When it comes to money, many people believe that cryptocurrencies are the way of the future. Selecting a broker to trade or invest in cryptocurrencies is one of the most important steps toward your success when you’re ready to dive into crypto.
BC Bitcoin is a one-of-a-kind cryptocurrency brokerage based in the UK. They offer a large number of altcoins to trade, with up to 1000 different coins to choose from.
Platforms and Brokers for Crypto Trading:
eToro is the best social trading platform.
Binance is the best cryptocurrency exchange.
Gemini is the easiest sign to work with.
For new investors, Coinbase is the best option.
For retirement accounts, iTrustCapital is the best option.
WeBull is the best stock and cryptocurrency trading platform.
For high-volume, high-leverage traders, CryptoRocket is the best option.
Altrady is the best option for accessibility.
For multiple exchanges, Voyager is the best option.
The best place to get rewards is Crypto.com.
The best game for beginners is Robinhood.
BlockFi is the best way to earn cryptocurrency interest.
For a unified experience, Quadency is the best option.
The Finest Cryptocurrency Exchanges
You must determine which type of broker is best for your cryptocurrency needs because different brokers have different strengths. Some brokers provide a social trading platform that allows you to copy other cryptocurrency traders’ trades into your own. Others may offer the ability to transact in a broader range of altcoins.
Your requirements as an investor or trader will play a large role in determining the best cryptocurrency broker. The crypto brokers on this list were chosen for a variety of reasons in order to accommodate various cryptocurrency trading and investing styles.
1. eToro is the best social trading platform.
eToro revolutionized the way many people trade and invest with its social trading platform. In social trading, you use a special social trading account to mirror the transactions of another trader or investor. While you earn the same amount as the trader you’re copying, you also take on the same percentage of the trader’s losses.
In addition to its regular crypto trading platform, eToro offers an advanced cryptocurrency exchange platform called eToroX. This platform is designed for both algorithmic traders and institutional investors. Its AlgoX application programming interface (API) can be used to build custom automated trading tools, and it has tight dealing spreads for traders.
Binance is the best cryptocurrency exchange.
Binance is the world’s most popular cryptocurrency exchange. If you’re in the United States, however, you’ll need to use Binance.us instead of Binance.com because the trading platform is based outside of the country. This is because the Securities and Exchange Commission (SEC) prohibits cryptocurrency traders from using financial derivatives in the United States.
Although not all of Binance.com’s features are accessible from the United States, the platform does support a number of altcoins that are not supported by other exchanges. If you want to invest in a diverse portfolio of altcoins, Binance may be the best option. You can even trade altcoins against Bitcoin, making it simple to keep track of your progress against the King of Crypto: Bitcoin.
Gemini is the easiest sign to work with.
Stay on top of market trends, build your crypto portfolio, and execute your trading strategy with Gemini’s simple tools. The Gemini app is available in all major app stores and provides access to the best cryptocurrency exchange and wallet in the industry.
Gemini is an easy-to-use app. You can set price alerts and monitor asset prices and real-time market prices to react quickly to price changes for specific assets. You can also make recurring purchases with Bitcoin and other cryptocurrencies.
You can invest with confidence thanks to Gemini’s solid cybersecurity and custody solutions. After creating a free account, you can make your first purchase in as little as 3 minutes.
4. For new investors, Coinbase is the best option.
One of the most well-known and established cryptocurrency exchanges is Coinbase. In more than 100 countries, it now has 43 million users. Coinbase provides a wealth of educational resources as well as a user-friendly interface for new traders and investors.
Clients can also get a hosted wallet as well as global customer support from the exchange. For those who are new to cryptocurrency and don’t want to use social trading platforms, Coinbase is a great option.
5. For retirement accounts, iTrustCapital is the best option.
iTrustCapital is one of the few cryptocurrency brokers that lets you trade and store physical gold in your personal retirement account (IRA). In your IRA, you can trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). iTrustCapital provides you with a personal Curve wallet for your crypto transactions.
While there is no minimum trade or account size with iTrustCapital, it does charge a monthly flat fee of $29.95. All IRA fees, asset custody fees, and access to the company’s trading platform are included in this amount, though all cryptocurrency trades are subject to a 1% transaction fee based on trade size.
iTrustCapital is a good option if you’re saving for retirement and want to diversify your cryptocurrency portfolio with physical gold as an inflation hedge.
WeBull is the best stock and cryptocurrency trading platform.
If you plan to hold 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 simple to diversify your crypto portfolio. WeBull makes it possible to trade cryptocurrency instantly, which is crucial in volatile markets like the crypto industry.
WeBull’s ability to accommodate a wide range of investors is another great feature. Although the platform is simple to use, it does allow investors to use trading indicators and real-time data if desired. WeBull also has a low account minimum of $1, making it very accessible to new investors.
For multiple exchanges, Voyager is the best option.
Voyager connects you to over a dozen of the most reputable and secure crypto exchanges, allowing you to trade on the world’s largest crypto market. You get faster and more reliable execution with Voyager, as well as:
Over a dozen of the most reputable and secure cryptocurrency exchanges and liquidity providers have partnered with Voyager. The exchange connectivity provided by Voyager allows you to get better trade prices and execute them faster and more reliably.
To help you save money, Voyager offers commission-free trading. You can save money on trades thanks to its extensive crypto market and best execution technology. Price reductions are applied to over 90% of Voyager’s customer orders.
Now is the time to start trading at a lower cost! The Voyager app is only available until today.
7. The best game for beginners is Robinhood.
Robinhood is one of the best options for new traders who want a simple, easy-to-understand layout without all the bells and whistles that other brokers provide. Even a complete novice can quickly master Robinhood’s user-friendly platform, despite its limited trading options and account types.
You can access your tax documents and account statements quickly with the app, and you can open an account and begin funding it in as little as 10 minutes. It is also simple to place a trade. To help you learn, short explanations of each buy and sell order are provided next to each option — this is a great feature for beginners.
Although a $2,000 minimum balance is required to access Robinhood Gold features, standard accounts do not have this requirement. With the broker’s new fractional share feature, Robinhood is a great option for new traders with a small amount of money to invest.
BlockFi is the best cryptocurrency interest earning option.
You can get the most out of your cryptocurrency with the BlockFi Interest Account (BIA). Deposit your cryptocurrency into your BlockFi Interest Account and watch your money grow as your balance rises in value and earns interest. BlockFi offers stablecoins at an interest rate of 8.6% and BTC at an interest rate of up to 6%.
There is no minimum balance requirement for this account, and it is completely free to use. You can create an account in three simple steps: Fill out the form and deposit cryptocurrency or a stablecoin into your account (a type of cryptocurrency tethered to an asset marker like the U.S. dollar). Begin earning monthly interest in your account in the cryptocurrency of your choice (Bitcoin, Ether or Stablecoin).
To estimate how much you’ll earn over time on a specific cryptocurrency balance in your BIA, use BlockFi’s handy interest calculator. Both your assets and data are safe with BlockFi, allowing you to invest with confidence.
Here’s an example of how BlockFi can assist you:
If you deposit $10,000 in stablecoin on BlockFi, you can earn up to $860 per year.
If you leave $10,000 to compound for 5 years without adding to your principal balance, it will grow to over $15,000, earning you an annual passive income of $1,000.
Cryptocurrency’s Advantages and Disadvantages
Trading and investing in cryptocurrencies carries a high level of risk, as you may have noticed given the volatility of Bitcoin and other digital currencies. Despite the disadvantages that cryptos have over fiat currencies (such as lower liquidity and limited payment options), the advantages of holding cryptocurrencies will grow as they become more widely used.
Here’s a quick rundown of the advantages and disadvantages of cryptocurrency.
Advantages
Your privacy is more likely to be invaded as technology advances. On the other hand, in the digital currency environment, all identities and transactions are strictly protected. Despite the fact that the majority of cryptocurrency transactions are extremely secure, you may still be vulnerable to cybercriminal actions such as hacking.
Low transaction fees: Due to the lack of intermediaries such as financial institutions, cryptocurrency transaction fees are generally low.
The lack of a central exchange or authority to oversee cryptocurrencies is one of their distinguishing features. This is widely regarded as one of the most significant advantages of cryptocurrencies and blockchain technology.
High potential returns: A long-term Bitcoin price chart can show you what kind of returns you can expect from digital currencies if you invest wisely. Because the crypto world is still growing and developing, investing in the right digital currency now could pay off handsomely in the future.
Disadvantages
Acceptance: Because digital currencies have not yet become mainstream, most businesses will not accept them as payment for goods or services. As the public’s perception of digital currencies as payment methods improves, this situation will change. PayPal, for example, has recently allowed customers to hold Bitcoin balances and expects to begin accepting Bitcoin payments in early 2021.
Market volatility can result in large gains or losses in some digital currencies. Trading and investing in cryptocurrency is not for everyone, especially those with a low pain tolerance or aversion to risk.
Taxes: According to the IRS, “virtual currency transactions are taxable by law just like any other property transaction.” The IRS website also includes a link to a guide that explains how general tax principles apply to digital currency transactions.
Illegal activities: Because digital currency transactions provide identity security, many people who operate outside the law are suspected of using it for illegal purposes. These activities include money laundering, “dark web” transactions, and drug and human trafficking.
Cryptocurrency Vocabulary
Like many other financial markets, the cryptocurrency market has developed its own jargon. Some of the key terms used by market participants are defined in the following sections.
A block is a collection of transactions on a blockchain that are permanently recorded on a digital ledger and occur on a regular basis in all time periods.
Blockchain is a peer-to-peer network that records transactions and maintains a list of blocks that is constantly growing.
Customers can exchange their cryptocurrencies for fiat money or other cryptocurrencies at cryptocurrency exchanges, also known as digital currency exchanges.
A cryptocurrency wallet is a secure digital account that can be used to send, receive, and store digital currencies. Crypto wallets are divided into two types: cold wallets, which are used to store cryptos in an offline environment, and hosted wallets, which are hosted by third parties. By storing your private keys, hosted wallets protect your digital currency balances.
A distributed ledger is a network of decentralised nodes or computers that connect to a network where transaction data is stored. Distributed ledgers do not require cryptocurrency, and they can be private or permissioned.
A fork, also known as a “chain split,” is a split that results in the creation of an alternate version of a blockchain and the simultaneous operation of two blockchains. A fork in the original Bitcoin blockchain resulted in the creation of Bitcoin and Bitcoin Cash, for example. Another type of fork is a “project” or “software fork.” This occurs when cryptocurrency developers fork the source code of an existing altcoin project and create a new one. For example, Litecoin is a fork of the Bitcoin project.
A new digital currency or token is sold to its first set of investors at a discount in an initial coin offering (ICO). An initial coin offering (ICO) is a way for cryptocurrency companies to raise funds from the general public to help fund the development and upkeep of their coin.
Mining is a computationally intensive process that involves verifying transactions on a cryptocurrency network’s distributed ledger to add blocks to the blockchain. Miners are rewarded with digital coins as a reward for their successful computational efforts.
Have you got what it takes to make it in the future?
Digital currency and the blockchain appear to be the way of the future in finance. Despite their current volatility and lack of widespread acceptance as a payment method, cryptocurrency appears destined to become more widely used for online payments. They might thus be a good long-term investment, especially if you have a high risk tolerance.
Nobody knows where we’ll be in 20 years, but cryptocurrencies and blockchain technology are gaining traction as major financial players. Start trading cryptocurrency today with one of the brokers we recommend.
