Bitcoin in particular has emerged as a popular medium of exchange despite the fact that famed investors like Warren Buffett see it as worthless. Cryptocurrency’s price oscillations are attractive to traders since they provide opportunities to profit.
Some people, called “wave riders,” are hoping to earn money off of these price variations. In the world of currency trading, some investors choose to hold physical money while others prefer to speculate on its price in the futures market. With the ability to leverage both profits and losses, futures may be an even more alluring option to speculate on the volatility of digital currencies like Bitcoin. Although futures provide a potentially larger payoff, they also carry a far greater level of risk.
We’ve listed several top cryptocurrency exchanges where you may purchase and sell with ease below.
Coinbase is a cryptocurrency trading platform that supports Bitcoin, Ethereum, Solana, and Tether among others. With Bitcoin 360 AI, you’ll get access to over a hundred different cryptocurrencies. For further security, you may keep your coins in a vault and extract them at a later date. The commission structure of the exchange is quite expensive. Its Pro platform is more cost-effective, but it still adds a spread markup of roughly 0.5% and a transaction fee depending on the amount of the transaction and the financing source.
Bankrate consistently ranks Charles Schwab as a top broker, and as an investor-friendly firm, it also facilitates Bitcoin futures trading. While there is no Schwab account minimum, there is a minimum margin requirement for futures contracts that must be met. Schwab’s per-contract commission rate of $1.50 is rather competitive, and the firm even throws in a bonus for newcomers who can bring in significant sums of money.
If you want to purchase cryptocurrencies on your own, Robinhood is a terrific choice. You may also take advantage of Robinhood’s very attractive cost structure, which charges no commission on trades at all (albeit there is a markup in the form of a spread): $0 per transaction. And if you’re interested in more than just cryptocurrencies, you can make stock and ETF transactions at the same cheap cost. Although Robinhood’s attractive software makes trading very simple, experienced traders may be frustrated by the platform’s lack of features.
Webull is a lesser-known commission-free trading program that offers investors a good offering, including bitcoin trading, despite Robinhood’s popularity. There are no fees associated with crypto trading on Webull, however, there is a markup of 100 basis points on each side of the trade due to the spread. In addition to Bitcoin and Ethereum, other coins like Cardano are also available for sale. Webull is an excellent broker to consider using because of its advanced charting capabilities and cutting-edge mobile app.
Unlike many brokers, eToro doesn’t charge a commission when trading cryptocurrencies, but it does impose a spread. Bitcoin incurs a markup of 75 basis points, while less popular cryptocurrencies may incur fees of up to 5 percent. CopyTrader is a prominent tool available on eToro that lets you monitor the activity of other successful traders and automatically replicate their transactions. Ensure you’ve done your due diligence before committing to this strategy.
Picking a broker requires careful consideration of your specific requirements. As a beginning cryptocurrency trader, you need to decide whether you choose to possess virtual currency outright or engage in the higher-reward, higher-risk practice of trading futures.
You should also think about if you want to trade more than just Bitcoin since this is all that the vast majority of conventional brokers will allow you to do. To expand your options for buying and selling digital money, you may wish to visit a cryptocurrency exchange.