Compare the best cryptocurrency brokers
What are the best crypto trading platforms?
The list below includes all the best trading platforms for cryptocurrency, with key information summarised for each so you can find your ideal broker quickly. If you’re ready to buy cryptocurrency now, then simply follow one of the links below. Alternatively, find more information further down the page.
What is a cryptocurrency broker?
A broker is an online trading platform that functions as a middleman for buying and selling cryptocurrencies. There are two different varieties of crypto brokers: simple platforms that buy and sell different coins at set prices, and more complex apps that allow you to trade a wide variety of cryptocurrencies in real time.
How do brokerages work?
On the most basic level, brokers work by matching up buyers and sellers in order to execute crypto trades. If someone is looking to buy a specific cryptocurrency, for example Ethereum, then a broker will take the price at which they’re willing to buy and match them with someone happy to sell at that rate. In some instances the broker itself acts as the buyer/seller, and in others it will be another individual using the platform.
Like a bureau de change at an airport, the former type of cryptocurrency broker sets rates at which it will buy and sell each coin and allows you to exchange at this rate instantly. The broker will apply fees for this convenience, but these platforms are often the best bet if you’re looking to buy a large number of coins or tokens – say more than £50,000 worth.
The other variety of crypto brokers are comprehensive trading platforms that allow you to trade cryptocurrencies as the markets rise and fall. Typically users can place such trades using Contracts for Difference (CFDs) – financial instruments that allow people to make trades without owning the underlying asset. Trading this way means you can buy and sell cryptos quickly without needing a wallet – and also allows for leveraged trading.
What’s the difference between a crypto broker and an exchange?
The main point of distinction between crypto brokers and cryptocurrency exchanges is that the latter work on a peer-to-peer basis. Whereas brokers position themselves as a middleman for crypto transactions and charge fees for doing so, exchanges are more open platforms that set cryptocurrency prices with a constantly updating order book.
On a crypto exchange thousands of users trade with each other directly in real time, trading coins in currency pairs (e.g. BTC/ETH) at rates governed by the supply and demand of other users on the platform. It is this activity on exchanges that helps set the price of different cryptocurrencies.
How do I use a cryptocurrency broker?
Using a crypto trading platform is a straightforward and easy process. You simply need to sign up to a top broker, fund your account, and then buy the coins you’re interested in at the price given by the platform.
If your chosen broker is also a CFD trading platform, then to start making trades as the market fluctuates you simply need to head to the trading interface of their website or app. From here you will be able to see all the relevant crypto price charts and start to trade cryptocurrencies right away.
The best cryptocurrency trading platforms for beginners, traders, and long-term investors
Which cryptocurrency trading platform is right for you will depend mainly on your level of experience and your investment strategy. To help you select the best crypto broker, we’ve come up with these recommendations for different user profiles.
The top broker for beginners
When you’re just starting out as a cryptocurrency investor, you want to prioritise ease of use and customer support. You might end up paying slightly more for your coins, but it’s worth it to avoid making costly mistakes.
The top platform for day-traders
For those looking to buy and sell cryptocurrencies quickly and frequently, it’s essential to hunt for the best trading platform for cryptocurrency and register for a broker that offers a variety of crypto CFDs and low trading fees.
The top app for long-term buyers
Long term crypto investors need to be most concerned about using a secure platform on which they can keep their coins safe. This strategy is for people who believe certain cryptocurrencies will rise in price over time and want to buy and hold in pursuit of profits.
What should I look for in a trading platform?
There are a number of different factors to consider when choosing a cryptocurrency broker, from how intuitive the platform is to use, to more trading-related concerns such as how many cryptos you can trade and the fees involved for doing so. Here’s a quick summary of all the key considerations when using an online platform to invest in cryptocurrency.
Design and ease of use
It’s always best to ensure you find a platform easy to navigate before using it to place cryptocurrency trades. The point of using a broker is to make the trading process simpler, so don’t settle for an app you find confusing.
If you’re buying cryptocurrencies, you don’t want to pay too much above the market rate. Generally with brokers there will be fees and commissions included in the quoted price on the website, so compare different brokers and make sure you’re getting a good deal.
Different brokers will accept different methods of payment – and charge a range of fees for doing so. It’s common to find debit card payments accepted across most crypto broker platforms, but if you’re looking to pay for your coins using other methods such as credit cards or online wallets like PayPal there can be fees applied.
Whenever you’re trusting an online platform or app with your money, you want to be sure the service is reliable. To compare crypto brokers it’s best to have a look through various user review sites, and also to check out our in-depth reviews of each brokerage.
Variety of coins
It’s no use finding a cryptocurrency trading platform that you like if it doesn’t allow you to trade the specific coin(s) you’re looking for. Every broker will allow you to buy Bitcoin, but not all will support less frequently traded cryptos such as Theta and Algorand.
If you’re looking to trade cryptocurrencies using CFDs, rather than buying and holding coins for the long term, then make sure the trading platform you’re using has the capabilities you’re looking for. This could involve being able to trade cryptocurrency with leverage or to sell different coins short. Techniques like this come with increased risk and we only recommend experienced traders undertake them.
Quick answers to key questions
Do brokers charge commissions or fees for buying cryptocurrency?
Yes, all crypto brokers will charge fees and commissions when trading cryptocurrency. However, these charges will vary between platforms and might appear in different ways. For instance, a broker might advertise that it charges ‘zero fees,’ but if you look at the price they’re quoting for a coin you’ll realise that it;’s above market rate.
This is because the fees are incorporated into the price, so you won’t pay any extra fees but there is still a commission being applied.
Do I have to verify my identity with a cryptocurrency broker?
Yes, when signing up to use a crypto trading platform you will have to provide evidence of your identity. Top cryptocurrency brokers are regulated and as such need users to prove their identity to comply with KYC (Know Your Customer) guidelines. Usually at least one photo ID is required.
Can I buy multiple cryptocurrencies through a broker?
Yes, pretty much every broker will offer a range of coins you can buy and sell. The different cryptos on offer vary from about 5 on the most basic platforms, to thousands on advanced cryptocurrency trading brokers. If you’re looking to buy altcoins such as Polkadot and Aave, then you will need to find one of the latter platforms.
Do I need a wallet to use a crypto broker?
No, not usually. It can however be a good idea to get a personal cryptocurrency wallet if investing for the long term. Crypto brokers will typically allow you to hold your coins on the platform in your online account or app. This can be convenient for people looking to buy and sell coins frequently, but long term investors might want to consider a secure hardware wallet such as the Ledger Nano S.
Should I use brokers to buy and sell cryptocurrency?
The answer to this question depends on your investment goals. Any of our top 10 crypto brokers offer beginner-friendly trading platforms to buy and sell cryptocurrencies, but you need to be aware that the convenience provided by brokers comes with additional fees. Also bear in mind that CFD cryptocurrency trading is a great option for day traders, but for long term investors you’ll want to choose a broker that lets you buy coins directly.
Before investing in cryptocurrency – as with any investment – it is important to weigh up the key pros and cons. Below are some of the main benefits and drawbacks of trading cryptocurrencies, along with some additional questions to consider and FAQs at the bottom of the page.
- Buying cryptocurrencies using a broker is a user-friendly process
- Brokers often allow you to trade crypto using CFDs
- Trading platforms tend to have responsive customer service
- Some brokers allow leveraged trading of cryptocurrencies
- Generally more accessible than cryptocurrency exchanges
- Some crypto brokers are unregulated
- Trading cryptocurrencies with leverage is very risky
- Brokers will usually charge higher fees than exchanges
Should I buy cryptocurrency now?
It’s up to you; timing your cryptocurrency trades right requires an understanding of your aims. If you believe that a particular cryptocurrency is going to perform well and rise in value in the long term, then it’s a good idea to sign up to a broker and buy it now and hold your coins while the uptrend in price hopefully materialises.
But long term trends aren’t the most important thing for every trading strategy. If your interest is more in becoming a crypto day trader, then it’s more important for you to master the art of analysing cryptocurrency charts and other aspects of technical analysis. Rather than looking into how a coin will perform over months and years, you need to be able to predict how it will perform over days, hours, or even minutes and make trades accordingly.
Whatever the approach you take, one thing that is always essential is to keep up to date with the hottest cryptocurrency news. You can read the most recent features from our experts right here to help you time your trades and work out if now is the right time to invest n cryptocurrency.
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Ethereum could advance even more in the ongoing bull market. Here are the next targets for buyers
Where can I learn more about cryptocurrency?
You can access a whole host of cryptocurrency courses right here on Invezz. Whether you want to learn the basics of Bitcoin, educate yourself on Ethereum, or teach yourself about Tron, our guides will help you get all the knowledge you need before starting to trade.
Yes, in the UK you have to pay capital gains tax on any profits over £11,700 from trading cryptocurrency. This is because UK law classes cryptocurrencies as assets, and means that – depending on your income – you’ll owe between 10% and 20% of profits above that amount. In other countries the law varies, so check your local tax regulations.
No, cryptocurrency brokers require users to provide ID when registering. Usually at least one piece of photo ID (e.g. a passport or driving license) is required in order for the broker to comply with legislation to prevent illegal money laundering.
When people describe crypto exchanges as ‘peer-to-peer’ they’re talking about the relationship between the two people trading coins. Each user of an exchange is equal with all others (they are ‘peers’) and trades between them are conducted directly (so peer-to-peer). The exchange merely functions as an open market to connect buyers and sellers.
Only if your chosen broker accepts PayPal as a method of payment. Crypto brokers that accept PayPal are increasingly common, but it is still not a service offered by every trading platform so be sure to check before registering with a broker.
Yes. Crypto markets are open at all hours and brokers will therefore allow you to make crypto trades at any time you wish.
No, not usually. Brokers typically accept fiat payments (e.g. GBP and USD) for cryptocurrencies rather than allowing you to use other cryptocurrencies as a payment method. Some brokers do allow trades between different cryptos, but in general you’re better off using an exchange if you’re looking for this option.
Yes, there is nothing stopping you from having accounts with multiple different brokers. It is generally more simple to choose your favourite broker and make all your trades using that platform, but in the instances where your preferred broker doesn’t offer a specific coin you wish to buy it might be necessary to use another service.
Yes, cryptocurrency brokers are legal in the UK. If you’re trading cryptocurrencies in another country, check the law where you are as this is not always the case.
Not all cryptocurrency brokers are regulated, no. The best crypto trading platforms tend to be regulated by recognised financial bodies, but you’ll need to check each broker’s regulatory status before signing up.
Yes, crypto brokers usually allow you to hold your coins within your account. If you’re using a platform that doesn’t, or you’re just concernewd about the safety of your coins, you might want to get your own Bitcoin wallet.
Yes, by navigating to the relevant section of your broker’s app you’ll be able to see a full list of all the trades you’ve made on the platform.
- 1. Compare the best cryptocurrency brokers
- 2. What are the best crypto trading platforms?
- 3. What is a cryptocurrency broker?
- 4. The best cryptocurrency trading platforms for beginners, traders, and long-term investors
- 5. What should I look for in a trading platform?
- 6. Quick answers to key questions
- 7. Should I use brokers to buy and sell cryptocurrency?
- 8. FAQs