How to trade Bitcoin

cryptocurrency broker

Why Day Trade Bitcoin?

cryptocurrency broker

Management takes a security-centric focus which is a must in the crypto space. As with most exchanges in the cryptocurrency space, especially those that trade solely crypto assets and do not interact with USD (and thus do not fall under the same regulatory oversight) have their risks. Due diligence such as reading the terms of service is advised before signing up with any exchange. It is also important to remember to not trust unregulated and uninsured exchanges with large amounts of capital.

FCA stance around Cryptocurrency trading in the UK

XTB is a broker with Bitcoin, Ethereum, Litecoin, Ripple, and Dash available for CFD trading. – you can trade Bitcoin, Ethereum, Litecoin, Dash, Ripple, Bitcoin Cash, and Ethereum Classic with this broker. A lot of traders seek cryptocurrency exposure with established brokers via CFDs as this type of investment option has various benefits over direct buying and selling cryptocurrencies. Most of the major trading companies have already responded to the growing interest in crypto trading and added CFDs for various digital assets to their lists of tradable instruments.

Steven Hatzakis is the Global Director of Research for Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.

It’s always sensible to check the volatility of the exchange you decide to go with. Which cryptocurrency platform you opt to do your trading on is one of the most important decisions you’ll make. The exchange will act as a digital wallet for your cryptocurrencies, so don’t dive in without considering the factors below first. Congratulations, you are now a cryptocurrency trader!

The biggest strengths of this broker are tight spreads and sophisticated educational centre. To avoid being scammed or treated unprofessionally you should trade solely with regulated brokers. Only brokers that are regulated in your jurisdiction can legally offer services to you, such companies are under constant supervision of the regulatory body.

To find the very best broker around, we can start by looking at the most popular sites of this type. These are sites and apps where millions of investors have already invested their money and have left positive reviews of the service provided. We have reviewed a great number of them and have gathered together here five of the very best broker exchange options for you to consider. Binance has grown exponentially since it was founded in 2017 and is now one of, if not the biggest cryptocurrency exchanges on the market. Coinbase is one of the first places that made it easy to buy bitcoin and has since become a widely trusted exchange in the market.

The negative balance protection feature ensures you never lose more money than you invest. Between 71-87% of retail investor accounts lose money when trading CFDs with these providers.

cryptocurrency broker

  • Before you choose a broker and trial different platforms, there are a few straightforward things to get your head around first.
  • When a trader places a buy order and it’s fulfilled, they actually gain possession of the crypto asset and can send it to their personal wallet, spend it, transact it, etc.
  • Scalpers and scalpers follow every trade and commonly conduct multiple trades per day, whereas swing or trend traders check price only occasionally and rarely execute market actions.

Ethereum – Released in 2015, Ethereum has rapidly gained popularity on the heels of Bitcoin, and currently has a market capitalization second only to Bitcoin among cryptocurrencies. The other problem with Bitcoin lies in the fact that as the price of Bitcoin rises, it is harder to get paid in fractional units. At some point, Bitcoin will have to re-issue coins (increase supply), but mentioning that might cause panic in the market and tank it, easily. While customer support is the last step in the making of a successful cryptocurrency exchange, your ability to shine in this area will determine your long-term success. Those dealing with consumers must be attentive and satisfactorily resolve customer complaints and technical issues.

As there are now Bitcoin futures on the CME, it;s easier for broker to hedge so now most CFD brokers offer Bitcoin CFDs. It’s important to avoid cryptocurrency scams by only using a fully FCA regulated cryptocurrency broker. Some brokers can give access to Bitcoin futures on the CME, offer cryptocurrency spread betting of CFD trading on cryptocurrencies. An increasing number of organisations and individuals are getting involved in the crypto industry on a daily basis, where profitability can exceed traditional financial instruments hundreds of times over.

For example, some brokers do not permit weekend trading of their cryptocurrency CFD contracts. Cryptocurrency CFDs work similar to forex pairs. For example, a cryptocurrency CFD might pair Ethereum with Euros and allow the trader to bet whether the digital or fiat currency will return more value. More traditional CFDs pairing two cryptocurrencies together are also available. By using CFDs instead of buying the actual digital coins, clients have no need for a digital wallet and security risks are minimized.

If you are then you will want to find an easy to use platform that you can get going on without any hassle. After looking at the industry through expert eyes, we’ve decided that eToro is our choice of the best broker exchange thanks to features such as the intuitive set up and the CopyTrader function that lets you copy expert investors, benefitting from their knowledge. You can start trading in no time on here.

By looking at the number of wallets vs the number of active wallets and the current trading volume, you can attempt to give a specific currency a current value. You can then make informed decisions based on today’s market price. The more accurate your predictions, the greater your chances for profit. This isn’t a decision to take lightly.

Whichever one you opt for, make sure technical analysis and the news play important roles. Finally, keep aware of regional differences in rules and taxes, you don’t want to lose profit to unforeseen regulations. Embrace volatility – Cryptocurrencies are famously volatile.

This is very dependant on what your goal is, an exchange might be the best option if you are looking to HODL, and hold cryptos for a long time. While a broker is superior when it comes to day trading cryptocurrencies. Another key benefit of trading is that the brokers you will be trading with are regulated by the FCA and thus safe to trade with compared to exchanges that, in some cases, are unsafe and unreliable.


Here are a few special features that one of the top European and Australian crypto providers have to offer. Let’s face it, no one really likes them, but they are always there. Yes, we are talking about fees. We know that brokers have to finance their operation somehow, but the lower the fees are, the better.

cryptocurrency broker