Best Brokers For Bitcoin Trading
Bitcoin is extending its dominance over other virtual currencies by even being used to make investments.
Currently there are many sites that are operating with this cryptocurrency through the purchase, sale and short and long term loans. There are many strategies that brokers use and create to obtain benefits for themselves and investors.
That’s why in this post I’m going to explain how the best brokers operate to invest in Bitcoin so you can know where you can put your virtual currencies and what benefits they offer.
Cryptocurrency Exchange or Bitcoin CFD Brokers?
During our experiences using the various platforms present online, we also had the opportunity to deepen the discussion about the use of Exchange for buying and selling cryptosystems like Bitcoin. At this point, it seems correct to make a comparison between these and the brokers we presented, to understand which is the most advantageous option for trading digital currencies.
The first aspect we take into consideration is licensing: we have repeated several times that a platform, to be secure, must have a license issued by a supervisory body. If the brokers we have talked about are all in possession of a CNMV or CySec license, the same cannot be said of Exchange as Coinbase or Binance. In addition, the latter have often been victims of major hacker attacks, resulting in large financial losses for registered users.
The second crucial point is fees. Bitcoin brokers don’t charge fixed fees because, as mentioned, their profits are based on the spread. Exchanges, on the other hand, usually apply very high commissions, both on deposits and on individual transactions.
Also, from an operational point of view, it’s not possible to make short sales or take advantage of the leverage effect on exchanges. Very often, then, exchanges accept only certain crypto-currencies as purchase currencies. This means that we cannot buy directly on their platforms, but must first buy the accepted cryptocurrencies on an external platform, and then exchange them with those of our interest managed by the Exchange.
Finally, an accessory but fundamental aspect: customer service. All Bitcoin brokers listed in this guide offer a very high level of service, with dedicated assistants for each country and operating 24 hours a day. It goes without saying that the exchanges provide a single international switchboard, which cannot manage the number of contacts and has to deal with numerous language barriers.
What are CFDs?
CFD is an acronym for Contract For Difference. These instruments represent the best alternative to traditional trading methods in the financial markets.
In fact, we know that, when trading in the traditional way, we’re forced to buy cryptocurrencies and then eventually trade them on an exchange with other tokens of our interest. In addition, very often, we have to open a currency wallet to store them, waiting to decide how to use them (resell them or use them directly for purchases).
With CFDs, none of this is necessary: these contracts replicate the performance of the asset, allowing traders to bet on its rise or fall. Therefore, the chances of profit increase exponentially, and you can benefit from both Bitcoin’s growth and decline.
In addition, CFD profits can be significantly increased by the leverage effect. Through this, the broker places an order for amounts greater than the amount actually invested by the user: this amplifies the value of the investment and creates the conditions for exponentially greater profit. But beware: in the same way, losses can also be much higher.
Trading crypto currencies through CFDs is one of the simplest and most accessible trading strategies, even for the less experienced. It will be enough:
- register for free with one of the brokers who offer CFD trading;
choose, from the asset catalog, the CFD of our interest; - open a long (bullish) or short (bearish) position depending on what the forecasts are for that asset.
The opening of the position will be immediate, as well as its subsequent closing when we want to withdraw profits (or contain losses). In addition, trading CFDs is commission free, as the broker’s profit comes exclusively from the spread (the difference between the buy and sell price of a contract).
Top 7 Bitcoin Brokers List
| Broker | Special Offer | Minimum Deposit | Cryptocurrencies | Rating | Max. Crypto Leverage | Regulation by | Start Trading |
|---|---|---|---|---|---|---|---|
| Binance | Huge Variety of services | No Minimum | BTC, ETH, LTC, XRP and 80+ more | 98 | 1:125 | – | Visit Broker |
| Trade.com | No commission, tight spreads | $100 | BTC, ETH, LTC, XRP, BCH, DASH | 94 | 1:2 | FCA, CySEC | Visit Broker |
| ForexTB | $250 | BTC, ETH, LTC, XRP, DASH | 93 | 1:30 | CySEC | Visit Broker | |
| eToro | Free Demo Trading Accounts | $50 | BTC, ETH, LTC, DASH, XRP, ADA, BCH, EOS, NEO, IOTA, TRX, ZEC, BNB, XTZ | 93 | 1:2 | FCA, CySEC | Visit Broker |
| Bitfinex | No Minimum | BTC, ETH, LTC, DASH, XRP, ADA, BCH, EOS, NEO, IOTA, TRX, ZEC, BNB, XTZ and many more | 92 | 1:3.3 | – | Visit Broker | |
| Plus500 | Negative Balance Protection | $100 | BTC, ETH, LTC, XRP , ZEC, DASH, XMR | 89 | 1:30 | FCA (UK), CySEC, ASIC | Visit Broker |
| SimpleFX | Deposit Bonus | No Minimum | BTC, ETH, LTC, XRP , DASH and more | 89 | 1:6 | – | Visit Broker |
Now let’s see which are the best cryptocurrency platforms that offer CFDs as a tool for trading Bitcoin. We said about the importance of relying on secure platforms to protect our deposits and investments. This security is derived from the certifications issued by the main control bodies that operate at a European level.
When these licenses are present, we can trade safely, focusing exclusively on trading without worrying about the risk of seeing our money suddenly evaporate into thin air.
The platforms we’ll be talking about offer a wide variety of cryptosystems to trade on, including the possibility of buying and selling Bitcoin through CFDs. Added to this are additional tools and benefits that enhance a 360-degree offering for more or less experienced traders – let’s take a look at them in detail.
Details About The Best Bitcoin CFD Brokers
Trade.com
The second Bitcoin broker we’re talking about is Trade.com. It is a historical trading platform, with a consolidated user base and in possession of the Cysec (Cyprus Security and Exchange Commission) license, to guarantee the security of the system.
One of Trade.com’s strengths is undoubtedly the great versatility it offers its members. In addition to the Webtrade platform and the practical App for smartphones, in fact, traders have the opportunity to move in the financial markets using the famous Metatrader 4.
We are probably talking about the most complete trading interface in the world, loved by the most experienced traders because it is possible to obtain all the information and data necessary to elaborate the technical analysis of each asset of our interest.
Discover professional trading with Metatrader 4 at Trade.com
Assets that can be the most classic, such as a stock or an index, or belong to the digital market such as Bitcoin and many other cryptocurrencies.
As we see in the CFD, in a few lines we have all the information about recent currency movements, including the spread and leverage. We find the same pattern for all the other crypt currencies of our interest, so we can have an overview of the trend of crypt currencies in a few moments and decide which position to open.
Invest in Bitcoin with Trade.com’s Free CFDs
Even at Trade.com, trading is free of trading fees and opening an account is completely free. You can also test your trading strategies without using real money, relying on the Demo account reserved for all new members.
Register for free on Trade.com with the Demo account
ForexTB
ForexTB is another of the main Bitcoin brokers in the market, capable of offering a totally secure operating environment under the supervision of the main regulatory bodies.
The platform’s strengths are mainly two. On the one hand, we find a first level training offer, whose main area is undoubtedly the online trading course in PDF format. This e-book can be downloaded for free and contains all the knowledge you need to start investing in the financial markets with knowledge. Inside, we do not stop at technical discussions held only on a theoretical level, but on the contrary, numerous practical examples are presented in simple and accessible language.
Simplicity that we also find in the operating interface, as we can see in the case of Bitcoin CFD. Here, too, it will be enough to identify the asset we are interested in, study the data we have and decide whether to short or buy, depending on the forecasts made – all without commissions!
Try Bitcoin Trading with ForexTB
However, it doesn’t end there, because the second ForexTB flagship is its trading signals. These are signals that Trading Central sends to all users, providing advice on the ideal times to enter the market.
This way you will always have a virtual trading assistant at your complete disposal capable of probing the market and its opportunities for you: a great help for the less experienced or for those who don’t have much time available. You can also test the trading signals for free using the demo account that ForexTB also makes available.
Register for free with ForexTB and discover the trading signals.
Bitfinex
Trading site through the Bitcoin spot buy and sell with offers and margin trading. It uses the strategy of funded and unfunded investments. The non-financed ones are covered by the purchases and sales that have been made with the funds of the users of the site. And the financed ones are covered by the borrower’s deposits after agreeing to buy Bitcoin for the amount you have in your account.
The Best Bitcoin Exchanges to Buy Bitcoin
There are many Bitcoin brokers and exchanges, but here are the most solid ones in the market.
Kraken
This is the most important platform for buying and exchanging Bitcoin. Kraken counts as the safest and most reliable platform.
BitStamp
BitStamp is among the leading Bitcoin exchanges on the planet, commissions are higher than with Kraken, especially beware of market sell orders.
Coinbase
Register for free and pay $100 to receive a $10 (10%) bonus. Click here to open a secure account and get the bonus.
In Summary
Which are the best Bitcoin Brokers?
Among the various brokers in the market, at this moment the best are eToro, Trade.com, Plus500, ForexTB and Iq Option.
What tools do the best Bitcoin brokers offer?
The main tool is the CFD, a commission-free trading method that allows you to buy and sell an asset like Bitcoin in a short time.
Do the best Bitcoin brokers offer automatic trading?
At eToro you can take advantage of Copy Trading to automatically trade Bitcoin, while ForexTB offers a Trading Signals service that tells users the most favorable times to enter the market.
Why are Bitcoin CFD Brokers better than the exchanges?
The areas where Brokers should be considered better are licenses, commissions (absent in CFD Brokers, very high in the Exchanges), some operational aspects, and customer service.