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Best Cryptocurrency Trading Platform

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What’s the newest asset class taking the investment world by storm? Cryptocurrency. Lack of regulation is its biggest appeal. However, that may change, given a recent call for regulating this segment.

Though it is a big hit with investors, especially because of the record run of Bitcoin, the most popular of all the digital currencies, there have been skeptics crying foul over the legitimacy of this investment class.

Note: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The mushrooming of cryptocurrency is proof that it’s moving toward mainstream acceptance. Apart from Bitcoin, there are a multitude of cryptocurrency options for traders such as Litecoin, Ethereum, Ripple, Bitcoin Cash, Dash, etc.

Best Cryptocurrency Trading Platform:

Commissions
$0
Account Minimum
N/A
Get started securely through Uphold’s website
Commissions
$0
Account Minimum
N/A
1 Minute Review

Uphold is a unique desktop and mobile trading platform known for its unique “Anything-to-Anything” trading experience. With Uphold, you don’t need to perform multiple transfers to purchase metals, cryptocurrencies or stocks — you can also trade assets directly using a bank account, cryptocurrency network or debit/credit card with 0% trading commissions.

Uniquely, you also trade between assets in different classes in one step. Bitcoin to Tesla, for example, is one trade. Similarly, if you trade between Facebook and Tesla stock there’s only one step, with no intermediate conversion into USD. Any other trading platform will force you into U.S. Dollars as a bridge to the exchange.

This architecture makes Uphold strikingly easy to use and remarkably cost effective.

You can quickly send money or other assets to friends or family members in seconds without incurring additional fees. Although Uphold could do more to improve the organization of its education section, it’s still a beginner-friendly option.

Best For
  • Cryptocurrency investors in the major and emerging coins: 36 are covered
  • Anyone looking for a fast and super-easy trading interface
  • Anyone looking for better way to invest in precious metals
Pros
  • All-inclusive pricing means no hidden fees or surprise spreads
  • No minimum investment amounts: all assets can be bought fractionally
  • Zero account, custody, ticket and dormancy fees
  • “Anything-to-Anything” trading means seamless one-step conversion between asset classes
  • Beginner-friendly desktop and mobile apps are mastered in minutes
Cons
  • It offers a less organized educational section compared to its competitors
Commissions
Depends on security and leverage
Account Minimum
$50 for US and Australia; $200 everywhere else
Get started securely through eToro’s website
Commissions
Depends on security and leverage
Account Minimum
$50 for US and Australia; $200 everywhere else
1 Minute Review

eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features

Best For
  • U.S.-based cryptocurrency traders
  • Social and copy traders
  • Simple user interface
  • Community engagement and following other traders
Pros
  • Expansive network of social trading features
  • Large client base for new traders to imitate
Cons
  • U.S. traders can only buy cryptocurrency
  • Only 15 cryptocurrency pairs available
Commissions
0.50% per sale
Account Minimum
$0
Get started securely through Coinbase’s website
Commissions
0.50% per sale
Account Minimum
$0
1 Minute Review

Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs. 

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.

Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.

Best For
  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform
Pros
  • Simple platform is easy to operate
  • Comprehensive mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto for learning about available coins
Cons
  • Higher fees than competitors
Commissions
1% Fee
Account Minimum
$1,000
Get started securely through iTrustCapital’s website

What is Cryptocurrency?

Technically, cryptocurrency, also known as digital currency, are entries made in a digital ledger which cannot be tampered with unless they fulfill certain conditions. In other words, it is a peer-to-peer electronic cash system.

The best part is, it is decentralized, with no server or central authority. Cryptocurrency consists of each peer in a network of peers who have a record of the complete history of transactions and are privy to the balance of every account. Ultimately, cryptocurrency is a medium of exchange created and stored electronically in the blockchain using encryption techniques with a two-fold purpose: 

  1. To control the creation of monetary units.
  2. To verify the transfer of funds.

This image showcases how cryptocurrency works:

Characteristics in the Cryptocurrency Market

Cryptocurrency is a medium of exchange created and stored electronically in the blockchain. Those interested in trading in cryptocurrency should have a good understanding of the characteristics of the cryptocurrency market.

Decentralized: This market is decentralized, with no government or bank involved. This ensures the privacy of transactions and the elimination of transaction charges. What’s more, there is no capital limit with respect to the transactions.

Limited Supply: The supply of cryptocurrencies are limited, as it cannot be created arbitrarily and will have to be mined by digital means. For example, Bitcoin founders have stipulated that only 21 million Bitcoins can be mined in total.

Why the Cryptocurrency Craze?

The cryptocurrency craze is reaching a feverish pitch due to several reasons, some of which are listed below: 

  • It ensures fraud-proof transactions, given that everything is done digitally, which disallows counterfeiting or reversal of transactions by senders.
  • Settlement is immediate.
  • Lack of transaction fees, with the miners currently being compensated by the network.
  • Universal recognition, as it is not affected by interest rates, exchange rates, charges, etc.

Cryptocurrency Terms

Block: In simple terms, block is like a page of a record or ledger. Blocks are files where data concerning a digital currency network is stored permanently.

Blockchain: It is the list of all transactions in a peer-to-peer network.

Mining: Mining is a computationally-intensive process the computers or nodes in a cryptocurrency network complete to verify the transaction record. In return, miners receive digital coins as compensation.

Mining Rigs: Computer system used for mining cryptocurrencies.

Node: Any computer that connects to a blockchain is called a node.

Cryptocurrency Exchanges: These are websites where cryptocurrencies can be bought or sold, or in other words, exchanged in return for other digital currencies or traditional currencies.

ICO: Initial Coin Offering, or ICO, is selling a new digital currency or token at a discount by a company to raise money. It is the means by which a new cryptocurrency venture raises funds.

Cryptocurrency Wallet: A software program used to store private and public keys which are used to send and receive digital currencies and monitor their balance by interfacing with various blockchains.

Pros and Cons of Cryptocurrency Trading

Pros

  • Staggering returns. Going by the breathtaking rally in Bitcoin, you have the potential to get rich investing in digital currencies. From $968.23 at the end of last year, Bitcoin has rallied over 740 percent and has recently scaled the $8,000 barrier.
  • The potential presented by the cryptocurrency as a preferred medium of savings, especially as fiat currencies, are exposed to geopolitical, economic and financial uncertainties and makes it a preferred investment choice.

Cons

  • Not the best bet for investors seeking fixed returns, as an investor in the digital currency is not entitled to dividend income.
  • Risk of being brought under regulatory purview
  • Scalability of cryptocurrencies
  • Hacking of cryptocurrency firms
  • It’s possible to lose your capital.

Our Top Rated Platforms

Commissions
Depends on security and leverage
Account Minimum
$50 for US and Australia; $200 everywhere else

1. Best Overall: eToro

eToro lets you connect, share strategies and talk markets with a vast community of users who already use eToro. When you open a new account, eToro gives you $100,000 to practice trading cryptocurrency in a virtual portfolio so you can improve your skills. 

In addition to eToro’s ever-expanding variety of cryptocurrencies and crypto/crypto pairs, you’ll also enjoy over 30 tools and indicators. One more perk from eToro: You can tap into unlimited withdrawal amounts and a streamlined deposit feature. Get started today and see where crypto trading can take you! 

Read Benzinga’s full eToro Review.

Commissions
$0

2. Runner-up: Uphold

Uphold is the easiest way to trade bitcoin, gold, XRP and more than 100 other assets from one convenient account. Some highlights:

  • 0% trading commissions
  • 0% fees on credit & debit card deposits
  • 0% bank and crypto withdrawal fees
  • Create an account and trade in less than 2 minutes

With Uphold, you’re able to buy cryptocurrency with a credit card or debit card so you’re able to lock in prices sooner. Their mobile app is available to both iOS and Android devices.

3. Best Demo: Crypto Rocket 

Crypto Rocket is a cryptocurrency, forex, and CFD broker with multiple trading platforms and no minimum to sign up. In addition to their own proprietary web platform, Crypto Rocket supports MetaTrader 4, the powerful forex trading platform preferred by experienced investors.

Both Windows and Mac users can use MetaTrader too. Over 30 different cryptocurrencies are available to trade, along with 50 different forex pairs and CFDs for American stocks like Twitter and Amazon. There’s no minimum balance requirement to open an account and Crypto Rocket provides customer support 24/7 through email, phone, and live chat.

Not sold on the platform? Crypto Rocket provides demo accounts to prospective clients with all the features and functions of a live trading account. When trading with Crypto Rocket, you’ll be getting lightning-fast trading technology and a company promise of fairness and transparency. Crypto Rocket takes the best overall spot on our list and it’s well-earned.

Commissions
0.50% per sale
Account Minimum
$0

4. Best For Number of Choices: CoinBase

CoinBase is one of the original cryptocurrency trading outfits and it remains a top choice thanks to their efficient platform, massive client base, and variety of cryptocurrency options available for trade. As of this writing, Coinbase has 17 different cryptocurrencies to buy and sell, including most of the popular options like Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and XRP. But Coinbase also offers lesser-known coins like Zcash, Augur, and Dai, which allows clients to build a deep and diverse cryptocurrency portfolio on a single platform.

CoinBase clients also get access to two great features: Coinbase Wallet and Coinbase Pro. Wallet creates a centralized location for all a client’s coins and provides access to ICOs and new advances in digital currency technology. And Coinbase Pro is a premium platform providing the most secure trading experience on the market, plus API tools to create automated trading systems. CoinBase might be the dinosaur of the group, but they still have plenty to offer for cryptocurrency traders.

Commissions
FREE
Account Minimum
$10.00 USD

5. Best Platform and Tools: Voyager

For many cryptocurrency brokers, providing access to different coins is all that matters. Since the cryptocurrency market is still in its infancy, few brokers have gone above and beyond to provide clients with powerful tools for charting and analysis. However, Voyager wants to break that mold by providing sophisticated tools to analyze different digital currencies, along with the ability to purchase over a dozen different coins on the same platform. Plus, it’s entirely commission-free and the minimum trade size is a mere $10.

Voyager clients have access to the latest cryptocurrency news and charting tools that can be used directly on their smartphone app. Use the charting tools to change time frames from hours to years and compare multiple cryptocurrencies side by side on the same chart. Use standard lines or candlesticks to better understand trends while keeping tabs on real-time news update from financial news outlets. Right now, Voyager is available in every state but New York (but they’re working on that!)

6. Best Manual Trading Terminal: Capfolio

Capfolio is one of the most advanced cryptoasset trading platforms that has redefined what a trading platform should be. Users get access to everything they need in terms of:

  • Manual trading terminal
  • Automated trading strategies
  • Advanced backtesting engine
  • News and research with sentiment analysis
  • Social leader and clone trading
Commissions
$0 per trade
Account Minimum
$0 to open an account

7. Best Promotion: Robinhood

Robinhood is also giving away something for free – shares of company stocks like Ford, GE, or even Apple. All you need to do is send out a referral code to a friend or relative and get them to open an account. After they sign up and make a deposit, you AND your friend will receive one free share to add to your portfolio.

There’s a 1 / 250 chance you’ll get a big winner like Apple or Berkshire Hathaway, but the more common stocks awarded have low share prices like Ford or Snapchat. Still, you can refer as many friends as you’d like and earn up to $500 in free stocks.

Disclaimer: eToro is a multi-asset platform which offers both investing in stocks andcryptoassets, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.

Cryptoassets are unregulated and can fluctuate widely in price and are, therefore, not appropriate for all investors. Trading cryptoassets is not supervised by any EU regulatory framework.  Past performance is not an indication of future results.

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