These rules are usually limited to the leverage ratios (20x, 50x, 100x), the initial margin, and the opening trading amount Margin trading in cryptocurrency is not a very complicated process, but it is a volatile one. How Taxes Work for Crypto Margin Trading How to handle your crypto taxes if you have lent to margin traders on Bitfinex or traded on margin exchanges like Bitmex, Bybit, Deribit, Kraken, and more. Traders can use the price fluctuations of cryptocurrency how margin trading works crypto markets to earn a profit, whether it is bears or bulls. The crypto exchange sets the rules for margin trading, which may vary from one company to another. In this guide, you will learn what margin trading in Bitcoin and cryptocurrencies is, how does it work, top exchanges enable margin trading, and most importantly – you will learn must-read tips before placing even the smallest margin position. Quick Navigation: Bitcoin Margin Exchanges; How to Short. Leverage trading Bitcoin works relatively simply at a fundamental level Process Involved in Crypto Margin Trading. This value, when combined with our deep liquidity across all of our markets, means that you’ll be able to. Then, a trader needs to invest a certain percentage of the total order when making a margin trade. How Crypto Margin Trading Works. To start trading on margin, a trader first needs a registered margin account. Bitcoin margin trading has become increasingly available for crypto enthusiasts over recent years. Basically, this advanced strategy enables them to borrow additional funds and open larger trades.