The increasing popularity of cryptocurrencies has got the attention of many people and businesses. To become a part of the cryptocurrency community, you need to find a place where you can buy and sell digital currencies.
Picking the best cryptocurrency broker to sell or buy cryptocurrencies is determined mainly by a couple of things. First, it takes a lot of research and data analysis to find a suitable broker/exchange. Second, it is crucial to be cautious when picking an exchange and coin to trade, even after doing your homework. Even more important, you need to be ready for any price swings or losing money quite quickly.
How to choose a good online broker for crypto?
Choosing the best cryptocurrency broker can be a bit of a complex process. However, you need to be keen on features such as security, fees, and the assets listed on the exchange.
Security is important when pursuing a cryptocurrency exchange. For beginners, this creates a safe place for beginners to learn how to invest in digital currencies. With the increasing popularity of crypto, it is becoming a target place for hackers. This leaves some cryptocurrencies facing losses worth tens of millions. This leaves the brokerage’s reputation and exchanges in tatters even though insurance might refund the money. This is why you need to put your money in a reputable brokerage and exchanges.
Spreading your crypto across various exchanges reduces the risk of losing all your crypto purchases. You can also move some of your cryptos to a default wallet or a “cold” wallet. “Cold wallets” are usually not connected to the internet, making it difficult for hackers to find them. However, you will need to remember your passcode, or you might end up losing the money forever.
It is also essential to check the cryptocurrencies available in any exchange. Some traders prefer to trade in one coin, while others prefer to invest in multiple coins. This is why you need to make sure the broker you pick has a wide range of coins and tokens. Even with various coins, it is essential to remember that coins are only useful if you trade them.
For advanced crypto traders, you might want to make sure that your broker offers different trading options. You can check out the order limits, and this can then help prevent slippage and help you set a hard price or set a preferred margin. Keep in mind that trade types involving hard prices are still a new phenomenon in the market, and thus different exchanges might vary over time.
Beginners in the world of cryptocurrencies need to find an easy-to-use platform. In addition, you should have insightful educational resources to help you understand the cryptocurrency world.
Fees are another area one should consider. You might be comfortable paying a huge fee for an easy-to-use interface when you are a beginner. However, higher fees can put a dent in your returns eventually. High-frequency traders may pay lower costs or are cushioned by their trades.
Some exchanges are available in your country, but you cannot access the other popular exchanges from your place. In addition, different regulatory bodies at State and Federal levels are still trying to find their feet regarding legislation and taxation issues. Hence, you need to tread carefully here.
Places you can buy and sell cryptocurrencies.
Conventional brokers usually have the advantage of offering a wide array of investible stocks and securities. Bitcoin cannot be traded directly but through futures. On the other hand, crypto exchanges are mostly limited to digital currencies. In some cases, you can buy the currencies directly. Some even allow you to trade several times instead of Bitcoin or Bitcoin futures as you would with a traditional broker.
PayPal has also gotten into the crypto action allowing its users to buy and sell cryptocurrencies. Here are some of the brokers you can trust and use for your cryptocurrency exchange. In some cases, you might want to check with brokers who offer bonuses for opening accounts and their commissions as well.
- Coinbase
Coinbase is an extremely popular cryptocurrency exchange. It is widely popular because you can easily invest directly with US Dollars. Coinbase currently offers an assortment of more than 50 coins and tokens. Some of the coins and tokens include Bitcoin, Ethereum, and Litecoin. You can also use it to earn interest on USDT and receive token rewards to complete different activities. In addition, new users of Coinbase accounts get a $5 bonus.
Due to its easy-to-use interface, beginners can find it very easy to use. Besides, it is very secure and trustworthy. This best cryptocurrency broker also offers a wide selection of tokens and coins for you to invest in. However, its fees are a little higher if you are not a Coinbase Pro user. It also does not allow users to control private keys in wallets. It is also a bit slow to adapt to new popular cryptocurrencies.
- Voyager
Voyager is another established platform and one of the first publicly traded exchanges. Voyager is essentially app-driven and presents commission-free trading structures. In addition, it supports all the prominent cryptocurrencies. They also have a strong support and engagement system, and they pay at competitive rates on assets. For example, once you open a Voyager account, you can earn $25 in BTC once you have traded $100 in crypto.
Voyager offers you an easy-to-use app-based interface. They also provide a commission-free trading structure, and they have very good interest rates. However, it takes longer to withdraw, with the earliest withdrawals being as early as one day. It is also not available in places like New York yet.
- BlockFi
BlockFi is a crypto exchange investment platform that allows you to lend and even get interested in your holding. Instead of selling your tokens and coins, you can borrow against your holdings. In addition, they give a bonus of $250 every time you make a deposit of $25 and maintain it over a certain period.
BlockFi does not charge any fees or commissions. You are also likely to get high interest on your deposits. However, they do not support a wide range of tokens and coins. There are also some limitations as to how many times you can make free withdrawals.
- eToro
eToro lets you learn from some experienced traders through social trading. Social trading usually involves emulating another trader or investor’s transactions in a unique trading account. This means that you are likely to make the same amount as the trader you are copying. However, you can also make the same losses they do.
eToro also has a regular crypto trading platform known as eToroX. It is customized to suit the needs of algorithmic traders and institutional-grade investors. It also allows traders to access tight dealing spreads and its AlgoX application programming interface (API), allowing you to curate customized automated trading tools.
- iTrustCapital
iTrustCapital is one of the few cryptocurrency exchanges that will enable people to trade and hold physical gold in their retirement account (IRA). In addition, you can also trade Bitcoin, Ethereum, Litecoin, and Bitcoin Cash in your retirement account. They also give you a personal wallet by Curv for crypto transactions.
There are no minimum trade or account size requirements. However, they charge a flat fee of approximately 30 dollars every month. This fee covers IRA fees, access to the trading platform, and company charges. They also charge an additional 1% transaction charge based on your trading size. If you are thinking about retirement options and want to add cryptocurrency and physical gold to your portfolio, you should consider using iTrustCapital.
- Robinhood
If you are looking for a place to buy cryptocurrency directly, Robinhood is the perfect option. You get a $0 per trade or even commission-free, which makes Robinhood extremely popular. To add to it, they offer a diverse range of stock and ETF trades at a low price. In addition, the app is quite easy to use and gives a full-featured trading experience.
Conclusion
Anytime you are choosing the best cryptocurrency broker, it is essential to consider a few factors. Beginner traders have to figure out whether they want to own a virtual currency directly or trade futures that offer a bigger reward but are high risk. It is also essential to consider if you want to trade Bitcoin only, which most traditional brokers might restrict you to do. If not, you might want to turn to a cryptocurrency exchange as they may offer a wider choice range in tradable crypto. What crypto exchange would you prefer to use? Please share with us in the comments section.
