Top Cryptocurrency broker platforms for your crypto
Let’s face it, very few people get into cryptocurrency because they want to buy electronics with it. Most do it to trade or invest. Today, let’s talk a bit about trading and where to go once you’ve decided you want to play the market.
First of all, just to clarify the amounts being staked by most players: you don’t need to be rich. You don’t even need to be crypto-rich. You just need to know the basics about how financial markets operate (and understand that you have no guarantees either way), decide if you want to buy the underlying asset or trade a CFD (Contract for Difference) derivative, and stake a certain minimum deposit.
If you understand the difference between leveraged and non-leveraged positions, so you could choose between them. (Also, bear in mind not all broker platforms offer leveraged trade.) Leverage means you only have a small percentage of what you invest or trade. You can own $50 out of $1,000, with the rest borrowed from a broker. In its turn, the broker works on several risk levels, offering higher returns for higher risk. However, you yourself do not own the underlying asset; the broker does.
Secondly, a few miscellaneous tips to get you started with an extra bit of knowledge.
• In the United States, although Coinbase seems the go-to option in many cases, bear in mind that’s only an exchange, not a broker. You would be wiser to choose, for instance, TradeStation, one of the most reputable brokers, with a great site, great trading options and a solid mobile app. Because, you know, the crypto market moves so fast that you want to be able to check it while you’re drinking your Chai latte on your commute or waiting for your friends to show up at the bar.
• Speaking of exchanges versus brokers: if you can avoid it, never keep your money in an exchange. Exchanges get hacked. Use a wallet – with a key you keep as securely as can be. And don’t trade on an exchange, either. If you want a broker, go to a platform that’s made for complex trading.
• Stay away from Russian brokers, unless you actually know exactly who you’re dealing with. Dozens have been reported for fraudulent practices. Be suspicious of brokers that call you, text you unsolicited messages, or make specific and unrealistic promises about your investment.
• You don’t necessarily need to understand MACD, RSI and Bollinger Band, the algorithms that help you decide if your currency has peaked or bottomed – though every bit of extra information can help move away from gut instinct to informed decision-making. But if you want to become a pro, maybe learn a bit of technical analysis (i.e. interpreting chart patterns). It works most of the time, though we’d say you should throw in a bit of fundamental analysis (i.e. contextual assessment) for good measure.
And now, without further ado, here are the top 5 international broker platforms for crypto:
• eToro – one of the pioneers of online crypto trading, eToro is also a champion in public relations. Europeans will have seen the brand in connection with sports – it has partnered with a number of UK soccer clubs, for instance. It’s easy to use and trustworthy. Higher minimum deposit than most, though.
• SwissQuote – competitive fees, trustworthy service. You can’t withdraw from their wallet, but it offers a custodian service through Bitstamp, which limits its potential for hacks. SwissQuote is regulated in several markets and publicly traded.
• UFX – a sound, well-designed platform and service for trading the largest number of cryptocurrency CFDs. It’s not cheap, though.
• Plus500 – a solid and trustworthy trading platform. It offers a free demo account and support in lots of languages. Regulated in Cyprus, Australia and UK; beginner-friendly.
• AVAtrade – great for retail trading, good customer service with phone support included, allows withdrawals and deposits through a number of means.
Depending on where in the world you are, the top 5 may differ. Always check the brokers’ compliance with regulators – and don’t be upset if you’re asked for KYC/AML-compliant data, it’s just to make everyone safer. And, as always, trade wisely.