Cryptocurrencies have had a fair amount of momentum since they were introduced, with some early investors making sizable gains while those who bought at the peak in late 2021 saw heavy losses. Digital coins have sparked much debate in the investment industry about their investment merits and viability, with legendary investors such as Warren Buffett arguing that cryptocurrencies are inherently worthless. says.
The collapse of cryptocurrency exchange FTX has led to many executives being indicted for crimes in 2022, prompting many to question the viability of cryptocurrencies as investments. The volatility of the coin makes cryptocurrencies an attractive trading vehicle and creates profit potential for some traders.
Some traders prefer to own the currency directly, while others look to the futures market. Futures can be an even more attractive way to manipulate the volatility of digital currencies such as Bitcoin, as traders can use leverage to magnify their profits (as well as magnify their losses). However, futures carry more risk in exchange for potentially higher rewards.
Where to buy and sell cryptocurrencies
Traditional brokers have the advantage of offering a wide selection of investable securities, but they typically cannot trade Bitcoin directly, only futures. Crypto exchanges, on the other hand, are limited to digital currencies, but you can own the currency directly and often buy multiples rather than simply Bitcoin or Bitcoin futures as with typical brokers. Yes, services like Cash App and PayPal have also gotten in on the action, allowing US users to buy and sell cryptocurrencies.
Here are the best brokers for cryptocurrency trading, including not only traditional online brokers, but also new specialized cryptocurrency exchanges. You can also check out which brokers offer the best bonuses for opening an account to determine where you can earn a little extra.
Brief: Best Brokers for Crypto Trading in February 2023
robin hood
Robinhood is a great option for buying cryptocurrencies directly. You can also take advantage of Robinhood’s very popular transaction fees. $0 per trade or no commission, but you have to pay a built-in spread markup on every trade. And if you’re interested in more than just cryptocurrencies, you can continue trading stocks and ETFs at the same low prices. Robinhood’s sophisticated app makes trading so easy, but those looking for a full-featured trading experience will be disappointed.
commission: $0
Account minimum: $0
interactive broker
Interactive Brokers lets you trade four cryptocurrencies directly, including Bitcoin and Ethereum, with the lowest commissions on the market. Customers can also access 24/7 crypto trading through Paxos Trust Company’s affiliated apps. Additionally, IB allows you to buy Bitcoin and Ethereum futures instead of directly owning the currency. And for this broker, you can buy Bitcoin futures on the Chicago Mercantile Exchange. Contracts are 5 coins per contract for $5 and Ethereum is 50 coins per contract for $3. Additionally, Interactive Brokers offers a full suite of investment products, so you can buy just about anything traded on an exchange.
commission: 0.12-0.18% of the transaction price. $5 per Bitcoin futures contract
Account minimum: $0
Webble
Webull may not be as well known as competing fee-free trading app Robinhood, but it offers investors solid services, including cryptocurrency trading. While we don’t pay commissions on crypto trading (or stocks or ETFs), Webull charges a spread markup of 100 basis points (1% of the price) on both sides of the trade. Several cryptocurrencies are available for trading, including Bitcoin, Ethereum, and Cardano. The charting tools and excellent mobile app make Webull a broker worth considering.
commission: $0
Account minimum: Trade cryptocurrencies with $1
trade station
Traders have several options with this broker that operates direct currency trading via TradeStation Crypto with commission-based pricing for traders. Based on whether the order goes directly to the market. Prices typically range from 0.025% to 0.6% of the order. Traders can also buy and sell Bitcoin futures and take advantage of volume trading discounts.
commission: 0.025 to 0.6 percent
Account minimum: $0, but futures margin varies by contract
Binance.US
Binance is a professional trading platform that allows you to buy and sell digital currencies, including the largest digital currencies such as Bitcoin and Ethereum, as well as dozens of other much smaller coins. Access to currencies. Binance has a low fee structure and the more you trade, the cheaper it gets. Transaction fees start at 0.45% of the transaction value (i.e. $45 for every $10,000 traded) and go down from there depending on your trading volume over the last 30 days.
Binance’s financials came under scrutiny in 2022 after the collapse of FTX. The accounting firm used by Binance to check its reserves has suspended operations for all cryptocurrency customers, with the Securities and Exchange Commission saying investors should be wary of audits of cryptocurrency companies. I was. According to The Wall Street Journal, none of the big four accounting firms are willing to work with Binance.
commission: 0.45% or less of transaction amount
Account minimum: $0
coin base
Coinbase is a cryptocurrency-focused platform that allows you to directly trade digital currencies such as Bitcoin, Ethereum, Solana, and Tether. In total, you have access to over 200 cryptocurrencies. You can also store your coins in vaults with time-delayed withdrawals for added protection. The exchange’s fee structure is steep. They charge a spread markup of around 0.5% and add transaction fees depending on the size of the trade and source of funding, but the Advanced Trade platform is cheaper.
commission: 0.05% on advanced deals
Account minimum: $0
Kraken
Kraken is a cryptocurrency exchange that allows you to trade dozens of digital currencies such as Bitcoin and Ethereum, as well as emerging currencies such as Cardano and Solana. You will pay a 1.5% fee, or 0.9% fee for stablecoins, plus an additional fee if you are funding through a bank using your card. More active traders can benefit from a premium tier called Kraken Pro, which reduces the commission range from 0.16% to 0.26%. The Kraken is not yet available to residents of New York and Washington.
commission: 1.5%, or 0.9% for stablecoins (lower on Kraken Pro)
Account minimum: $1
Charles Schwab
Charles Schwab is consistently voted Bankrate’s top broker. This investor-friendly company offers Bitcoin futures trading. Schwab also has no minimum account amount, but the futures contracts you trade require a minimum margin to keep them open. Schwab offers an attractive commission of $2.25 for each contract he makes, and if you manage to bring big money to the table, you can also receive a welcome bonus.
commission: $2.25 per contract
Account minimum: $0, futures margin varies by contract
TD Ameritrade
TD Ameritrade is one of the top full-service brokers on the market, offering access to traditional products such as stocks and bonds, as well as expanding its offering to include Bitcoin futures. However, TD Ameritrade does not allow direct trading in digital currencies. To start trading Bitcoin futures, you must meet a minimum account amount. (Charles Schwab acquired his TD Ameritrade, and eventually he plans to merge the two companies.)
commission: $2.25 per contract
Account minimum: Futures $1,500
Conclusion
Whenever choosing a broker, it is important to consider all your needs. Also, for new traders in cryptocurrencies, you can either own cryptocurrencies directly or trade futures that offer higher rewards but also higher risk. You have to decide whether to
You should also consider whether you want to trade other than Bitcoin, something that the majority of traditional brokers restrict. If not, we recommend using a cryptocurrency exchange as it will increase the selection of cryptocurrencies you can trade.
