How to Leverage Trade Crypto in Australia (2021)

Summary: The safest and easiest way to trade cryptocurrencies with up to 20x leverage is with the FTX exchange. They offer you the ability to trade both Perpetual Futures and Leverage Spot contracts with over 200 different cryptos.

James Glennon
November 2, 2021
Futures Trading Crypto
Crypto Futures Trading

What is Leverage Trading in Crypto?

Leverage in cryptocurrency allows users to borrow money from cryptocurrency exchanges like FTX in order to add more size to their trade. 

As an example, if you are opening a 10X Long Position on Bitcoin with $1,000USD, your total position size will be $10,000USD. The risk here is that if Bitcoin drops by 10% your entire position will be liquidated, which means you lose the $1,000USD.

How to Leverage Trade Crypto in Australia

The best cryptocurrency exchange for Australians to trade digital assets with leverage is FTX. They are widely regarded for their highly performant exchange, low fees, wide range of coins and very easy to use interface. 

Their platform offers up to 20x leverage on Bitcoin, Ethereum, Dogecoin, Shiba Inu, DeFi tokens and many others. You can also trade stocks like Google, Facebook, Coinbase and Amazon through their platform.

The guide below is a high-level overview on how to start trading crypto leverage on FTX.

1. Sign up your FTX Australia account

Simply visit the FTX Australia platform and sign up either your personal or company account. Initially you will not be required to submit KYC information, however if you do want to withdraw over $1,000USD every 24 hours you will need to complete this. 

How to trade crypto leverage in Australia

2. Deposit Australian Dollars (AUD)

Once you have completed signing up, you will now be required to deposit Australian Dollars (AUD) to be able to trade. 

To do this, you need to click the “WALLET” button in the navigation menu, then find AUD and select deposit. From there you will be given a choice to either deposit by PayID/Osko or via bank transfer. We recommend PayID/Osko as they are instant transfers after the first transfer which is held for 24 hours.

3. Select the Leverage and execute the trade

The final step is to find the cryptocurrency you want to trade, select the leverage (as shown in the red circle) then execute your trade.

Leverage Trading Crypto

Why Should I Trade with Leverage?

One of the most common reasons traders use leverage or futures contracts is to hedge price risk. For example, if I hold 100 Bitcoin and want to hedge expected near-term volatility, I could open up a Bitcoin short so I can make some money back on the way down. This revenue earned could then be used to buy back more Bitcoin at a cheaper price.

The other most common reason is purely to speculate on price direction. Leverage gives traders the ability to trade with large size, which can enable them to make incredible gains in bull markets. However there are obviously very large risks involved and is a practice that is generally recommended for confident and comfortable traders.

Why do you Recommend FTX?

The FTX platform was founded by well renowned trader Sam Bankman-Fried and is the fastest growing derivatives trading exchange in the world. They are a safe and regulated platform that makes it easy to onboard from Australian dollars, which is a huge bonus. 

The FTX platform is also cheaper than competitors like Binance, who charge 0.1% per trade compared to FTX who charge 0.02% per trade. From user experience, to fees, to cryptocurrency selection - FTX is widely regarded to be the best overall futures trading exchange and is a great place to get started. 

get started with coinspot
James Glennon

I spent 5 years as a Commercial Lawyer in Australia before stumbling across the innovations behind Bitcoin and the cryptocurrency space. Ever since, I have been committed to learning more and educating the broader Australian community about Bitcoin, hard money, investing and decentralized finance.

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