Cryptocurrency Trading: A Complete Guide to the Best Brokers
Cryptocurrencies have been quite the investment journey since their introduction. From substantial gains for early investors to major losses for those who bought at the peak in late 2021, the digital coins have been the subject of much debate in the investment industry regarding their merits and viability. Legendary investors like Warren Buffet have gone as far as saying that cryptocurrencies are essentially worthless. The collapse of crypto exchange FTX and charges against its executives in 2022 have caused many to question whether crypto can survive as an investment.
While some traders prefer to own the currency directly, others turn to the futures market. The futures market may be an even more attractive way to play the volatility of digital currencies such as Bitcoin. Futures allow traders to use leverage to magnify their gains, while also increasing the risk of losses.
Where to Buy and Sell Cryptocurrencies:
Traditional brokers typically do not allow for the direct trading of Bitcoin, only futures. However, crypto exchanges offer the option to own the currencies directly. Services like Cash App and PayPal also enable U.S. users to buy and sell cryptocurrencies. There are a number of brokers who offer the best bonuses for opening an account that are worth considering.
Here are the best brokers for cryptocurrency trading in December 2023:
Robinhood: A great option for buying cryptocurrency directly with no commission per trade.
Interactive Brokers: Allows traders to buy and sell Bitcoin and Ethereum futures at low commissions. Offers a full suite of investment offerings.
Webull: Provides access to cryptocurrency trading with no commissions on trades and a spread markup of 100 basis points.
TradeStation: Offers direct currency trading and substantial volume trading discounts. Clients can buy and sell Bitcoin futures.
Binance.US: A specialized trading platform for buying and selling digital currencies. Charges a low commission based on your trading volume.
The Securities and Exchange Commission (SEC) has taken action against brokers such as Binance US and Coinbase, alleging illegal operation and securities violations. It is important for investors to proceed with caution when considering these platforms.
Kraken: A cryptocurrency exchange for trading in dozens of different digital currencies. Offers a premium tier for more active traders with lower fees.
Charles Schwab: Allows for trading in Bitcoin futures with a commission of $2.25 per contract and no account minimum.
TD Ameritrade: Offers access to Bitcoin futures, but does not allow trading directly in the digital currency.
In conclusion, there are a number of brokers that offer cryptocurrency trading, but it’s important for investors to carefully consider their needs and the risks associated with each platform. Whether it’s owning the virtual currency directly or trading futures, for those looking to get started in cryptocurrency trading, it’s essential to understand all the key aspects before diving in.
I’m a cryptocurrency and blockchain technology journalist. My work has been featured in major publications such as CoinDesk, Bitcoin Magazine, and VentureBeat. I’ve been a respected voice in the cryptocurrency community and my insights into the industry have helped shape its development.
