Trading in Bitcoin and cryptocurrencies is becoming increasingly popular and new buyers are entering the market every day. At the same time, the number of providers offering digital currencies for trading is also increasing. But not all exchanges and crypto brokers are reputable and many online providers are considered insecure.
One example is the Mt.Gox exchange, which was one of the largest marketplaces in 2013 and accounted for around 70 percent of the trading volume for Bitcoin. In 2014, however, a security breach led to one of the biggest cyber attacks so far, and a hacker stole 740,000 Bitcoin.
When investing in Bitcoin and cryptocurrencies, the choice of a secure exchange is very important. Regardless of whether it is a small amount or a long-term investment, safety should always be the top priority.
The best crypto exchanges
There are numerous providers for different cryptocurrencies on the Internet. It can make sense to use several exchanges, since not all offer the same offer. Some cryptocurrencies are initially traded on smaller exchanges. In addition, many exchanges offer new coins to early investors as part of an initial exchange offering (IEO) .
The provider Coinbase is an American company and has been active since 2012. This makes it one of the oldest trading venues for Bitcoin when you consider that Bitcoin was only created in 2009.
The fact that the company operates according to the Bank Secrecy Act and the USA Patriot Act speak for the seriousness. It is also a registered service provider for transactions with FinCen. Coinbase also complies with all U.S. laws and regulations regarding transmission standards in transactions. The provider has also been in negotiations with the US regulatory authority since 2018 and is aiming for a regular banking license.
In addition to Bitcoin, other cryptocurrencies can also be traded, including Ethereum, Litecoin and IOTA . However, the selection is limited compared to other exchanges and the offer is manageable. Rather, the focus here is on established and reputable coins, which already have a good reputation. Coinbase has already announced that the offer should be steadily expanded.
"Earn cryptocurrencies while learning about cryptocurrencies." – Coinbase Learn
Compared to other exchanges, Coinbase can boast many other features. For example, there is the "Coinbase Learn" program, which rewards you for learning about cryptocurrencies. The task is usually to watch a video about a specific currency and then answer the questions correctly. As compensation, you get the respective coin credited directly to your account.
In addition, Coinbase scores with an enormous flow of information. The repertoire includes a separate blog with helpful news, free trading signals and the comparison of different currencies with each other. This makes it easy to determine which correlations the prices of the different coins have. The website is also completely available in German, which is not the case with all providers.
The market leader for Altcoins Binance has steadily expanded its leadership position in recent years. This is not only due to the high user-friendliness, but also to the constant expansion of the offer. In addition to trading cryptocurrencies, Binance now offers numerous other financial services.
This enables Binance users to use the staking of different cryptocurrencies directly on the exchange. Usually a separate wallet is required for this process, but Binance does the work for its customers. There are several cryptocurrencies on offer, which can generate a passive income. These include, for example, EOS and Stellar .
For early investors, Binance often offers the opportunity to participate in an Initial Exchange Offering (IEO). This is an opportunity for new projects to offer their coins for initial sale directly on the exchange. Initial exchange offerings are therefore more secure than regular initial coin offerings (ICO). Cryptocurrencies that are offered for sale in this way usually have a good chance of rising in price because they are presented directly on a well-visited marketplace.
Binance also offers its service as a decentralized exchange (DEX). The difference to the central exchange is that no user account is required. To participate in the trade, you create and manage a wallet directly. The exchange runs on its own Binance Chain and all trading fees can be paid with the in-house Binance Coin (BNB) as on the normal Binance website.
Binance also offers the Binance Futures option for risky speculators. Instead of just buying or selling a coin, users can bet on the price with high leverage. This may allow higher winnings at low stakes, but it also increases the risk of a total loss enormously. Leverage trading should therefore only be considered by experienced users.
A representative from German-speaking rum is the provider BitPanda . This has been active since 2014 and registered as a limited liability company (GmbH) in Austria. In addition to cryptocurrencies, regular currencies and precious metals can also be traded on the trading platform.
The offer is very broad and in addition to the best-known cryptocurrencies, Bitpanda also has less well-known trading pairs on offer. Bitpanda is also working on two of its own blockchain projects. As part of an initial coin offering (ICO), Bitpanda collected around four million euros for the implementation of the Pantos project. This should enable interoperability among different blockchains. The second project started in 2019 when the company expanded to other countries. With the introduction of the Global Exchange, the exchange published the BEST token (Bitpanda Ecosystem Token) through an Initial Exchange Offering (IEO). This brought the company around 43 million euros.
One of the most popular products on the exchange is savings plans . These enable the recurring purchase of cryptocurrencies at certain time intervals. This means that various strategies, such as dollar cost averaging, can be successfully implemented. Several savings plans can run at the same time and customers can adjust or end them at any time. A Bitcoin savings plan can be a simple and efficient way to buy Satoshis regularly and get a good average price.
Another unique selling point is Bitpanda Pay, a service that is used to pay bills. Payments can also be made as Amazon credit. Since 2017 Bitpanda has also been offering vouchers for cryptocurrencies, which are available from Austrian Post.
The best crypto brokers
If you don't want to buy cryptocurrencies directly, but only speculate on their course, a crypto broker may be more advantageous. This can have several advantages, for example brokers usually also offer tools for technical chart analysis. Most brokers can also trade with leverage.
Social trading is a steadily growing industry in cryptocurrency trading. The concept is based on social interaction and the exchange of experience among users. The eToro broker is one of the market leaders and most popular providers.
Creating an account is free and beginners in particular can benefit from the lively exchange on the platform. Because not only can individual trades be viewed by the professionals, copying entire portfolios is also possible. This way, beginners quickly get an overview of useful strategies and can thereby improve their knowledge. Advanced users can share their investments with the other users and thus generate new followers, which in turn enable a passive income.
However, eToro is not just a classic crypto broker, it also offers stocks, raw materials, ETFs and CFDs. Regular currencies and precious metals can also be traded. Customers can also benefit from their own debit card .
Crypto brokers also offer the advantage that you can bet not only on rising but also on falling prices. This means that profits can be made even if the market is in a correction.
Who in classic crypto currencies wants to invest can do so on eToro also. Because the broker also offers regular wallets for cryptocurrencies. This means that they can be bought and then transferred. In addition, eToro offers an alternative with focus on cryptocurrencies through eToroX .
Another provider of securities trading is Plus500 , which was founded in 2008 and is based in London. According to the company, it is the largest broker in the field of derivative financial instruments with over 300,000 customers.
With Plus500, customers can only trade CFDs, which means that the service is increasingly aimed at active traders. There are no minimum fees and no transaction costs. The broker is one of the cheapest and therefore has a big advantage over its competitors. Plus500 may charge a small fee only if you hold a position overnight. There may also be a fee for long-term inactivity.
The range of different CFDs is very large and all important assets are tradable. This gives customers a choice between stocks, bonds, commodities, ETFs and cryptocurrencies. This gives users the opportunity to trade all values on a single platform. This can be of particular advantage when trading cryptocurrencies, since no previous knowledge of cryptocurrencies is required and the broker makes managing the portfolio very easy.
According to the broker's own account, deposits at Plus500 are secured by the English financial regulator. Since 2013 the company has also been listed on the stock exchange (ISIN: IL0011284465) and offers investors shares in the company.
Skilling is a very young broker that has only been around since 2019. The company is based in Cyprus and offers CFD trading in cryptocurrencies, stocks, index and commodities.
The provider advertises its service with easy accessibility and handling. For example, trading in CFDs should be easy to understand, especially for beginners, and should be as barrier-free as possible. Customers can start here for as little as EUR 100 and benefit from mobile trading in CFDs.
The platform itself is available in five languages (German, Swedish, English, Spanish, Norwegian) and offers around 800 trading pairs. The platform's dashboard has a trade control center and can be customized. There are also numerous useful tools for CFD trading cryptocurrencies. In this way, users can apply the technical analysis directly and thus simplify trading. There is also an overview of the latest market news and share prices on the dashboard.
Skilling also offers a demo account, with which beginners can first gain experience with the platform. The handling of the broker can thus be tested completely risk-free and free of charge. You can then trade in real money, with skilling offering various options for depositing (credit card, bank transfer, Klara, Skrill, Neteller, other). The fees and costs are always transparent and can be seen in advance.
The provider is registered with the Cyprus Securities and Exchange Commission in Cyprus and is therefore considered to be secure. The license number can be checked on the regulator's website. If you have any questions, support is available in different languages.
Conclusion: crypto brokers are becoming increasingly popular
Trading in cryptocurrencies is still mainly carried out on various exchanges. However, crypto brokers are also enjoying increasing popularity and increasing numbers of new customers. Trading with CFDs offers the advantage in many cases that a high leverage effect is possible and thus high profits can be achieved even with small stakes. However, there is also a higher risk of loss.
Another advantage is the simple administration of the portfolio. Since trading is not done with real coins and tokens, users do not need to have any special knowledge about cryptocurrencies. In addition, trading is not limited to crypto, as most brokers also offer stocks and other assets. The portfolio can be combined with other values and, for example, diversified with Bitcoin stocks.