When the first cryptocurrencies were launched, you could only invest in them by buying them online via e-wallets such as Coinbase and Exodus. However, a few years ago digital currencies were introduced in the world of trading. Today, more brokers than ever before are offering cryptocurrencies as a part of their selection of assets.
The advantages of trading with cryptocurrency brokers compared to e-wallets are many. Firstly, it is completely unnecessary to buy coins or tokens in a digital currency unless you’re planning to use them as a payment method. Instead, it is much more practical to speculate on their prices.
Another reason is that many e-wallets are limited to one or two, maybe three currencies, while the best cryptocurrency brokers offer many more options. This means that you can trade with several currencies on the same platform, thus gaining more opportunities.
The last advantage is that you can use digital currency brokers to invest using different instruments and assets. At the moment, it is most common to trade cryptocurrencies as currency pairs and CFDs. Although, technically, you could also trade stocks in a company that handles cryptocurrencies.
As you can see, the possibilities are endless and the cryptocurrency market is growing every day. But how do you decide who to trade with? Which cryptocurrency brokers are legit? That is exactly what we will help you with on this page.
Find a Reliable Cryptocurrency Broker
When looking for a broker to trade digital currencies with there are a couple of things that you need to consider. But don’t worry, we’ll walk you through each step to help you with the process.
License and Regulation – Just like with any type of trading, it is very important that you use a broker for cryptocurrencies that is allowed to offer financial services in your country. The only way to make sure of this is to check the broker’s license and take a look at who regulates it. If you decide to use an unregulated broker you won’t have any protection, and you might end up getting ripped off.
All the cryptocurrency brokers that we recommend have an adequate license and are regulated by some of the toughest authorities in the industry.
Platform and Assets – The second step in your evaluation process is to find a broker that provides a platform that you like. It is also important that the assets that you want to trade with are available.
Different brokers provide different platforms that you can divide into two categories. The first type is proprietary platforms that have been developed by the cryptocurrency broker and are exclusive to their product. The second type of trading platforms are developed by a third party provider and are used by several brokers.
You also need to make sure that the asset or financial instrument that you are interested in is available. For example, if you want to trade Bitcoin and Ethereum as CFDs you need to find a broker that offers that possibility. If you would like to trade Litecoin with USD there are brokers for that too.
Selection of Cryptocurrencies – The last step of the process is making sure that the broker you’ve chosen provides access to the currencies you want to trade. Not all brokers have the same selection. Also, even if you’re only planning to trade Bitcoin right now, we recommend finding a broker that offers more digital currencies since your interest might grow over time. To learn more about what currencies you can trade, we recommend that you take a look at our detailed cryptocurrency broker reviews in the top menu under the tab “Cryptocurrency.”
The Best Cryptocurrency Brokers
To make the selection process as easy as possible for you, we have written detailed reviews of the best cryptocurrency brokers on the market. The list includes forex brokers and all other brokers that have decided to include digital currencies in their selection of assets. The list is quite long and we guarantee that there is a broker that will fit your specific needs.
However, if you feel like you don’t have the time to read reviews we can offer you a quick overview of the three best cryptocurrency brokers right now.
- Markets.com is, in our opinion, the best choice for anyone looking to trade digital currencies or forex. It is one of the most well-established brands on the market and their product is great. They also work with the industry leading MetaTrader 4 platform which is always a plus in our books.
- eToro is another leading broker on the market and they also provide the largest social trading network in the industry. eToro is a good broker for everyone looking for automatic trading and copy functions, as well as the possibility to discuss trading techniques with other traders.
- AvaTrade offers cryptocurrencies as CFDs and currency pairs and is one of our top choices. Their product is easy to adjust to your needs and they provide a good selection of different platforms for every situation.