Bitpanda Margin Trading PointBitpanda 120 cryptocurrencies, leverage 10x

With the ambition to offer its users even more opportunities and features, Bitpanda offers an innovative solution for crypto traders looking to expand their strategies. With spot margin trading, they can now buy and sell real cryptocurrencies (as opposed to traditional derivatives) with up to 10x leverage. Here we explain in detail how it works, its benefits, risks and why it can be the tool you need to navigate volatile markets.

Le Journal du Coin brings you this promotional article in collaboration with Bitpanda.

What is Bitpanda Margin Trading? Launched by Bitpanda, the leading centralized exchange platform in the European market, spot margin trading is based on a regulated and secure system . Indeed, the Austrian platform has built its reputation on diversity and compliance. Authorized as a Digital Asset Service Provider (DASP) and strictly adhering to the European MiCAR (Crypto-asset Markets Regulation), it offers a secure environment. She provides a catalog of more than 3000 financial instruments from cryptocurrencies to stocks, ETFs and precious metals, aiming to position itself as a one-stop shop for today’s investors.

Margin trading simply involves borrowing funds to increase the size of the position, which increases potential profits… but also losses. Bitpanda offers the advantage of applying this mechanism to spot cryptocurrency market. Specifically, you are trading the underlying asset itself (Bitcoin, Ethereum, etc.) and not a derivative contract such as a CFD or futures contract. This approach provides direct exposure to the asset, unlike most competing platforms.

Key Features of Bitpanda Spot Margin Trading Wide and flexible offer Bitpanda offers access to over 120 cryptocurrencies, suitable for margin trading. Available leverage depends on the liquidity and volatility of each asset. Traders can choose from several coefficients: 2x, 3x, 5x and up to 10x which allows you to adjust the level of risk according to your own strategy.

Three-stage trading process After creating an account on the platform, the user interface is extremely simple:

Steps for Spot Margin Trading on Bitpanda

Risks and key considerations Margin trading carries a high risk of total capital loss. Leverage is a double-edged sword: it amplifies losses as much as gains. Even a small market movement against your position can be triggering marginal challenge or liquidation .

Understanding liquidation Your liquidation price is the threshold at which the platform will automatically close your position to return the borrowed funds. It is calculated based on your margin level :

Margin Level = Position Value / (Amount Borrowed + Accumulated Daily Expenses)

When this level reaches a critical threshold, liquidation is triggered. Any remaining assets are then credited to your Bitpanda wallet.

Bitpanda strongly recommends do not use this product unless you are an experienced trader . You should be fully aware of its mechanisms and risks.

Advanced risk management tools The main advantage of Bitpanda is risk management . The platform offers:

• Monitor your margin level in real time ;

• Proactive notifications before liquidation offering a window of opportunity to respond;

• Ability to place limit orders on margin including Take Profit orders to ensure profit and Stop Loss orders for damage limitation.

Transparent payment structure Bitpanda applies a clear and transparent fee schedule:

• Opening (purchase): 0%

• Daily funding fee: 0.18% (charged proportionally every 4 hours from the borrowed amount)

• Closing Fee: 0.3% from the closed amount.

• Liquidation fees: additional 1% in case of forced liquidation. These daily charges gradually reduce the rate of return, which is a crucial factor to anticipate.

Difference Between Bitpanda Spot Margin Trading and Bitpanda Leverage (CFD) If you are a regular user of the platform, you probably know what Bitpanda has to offer as well another product that allows you to use your positions with advantage: Bitpanda Leverage . However, these two proposals differ:

• Bitpanda leverage : this contracts for difference (CFD) on leveraged tokens. Exposure is limited to a maximum leverage of 2x with daily re-leveraging. You do not own the underlying asset;

• Bitpanda Margin Trading : this spot trade with leverage. You are actually buying and holding cryptocurrency with exposure to 10x . This offers direct exposure, but also potentially higher risks.

Conclusion: A powerful tool for experienced traders Spot margin trading is a smart solution for those who want to develop their crypto strategies. Its integration into a regulated and diversified platform such as bitpanda, is a major advantage, offering a secure structure and reliable risk management tools.

However, its use requires extraordinary skill and vigilance . Funding fees, liquidation risk and the inherent volatility of cryptocurrencies make it a complex financial instrument. But if you are an experienced trader, the solution offered by Bitpanda deserves your full attention! But never forget the golden rule: never risk more than you can afford to lose.