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Cryptocurrency, particularly Bitcoin, has proven to be a popular trading vehicle, even though famed investors like Warren Buffett believe it is worthless. Part of cryptocurrency's appeal stems from its volatility, allowing traders to profit from price changes.
Traders who want to earn by riding the waves have been drawn to this price movement. Some traders prefer to own the currency outright, while others choose to trade futures.
Futures may be a more appealing way to profit from the volatility of digital currencies like Bitcoin because they allow traders to leverage their profits (but also magnify losses).
Futures, on the other hand, come with a lot more risk in exchange for a higher possible gain.
Where you can buy and sell cryptocurrencies
Traditional brokers offer a broad range of investible instruments, albeit you can usually only trade Bitcoin futures directly with them. Crypto exchanges, on the other hand, are confined to digital currencies.
However, you can own them directly and typically buy multiples, rather than just Bitcoin or Bitcoin futures, as you would with a conventional broker. Users in the United States can now buy and sell cryptocurrency through Cash App and PayPal services.
Top brokers for cryptocurrency
The finest cryptocurrency brokers, both traditional internet brokers and a new specialist cryptocurrency exchange are listed below. You could also look into which brokers give the best sign-up bonuses to see where you can save a little money.
Robinhood
When it comes to buying cryptocurrencies directly, Robinhood is a fantastic alternative. You'll also be able to take advantage of Robinhood's massively popular trading commissions: $0 per trade or commission-free. However, any deals will still be subject to a built-in spread markup.
If you're interested in more than bitcoin, you may also trade stocks and ETFs for the same cheap price. The modern Robinhood interface makes trading a breeze, but consumers expecting a full-featured trading experience will be disappointed.
Commission: $0
Account minimum: $0
Webull
Webull may be less well-known than its rival commission-free trading app Robinhood, but it offers a robust portfolio of services, including bitcoin trading. Webull charges a spread markup of 100 basis points (1% of purchase price) on both sides of a trade, but there are no commissions on crypto trades (or equities and ETFs).
Bitcoin, Ethereum, and Cardano are among the cryptocurrencies that can be traded. Webull is a broker worth considering because of its charting features and great mobile app.
Commission: $0
Account minimum: $1 to trade crypto
TradeStation
Traders at this broker have a few options, as it has launched direct currency trading via TradeStation Crypto, with commission-based pricing. Your broker's account balance determines to price and whether or not your order is directly marketable.
Normally, the cost ranges from 0.05% to 0.3% of your order. Traders can also purchase and sell Bitcoin futures and benefit from significant volume trading discounts.
Commission: 0.05-0.3%
Account minimum: $0, but futures margin depends on contract
Binance.US
Binance is a specialized trading platform that lets you buy and sell digital currencies such as Bitcoin and Ethereum, as well as dozens of other, much smaller currencies. You'll get access to about 60 cryptocurrencies in total.
Binance has a low commission structure that grows cheaper as you trade more. Trading fees begin at 0.1% of your trade value (i.e., $10 for every $10,000 transacted) and gradually decrease based on your trading volume over the previous 30 days.
Commission: 0.1% of the transaction value or less
Account minimum: $0
Coinbase
Coinbase is a cryptocurrency trading platform that lets you trade digital currencies like Bitcoin, Ethereum, Solana, and Tether directly. You'll have access to over 100 coins in total. For added security, you'll be able to store your coins in a vault with time-delayed withdrawals.
The commission structure of the exchange is quite high. It charges a 0.5% spread markup and a transaction fee that varies based on the size of the transaction and the funding source, albeit its Pro platform is less expensive.
Commission: At least 1.99% of the transaction value
Account minimum: $0
It's critical to consider all of your requirements before choosing a broker. And, for beginner cryptocurrency traders, you'll need to decide if you want to buy the virtual currency outright or trade futures, which have a larger payout and a higher risk.
You'll also have to decide whether you want to trade more than Bitcoin, which is what most traditional brokers allow you to do. If not, you might consider using a cryptocurrency exchange, which has a larger selection of tradable cryptocurrencies.
