Are you looking forward to investing or trading cryptocurrency, here is a list of the best online brokers for buying and selling cryptocurrency. Cryptocurrency includes currencies such as Dogecoin, Etherum, Bitcoin, Litecoin, Tron, and many more.
Cryptocurrencies are currencies that are decentralized and stored in a ledger, which is known as the blockchain.
Cryptocurrency allows people to pay and store digital money without going through a bank or even using their personal information. Cryptocurrency, especially Bitcoin, has proven to be a popular trading and investment vehicle.
One of the reasons for cryptocurrency’s popularity is due to its volatility since these swings allow traders to make money on the price moves.
For instance, at the beginning of 2017, the price of Bitcoin rises up from the $1,000 cage. By the end of 2017, the digital currency had reached up to $20,000.
However, in the year 2018, Bitcoin was hovering around $3,200. But it resurrected back to life in 2019, rising to more than $10,000 and then significantly higher — crossing the $60,000 level in early 2021, before falling and then later recovering.
Some traders like to own the currency directly, others look into the futures market. It’s this kind of price movement that has attracted traders looking to make money from Bitcoin.
Futures may be an even more lucrative way to get the most from the volatility of digital currencies such as Bitcoin, because they permit traders to use leverage to calculate their gains (but also magnify losses).
But futures can be riskier in exchange for that potentially higher profit.
Do you need a broker to trade cryptocurrencies?
A crypto broker serves as a mediator between the person purchasing and the person selling the cryptocurrency.
The broker might also purchase a significant amount of cryptocurrency to sell on its own platform, making the broker more of a direct seller.
A cryptocurrency broker is used to refer to as an intermediary between cryptocurrency buyer and seller.
You place your order through the broker and after payment, the broker places your order on the crypto exchange.
The decentralized, anonymous nature of cryptocurrency simply means that you don’t technically need a broker to trade cryptocurrency.
You can buy and sell crypto with anybody—no fees, no centralized exchange, and no mediator/middleman.
So, here is the question becomes whether you should work with a cryptocurrency broker or not.
Advantages of a Cryptocurrency Broker
There are several benefits of a cryptocurrency broker.
The major benefit of a cryptocurrency broker is the easy setup.
Solo crypto trading is mostly entangled with technical issues that have to do with the blockchain.
Because a broker already has an established system, the technical issues are more avoidable.
Nevertheless, a cryptocurrency broker lets you perform leveraging, which is a type of trading that allows you to borrow funds to increase your position.
A cryptocurrency broker has more advanced technical instruments (such as a downloadable platform, mobile app, website, etc.) than an individual who is doing it on their own.
Disadvantages of a Cryptocurrency Broker
Even though Crypto brokers have some advantages, they also have their disadvantages.
The major downsides to a crypto broker are fees and commissions.
When you’re trading by yourself, you don’t have to pay any fees or commissions to anyone.
A crypto broker will likely charge a commission, so you have to measure the advantages listed above against the costs of such fees or commission.
Furthermore, an unreliable crypto broker could cause you to lose money.
Is cryptocurrency trading risky?
The simple answer is yes.
The currency itself is so volatile which makes cryptocurrency trading very risky.
The currency is speculative and high-risk, and it’s not uncommon for the value to decrease by hundreds of dollars at the drop of a hat.
It’s also not uncommon for it to suddenly rise in value.
Moreover, another huge crypto trading risk is crypto cybercrime.
There is little to no regulation of this trading field, and the government mostly does not back cryptocurrency.
It doesn’t pass through the bank. Neither is it regulated by the SEC nor will the SEC reimburse you if you lose your money.
Crypto-related cybercrime ranges from improper handling of private information to hackers raiding and depleting users’ cryptocurrency accounts.
How can I tell if a crypto broker is regulated?
Only a few countries (for example like the UK and its Financial Conduct Authority) require that cryptocurrency brokers be regulated.
However, there is yellow light (warning signals) of an unscrupulous or untrustworthy broker.
Being cautious of these warning signs is key to avoiding being a victim.
Such signs may include; non-existent services and products, unrealistic promises, questionable marketing practices, and anonymous identities of brokers.
If the broker tells you that it offers certain services in its marketing, it should have those services.
For instance, if a broker says that it offers research and data, there should be research and data available on its platform.
If a crypto broker promises you that you are going to get rich quick, do not trust them.
A good broker understands that all forms of trading, whether cryptocurrency or non-cryptocurrency, is volatile, and a broker shouldn’t make promises that might not come true.
The broker should only promise to be ethical and provide a good platform.
Making unrealistic forecasting is a sign that the broker is unscrupulous.
If the broker lies in its ads about its offering or makes unrealistic predictions and claims in its promotions, it is enticing in questionable marketing.
This is common on social media.
If a broker uses fake accounts on social media, with each account saying to be a satisfied customer, that broker is a scammer.
Don’t just avoid doing business with the broker, block them from reaching you.
Anonymous Identities of the Brokers
You should perform some research on the identity of the broker with whom you’re getting in business.
While the nature of cryptocurrency allows for anonymous transactions, starting a crypto platform is, essentially, starting a business.
A broker must be plain about who they truly are, just as any business would.
How do cryptocurrency brokers make money?
Cryptocurrency brokers make their income by charging fees and commissions on the transactions they perform.
Cryptocurrency is new enough that many brokers are able to charge higher fees than they would for other, non-crypto products.
Keep In mind that cryptocurrency is volatile, but it can be lucrative.
When you’re searching for the best cryptocurrency broker, make sure you select a broker who is transparent, honest and is not hiding anything.
10+ Best online brokers for buying and selling cryptocurrency
Robinhood is one of the best options for traders who just want to start trading and want a simple, easy-to-understand layout.
Though its account types and trading options are limited, it is easier for beginners to quickly master Robinhood’s intuitive and streamlined platform.
You’ll also get to enjoy Robinhood’s wildly popular trading commissions: $0 per trade, or commission-free, though you’ll still be paying a built-in spread markup on any trades.
And if you are wise to invest in more than just cryptocurrency, you can perform stock and ETF trades for the same low price.
You can access your tax documents and account statements through the app, and you can create an account and begin funding it in as little as 10 minutes.
Buying and selling crypto is also equally simple.
Though to gain access to Robinhood Gold features, it does require a $2,000 minimum balance, there’s a $0 minimum required balance for standard accounts.
Combined with the broker’s new fractional share feature, Robinhood is a great platform for new traders who only have a little amount of money to start investing.
Account minimum: $0
eToro radically changed the way many people trade and invest with its social trading platform.
Social trading entails imitating another trader or investor’s transactions in a special social trading account.
While you earn the same amount proportionally as the trader you’re copying, you also take the same percentage of losses the trader takes in their account.
Not that alone, it is also a regular crypto trading platform, eToro offers an advanced cryptocurrency exchange platform called eToroX.
This platform is tailored to algorithmic traders and institutional-grade investors.
It provide traders access to tight-dealing spreads, and its AlgoX application programming interface (API) can be used to create custom automated trading tools.
Account minimum: $0
Interactive Brokers allow you to trade more than one but not more than four cryptocurrencies directly, including Bitcoin and Ethereum, for one of the lowest commissions in the market.
Most cryptocurrency exchanges charge a spread on your buy or sell orders- This signifies that you’ll pay extra for your crypto; for instance, an exchange that charges a 1.5% spread will charge you an extra $75 for every $5,000 invested on the platform.
Luckily, Interactive Brokers is one of the few platforms that doesn’t charge a spread, so you won’t have to worry about any hidden fees.
It also assists you to buy Bitcoin futures rather than owning the currency directly.
And in this broker’s case, you can purchase futures on the Chicago Mercantile Exchange, with all-in contracts costing $15.01 with five bitcoins per contract.
However, Interactive Brokers brings its full suite of investment offerings, so you can purchase nearly anything that trades on an exchange.
It’s an all-in-one platform where investors have access to stocks, funds, bonds, futures and other investment vehicles –– no more needing to worry about managing your portfolios across separate exchanges!
Commission: 0.12-0.18 percent of trade value; $15.01 per futures contract
Account minimum: $0
Charles Schwab is best pick of Bankrate’s for top broker, and this investor-friendly company offers trading in Bitcoin futures.
Charles Schwab has no account minimum, but any futures contract you trade will require some minimum margin to hold them open.
Schwab offers an attractive commission of $1.50 per contract, and if you invest huge amount of money, you’ll receive a welcome bonus, too.
Commission: $1.50 per contract
Account minimum: $0, futures margin depends on contract
iTrustCapital is among one of the few cryptocurrency brokers that allows you trade and hold physical gold in your individual retirement account (IRA).
You can also invest and trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) in your IRA with iTrustCapital.
iTrustCapital offers you with a personal wallet by Curv for your crypto transactions.
While iTrustCapital has no minimum trade or account size, the company charges account holders a flat fee of $29.95 per month.
This amount includes all IRA fees, asset custody charges and access to its trading platform, although all cryptocurrency trades carry an additional 1% transaction charge based on the trade size.
If you’re planning for your retirement and want to diversify your investment portfolio by adding physical gold to your cryptocurrency portfolio as an inflation hedge, then iTrustCapital is a good choice.
Commission: A flat fee of $29.95 per month plus 1% transaction charge based on the trade size
Account minimum: $0
TradeStation offers traders with couples of option, which has rolled out direct currency trading via TradeStation Crypto, with commission-based pricing for traders.
Pricing depends on your account balance with the broker and whether your order is directly marketable.
Actually pricing ranges from 0.05 percent of your order to 0.3 percent.
Traders can also purchase and sell Bitcoin futures as well as grab the opportunity of substantial volume trading discounts.
Commission: 0.05-0.3 percent
Account minimum: $0, but futures margin depends on contract
If you look forward to holding a portfolio of stocks and cryptocurrency, WeBull is a great all-in-one option you might want to consider.
The platform allows you to trade and invest in popular cryptocurrencies like Dogecoin, Bitcoin, Ethereum and other altcoins, making it easy to diversify your crypto portfolio.
WeBull allows you trade crypto instantly, which is a crucial feature in volatile markets like the cryptocurrency.
Another great features of WeBull is its flexibility to cater towards all types of investors.
The platform is relatively straight forward, but it also allows investors to use trading indicators and real time data if they so choose.
In addition, WeBull has an account minimum of just $1, making the entry barrier extremely low for new investors.
Commission: 1 percent
Account minimum: $1, but futures margin depends on contract
Coinbase is one of the largest and oldest cryptocurrency exchanges.
Over 43 million users in over 100 countries currently use this platform to trade and invest in cryptocurrency.
Coinbase has included an extensive educational resource on its platform and it has an intuitive interface ideal for new traders and investors.
Coinbase is a specialized cryptocurrency platform that focuses only on crypto currency, and it allows you to trade digital currencies directly, including Bitcoin, Ethereum, Litecoin and Bitcoin cash.
This platform gives access to more than 100 cryptocurrencies.
In addition, you’ll be able to store your coins in a vault or wallet with time-delayed withdrawals for additional protection.
The commission structure for crypto- exchange is steep.
It charges a spread markup of about 0.5 percent and adds a transaction fee depending on the size of the transaction and the funding source, though its Pro platform is cheaper.
Coinbase is a great choice for those new to the cryptocurrency market who do not wish to use social trading services.
Commission: At least 1.99 percent of the transaction value
Account minimum: $0
The BlockFi Interest Account (BIA) lets you to maximize your cryptocurrency balance.
BlockFi allows your coffers grow when you deposit your crypto in your BlockFi Interest Account, your balance both appreciates in value and earns you interest.
BlockFi offers 8.6% on stablecoins and up to 6% on BTC.
This account is free to use and it requires no minimum balance.
You can open an account in 3 simple steps:
Enter your details and fund your account with crypto or stablecoin (a type of cryptocurrency tethered to an asset marker like the U.S. dollar).
Start earning interest monthly in your account in whichever cryptocurrency of your choice (Bitcoin, Etherum or Stablecoin).
You can use BlockFi’s useful interest calculator for an hint of how much you will earn on a given cryptocurrency balance in your BIA within a certain period of time.
Both your assets and data are safe and under lock with BlockFi, so you can invest with peace of mind.
Commission: minimum of 1.99 percent of the transaction value
Account minimum: $0
Apart from the fact that Crypto.com saves its users money through cheap trading fees, the platform also gives its users the option to earn rewards.
On every purchase, Crypto.com offers crypto debit cards to earn crypto-back.
Based on which tier debit card you select, you can earn anywhere from 1% to 8% back on all purchases made with the card.
To get a higher percentage back, you’ll be required to stake CRO on Crypto.com.
There’s no minimum balance required on your crypto.com account, and with the mobile app you can top off your debit card with crypto directly.
Crypto.com has a much wider variety of services than most cryptocurrency exchanges, giving its users access to interest-bearing crypto accounts, debit cards, NFTs, and a full-featured cryptocurrency exchange with couples of different cryptocurrencies.
Commission: 0.04% to 0.4% maker fees, 0.1% to 0.4% taker fees, plus 2.99% for credit card purchases
Account minimum: $0
Binance is a trading platform that is specialized. It allows you to buy and sell digital currencies, including the largest such as Bitcoin and Ethereum but also dozens of other much smaller coins, too.
In total, you’ll have access to over 60 cryptocurrencies that you can trade with.
The commission structure at Binance is low and only gets cheaper the more you trade.
Trading fees start at 0.1 percent of your trade value (i.e., $10 for every $10,000 traded) and fall from there, depending on your trading volume over the prior 30 days.
Commission: 0.1 percent of the transaction value or less
Account minimum: $0