which features, assets, and tools gain the most traction, and where brokers should look for tech-driven retention?
Speakers:
-Stephen Miles, Chief Revenue Officer at FYNXT
-John Morris, Co-Founder at FXBlue
-Matthew Smith, Group Chair & CEO at EC Markets
-Tom Higgins, Founder & CEO at Gold-i
-Gil Ben Hur, Founder at 5% Group
#fmls #fmls25 #fmevents #Brokers #Trading #Fintech #FintechInnovation #TradingTechnology #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
Much like their traders in the market, brokers must diversify to manage risk and stay resilient. But that can get costly, clunky, and lengthy.
This candid panel brings together builders across the trading infrastructure space to uncover the shifting dynamics behind tools, interfaces, and full-stack ambitions.
Attendees will hear:
-Why platform dependency has become one of the most overlooked risks in the trading business?
-Buy vs. build: What do hybrid models look like, and why are industry graveyards filled with failed ‘killer apps’?
-How AI is already changing execution, risk, and reporting—and what’s next?
-Which features, assets, and tools gain the most traction, and where brokers should look for tech-driven retention?
Speakers:
-Stephen Miles, Chief Revenue Officer at FYNXT
-John Morris, Co-Founder at FXBlue
-Matthew Smith, Group Chair & CEO at EC Markets
-Tom Higgins, Founder & CEO at Gold-i
-Gil Ben Hur, Founder at 5% Group
#fmls #fmls25 #fmevents #Brokers #Trading #Fintech #FintechInnovation #TradingTechnology #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
Educators, IBs, And Other Regional Growth Drivers
Educators, IBs, And Other Regional Growth Drivers
When acquisition costs rise and AI generated reviews are exactly as useful as they sound, performing and fair partners can make or break brokers.
This session looks at how these players are shaping access, trust and user engagement, and what the most effective partnership models look like in 2025.
Key Themes:
- Building trader communities through education and local expertise
- Aligning broker incentives with long-term regional strategies
- Regional regulation and the realities of compliant acquisition
- What’s next for performance-driven partnerships in online trading
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Zander Van Der Merwe, Key Individual & Head of Sales at TD Markets
-Brunno Huertas, Regional Manager – Latin America at Tickmill
-Paul Chalmers, CEO at UK Trading Academy
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #BrokerGrowth #FintechPartnerships #RegionalMarkets
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
When acquisition costs rise and AI generated reviews are exactly as useful as they sound, performing and fair partners can make or break brokers.
This session looks at how these players are shaping access, trust and user engagement, and what the most effective partnership models look like in 2025.
Key Themes:
- Building trader communities through education and local expertise
- Aligning broker incentives with long-term regional strategies
- Regional regulation and the realities of compliant acquisition
- What’s next for performance-driven partnerships in online trading
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Zander Van Der Merwe, Key Individual & Head of Sales at TD Markets
-Brunno Huertas, Regional Manager – Latin America at Tickmill
-Paul Chalmers, CEO at UK Trading Academy
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #BrokerGrowth #FintechPartnerships #RegionalMarkets
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
The Leap to Everything App: Are Brokers There Yet?
The Leap to Everything App: Are Brokers There Yet?
As the arms race to bundle investing, personal finance, and wallets under super apps grows fiercer, brokers are caught between a rock and a hard place.
This session explores unexpected ways for industry players to collaborate as consumer habits evolve, competitors eye the traffic, and regulation becomes more nuanced.
Speakers:
-Laura McCracken,CEO | Advisory Board Member at Blackheath Advisors | The Payments Association
-Slobodan Manojlović,Vice President | Lead Software Engineer at JP Morgan Chase & Co.
-Jordan Sinclair, President at Robinhood UK
-Simon Pelletier, Head of Product at Yuh
Gerald Perez, CEO at Interactive Brokers UK
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
As the arms race to bundle investing, personal finance, and wallets under super apps grows fiercer, brokers are caught between a rock and a hard place.
This session explores unexpected ways for industry players to collaborate as consumer habits evolve, competitors eye the traffic, and regulation becomes more nuanced.
Speakers:
-Laura McCracken,CEO | Advisory Board Member at Blackheath Advisors | The Payments Association
-Slobodan Manojlović,Vice President | Lead Software Engineer at JP Morgan Chase & Co.
-Jordan Sinclair, President at Robinhood UK
-Simon Pelletier, Head of Product at Yuh
Gerald Perez, CEO at Interactive Brokers UK
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
Mind The Gap: Can Retail Investors Save the UK Stock Market?
Mind The Gap: Can Retail Investors Save the UK Stock Market?
As the dire state of listing and investment in the UK goes from a financial services problem to a national challenge, the retail investing industry is taken to task.
Join a host of executives and experts for a candid conversation about the future of millions of Brits, as seen from a financial services standpoint:
-Are they happy with the Leeds Reform, in principle and in practice?
-Is it the government’s job to affect the ‘saver’ mentality? Is it doing well?
-What can brokers and fintechs do to spur UK investment?
-How can the FCA balance greater flexibility with consumer protection?
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Nicola Higgs, Partner at Latham & Watkins
-Dan Lane, Investment Content Lead at Robinhood UK
-Jack Crone, PR & Public Affairs Lead at IG
-David Belle, Founder at Fink Money
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #RetailInvesting #UKFinance
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
As the dire state of listing and investment in the UK goes from a financial services problem to a national challenge, the retail investing industry is taken to task.
Join a host of executives and experts for a candid conversation about the future of millions of Brits, as seen from a financial services standpoint:
-Are they happy with the Leeds Reform, in principle and in practice?
-Is it the government’s job to affect the ‘saver’ mentality? Is it doing well?
-What can brokers and fintechs do to spur UK investment?
-How can the FCA balance greater flexibility with consumer protection?
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Nicola Higgs, Partner at Latham & Watkins
-Dan Lane, Investment Content Lead at Robinhood UK
-Jack Crone, PR & Public Affairs Lead at IG
-David Belle, Founder at Fink Money
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #RetailInvesting #UKFinance
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
