do you want to go directly to the answer? some of the best cryptocurrency brokers are uphold and etoro.
Many people believe that cryptocurrencies are the future of finance. When you are ready to jump into cryptocurrencies, choosing a broker to trade or invest in cryptocurrencies is one of the most important steps to your success in the cryptocurrency market. Get started now with Benzinga’s picks for the best cryptocurrency brokers and pick the one that’s right for you.
Reading: Bitcoin trading near premium returns
best cryptocurrency brokers
Since different brokers have different strengths, you need to find out which type of broker best suits your cryptocurrency interests. Some brokers offer a social trading platform where you copy the transactions of other crypto traders to your own account. others may offer the ability to transact in a broader selection of altcoins.
Choosing the best cryptocurrency broker largely depends on meeting your needs as an investor or trader. The following list of cryptocurrency brokers has been selected for different reasons to meet the needs of different cryptocurrency trading and investment styles.
etoro fundamentally changed the way many people trade and invest with their social trading platform. Social trading involves mirroring the transactions of another trader or investor in a special social trading account. while earning the same amount proportionally as the trader you are copying, you also take the same percentage of losses that the trader has in your account.
winner of the benzinga fintech awards for the best multi-asset platform.
uphold is one of the best cryptocurrency brokers due to its incredible variety. It offers more than 200 different cryptocurrencies, a much longer list than the vast majority of cryptocurrency exchanges. it even supports trading stocks and metals above. If you want to trade a wide variety of assets including bitcoin, altcoins, stocks and precious metals, uphold is probably the best cryptocurrency broker for you.
Automated trading is an important service for crypto investors because the market is extremely volatile and you often don’t have time to handle your trades. When you use Pionex, it’s free to sign up and there are 18 custom bots you can try, each offering a different strategy.
trading bot selection includes:
- the grid trading bot allows users to buy low and sell high in a specific price range.
- the leveraged grid bot provides up to 5x leverage.
- spot futures arbitrage bot helps retail investors generate passive income with low risk. the estimated return for this strategy is 15-50% apr.
- the martingale bot makes a dca buy, a one-time sale to capture the fluctuation profits.
- the martingale bot rebalancing helps you save coins.
- the dollar cost averaging (dca) bot sets up repeat purchases at regular intervals to offset the effects of volatility.
Furthermore, the smart trading terminal allows traders to set stop-loss, take profit, follow-through in a single trade.
You only pay 0.05% maker and taker fees when you trade with Pionex, and you can even trade manually if you wish. Large traders with accounts over $300,000 can also join the market making program, which lowers their making fees to zero.
trade on the go with the pionex app, set up your account to generate passive income, or allow the app to be based on tokens you plan to keep for many years.
4. Caleb & brown
caleb & brown aims to bring cryptocurrency to customers who do not yet understand the market very well. With personalized service, you get global access to liquidity that makes trading easier and more affordable.
You can trade over 1000 assets and your account security is especially enhanced. only you can access your tokens and you work directly with a broker who will help you make the best investment decisions.
because caleb & brown is an australian company, it also has access to xrp, tfuel and theta, where u.s. exchanges don’t. Talk to your agent about paying for college, retiring, saving for major purchases, planning vacations, and much more.
5. interactive corridors
Did you know that most cryptocurrency exchanges charge a spread on your buy or sell orders? this means that you will pay more for your crypto; For example, an exchange that charges a 1.5% spread will charge you an additional $75 for every $5,000 invested on the platform. Fortunately, interactive brokers are one of the few platforms that don’t charge a spread, so you won’t have to pay any hidden fees.
listmaker of the benzinga fintech awards for best day trading software, best short selling broker and winner for best paper trading platform.
6. currency base
coinbase is one of the oldest and largest cryptocurrency exchanges. currently serving 43 million users in more than 100 countries. Coinbase has extensive educational resources and an intuitive interface that is ideal for new traders and investors.
The exchange also provides clients with a hosted wallet and offers global customer support. coinbase is a great option for those who are new to the cryptocurrency market and don’t want to use social trading services.
winner of the benzinga fintech awards for the best software for long-term cryptocurrency investments.
itrustcapital is one of the few cryptocurrency brokers that allows you to trade and hold physical gold in your individual retirement account (IRA). You can also trade bitcoin (btc), ethereum (eth), litecoin (ltc) and bitcoin cash (bch) in your ire. itrustcapital provides you with a personal curv wallet for your crypto transactions.
If you plan to have a stock and cryptocurrency portfolio, webull is a great all-in-one option. The platform supports popular cryptocurrencies like Dogecoin, Bitcoin, Ethereum, and other altcoins, making it easy to diversify your cryptocurrency portfolio. webull allows you to trade cryptocurrencies instantly, which is an important feature in volatile markets like the cryptocurrency industry.
winner of the benzinga fintech awards 2021 for the best investment application.
voyager connects to over a dozen of the most trusted and secure crypto exchanges so you have access to the largest crypto trading market available anywhere. voyager gives you faster and more reliable execution, plus:
- access to multiple exchanges
- trade without commissions
winner of the benzinga fintech awards 2021 for the best software to operate with cryptocurrencies.
robinhood is among the best cryptocurrency brokers for beginning traders who want a simple and easy to understand design without all the bells and whistles that other brokers offer. Although your trading options and account types are limited, even an absolute beginner can quickly master Robinhood’s streamlined and intuitive platform.
You can quickly access your tax documents and statements through the app, and you can create an account and start funding in as little as 10 minutes. performing a trade is also equally simple. the brief explanations of each buy and sell order next to each option help you learn – it’s a great feature for beginners.
winner of the 2021 benzinga fintech awards for best brokerage for beginners.
the blockfi interest account (bia) allows you to safeguard your assets using the crypto space. Watch your coffers grow by adding cryptocurrencies to your BlockFi Interest Account as your balance appreciates in value and helps you earn cryptocurrency interest. blockfi offers 8.6% in stable coins and up to 6% in btc.
here is an example of how blockfi can benefit you:
- If you add $10,000 in stablecoin on blockfi, you can earn up to $860 per year.
- When you let it compound for 5 years without adding to your principal balance, that $10,000 is they will convert to over $15,000, generating an average of $1,000 in passive income per year.
remember, blockfi is a crypto platform that does not act like a traditional bank. This is a great way to trade in the crypto space, but the platform is not fdic or sipc insured so budget accordingly.
At the same time, this fintech company is the future of finance allowing you to take charge of your finances without a broker interfering with your thought process.
listmaker for the benzinga fintech awards 2021 for the best software for long-term cryptocurrency investments.
12. ifc markets
ifc markets provides you with a platform that allows you to invest in a wide range of cryptocurrency products along with other assets. Small volume, intraday and noon traders will benefit greatly from IFC, benefiting from the 15 years of experience that IFC provides. insured by aig europe and with several international awards, ifc market also allows you to create synthetic assets.
Cryptocurrency CFDs on Bitcoin and Ethereum and CFDs on Crypto Futures give you the variety you need to diversify your portfolio using unique asset classes. you will also use 1:8 leverage, you will enjoy low spreads and low minimums.
cryptographic advantages vs. disadvantages
Trading and investing in cryptocurrencies often carries a considerable degree of risk, as you may have noticed given the volatility of bitcoin and some other digital currencies. Despite the disadvantages currently associated with cryptocurrencies versus fiat currencies (such as lower liquidity and minimal payment options), the advantages of owning cryptocurrencies will increase as they become a more common form of payment.
here is a quick sample of the advantages and disadvantages of cryptocurrencies.
- Security: Advances in technology generally lead to greater intrusion into your privacy. rather, all identities and transactions are strictly protected in the digital currency environment. While most cryptocurrency transactions are very secure, it could still be vulnerable to cybercriminal actions such as hacking.
- Low transaction fees: Due to the elimination of intermediaries such as financial institutions, cryptocurrency transaction fees are generally quite low.
- Decentralized: The lack of a central exchange or authority that oversees cryptocurrencies is one of its defining characteristics. many people consider this to be one of the biggest advantages of cryptocurrencies and blockchain technology.
- high potential returns: You only need to look at a long-term bitcoin price chart to get an idea of the returns you can earn by investing wisely in digital currencies. The world of cryptocurrencies is still developing and expanding, so investing in the right digital currency now could translate into considerable profits in the future.
- Acceptance: Because digital currencies are not yet widespread, most businesses will not accept them as payment for goods or services. this situation will eventually change as public perception makes digital currencies more acceptable as forms of payment. for example, paypal has recently allowed customers to hold bitcoin balances and has plans to allow bitcoin payments in early 2021.
- volatility: the market volatility seen in Some digital currencies can lead to big profits or big losses. Trading and investing in cryptocurrencies is not for everyone, especially those with a low pain threshold or risk aversion.
- taxes: the internal revenue service (irs) states on its official website that “virtual currency transactions are taxed by law just like transactions in any other property”. that web page also links to a guide on how existing general tax principles apply to transactions made with digital currencies.
- Illegal activities: Due to the fact that digital currency transactions generally provide identity security, it is believed that many people operating outside the law use digital currency for illegal activities . These activities could include money laundering, “dark web” transactions, and drug and human trafficking.
Like many other financial markets, the cryptocurrency market has developed its own jargon. some of the key terms used by market operators are defined below.
- block: A collection of transactions permanently recorded in a digital ledger that occur regularly in each period of time on a blockchain.
- blockchain: a constantly growing list of blocks in a peer-to-peer network that records transactions.
- cryptocurrency exchanges – Also called digital currency exchanges, these generally consist of online businesses that allow customers to exchange cryptocurrencies for fiat currencies or other cryptocurrencies.
- cryptocurrency wallet: a secure digital account used to send, receive and store digital currencies. Crypto wallets can be cold wallets that are used to store crypto in an offline environment or hosted wallets that are hosted by third parties. Hosted wallets store your private keys and provide security for your digital currency balances.
- distributed ledger: a network of decentralized nodes or computers that connect to a network where transaction data is stored. distributed ledgers do not have to involve cryptocurrency and can be private or licensed.
- fork: Also known as a “chain split,” a fork is a split that creates a version of a blockchain which then leaves 2 blockchains running simultaneously. For example, bitcoin and bitcoin cash arose due to a fork in the original bitcoin block chain. another type of fork is known as a “project” or “software fork”. this occurs when cryptocurrency developers take the source code of an existing altcoin project and create a new project. for example, litecoin is a project fork of bitcoin.
- ico: An initial coin offering (ico) occurs when a new digital currency or token is sold, usually with a discount, to its first group of investors. an ico allows cryptocurrency issuing companies to raise funds from the public to support the development and maintenance of their currency.
- mining: a computationally intensive process performed within a cryptocurrency network where blocks are added to the blockchain by verifying transactions against its distributed ledger. miners are rewarded with digital coins as compensation for their successful computational efforts.
are you prepared for the future?
Digital currency and blockchain seem to be the future of finance. Despite its current typical volatility and lack of widespread acceptance as a payment method, cryptocurrencies seem destined to be increasingly used for online payments. therefore, they could be an interesting long-term investment, especially if you have a strong appetite for risk.
Where we will be in 20 years is anyone’s guess, but cryptocurrencies and blockchain technology are increasingly promising as forces to be reckoned with in the financial world. Get started with one of our recommended crypto brokers today.