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How To Leverage Crypto On MEXC?

Written by Sudhir Khatwani

Written by:

Sudhir Khatwani

Sudhir Khatwani holds a bachelor's degree from Vellore Institute of Technology and has made significant contributions as a Programmer Analyst at Cognizant, where he worked on critical projects for leading financial institutions like MUFG and CITI Bank. His technical expertise and analytical skills have been instrumental in delivering high-impact solutions within the financial sector. His expertise in digital assets and blockchain technology was further honed through his previous role as a content strategist for the prominent cryptocurrency exchange, CoinSwitch.

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Expert Reviewed

This article has been reviewed by crypto market experts at SCM to ensure all the content, sources, and claims adhere to the highest standards of accuracy and reliability.

Last Updated on January 28, 2025

  • Leverage trading in cryptocurrency offers significant opportunities, especially on platforms like MEXC.

    Unlocking the potential of crypto leverage on MEXC can amplify your trading results, allowing you to control more prominent positions with a smaller initial investment.

    This advanced trading strategy, though riskier, can be advantageous when executed with the proper knowledge and caution.

    When you start on MEXC, navigating to the futures section and transferring assets from your spot account is crucial.

    The platform provides leverage options up to 200x for various crypto pairs, giving flexibility based on risk tolerance and trading goals.

    Understanding these leverage settings and their associated risks is critical to maximizing potential returns.

    With this guide, you’ll learn the precise steps to leverage crypto on MEXC, from setting up your futures account to selecting appropriate leverage ratios.

    Whether you are a beginner or looking to refine your trading strategies, this tutorial will equip you with the essential tools to thrive in the dynamic world of crypto futures trading.

    Our 2025's Recommendation

    • Upto 200x Leverage for BTC

    •  Supports over 1500+ crypto trading pairs

    •  0.2% fees for spot trading

    • Robust security measures

    Setting Up for Leverage Trading on MEXC

    To begin leverage trading on MEXC, choose a suitable cryptocurrency exchange first.

    MEXC is known for its features, including user-friendly interfaces, high-security standards, and leverage options of up to 200x.

    Criteria to consider when choosing an exchange:

    1. Fees: Evaluate trading fees, withdrawal fees, and other associated costs.
    2. Security: Ensure robust security measures like two-factor authentication (2FA) and encryption.
    3. User Interface: Look for intuitive and easy-to-navigate platforms.
    4. Leverage Ratios: MEXC offers up to 200x, but compare with Binance, BitMEX, Bybit, and Kraken for the best fit.

     

    Creating and Funding Your Account

    mexc sign up

     

    1. Registration:
      • Visit the MEXC official website.
      • Click [Sign Up].
      • Enter your email and create a strong password.
      • Confirm your registration through the verification email sent to you.
    2. Identity Verification (KYC):
      • Log in to your account.
      • Navigate to the [Account] section.
      • Complete the KYC process by submitting the necessary documents for identity verification. This ensures a higher level of security and increased withdrawal limits.
    3. Funding Your Account:
      • Fiat Deposits: Use bank transfers or credit/debit cards to deposit your local currency.
      • Crypto Deposits: Transfer cryptocurrency from another wallet or exchange.
      • Steps:
        • Click on [Wallets] at the top right.
        • Select [Futures].
        • Click [Transfer] to move funds from your spot account to your futures account.
        • Choose USDT under the [Crypto] section and enter the transfer amount.

    With these steps, you are now set up to start leverage trading on MEXC.

     

    How To Leverage Trade Crypto on MEXC

    Step 1: Select the Trading Pair

    mexc supported coins

     

    • Choose a cryptocurrency pair like BTC/USDT to trade on MEXC.
    • Consider the liquidity and volatility of your chosen pair to ensure active markets and minimal price slippage.

     

    Step 2: Choose Leverage Ratio

    select leverage on mexc

     

    • Decide on the leverage ratio you want, such as 10x or 20x.
    • A higher leverage ratio can amplify both potential profits and risks. For example, with 10x leverage, a 1% price change results in a 10% change in your position.

    Step 3: Enter the Trade

    • Long Position: Buy with the expectation that the asset price will rise.
    • Short Position: Sell with the expectation that the asset price will fall. Example: Using 10x leverage to buy $1,000 worth of BTC with only $100 as margin.

    Step 4: Set Stop Loss and Take Profit Orders

    • Set predefined levels to manage your risk by stopping loss and taking profit orders.
    • This helps you secure profits and limit losses automatically. On MEXC, you can set these orders directly on the trading interface.

    Step 5: Monitor and Adjust the Trade

    • Continuously keep an eye on market conditions.
    • Adjust your stop loss and take profit orders according to market movements. This will help you adapt to changing market scenarios and protect your investments.

     

    Managing Risk in Leverage Trading on MEXC

    When engaging in leverage trading on MEXC, managing risk is crucial to preserve your capital.

    Initial Margin and Maintenance Margin are two key concepts. The initial margin is the amount you need to open a leveraged position, while the maintenance margin is the minimum amount required to keep that position open.

    For example, if you open a position with 50x leverage, your initial margin requirement might be 2% of the position’s value, but you must maintain a certain amount to avoid liquidation.

    Example Calculation: Suppose you want to open a position worth $10,000 with 50x leverage. The initial margin would be $200 (2% of $10,000).

    If the value of your position drops and your account falls below the maintenance margin, which might be set, for example, at $150, your position risks liquidation.

    Keeping your account value above the maintenance margin is essential to avoid involuntary liquidation. Regularly monitoring your account value helps prevent sudden, undesired losses.

    Monitoring Account Value: You can utilize different strategies to maintain your account value:

    • Set Price Alerts: Use MEXC’s price alert feature to notify you of critical price movements.
    • Diversify Positions: By diversifying your investments, avoid putting all margin funds into a single trade.
    • Regular Adjustments: Review and adjust your leverage settings in response to market changes.

    Tools and Features on MEXC:

    • Risk Control Panel: Offers insights into your current leverage levels and margin requirements.
    • Stop-loss orders: Automatically sell your assets if they reach a specific price, minimizing potential losses.
    • Risk Alerts: Notifications to keep you informed about your current risk exposure.

    Implement these practices to manage risk effectively on MEXC.

     

    Practical Examples and Case Studies

    Successful Leverage Trade

    Example: A trader uses 10x leverage to trade Bitcoin (BTC) on MEXC.

    Initial Setup: The trader has $1,000 and uses it as a margin to open a long position, effectively controlling $10,000 worth of BTC.

    Price Movement: BTC prices rise from $30,000 to $33,000.

    Outcome: The trader’s position increases in value by $3,000. Given the 10x leverage, this results in a 100% profit on the initial $1,000 margin.

    Case Study: Risk Management Failure

    Case Study: A trader uses 20x leverage to trade BTC without implementing a stop-loss strategy.

    Initial Setup: The trader has $500 as the margin, controlling $10,000 worth of BTC.

    Price Movement: BTC price drops by 5%.

    Outcome: The trader faces liquidation, resulting in a total loss of the initial $500 margin.

    Practical Application

    Buying More Crypto: Using leverage can multiply your buying power, for instance, with 5x leverage, $1,000 turns into $5,000 worth of crypto.

    Bear Market Strategies: Leverage can also be used to short the market. For instance, if you expect BTC to fall, you can sell $10,000 worth of BTC by using $1,000 of your margin at 10x leverage.

    Leveraged ETFs

    Leveraged ETFs can amplify your returns based on daily movements. Suppose you invest in a leveraged ETF during a rising market. If the market increases by 2%, a 3x leveraged ETF could increase by approximately 6%.

    Risk Management

    Risk Management: Always use stop-loss orders to prevent significant losses. For example, setting a stop-loss at 2% below the entry price on a 10x leverage trade can help manage your risk.

    Monitoring Trades: Monitor your leveraged positions and adjust them to manage risk and maximize profits.

     

    How To Leverage Trade Crypto Through Leveraged Tokens & DeFi Platforms on MEXC

    Leveraged tokens allow you to gain leveraged exposure to various cryptocurrencies without managing the complexities of margin trading. Each token represents a basket of perpetual futures positions, automatically rebalancing to maintain a desired leverage ratio.

    Examples of popular leveraged tokens available on MEXC include:

    • BTC3L: Offers 3x long exposure to Bitcoin
    • ETH3S: Provides 3x short exposure to Ethereum
    • BNB2L: Delivers 2x long exposure to Binance Coin

    Leveraged tokens can be advantageous because they handle margin, rebalancing, and liquidation risks for you. This simplification makes leverage trading more accessible, especially for newcomers.

    Benefits of using leveraged tokens:

    • Hassle-Free Management: No need to monitor margin levels or worry about liquidation.
    • Automated Rebalancing: The token adjusts positions to maintain the set leverage.
    • Diversification: Access to multiple cryptocurrencies with different leverage ratios.

     

    Conclusion

    Leveraging crypto on MEXC can be a powerful tool for experienced traders with a firm grasp of technical and fundamental analysis.

    When using leverage, it’s essential to manage risks carefully.

    MEXC offers up to 200x leverage for perpetual futures and 10x for margin trading, providing flexibility to suit diverse trading strategies.

    Key Recommendations:

    • Start Small: Begin with lower leverage and gradually increase as you become more confident.
    • Diversify: Spread your investments across multiple assets to mitigate risks.
    • Stay Informed: Keep up with market trends and news to make informed decisions.

    With the right approach, leveraging crypto on MEXC can enhance your trading experience and potential returns. Always trade responsibly and be mindful of the inherent risks.

    About the Authors

    Sudhir Khatwani holds a bachelor's degree from Vellore Institute of Technology and has made significant contributions as a Programmer Analyst at Cognizant, where he worked on critical projects for leading financial institutions like MUFG and CITI Bank. His technical expertise and analytical skills have been instrumental in delivering high-impact solutions within the financial sector. His expertise in digital assets and blockchain technology was further honed through his previous role as a content strategist for the prominent cryptocurrency exchange, CoinSwitch.