The cryptocurrency has had quite a run since its introduction, with some early investors making significant profits, but those who bought at the peak have yet to fully recover their losses. Digital coins have sparked a lot of debate in the investment industry about their investment merits and feasibility, with legendary investors such as Warren Buffett stating that cryptocurrencies are essentially worthless.
Recent years have seen waves of both positive and negative news for the cryptocurrency industry. Cryptocurrency exchange FTX has collapsed and its top executives have been charged with crimes, while other exchanges such as Binance and Coinbase are facing charges from the Securities and Exchange Commission. Still, the SEC approved several spot Bitcoin ETFs in early 2024, giving traders a simple structure to buy and sell the world's largest cryptocurrency.
Some traders prefer to own the currency directly, while others turn to the futures market. Futures may be an even more attractive way to deal with the volatility of digital currencies such as Bitcoin, as they allow traders to use leverage to magnify their profits (and losses as well). However, futures involve more risk in exchange for potentially higher rewards.
Where you can buy and sell virtual currency
- Traditional broker: Brokers typically do not offer direct Bitcoin trading, only futures, but they do give you access to a wide selection of other securities and often allow you to purchase Bitcoin ETFs commission-free.
- Cryptocurrency exchange: Specialist cryptocurrency exchanges offer a wide range of cryptocurrencies beyond Bitcoin and other most popular coins. You can also own the currency directly.
- Payment service: Some payment services, such as Cash App and PayPal, also allow users to buy and sell the most popular cryptocurrencies.
Here we introduce you to the best brokers for cryptocurrency trading, including traditional online brokers and new professional cryptocurrency exchanges. You can also check which brokers offer the best bonuses for opening an account to determine where you can get a little more bonuses.
Overview: Best Brokers for Cryptocurrency Trading in April 2024
robin hood
Robinhood is a great option for buying cryptocurrencies directly. You can also take advantage of Robinhood's very popular trading fees. It's $0 per trade, or commission-free, but you'll pay a built-in spread markup on every trade. And if you're interested in more than just cryptocurrencies, you can continue trading stocks and ETFs at the same low prices. Robinhood's sophisticated app makes trading very easy, but those looking for a full-featured trading experience will be disappointed.
- commission: $0, but includes spread markup
- Minimum account amount: $0
interactive broker
At Interactive Brokers, you can trade four cryptocurrencies including Bitcoin and Ethereum through Paxos Trust Company and Zero Hash with the lowest fees on the market. A customer can also access his 24/7 cryptocurrency trading through Paxos' associated app. Additionally, IB allows you to purchase Bitcoin and Ethereum futures rather than owning the currency directly. And with this broker, you can buy Bitcoin futures on the Chicago Mercantile Exchange, contracts for 5 coins per contract for $5, and Ethereum contracts for 50 coins per contract for $3. Masu. Additionally, Interactive Brokers offers a suite of investment products, so you can buy almost anything traded on the exchange.
- commission: 0.12-0.18% of trade value.$5 per Bitcoin futures contract
- Minimum account amount: $0
Webull
Webull may be less well-known than rival commission-free trading app Robinhood, but it offers investors a solid offering that includes crypto trading. There are no commissions on crypto trades (or stocks or ETFs), but Webull charges a spread markup of 100 basis points (1% of price) on either side of the trade. Several cryptocurrencies are available for trading, including Bitcoin, Ethereum, and Dogecoin. Charting tools and a great mobile app make Webull a broker worth considering.
- commission: $0 but includes a 1% spread markup
- Minimum account amount: $1 for cryptocurrency trading
trade station
Traders have several options with this broker, which offers direct crypto trading via TradeStation Crypto with built-in spread markup. The markup on the spread does not exceed 1% of the trade amount, whether buying or selling. Traders can also buy and sell Bitcoin futures.
- commission: $0 but includes a spread markup of over 1%
- Minimum account amount: $0, but futures margin varies by contract
Binance.US
Binance is a specialized trading platform that allows you to buy and sell digital currencies, including the largest currencies such as Bitcoin and Ethereum, as well as hundreds of other much smaller coins. In total you will have access to over 300 cryptocurrencies. Binance has a low fee structure, and the more you trade, the cheaper it gets. Trading fees start at 0.57% of the trade amount (or $57 for every $10,000 trade) and go down from there depending on trading volume over the past 30 days. However, Bitcoin trading is free here.
In 2022 after the collapse of FTX, Binance's finances came under intense scrutiny. Accounting firm used by Binance to verify reserves has suspended operations for all crypto clients, Securities and Exchange Commission (SEC) says investors should be wary of audits of crypto companies said. According to the Wall Street Journal, none of the big four accounting firms are willing to work with Binance.
In June 2023, the SEC charged Binance with illegally operating as an exchange, broker-dealer, and clearing house, and offering and selling unregistered securities. The lawsuit also accuses Binance and its founder Changpeng Chao of misusing customer funds. SEC Chairman Gary Gensler warned investors against using the Binance platform. Binance said its customers' assets are safe.
- commission: Bitcoin transactions are free up to 0.57% of the transaction amount
- Minimum account amount: $0
coinbase
Coinbase is a specialized cryptocurrency-focused platform that allows you to directly trade digital currencies such as Bitcoin, Ethereum, Solana, and Tether. In total you will have access to over 200 cryptocurrencies. You can also store your coins in a vault and withdraw them at a later time for added protection. The exchange's fee structure is expensive. While we charge a spread markup of approximately 0.5 percent and add trading fees depending on trade size and funding source, the Advanced Trade platform does not charge a spread.
In June 2023, the SEC charged Coinbase with illegally operating as an exchange, broker-dealer, and clearing house, offering and selling unregistered securities. The complaint alleges that Coinbase knowingly violated securities laws designed to protect investors. Coinbase said it will continue business as usual.
- commission: Advanced Trade fees start from 0.6%
- Minimum account amount: $0
kraken
Kraken is a cryptocurrency exchange that allows you to trade over 200 different digital currencies such as Bitcoin and Ethereum, as well as emerging currencies such as Cardano and Solana. With the Kraken Pro tier, initial trading fees range from 0.16 percent to 0.26 percent and then decrease rapidly based on trading volume over a 30-day period. Kraken is not yet available to residents of New York and Washington states.
- commission: At Kraken Pro, fees start at 0.26%
- Minimum account amount: 1 dollar
charles schwab
Charles Schwab is consistently selected by Bankrate as a top broker, and this investor-friendly company offers trading in Bitcoin futures. Schwab also has no account minimums, but the futures contracts you trade require some minimum margin to remain open. Schwab offers an attractive commission of $2.25 per contract, and you can also receive a welcome bonus if you win big.
- commission: $2.25 per contract
- Minimum account amount: $0, futures margin depends on contract
Tasty Trade
Tastytrade is a relatively new player in the brokerage industry, offering attractive pricing for crypto trading enabled by partner Zero Hash. Tastytrade charges 1% of the trade amount for buys and sells, but only up to $10 per side of the trade. So once you trade above $1,000, the cryptocurrency fees here level off at a sawtooth. However, only four crypto coins can be traded here. You can also purchase crypto futures at opening and closing prices of $1.25 per contract.
- commission: 1% of the buy/sell transaction amount, up to $10 per leg.Futures contracts buy and sell for $1.25
- Minimum account amount: $0
Cryptocurrency FAQ
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Cryptocurrency is a type of digital currency intended to act as a medium of exchange, but so far it has been used primarily by traders who buy and sell digital coins for profit. Some believe that cryptocurrencies may act as an inflation hedge because there is no central bank involved that can print more money.
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Cryptocurrency can be bought and sold through traditional brokers, cryptocurrency exchanges, or certain payment services such as PayPal. In early 2024, the SEC approved a Spot Bitcoin ETF to hold Bitcoin directly, giving traders a familiar structure to bet on the price of the largest cryptocurrency.
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According to CoinMarketCap, Bitcoin is by far the world's largest cryptocurrency, accounting for about half of the total global cryptocurrency market as of March 2024. Ethereum, Tether, BNB, and Solana round out the top five cryptocurrencies.
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Cryptocurrencies are highly speculative assets that have seen significant price fluctuations since they were first introduced. Unlike stocks, bonds, real estate, and other traditional investments, cryptocurrencies do not generate cash flows or provide income to their owners, making calculating their fundamental value difficult, if not impossible. Become. Digital coins also face an uncertain regulatory future as countries evaluate how best to handle digital assets.
conclusion
It is always important to consider all your needs when choosing a broker. Novice crypto traders will also need to decide whether they want to own cryptocurrencies directly or whether they want to trade futures, which offers higher rewards but also higher risk. If you're looking to start trading cryptocurrencies, here are the important things you need to know.
You should also consider whether you want to trade more than Bitcoin, something that many traditional brokers limit you to do. If not, we recommend turning to a cryptocurrency exchange, which offers a larger selection of tradeable cryptocurrencies.
