Best Cryptocurrency Brokers

The main reason for the popularity of cryptocurrency is its volatility index. Crypto assets allow traders to earn money through large price movements. One of the most recognized cryptocurrencies, Bitcoin (launched in 2009), has an impeccable track record. The current price of Bitcoin, which is worth more than 35 lakhs (INR).

Undoubtedly, crypto assets are considered a renowned business vehicle in India and across the world. As a trader, if you are looking to ride the waves to make a profit, it is also imperative to understand that the risk involved in investing your money in cryptocurrency is also high.

There are many ways to trade in the crypto market. Some investors choose to own the cryptocurrency directly, while others may look to the futures market. Entering the futures market can magnify your gains (as well as your losses) because traders can leverage their money up to 10 times. However, the futures option is only recommended for qualified investors with extensive experience in this market as it involves extraordinarily high risk in exchange for this potentially high reward.

Want to dive into the world of cryptocurrency? Wait! Before that, you need to know the best cryptocurrency brokers offering you the opportunity to invest in crypto assets. But, before informing yourself about the best crypto exchanges, it is essential to know the basics of cryptocurrency.

What you need to know before investing in the crypto market

Here are some key terms used by traders in the cryptocurrency market, just like other financial markets:

1) Decentralization – All cryptocurrencies are decentralized, which means that there is no centralized place to conduct crypto transactions, and you can only eliminate high transaction fees when transferring funds. No one person or entity has control of a cryptocurrency; this is because crypto tokens are held via a ledger technology called blockchain, which encourages transparency and allows your transactions/assets to be safe and secure.

2) Blockchain – It is a technology based on which the entire crypto market operates. The technology allows transactions of the growing list of crypto assets to be recorded in a peer-to-peer network .

3) Block – All financial transactions are recorded on a digital ledger occurring recurrently on a blockchain.

4) Cryptocurrency Wallet – This is a digital wallet solely responsible for holding crypto assets. Wallets are used to send, receive and store digital currencies. Wallets include 2 types – the first is a cold wallet, which is used to store crypto coins in an offline environment. The other type of wallet is the hosted wallet, which is hosted by third parties to provide robust security to stored crypto assets.

5) Cryptocurrency exchanges – Platforms where an investor is allowed to buy, sell and hold crypto assets in exchange for their fiat currencies or other crypto assets are called cryptocurrency exchanges . They are also called digital currency exchanges.

6) Distributed Ledger – Distributed ledger connects decentralized nodes to the network where all financial transactions and other data are recorded. The register can be authorized or private.

7) ICO- ICO (Initial Coin Offering) is a process in which the discount is offered to the first group of investors on the newly launched cryptocurrency. The ICO is the first step a company takes to raise funds to support the development and maintenance of its currency.

8) Fork- Also known as Split Chain which builds an alternate version of a blockchain after letting 2 blockchains run concurrently.

9) Mining – A computationally intensive process of adding new cryptocurrencies by solving cryptographic equations and verifying transactions on its distributed ledger. Each miner is rewarded with a certain set of crypto coins for their successful clearing efforts.

16 Best Cryptocurrency Brokers

1) Binance

 

 

One of the best cryptocurrency brokers and exchanges in the world is Binance. The platform is exceptionally secure and reliable.

Binance is a simple and user-friendly platform that allows investors to buy, sell, and store digital assets on its exchange. The platform has entirely changed the definition of trading and investing by providing a myriad of trading order types, including market and stop-loss limits, futures and limits. It also serves as a useful tool to check the 52 week high price, 24 hour low and trading volume of a particular coin.

The platform offers a wide range of coins to trade (more than 300). The best part is that the transaction fees involved by Binance are nominal. Moreover, you will enjoy high cyber security compared to all other platforms. So what else do you want, Ah?

 

2) Coinbase

Coinbase

The platform offers more than 70 cryptocurrencies to all of its 65 million users. One of the best features of Coinbase is that it follows a simple registration process with quick approval, so new users don’t have to wait long to start trading.

Coinbase also offers its users multiple deposit options and cybersecurity breach insurance coverage.

The fees charged by Coinbase are also nominal, ranging from 0.5% to 4.5% depending on the type of transaction. Moreover, the exchange is secure and ensures that all your digital assets are safe in the event of a hack.

3) Robinhood

 

 

Robinhood provides an easy-to-understand layout without the whistles and bells offered by other exchanges. Even if you are a beginner, you can quickly master the simplified platform.

All you have to do is transfer the funds from your bank or debit card and buy any crypto asset you want, at the current market price. Moreover, you can effortlessly access account statements and tax documents through this platform.

The platform is fully transparent as brief explanations are written for each buy/sell order to help you learn how to trade quickly. Users can also access Robinhood Gold features by maintaining a minimum balance of $2,000. However, standard accounts are not required to hold a minimum balance.

If you are looking to trade with a small amount, the platform is one of the best crypto exchanges.

4) Gemini

 

The platform follows a structure quite similar to Coinbase . Trading fees depend on the purchase amount. However, a flat 0.5% convenience fee is charged.

It is a massive crypto broker as it offers its users more than 600 crypto coins. It turns out to be a great option for active and advanced traders who don’t want to opt for mainstream altcoins.

The Gemini app is also available on the App Store. Moreover, the app helps you track altcoin prices and market prices in real time. It also allows you to set price alerts to allow you to act quickly on price movements.

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The platform also comes with an advanced feature allowing you to buy on a recurring basis on all the cryptocurrencies it offers.

5) Coinmama

 

One of the best cryptocurrency brokers, Coinmama is a secure and legit platform. The exchange offers 10 altcoins to its users.

The platform does not charge any withdrawal fees, unlike many other platforms; however, charges higher trading fees of up to 5.5%, which is much higher than many other reputable crypto brokers.

Merchants are allowed to purchase crypto assets through wire transfers, credit/debit cards, SWIFT, and wire transfers.

 

6) BlockFi

 

In addition to providing 8 altcoins to all its users, the platform allows you to maximize your crypto balance through BIA (BlockFi Interest Account). Isn’t that what you were looking for?

The crypto broker offers you the choice to earn money by enjoying the value of your portfolio by allowing you to earn interest of 8.6% on stablecoins and up to 6% on Bitcoin. Additionally, the exchange offers a cool feature that allows you to calculate how much interest you will earn for a cryptocurrency balance in your BIA for a specific period of time. This feature helps you store your crypto assets with peace of mind.

BlockFi is free, with no minimum account balance requirement. Moreover, it is very easy to open and get approval from this BlockFi. Still thinking? Go ahead, open your account and start earning interest on all the altcoins you buy.

7) eToro

eToro is one of the best cryptocurrency brokers , especially for beginners/beginners and semi-serious investors, as it provides users with a useful demo account training feature. The platform offers a user-friendly interface and offers you a wide variety of coins to choose from. All you have to do is deposit the money into the eToro account and start investing. As simple as that!

You can see all the coins you have purchased from the wallet tab. You can check the buy price of your coin against the current market price in your wallet and make the decision to add more this coin, sell it completely/partially or store it.

eToro is an ideal crypto exchange if you like to play recreational trading. The platform also offers amazing functionality by allowing traders to copy move-for-move options (from well-known traders), helping to automate your investment strategy.

The platform offers 14 cryptocurrencies that can be purchased with PayPal, wire transfer, and debit/credit cards.

8) Crypto.com

 

Open an account with Crypto.com and get a crypto reward debit card and enjoy coin-based rewards.

The secure platform provides a massive amount of over 70 altcoins along with unique benefits such as limited margin trading , high cybersecurity settings and massive trading fee discounts of up to $8 % on debit card spend.

No minimum balance is required on crypto.com. It implies that you can top up your bank account directly with cryptocurrency from its website or mobile app.

9) Kraken

 

Kraken is one of the oldest and recognized crypto brokers founded in the paleolithic era of cryptocurrency in the United States in 2011. Kraken offers a wide range of coins with nominal trading fees.

Some of the other cool features offered by this platform include margin, price trigger feature, stop-loss limit setting and many other features that might seem intriguing to advanced users.

The platform has high security ratings which ensure that your digital assets are protected from any cybersecurity breaches.

 

10) KuCoin

KuCoin is an impeccable crypto broker if you want to trade with a massive amount of coins, over 200, with low transaction fees starting from 0.1%. Moreover, it is an easy-to-use platform that opens an account instantly without extensive verification during registration and does not require deposit fees.

The platform offers automated and margin-based trading. Another benefit available exclusively to users paying with KuCoin’s proprietary KCS stablecoin includes the significant reduction in original transaction fees, up to 20%.

Additionally, KuCoin allows you to deposit funds in over 40 fiat currencies via bank transfer (ACH), Interac e-Transfer, and PayPal.

11) Interactive brokers

 

Want to play big less? Interactive Brokers is an ideal platform for you if you want to buy futures contracts.

The crypto broker lets you buy futures contracts by charging $15.01 with 5 bitcoins per contract. The best part is that you don’t need to invest all the money. Instead, you’ll need to lock in some of your money to buy a specific contract. This implies that you will not directly own the currency, which can make you win big/lose big depending on the price movements in the currency you purchased a futures contract for.

The broker offers you 4 cryptocurrencies, including Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

12) Traveler

 

Voyager gives you access to several reputable and secure crypto exchanges to give you faster, transparent and reliable execution of your funds in exchange for the right choice of crypto assets

Primarily, the platform is associated with different cryptocurrency brokers, which helps you get a competitive price on your trades or the currency you are looking to buy. Voyager is one of the best crypto brokers because the platform operates commission-free to help you save money.

All orders placed through Voyager have been found to achieve a huge price improvement on over 90% of customer orders.

13) Commercial station 

 

Investors are offered several trading options. The platform has also introduced direct currency trading via TradeStation Crypto, which presents prices to traders after charging the commission, promoting transparency.

Trading fees range from 0.05% to 0.3%, depending on your trade type. The pricing structure may also vary depending on whether your order is directly marketable or not.

The platform helps you leverage substantial volume trading accounts by allowing you to buy/sell bitcoin futures.

 

14) WeBull

 

The most intriguing aspect of WeBull is that users do not own crypto assets. They don’t even have access to one of them. This means that they are not allowed to transfer crypto-assets outside the platform. However, they are only allowed to trade their crypto and earn high returns in fiat currency. Isn’t that awesome?

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It is a one-stop solution for all types of investors as it offers a wide range of cryptocurrencies such as Bitcoin, Ethereum, Dogecoin and many more. Moreover, investors are allowed to trade instantly on this platform, which is imperative for extracting profits in this highly volatile market.

The platform also offers immense flexibility to all types of investors using trading indicators and real-time data. Thus, it helps them to make the decisions that they would opt for. Moreover, the minimum account balance requirement is only $1, which removes barriers for new investors to trade through this platform.

15) Bitstamp

 

Based in Luxembourg, Bitstamp is one of the oldest cryptocurrency exchanges founded in 2011. The platform provides limited cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, USD Coin, PAX, XLM , Link and OMG Network.

The platform is best known for charging low trading fees to all cryptocurrency users. Moreover, it offers high security against piracy and ensures that your digital assets are in safe hands. Bitstamp also offers advanced charting features, especially for active traders.

Bitstamp is mainly recommended for experienced traders, as it is equipped with features that may confuse beginners or amateur investors.

16) Charles Schwab

Another best crypto broker worth mentioning in this list, Charles Schwab, provides an intuitive interface. The platform offers to trade Bitcoin futures.

The best part about this crypto broker is that it does not require you to maintain a minimum account balance. However, you will be required to retain some margin from the trade to hold futures contracts.

You will be eligible to receive a welcome bonus if you are able to bring money to the table, as the platform offers an eye-catching commission of $1.50 per contract.

 

Cryptocurrency – Advantages and Disadvantages

As you know, the level of risk associated with trading or investing in the world is very high. But, simultaneously, the ability to make money quickly and earn higher returns is also one of the lucrative facts through which many investors are captivated and generate higher returns.

Many investors have found the ability to immerse themselves in this business to be highly satisfying and an inevitable shortcut to success, which is also driven by other factors such as knowledge, skill, luck, patience, risk taking capacity and timing.

However, the volatile crypto market has its pros and cons. Therefore, before investing your hard-earned money, one should understand the pros and cons and make a decision accordingly:

Advantages:

1. Low transaction fees – The best cryptocurrency brokers cut out middlemen like financial institutions. Additionally, the majority of exchanges have low transaction fees on all crypto trades.

2. Secure – One of the best things about these digital currencies is the strict security protocol they adhere to. Usually, advancements in technology lead to an increase in intrusions into your privacy and hacking.

However, all the factors are carefully assessed and designed once after considering all the possible flaws that can boost the morale of a cyber criminal. Additionally, all transactions and assets are completely secure in the digital currency environment.

3. Produce higher yields

The potential for return by investing in cryptocurrency is great. If you make wise investment decisions, crypto stream can help you grow and expand your wealth to a great extent and result in higher returns in the future than any other investment/business.

4. Decentralized – One of the biggest advantages of investing in cryptocurrencies is that all crypto assets are based on blockchain technology to record transactions. In addition, cryptos use encryption techniques to control the creation of the monitoring unit and verify the process of transferring funds.

The inconvenients:

1. Volatile – The crypto market is highly volatile in nature, which makes it extremely risky. As observed, some digital currencies made some investors millionaires, while other crypto assets turned out to be worthless, forcing those investors to bear huge losses. Thus, it is said that investing in crypto is not a good idea for everyone, especially for those with a low pain threshold and risk aversion.

2. Taxes – According to the IRS (Internal Revenue Service), all digital currency transactions are taxable under the law, just like all other transactions in other businesses.

3. Acceptance – Most businesses do not accept cryptocurrencies as a medium of exchange, limiting them to a specific jurisdiction. However, the situation is changing over time, as some payment platforms/gateways have started to adopt crypto assets as payment methods, such as PayPal.

4. Illegal Activities – Virtual currencies are also used for money laundering , drug and human trafficking, and dark web transactions. Crypto accounts can be registered in exchanges once you provide your personal and bank details. This has motivated many people operating outside the law to use digital currencies for illegitimate activities.

What factors to consider when choosing a crypto exchange?

Choosing the best crypto exchange can be a complicated process. Therefore, it is imperative to research the mentioned points before choosing a crypto exchange to trade, buy or sell the crypto assets:

1) Method of purchase

Different crypto exchanges offer different payment methods for buying cryptocurrencies. For example, some platforms support bank transfers, credit/debit cards, while others use PayPal and bank transfers only for purchases. So, always make sure which method suits your needs and hence go for the exchange accordingly.

2) Security and authenticity

The most important feature to consider before investing your money through an exchange to buy a crypto-asset is legitimacy and security. The platform you choose should not support malicious activity and provide robust security to secure your crypto assets. As traders have lost billions of dollars due to scam platforms. So, don’t forget to check the reviews and make sure of the reputation of the platform.

3) Transaction fees

The platform charging higher transaction fees will reduce your profits. So, opting for those that charge a nominal commission on all purchases and sales will be preferable, especially if you are into short-term trading. However, some platforms charge hidden transaction fees, so always make sure your platform follows a fixed transaction rate structure.

4) User experience and customer support

As a cryptocurrency trader/investor, choosing an exchange with an intuitive interface and flawless user experience is important. This will allow investors to trade crypto assets seamlessly. Also, check the crypto exchange’s customer support services before putting your money on the platform.

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5) Parts offered

Mainly, the best crypto exchanges offer Bitcoin and Ethereum on their platform. However, there are many cryptocurrencies today (thanks to cryptocurrency miners ), and many investors are looking for exposure to rare coins with low trading volume. So, a few platforms like Binance offer thousands of cryptocurrencies to grant huge exposure to investors.

Other important factors to consider include:

  • Minimum deposit to open an account
  • What are you allowed to trade with each broker
  • Trading platforms offered by crypto brokers
  • Type of spread for each brokerage (if applicable)

 

Why do cryptocurrency brokers need to be regulated?

Regulatory management must be stipulated to keep a check on crypto brokers and exchanges. This reduces an investor’s risk and helps ensure that they are working on legal grounds.

The regulation also ensures that the broker is involved in legitimate activities and protects its users from all cyber crimes such as hacking. As a result, little or no regulation could lead to poor services and financial damage.

Another purpose of broker regulation is to separate the agent’s working capital from the client’s funded account and stop fraudulent activity if it occurs. Client money is not allowed to be used to conduct the activity, which is ensured by the regulation of crypto authorities.

Difference between cryptocurrency exchange and cryptocurrency broker?

1) Crypto Broker

A cryptocurrency broker is a person, company or entity that allows you to buy or sell crypto assets at their prices. They act as an intermediary between the crypto market and the investor and simplify buying and selling crypto on mobile trading platforms or desktop/laptop computers. Before investing your money and investing through a cryptocurrency broker, always make sure that it has a good reputation and a substantial user base.

2) Crypto Exchange

In contrast, cryptocurrency exchanges are online platforms where buyers and sellers meet to trade digital coins. These platforms promote transparency in the entire process of buying and selling crypto assets. Moreover, it allows investors to buy/sell cryptocurrencies based on current market prices.

Some crypto exchanges allow fiat-to-fiat exchanges, while others offer an option for crypto-to-crypto exchanges.

Note: Crypto exchanges and brokers make money by charging trading/commission fees on the purchase or sale of all crypto tokens.

ICO versus IPO

ICO (Initial Coin Offering) is a fundraising plan for new startups in the crypto world. The process is done by selling underlying tokens against Bitcoin and Ethereum.

ICO is similar to IPO (Initial Public Offering) in the stock market where traders become a shareholder of a company by buying its shares. Entry at an early stage of the project increases the chances for investors to generate higher returns with the success of the business. However, the main difference between the two is that people from all over the world can participate in ICO.

FAQ

Q1) How to open a Crypto Exchange account?

Certain documents are required to open a crypto exchange account. You can either download the app or visit the website to complete the registration process (name, date of birth, unique identity number and postal address – in general). With the evolution of time, the Indian government has made it mandatory for every customer/investor to enter KYC (Know Your Customer) details, preventing money laundering and malicious activities.

Q2) How to buy crypto assets?

Once the account is created, registered and approved on a particular cryptocurrency exchange, you are allowed to trade digital assets. Of course, you will also need a cryptocurrency wallet to store, buy, and sell crypto. However, your exchange may also provide one.

Once you have selected the exchange where you want to create your account and the wallet where you want to store all your crypto assets, you can also buy one crypto in exchange for another. Or you can also buy it with your credit/debit card. It is recommended that you never use a credit card to invest in crypto because the transaction fees are quite high, up to 5% of your transaction.

Q3) How does a cryptocurrency exchange work?

Even the best crypto exchanges are similar to brokerage platforms. You can create different orders to buy, sell or store your virtual currency. Crypto exchanges can be centralized, unlike crypto brokers, which are decentralized. These exchanges distribute verification credentials to the person wishing to join a network and certify transactions. This process further ensures accountability that the investor’s money is safe in the event of an exchange’s insolvency.

Q4) What is the primary role of a cryptocurrency broker?

Top cryptocurrency brokers provide speculative contracts on every purchase of crypto assets. These contracts mean that you can buy or sell digital assets as prices tend to change, but not digital currency/cryptocurrency.

Q5) How much money does it take to buy cryptocurrency?

Different crypto exchanges have different requirements. It depends on the type of cryptocurrency you will buy on this exchange, as well as the quantity. You are also allowed to buy the fractional shares of coins for a few dollars or even pennies.

The apparent future of capitalism is in the hands of digital currencies. Many well-known cryptocurrencies including Bitcoin, Ethereum, Litecoin, Cardano, etc. serve as a prototype digital currency to establish a digital financial institution.

People have started to explore the potential and ideology of cryptocurrencies making it a sustainable plan to invest in crypto right now. Although no one can predict the future, crypto-assets seem destined to become widely used for online payments in the next few years.

So, if you have a strong risk-taking capacity, you can go for the long-term investment in your favorite cryptocurrency.

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