The belief that cryptocurrencies are the future of finance is widespread, with many individuals recognizing their potential for transformative impact. If you’re ready to take the leap into the world of crypto, selecting the right broker to trade or invest in digital assets is crucial for your success in the market. Luckily, Benzinga has compiled a list of the best cryptocurrency brokers to simplify your search.
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Best Cryptocurrency Brokers
Just like how different musical instruments produce unique sounds, different cryptocurrency brokers possess distinct strengths. To hit the right note in the crypto world, it’s crucial to identify the type of broker that best suits your digital asset 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 of crypto brokers has been selected for different reasons to meet the needs of differing cryptocurrency trading and investing styles.
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. You can trade both traditional investments like stocks and ETFs and cryptos all on the same platform with eToro, making it a fantastic all-around platform.
Winner of Benzinga’s FinTech Awards for Best Multi-Asset Platform.
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) and USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections and not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
Uphold is a top-tier cryptocurrency broker renowned for its extensive variety and exceptional functionality. Boasting an impressive selection of over 250 different digital assets, Uphold outshines the vast majority of crypto exchanges in terms of sheer variety. But that’s not all – Uphold even goes the extra mile, providing support for stock and precious metals trading as well. Additionally, the crypto staking page offers incredible interest rates, allowing for passive income opportunities. For those looking to trade a diverse range of assets, including Bitcoin, altcoins, stocks, and precious metals, Uphold undoubtedly stands as the best crypto broker option.
HYCM is a top forex and CFD broker that may not be your traditional crypto exchange but it supports trading of more cryptos than most trading platforms dedicated to crypto trading. HYCM uses CFDs or Contracts for differences are complex financial contracts used to speculate on an underlying asset. HYCM offers a wide range of crypto CFDs, which let’s you bet on the price movement of the underlying crypto.
If you are looking for a world-class platform that offers both forex and crypto CFD trading, HYCM could be the best crypto broker for you.
Coinbase is the most popular cryptocurrency broker in the U.S. and has served over 100 million users. It is well-known for it’s immense security and compliance with regulators. You can trade more than 200 different cryptos on the platform with industry-standard trading tools and premier security. Coinbase also likes to gives its users free crypto in a few different ways.
When you sign up for an account with Coinbase you should get a chance to spin a reward wheel for a prize of up to $200 in Bitcoin or USD. Coinbase also has a great program called Coinbase Learn where you can earn a small amount of crypto by just reading about a token and taking a very short quiz. There is usually only about $20-30$ worth of crypto to earn from this but it’s much better than nothing! You can also stake your cryptos on the platform with ease to earn passive income on your tokens.
Coinmama is easily one of the best exchanges available today. You can tell by its absolutely massive userbase of over 3.1 million people. It is an extremely popular option for foreign investors because it’s available in a whopping 188 countries and its support for various fiat currencies is essentially unmatched. You can use almost any fiat currency to buy cryptos (though prices are only shown in EUR or USD).
oinmama is a brilliant option for non-U.S. investors, but its benefits extend to U.S. users as well (with the exception of New York and Hawaii). The platform offers enticingly low fees and a commendable range of tradable cryptocurrencies. Although not the most extensive selection out there, Coinmama still provides access to most of the top digital assets.
High Spending Limits
6. Caleb & Brown
Caleb & Brown aims to bring cryptocurrency to clients who might not understand the market very well yet. With personalized service, you get global access to liquidity that makes trading easier and more affordable.
You can trade over 1000 assets, and security for your account is especially enhanced. Only you can access your tokens, and you work directly with a broker who will help you make the best investment decisions.
As an Australian-based firm, Caleb & Brown provides unique opportunities for crypto investors, such as access to XRP, TFuel, and Theta, which are unavailable on U.S. exchanges. But the perks don’t end there – your Caleb & Brown broker can be your partner in pursuing your financial dreams, whether it’s saving for college, planning for retirement, budgeting for major purchases, or even splurging on a dream vacation.
7. Interactive Brokers
Interactive Brokers provides active crypto traders with numerous advantages over competitors. Did you know that most crypto exchanges charge a spread on your buy or sell orders? This means that you are paying extra for your crypto. Luckily, Interactive Brokers charges no added spreads, markups, or custody fees and low commissions from just 0.12% to 0.18% of the trade value. Interactive Brokers currently offers Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and more digital token from Paxos Trust Company.
With Public.com, you can get into the crypto space with no account minimums. Buy fractional crypto tokens if you want to get into the more expensive assets like Ethereum and Bitcoin. Read up on crypto on the Public app, and remember that you can check out what other investors are doing by tracking the social feed. For example, want to know what crypto Shaq is moving? It’s on the app.
Other tokens on Public include Cardano, ApeCoin, Dogecoin, Litecoin, Bitcoin Cash, Shiba Inu, Stellar, Ethereum Classic, Dash and ZCash.
As with other assets, every cryptocurrency has a chart that shows its trajectory, and you can even invest around a theme. This is especially important because crypto projects often have specific themes or purposes, but it’s hard to keep up with “who’s who.” Public.com does the work for you.
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.
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.
Winner of Benzinga’s 2021 FinTech Awards for Best Investment App.
Robinhood is among the best cryptocurrency brokers 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.
12. IFC Markets
IFC Markets provides you with a platform that allows you to invest in a wide range of cryptocurrency products along with other assets. Small-volume, intraday and mid-day traders will benefit quite a bit from IFC, and they will benefit from the 15 years of experience IFC provides. Insured by AIG Europe and with several international awards, IFC Markets also allows you to create synthetic assets.
Cryptocurrency CFDs on Bitcoin and Ethereum and CFDs on crypto futures give you the variety you need to diversify your portfolio using unique asset classes. You will also use 1:8 leverage, enjoy low spreads and low minimums.
Best for Leverage Trading with Many Instruments
Crypto Advantages vs. Disadvantages
Cryptocurrency trading and investment is risky due to the volatility of digital currencies like Bitcoin. While currently lacking liquidity and widespread payment options compared to fiat currencies, holding cryptocurrencies can become more beneficial as they gain wider acceptance as a mainstream payment form.
Here’s a quick shot of crypto advantages and disadvantages.
- 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.
- 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. Crypto taxes aren’t any worse than any other capital gains taxes anyway.
- 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.
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 chronologicallyblocks 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?
The future of finance is undoubtedly intertwined with digital currency and blockchain technology. Although cryptocurrencies are currently characterized by volatility and limited acceptance as a payment method, it is becoming increasingly clear that they will play a significant role in online transactions in the years to come. As such, they represent a potentially fascinating long-term investment, particularly for those with an appetite for risk.
The financial landscape in 20 years is shrouded in mystery, but one thing is certain: cryptocurrencies and blockchain technology are rapidly gaining ground as powerful contenders. Don’t wait to get in on the action – start your journey into the world of digital assets today with one of the top crypto brokers listed above.
Frequently Asked Questions
What is the role of a cryptocurrency broker?
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.
What are the best cryptocurrency brokers to use?
You can choose from a number of brokers, including eToro, Robinhood and WeBull. The best one depends on your needs and if they support the altcoin that you’re interested in.