Top 10 Decentralized Exchanges For Leverage Trading
09/13/2023 00:32
Decentralized exchanges have evolved to meet trading requirements, one of which is through leverage trading.
The inception of decentralized crypto exchange (DEX) introduced a secure and permissionless trading system. Crypto traders who were bound to strict regulations were experiencing more independent trades.
As per Coingecko, DEXs recorded over $94.7 billion in total spot trading volume between October 2022 and March 2023.
Decentralized exchange platforms have evolved to address trading requirements of more experienced traders. Margin trading is one of the methods implemented by traders to maximize their profits. Many DEXs have now implemented margin trading in their platforms. The purpose of this article is to help traders choose best and trusted DEX Leverage trading platforms.
To help you choose the best platform we will use user experience, base blockchain protocol, leverage limit and trading fees as our main metrics.
Best Decentralized Exchanges For Leverage Trading
ApeX Pro Exchange
Among many exchanges that allow leveraged trading for the U.S. customers, Apex has garnered a solid reputation as a decentralized exchange. Cross-margined perpetual contracts can be traded directly between users of the non-custodial, decentralized ApeX Pro Exchange. With regard to speed, security, efficiency, and transparency, it is designed to benefit perpetual swap market participants. By offering a trading architecture and orderbook mode, ApeX offers its users with access to the perpetual swap market.
| User experience | 4/5 |
| Supported tokens | BTC, ETH, LTC, BSC, BNB, and others |
| Wallet integration | Metamask |
| Platform | Arbitrum |
| Trading Fees | 0.02% |
| Leverage | 0 – 20x |
| Funding interval | 1 hour |
| Minimum deposit | 10 USDC |
Features
- There is no single point of failure, reducing the likelihood of hacking.
- Traders are not required to provide KYC or personal data.
- The money used by traders is entirely under their control.
DYDX
DYdX DeFi exchange provides a great setting for derivatives traders. It has all the features of a centralized trading platform, while including the permissionless, non-custodial nature of DeFi. The platform’s main areas of focus are perpetual and margin trading. It, also, aspires to include other markets and assets as well as become completely decentralized. It is distinctive because it uses a conventional orderbook and matching model rather than an automated market maker (AMM). While being well-liked by retail traders as well, it meets the specific requirements and standards of institutional traders.
| User experience | 4.5/5 |
| Supported tokens | Ethereum, Bitcoin, Cardano, Bitcoin Cash, Dogecoin, Polkadot, Litecoin, Chainlink, and many more. |
| Wallet integration | Metamask |
| Platform | Ethereum smart contracts and ZKrollup stark |
| Market Volume | $327.59M |
| Trading Fees | 0.02% |
| Leverage | 0.01- 25x |
| Minimum deposit | 1000 USDC |
Features
- It charges low gas fees.
- It offers all the features that a CEX can provide.
- It is best for booth seasoned as well as new traders.
Zoomex DEX
Zoomex is among the best leverage trading decentralized exchanges. It gives access to perpetual contracts and USDT perpetual contacts with over 192 cryptocurrencies to offer. It is known for its low fees charging structure and advanced trading tools. Zoomex has unique features and functions in its latest application.
| User experience | 4/5 |
| Supported tokens | BTC, ETH, LTC, BSC, BNB, and others |
| Wallet integration | Metamask |
| Platform | Ethereum ERC20 |
| Trading Fees | 0.02% |
| Leverage | 0 – 100x |
| Minimum deposit | 0 |
Features
- Supports numerous crypto currencies as well as fiat currencies.
- It has excellent affiliate and referral programs.
- It is best for beginners.
Palmswap
Binance Smart Chain allows for the trading of perpetual contracts over the Palmswap protocol. The platform requires USDT as collateral. Users can sync their Metamask wallet to another compatible wallet during the trading process. The decentralized leverage trading platform offered by Palmswap V2 is robust, easy to use, and liquidity-efficient.
Palmswap deals with all DEX related issues, such as front running, slippage, asset limitation, and risk management. The platform is more capital efficient because of its unique synthetic architecture. It comes with better leverage options and trading fees.
| User experience | 4/5 |
| Supported tokens | BTC, ETH, LTC, BSC, BNB, and others |
| Wallet integration | Metamask |
| Platform | Binance Smart Chain |
| Trading Fees | 0.01% |
| Market cap | $613,512 |
| Leverage | 0 – 10x |
| Minimum deposit | 0 |
Features
- It is more secure and deteriorates slippage.
- The platform is capital efficient.
- It is easy to use, and robust.
GMX
GMX is a decentralized crypto exchange that does not require KYC from users. It is a straightforward platform, ideal for both, seasoned traders and rookies. The platform is known its leverage trading. Leverage is the proportion between the size of the position and the size of the collateral (margin), and it is used by traders who are trading with borrowed money to buy or sell assets. Due to this, there is a higher chance of making money or losing money than if a spot asset were bought.
| User experience | 4/5 |
| Supported tokens | BTC, ETH, LTC, BSC, BNB, and others |
| Wallet integration | Metamask |
| Platform | Arbitrum |
| Trading Fees | 0.01% |
| Market cap | $296.86M |
| Leverage | 0 – 50x |
| Minimum deposit | $0.014 |
Features
- It reduces the risk of liquidations.
- The platform has a simple interface.
- It is quite clear with margin, debt, collateral, etc.
Mango markets
Mango markets gives users the full control over their funds. They offer permissionless trading with almost 5x leverage on the account balance. You can earn interest on your deposit while getting an entirely collateralized loan against the assets. Mango seeks to integrate the usability and liquidity provided by CeFi with the freedom of DeFi. The code for the Mango protocol is entirely public.
| User experience | 3/5 |
| Supported tokens | Ethereum, JitoSOL, BONK, DAI, LDO, RAY, and others |
| Wallet integration | Metamask |
| Platform | Solana |
| Trading Fees | 0.02% |
| Leverage | 5x – 20x |
| Minimum deposit | 0.025 SOL |
Conclusion
Decentralized exchanges are changing the way people trade cryptocurrencies by providing safe, open, and effective trading options. You are now prepared to investigate the decentralized exchange market and locate one that meets your trading requirements, thanks to the knowledge in this article.
Remember to do your own research prior to selecting a DEX. Additionally, be sure to consider all comparative parameters to make sure the platform satisfies your preferences and needs for trading.
Martin Nganga is a seasoned crypto writer and blockchain enthusiast with a passion for simplifying complex concepts in the ever-evolving world of cryptocurrencies. With years of experience in the fintech and blockchain industries, Martin brings a unique perspective to his writing, combining his technical knowledge with a knack for breaking down intricate topics into digestible insights for both newcomers and seasoned crypto veterans.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Frequently Asked Questions (FAQs)
Leverage magnifies both profits and losses, making it a high-risk, high-reward strategy.
Effective risk management, continuous learning, and diversification are key strategies to mitigate risks.
The regulatory landscape for decentralized leverage trading is still evolving, leading to uncertainty in this area.