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Best Cryptocurrency Brokers

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Many people believe that cryptocurrencies are the future of finance. When you’re ready to leap into crypto, choosing a broker to trade or invest in cryptocurrencies is one of the most important steps to your success in the crypto market. Get started now with Benzinga’s picks for the best cryptocurrency brokers and choose the right one for you. 

Best Crypto Brokers and Trading Platforms:

Best Crypto Brokers

Since different brokers have different strengths, you need to figure out what kind of broker best suits your cryptocurrency interests. Some brokers provide a social trading platform where you copy other cryptocurrency traders’ trades in your own account. Others can offer the ability to make transactions in a broader selection of altcoins. 

Choosing the best crypto broker depends largely on addressing your needs as an investor or trader. The following list crypto brokers been selected for different reasons to meet the needs of differing cryptocurrency trading and investing styles. 

Best For
Crypto Trading

1. Best for Social Trading: eToro

eToro fundamentally changed the way many people trade and invest with its social trading platform. Social trading involves mirroring another trader or investor’s transactions in a special social trading account. While you make the same amount proportionally as the trader you’re copying, you also take the same percentage of losses the trader takes in their account.

In addition to its regular crypto trading platform, eToro offers an advanced cryptocurrency exchange platform called eToroX. This platform is designed for algorithmic traders and institutional grade investors. It offers traders access to tight-dealing spreads, and its AlgoX application programming interface (API) can be used to create custom automated trading tools. 

Best For
Altcoin Trading

2. Best for Altcoin Trading: Binance

Binance is the number 1 cryptocurrency exchange worldwide. However, the trading platform is based outside of the U.S, and if you want to access Binance from the United States, you’ll need to use Binance.us instead of Binance.com. This is because the Securities and Exchange Commission (SEC) limits the financial derivatives for cryptocurrency traders in the U.S.

Although not all of Binance.com features are accessible from the States, the platform offers many altcoins that other exchange simply don’t support. If you’re looking to invest in a diverse portfolio of altcoins, then Binance may be your best option. You can even trade altcoins against their Bitcoin pair, making it easy to track your performance against the King of Crypto: Bitcoin.

Best For
New Investors

3. Best for Ease-of-Use: Gemini

Stay on top of market trends, build your crypto portfolio and execute your trading strategy with Gemini’s easy-to-use tools. The Gemini app is available on all the major app stores, and it puts the industry’s best crypto exchange and wallet in your hands.

Gemini’s app is easy to use. You can track asset prices and real-time market prices and set price alerts so you can act fast on price movements for individual assets. You can also schedule recurring buys on Bitcoin and other cryptocurrencies.

Invest with peace of mind with Gemini’s solid cybersecurity and custody solutions. Create a free account and make your 1st buy in as little as 3 minutes.

Best For
Earning Rewards

4. Best for New Investors: Coinbase

Coinbase is one of the largest and oldest cryptocurrency exchanges.  It currently services 43 million users in over 100 countries. Coinbase has extensive educational resources and an intuitive interface ideal for new traders and investors.

The exchange also provides clients with a hosted wallet and offers global customer support. Coinbase is an excellent choice for those new to the cryptocurrency market who do not wish to use social trading services.

Best For
Beginner cryptocurrency investors

5. Best for Retirement Accounts: iTrustCapital

iTrustCapital is one of the few cryptocurrency brokers that lets you trade and hold physical gold in your individual retirement account (IRA). You can also trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) in your IRA. iTrustCapital provides 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 add physical gold to your cryptocurrency portfolio as an inflation hedge, then iTrustCapital is a solid choice. 

Best For
Low Minimums

5. Best for Stocks & Crypto: WeBull

If you plan on holding a portfolio of stocks and cryptocurrency, WeBull is a great all-in-one option. The platform supports popular cryptocurrencies like Dogecoin, Bitcoin, Ethereum and other altcoins, making it easy to diversify your crypto portfolio. WeBull lets you trade crypto instantly, which is an important feature in volatile markets like the crypto industry.

Another great part 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. Also, WeBull has an account minimum of just $1, making the barriers of entry extremely low for new investors.

Best For
Experimenting Investors

6. Best for Trading Tools: KuCoin

KuCoin gives crypto traders access to over 770 trading pairs, and some of its most notable features include the trading bot, lending, and KuCoin spotlight. These tools allow traders to execute automated trading strategies and capitalize on newer, high-growth opportunities.

  • Trading Bot: KuCoin hosts an in-house trading bot that executes high-frequency trading automatically on the trading pair of your choosing. This allows for users to reap profits without the hassle of constantly checking on their positions.
  • Lending: KuCoin offers peer-to-peer lending services that are facilitated through their exchange, allowing users to gain up to 40+% APY on idle assets. This allows users to passively gain interest while minimizing risk

KuCoin Spotlight: KuCoin Spotlight is a platform within the app that gives users information about newer, high-growth token releases right at their fingertips. Investors are always searching for “the next bitcoin” and this makes that task a good bit easier.

7. Best in Canada: Wealthsimple

Wealthsimple has a clever and wise slogan: Get Rich Slow. When you visit Wealthsimple, you can create an investment or savings account.

The Savings account has no low balance fees, free transactions and an excellent application that explains how you can reach your savings goals. You can use the account to save spare change from common purchases, and there is no minimum deposit to get started. Moreover, Wealthsimple uses a simple portfolio of ETFs to grow your savings account the right way.

An Invest account puts your money into a stable account filled with a range of funds that minimize risk. The account does all the work, and you can watch your money grow. Investing your money today and sitting on it for long periods of time guarantees investing success and a lovely nest egg when you grow older, have unexpected expenses or plan to retire.

8. Best for Multiple Exchanges: Voyager

Voyager connects to more than a dozen of the most trusted and secure crypto exchanges so you have access to the largest crypto trading market available anywhere. Voyager gives you faster, more reliable execution, plus:

  • Access to multiple exchanges: Voyager partnered with over a dozen of the most trusted and secure crypto exchanges and liquidity providers. Voyager’s exchange connectivity offers you competitive prices on your trades and faster, more reliable execution.
  • Commission-free trading: Voyager operates commission free to save you money. You save money on trades through its extensive crypto market and best execution technology. Voyager achieves price improvement on over 90% of customer orders. 

Start trading at a better price today! Download the Voyager app today.

Best For
Buying & selling Dogecoin

9. Best for Beginners: Robinhood

Robinhood is among the best options for beginning traders who want a simple, easy-to-understand layout without all the bells and whistles other brokers offer. Though its trading options and account types are limited, even an absolute beginner can quickly master Robinhood’s intuitive and streamlined platform.

You can quickly 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. Placing a trade is also equally simple. Brief explanations of every buy and sell order beside each option help you learn — it’s a great feature for beginners.

Though Robinhood does require a $2,000 minimum balance to access its Robinhood Gold features, there’s a $0 minimum required balance for standard accounts. Combined with the broker’s new fractional share feature, Robinhood is a great option for new traders who only have a small amount of money to invest.

Best For
No or Low Fees

10. Best for Earning Interest on Crypto: BlockFi

The BlockFi Interest Account (BIA) allows you to maximize your cryptocurrency balance. Watch your coffers grow by depositing your crypto in your BlockFi Interest Account as 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 with no minimum balance requirements. Open an account in 3 simple steps: Enter your information and fund your account with crypto or stablecoin (a type of cryptocurrency tethered to an asset marker like the U.S. dollar). Start earning monthly interest in your account in the cryptocurrency of your choice (Bitcoin, Ether or Stablecoin).

Use BlockFi’s useful interest calculator for an idea of how much you’ll earn on a given cryptocurrency balance in your BIA within a certain period of time. Both your assets and data are under lock and key with BlockFi, so you can invest with peace of mind.

Here’s an example of how BlockFi can benefit you:

  • If you deposit $10,000 in stablecoin on BlockFi, you can earn up to $860 per year.
  • When you let that compound over 5 years without adding to your principal balance, that $10,000 will turn become over $15,000, netting you an average of $1,000 in passive income per year.

Crypto Advantages vs. Disadvantages

Trading and investing in cryptocurrencies often carry a considerable degree of risk, as you may have observed given the volatility of Bitcoin and some other digital currencies. Despite the disadvantages currently associated with cryptos versus fiat currencies (like lower liquidity and minimal payment options), the advantages of holding cryptocurrencies will increase as they become a more common form of payment.

Here’s a quick shot of crypto advantages and disadvantages.

Advantages

  • Security: Technology advances typically lead to increased intrusion into your privacy. In contrast, all identities and transactions are strictly secured in the digital currency environment. While most cryptocurrency transactions are very secure, you still could be vulnerable to cybercriminal actions, like hacking. 
  • Low transaction fees: Because of the elimination of intermediaries like financial institutions, cryptocurrency transaction fees are generally quite low. 
  • Decentralized: The lack of a central exchange or authority overseeing cryptocurrencies is one of their defining characteristics. Many people consider this among the biggest advantages of cryptocurrencies and blockchain technology. 
  • High potential returns: You only have to look at a long-term Bitcoin price chart to get an idea of the returns you can make investing wisely in digital currencies. The crypto world is still developing and expanding, so investing in the right digital currency now could translate into considerable returns 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. This situation will eventually change as public perception makes digital currencies more acceptable as forms of payment. For example, PayPal has recently allowed customers to hold Bitcoin balances and has plans to allow payments using that cryptocurrency by early 2021.
  • Volatility: The market volatility observed in some digital currencies can lead to large gains or large losses. Trading and investing in crypto is not for everyone, especially those with a low pain threshold or aversion to risk. 
  • Taxes: The Internal Revenue Service (IRS) states on its official website that “Virtual currency transactions are taxable by law just like transactions in any other property.” That IRS web page also links to a guide about how existing general tax principles apply to transactions made using digital currencies. 
  • Illegal activities: Due to the fact that digital currency transactions generally provide identity security, many people operating outside the law are thought to use digital currency for illegal activities. These activities could include money laundering, “dark web” transactions, and drug and human trafficking.

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Cryptocurrency Vocabulary

Like many other financial markets, the cryptocurrency market has evolved its own jargon. Some of the key terms used by market operators are defined below. 

  • Block: A collection of transactions permanently recorded on a digital ledger that occur regularly in every time period on a blockchain.  
  • Blockchain: A constantly growing list of blocks in a peer-to-peer network that records transactions.
  • Cryptocurrency exchanges: Also called digital currency exchanges, these generally consist of online businesses that allow customers to exchange cryptocurrencies for fiat currencies or other cryptocurrencies.  
  • Cryptocurrency wallet: A secure digital account used to send, receive and store digital currencies. Crypto wallets can either be cold wallets that are used for storing cryptos in an offline environment or hosted wallets that are hosted by 3rd parties. Hosted wallets store your private keys and provide security for your digital currency balances. 
  • Distributed ledger: A network of decentralized nodes or computers that connect to a network where transaction data is stored. Distributed ledgers do not have to involve cryptocurrencies and can be either private or permissioned.
  • Fork: Also known as a “chain split,” a fork is a split that creates an alternate version of a blockchain that then leaves 2 blockchains running simultaneously. For example, Bitcoin and Bitcoin Cash came about due to a fork in the original Bitcoin blockchain. Another type of fork is known as a “project” or “software fork.” This occurs when cryptocurrency developers take the source code of an existing altcoin project and create a new project. For example, Litecoin is a project fork of Bitcoin.
  • ICO: An initial coin offering (ICO) occurs when a new digital currency or token is sold, typically at a discount, to its first set of investors. An ICO lets issuing cryptocurrency companies raise funds from the public to support their coin’s development and maintenance.
  • Mining: A computationally-intensive process performed within a cryptocurrency network where blocks are added to the blockchain by verifying transactions on its distributed ledger. Miners are rewarded with digital coins as compensation for their successful computational efforts. 

Are You Ready for the Future? 

Digital currency and the blockchain appear to be the future of finance. Despite their current typical volatility and lack of widespread acceptance as a payment method, cryptocurrencies seem destined to become increasingly used for online payments. They could therefore make an interesting long-term investment, especially if you have a strong appetite for risk.

Where we will be in 20 years is anyone’s guess, but cryptocurrencies and blockchain technology show growing promise as forces to be reckoned with in the financial world. Get started today with one of our recommended crypto brokers.

Frequently Asked Questions

Q

What is the role of a cryptocurrency broker?

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What is the role of a cryptocurrency broker?
asked
A
1

Cryptocurrency brokers provide speculative contracts on the price of digital currencies. You own the right to buy or sell the contracts as prices shift, not the digital currency. 

answered
Q

What are the best cryptocurrency brokers to use?

1
What are the best cryptocurrency brokers to use?
asked
A
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You can choose from a number of brokers, including Coinbase, Voyager and Gemini. The best one depends on your needs and if they support the altcoin that you’re interested in.

answered

Related content:

Methodology

Benzinga crafted a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offerings, pricing and promotions, customer service, mobile app, user experience and benefits, and security. To see a comprehensive breakdown of our methodology, please visit see our Cryptocurrency Methodology page.


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