We've seen the price of ETH increase back to around it's all-time high set in 2017 and as the potential for
Ethereum grows with the impending release of Ethereum 2.0, many traders and investors are enthusiastically buying into ETH in 2021.
One of the more popular ways of generating higher amounts of revenue with the theory of is the use of margin trading, and this is leading many traders to ask what is the best way to margin trading ETH in 2021.
In this guide, we’re answering that question and looking at how to
margin trade ETH, starting with a look at the background of Ethereum and where it's at in 2021, then moving on to look at a few of the best ETH margin trading platforms online.
What is Ethereum?
Ethereum is the second largest cryptocurrency in the world by market and it is one of the most popular and highly adopted cryptocurrencies on the market, with many of the leading identities in the cryptocurrency space contributing to the founding of Ethereum in 2014.
Prior to the launch of Ethereum, almost all cryptocurrencies were simply copies of bitcoin to 1 degree or another with some slight edits, however Ethereum was the first programmable cryptocurrency that allows smart contracts to run on his blockchain.
The launch of Ethereum and its growth fuelled the ICO boom of 2016 and 2017 which eventually led to the infamous bull run of 2017.
Ethereum Remains One of the Most Popular Cryptos to Trade
Since its launch in 2017 until today, Ethereum has remained as one of the most popular cryptocurrencies to trade and to invest into in order to generate an income, with ETH quickly becoming the second largest cryptocurrency by total value and remaining as such for the past seven years.
Today, ETH remains as one of the most popular cryptos to trade, with its price increasing dramatically over the past 12 months and it being predicted to be one of the top growing cryptocurrencies throughout 2021's bull run as well.
The potential release of Ethereum 2.0 in the not-too-distant future is only fuelling the potential for ETH to remain as one of the top traded cryptocurrencies in the market this year.
Margin Trading More Popular Than Ever in 2021
After the introduction of margin trading to the cryptocurrency space in a major way in 2018, the last three years of seeing the rapid growth of margin trading throughout the cryptocurrency space to today where it is the most popular it has ever been.
This can clearly be seen by the number of platforms online in 2021 that provide the ability to margin trade cryptocurrencies, with this increasing in unison with the increase in popularity of margin trading.
While currently margin trading is very popular, it is predicted that this will continue and it will become even more popular in the years to come, as the sophistication of traders in the cryptocurrency market continues and as more traders become professional traders as well.
What’s Big About Ethereum in 2021?
Big Growth Already
We've seen the price of ETH increase significantly over the past 12 months, with ETH following BTC by reaching its previous all-time high of around $1400 and is potentially looking as though it could increase dramatically further this year.
A large amount of the cryptocurrency market is built on top of Ethereum’s blockchain being that the ERC-20 protocol is the most popular and widely used protocol in the cryptocurrency industry.
These factors and others have led to the exponential growth of the value of his hearing recently, and it is predicted that this will continue over the next 12 months and beyond.
Ethereum 2.0
One of the most exciting and widely anticipated developments in the story of Ethereum has been the Ethereum 2.0 upgrade that has been on the cards for many months and now finally looks as though it may be implemented at some point in the not-too-distant future.
The impact of this upgrade cannot be understated considering that what has held if there him back over the past few years more than anything else has been the scalability issues that its infrastructure has suffered, with network congestion due to the huge overuse of the blockchain leading to higher transaction fees and other problems as well.
However, the Ethereum 2.0 upgrade is touted to be able to dramatically reduce the problems that have plagued the project for a long time, with this opening up the doors for investors to flood into the ETH market.
Potential for Huge Growth in 2021
There is certainly the potential for the huge growth of ETH throughout 2021, as there was in 2017 bull run as well, and many investors and analysts are predicting that ETH will be one of the top performing assets throughout this bull run period.
Like Bitcoin, Ethereum is one of the few platforms that has widespread institutional support and is considered to be at a different level from the other 7,500 cryptocurrencies that are in existence, being that it is widely being integrated into many mainstream financial systems.
The underlying fundamentals of Ethereum and the exciting new development of Ethereum 2.0 mean that the growth of the value of ETH throughout 2021 could be significant to say the least.
Best Platforms to Margin Trade Ethereum
PrimeXBT PrimeXBT has been the leader in cryptocurrency margin trading since its launch in 2018, and today has grown to managing up to $3.7 billion of global trade every day as a result of the advance margin trading services that provides the cryptocurrency market.
Users can margin trade a range of different cryptocurrencies on
PrimeXBT including BTC, ETH, XRP, LTC, and EOS, and as well is that there are a wide range of traditional assets that are listed on PrimeXBT like stock indices such as S&P500 and FTSE100, forex pairs such as USD/EUR and AUD/CAD, and commodities such as gold and oil.
Users can access up to 100X leverage on cryptocurrencies and up to 500X leverage on traditional assets, with this being substantially higher than a majority of other margin trading platforms in the cryptocurrency space, and this distinguishing PrimeXBT from its competitors.
Another thing that distinguishes PrimeXBT from the competition is the fact that it provides the lowest fee schedule of any major cryptocurrency trading platform in the market with a low flat rate of just 0.05% being applied to all trades, irrespective of the asset class being traded or of the size of the trade.
Kraken
Kraken is a long-standing trading platform that has been the cryptocurrency market for many years and that has largely built its reputation around being one of the most secure trading platforms on the market.
Kraken also offers margin trading for ETH, as it does for a number of other cryptocurrencies, and although Kraken’s maximum leverage is lower than other platforms on this list, it does provide a professional trading environment for margin trading cryptocurrencies.
Kraken has never been hacked and has never been breached by hackers throughout its years of operation, and has placed a large amount of focus on securing its user’s funds over all else.
Binance Binance is one of the most prominent crypto trading exchanges in the market and although originally Binance's margin trading facilities were substandard considering his prominence, over the past years it has gradually integrated a number of ways to margin trade cryptocurrencies, including ETH.
Binance lists one of the widest ranges of cryptocurrencies on the market, however it focuses mainly on cryptocurrency-only trading, which means that trading traditional assets and fiat pairs can be prohibitive sometimes.
As well as this, Binance was hacked in 2019 to the tune of more than $50 million of its user’s funds, with the security capacities of Binance being drawn into question.
In Conclusion
Margin trading Ethereum can be one of the most profitable ways of trading the world’s number two cryptocurrency, and in 2021 there are a wide range of different platforms that provide this service.
However, although many platforms provide ETH margin trading, we’ve selected three platforms that provide superior services and are at the top of the cryptocurrency market in 2021.
If you like to learn more about the three platforms we have mentioned, check out PrimeXBT, Kraken, and Binance.