Cryptocurrencies have been on quite the ride since being introduced, with some early investors seeing large gains, while those who bought at the peak in late 2021 having likely suffered some major losses. The digital coins have sparked much debate Sportnachrichten in the investment industry about their investment merits and viability, with legendary investors such as Warren Buffett saying cryptocurrencies are essentially worthless.
The failure of crypto exchange FTX saw many of its professionals get charged with offenses in 2022 and caused many to question whether crypto can survive as an investment. If nothing else, the volatility of Bitcoin and other popular coins can make cryptocurrencies an attractive trading vehicle and creates the potential for some traders to profit.
While some traders like to own the currency directly, others turn to the futures market. Futures may be an even more attractive way to play the volatility of digital stock markets such as Bitcoin, because they allow traders to use leverage to enlarge their gains (but also enlarge losses). But futures involve a lot more risk in return for that potentially higher reward.
Where you can purchase and sell cryptocurrencies
Traditional brokers have the main benefit of offering an extensive selection of investible sec, though typically you can’t trade Bitcoin directly, only futures. Meanwhile, crypto transactions are limited to digital stock markets, if you can own the stock markets directly and can often buy several, rather than simply Bitcoin or Bitcoin futures, as you would with a general broker. And services like Cash Iphone app and PayPal have likewise gotten in on the act, allowing You. S. users to purchase and sell cryptocurrencies.
Here are the best brokers for cryptocurrency trading, including traditional online brokers, as well as new specialized cryptocurrency transactions. You should want to check out which brokers offer the best bonuses for opening a merchant account to determine where you can get a little extra.
Overview: Best brokers for cryptocurrency trading in May 2023
Robinhood is a great option for buying cryptocurrency directly. You’ll also get to take advantage of Robinhood’s quite popular trading commissions: $0 per trade, or commission-free, though you’ll be paying a built-in spread markup on any trades. And if you’re into more than just cryptocurrency, you can hang around for stock and ETF trades for the same low price. Robinhood’s slick iphone app makes trading really easy, though those buying a full-featured trading experience will be disappointed.
Account minimum: $0
Interactive Brokers lets you trade four cryptocurrencies through Paxos Trust Company, including Bitcoin and Ethereum, for one of the lowest commissions in the market. Customers can also access 24/7 crypto trading via an associated iphone app with Paxos. Plus, IB allows you to buy Bitcoin and Ethereum futures rather than owning the stock markets directly. And in this broker’s case, you can purchase Bitcoin futures on the Chi town Mercantile Exchange, with contracts costing $5 at five coins per contract or Ethereum contracts for $3 at 50 coins per contract. In addition, Interactive Brokers brings its full suite of investment offerings, so you can buy most situations that trades on an exchange.
Commission: 0. 12-0. 16 percent of trade value; $5 per Bitcoin futures contract
Account minimum: $0
Though Webull may be less known than its rival commission-free trading iphone app Robinhood, it provides investors with a solid offering that includes cryptocurrency trading. While you won’t pay commissions on crypto trades (or stocks and ETFs), Webull does charge a spread markup of 100 basis points (1 percent of the price) on either side of a trade. Several cryptocurrencies are around for trading, including Bitcoin, Ethereum and Cardano. Charting tools and an extraordinary mobile iphone app make Webull a dealer worth considering.