Best Crypto Trading Platforms

Developing an interest in crypto trading is not enough. You must know the best place to trade cryptocurrency in an efficient manner. Important considerations to make in this respect should focus on how much the platform charges in fees, what markets it supports, and whether or not the provider can be trusted. 

Therefore, in this guide, we’ll discuss the best crypto trading platforms for you to consider and how to get started with an account in under 5 minutes.  

Best Crypto Trading Platforms in the Market – Quick Overview

Below will provide an overview of the best crypto trading platforms in the market right now – as per our in-depth research.

  1. eToro – Overall Best Crypto Trading Platform
  2. Capital.com – Leading Crypto Trading Platform for CFDs at 0% commission
  3. AvaTrade – Great Crypto Trading Platform for Technical Analysis

67% of retail investor accounts lose money when trading CFDs with this provider.

Best Crypto Trading Platforms in the Market Reviewed

If you’re looking to find the best crypto trading platforms with which you can buy and sell digital currencies – we have reviewed the top providers below. We considered the most important metrics such as cost-effectiveness, supported markets, ease of use, security, and more.

1. eToro – Overall Best Crypto Trading Platform

eToro is a leading and top-rated regulated broker that offers you access to numerous financial instruments and products including CFDs, stocks, ETFs, and of course - cryptocurrencies. You can trade cryptocurrency on this platform on a spread-only basis. This means that you don’t need to incur the commission fees that are otherwise payable on other platforms.

Essentially, eToro has a super low-fee structure, which is ideal irrespective of your skillset or budget. Furthermore, one of the major advantages of this broker is that you can gain access to copy trading tools. This feature allows you to copy the open positions of other experienced traders automatically and in real-time. So, if you need a headstart in cryptocurrency trading, this feature works excellently for that purpose.

Another perk to using eToro is the platform’s support of numerous payment options. You can use a debit/credit card and different e-wallet options to make payments. If you’re not in a hurry, you may also use the bank transfer method to make a deposit into your trading account. Whichever method you use, know that you only need to make a minimum deposit of $200. But you can start buying and selling with as little as $25 per trade.

In addition to this, eToro is a top broker that offers you access to dozens of digital tokens. So, if you have assessed a project, whether big or small, and you’d like to trade the token, eToro might be the right place for you. This long list of digital tokens also makes it convenient to trade multiple crypto assets and diversify your portfolio where necessary. More so, when you trade any of these tokens, you do so on a spread-only basis, making that the only fee that concerns you.

Furthermore, trading can be challenging especially if you’re a beginner. eToro seeks to help you with this burden by integrating 'social' features - where you can communicate with other traders. This helps you to learn and gain more insights on several tokens from different people. Additionally, eToro is a credible broker that offers plenty of protection on your funds - not least because it is regulated by the FCA, CySEC, and ASIC.

Our Rating

  • Trade dozens of crypto assets on a spread-only basis
  • Regulated by the FCA, CySEC, and ASIC - also approved in the US
  • User-friendly platform and minimum crypto stake of just $25
  • $5 withdrawal fee
67% of retail investors lose money when trading CFDs with this provider

2. Capital.com – Leading Crypto Trading Platform for CFDs at 0% Commission

Capital.com is another cryptocurrency broker that stands out for its impressive trading services. The broker deals with CFDs, which are most suitable if you’re looking to trade cryptocurrency on a short-term basis. This is because short-term trading means you will likely look to open and close numerous positions across the day. Therefore, with CFDs, you get to trade cryptocurrency pairs based on their value without taking ownership.

Furthermore, Capital.com is a broker that’s heavily regulated by several leading financial authorities - including the FCA. Being regulated means that this broker cannot engage in nefarious activities that puts your interest at unprecedented risk. In addition, the platform provides you with access to MetaTrader 4 (MT4). The platform also offers a mobile app, making it convenient for you to trade crypto from anywhere.

The trading platform also supports various CFD instruments, covering a wide range of cryptocurrencies. This means that you can trade both fiat-to-crypto pairs and crypto-cross pairs on the platform. That is, you can trade pairs such as BTC/USD and ETH/USD on the one hand. On the other hand, you can also trade pairs such as TRX/BTC and BTS/BTC, making it possible for you to choose the one that fits your trading strategy.

In addition, Capital.com charges no commission when you’re trading CFDs, meaning that the only thing you need to contend with is the spread. This is a platform that also offers you leverage when trading crypto CFDs. Concerning non-trading fees, you will pay nothing to deposit or withdraw funds. Therefore, if you’re a beginner looking for a low-cost crypto trading platform, Capital.com might be a good fit for you.

You should also consider the payment options supported by a broker to determine if it’s one of the best crypto trading platforms for you. Capital.com ticks this box, as the platform supports debit/credit cards, wire transfers, and numerous e-wallet options. The e-wallets supported include iDeal, Sofort, Giropay, ApplePay, AstropayTEF, and 2c2p - among others. For all of these payment options (except wire transfers), you can start with a minimum deposit of $20.

Our Rating

  • Easy to use trading platform for beginners
  • Regulated by the FCA and CySEC
  • 0% commission, tight spreads, and $20 minimum deposit
  • Native platform is too basic for experienced traders
67.7% of retail investors lose money when trading CFDs with this provider

3. Avatrade – Great Crypto Trading Platform for Technical Analysis

AvaTrade is one of the best crypto trading platforms in the market. If you’re looking to trade cryptocurrency at a broker that makes your technical analysis experience seamless, AvaTrade is worth considering. The broker specializes in CFDs, meaning when you trade on the platform, you don’t take ownership of the crypto tokens. Instead, you trade based on the underlying value of the asset, which is a great perk for short-term market participants.

AvaTrade distinguishes itself in the market by offering you access to technical analysis tools to help you make informed decisions. Many traders depend on these tools to determine when to open and close their positions. Although it takes some time to get acquainted with technical analysis, learning how this works will likely place you a step ahead in the market. Therefore, if you want to trade crypto from an informed position, AvaTrade is a broker to consider.

In addition, with AvaTrade, you gain access to numerous cryptocurrency markets from which you can decide which to trade. This makes it convenient for you to trade different digital tokens and diversify your portfolio. Furthermore, the broker allows you to go both long and short, making the platform suitable for different trading strategies. When you consider this alongside the platform’s simple user interface, you’ll realize why it’s one of the best.

As a spread-only trading platform, AvaTrade offers one of the lowest fee structures in this space. This means that when you trade, you don’t need to pay commission fees like you would with other crypto platforms. Therefore, once you make enough profit from your trade to cover the difference between the buy and sell price, you’re good to go. Also, you incur no fees when you make deposits and withdrawals while trading with this crypto platform.

Another benefit of using AvaTrade is that it offers you a demo account to practice crypto trading before getting started with real money. If you’re a beginner looking to gain insights into the trading scene, this is a feature you can leverage for that. In addition, the broker also supports third-party platforms such as MT4 and MT5. All of these are reasons why we consider this broker as one of the best crypto trading platforms in the market.

Our Rating

  • Lots of technical indicators and trading tools
  • Free demo account to practice trade
  • No commissions and heavily regulated
  • Perhaps more suited to experienced traders
71% of retail investors lose money when trading CFDs with this provider

How to Select the Best Crypto Trading Platform for you

If you search for the best crypto trading platforms online, you’ll come across a long list of options. This is because cryptocurrency brokers continue to emerge as the industry grows bigger. However, despite the fact that there are many brokers, choosing the right one can be tricky. This is because every trading platform calls itself the “best”.

As such, you must understand certain things to look for when choosing the right trading platform for you and your financial goals. Here, we discuss the key things you need to consider before making that choice. 

Regulation

When evaluating the best crypto trading platforms, one of the significant things you might want to consider is whether the broker is regulated. A regulated broker tends to have more credibility, especially if they are authorized by leading financial authorities like the FCA, CySEC, or ASIC.

Owing to this regulation, regulated brokers are bound by certain guidelines and must operate according to their scope of operations.

  • An example of crypto trading platforms that fall in this category includes eToro, Capital.com, and AvaTrade.
  • eToro is regulated by CySEC, ASIC, and the FCA, while AvaTrade is licensed in seven jurisdictions.
  • Capital.com is also regulated by CySEC and the FCA.

When you trade with these brokers, you enjoy some form of protection. For example, regulated brokers are mandated to keep their capital in a separate account from yours, meaning you always have access to your money.

Fees and Commissions

Cryptocurrency trading platforms have different fee structures. For many platforms, these fees represent a significant source of income for the broker. However, while some might charge high fees for their services, it’s not the same with all of them. This is why you need to evaluate a broker in terms of its fee structure before deciding to go ahead or otherwise. 

Concerning this, consider whether the platform charges inactivity, overnight, deposits, and withdrawal fees. Also, check whether you have to pay commissions when trading with the platform, and if so, at what percentage. 

You’ll also need to consider the spread you’ll incur when you buy and sell crypto. This is often overlooked by newbies.  But if you want to save yourself this trouble, you can go for a trading platform like eToro. The broker allows you to trade in a cost-effective manner.

Aside from the broker’s low minimum deposit requirement, when you trade on the platform, you do so on a spread-only basis. This makes your crypto trades more rewarding when you make a profit, as you don’t lose all your earnings to excessive fees. 

Crypto Markets

The crypto markets available on your selected trading platform is a crucial consideration. You don’t want to sign up on a broker and go through the process of getting started only to realize that the platform doesn’t have the crypto pair you intend to trade. This can happen if you’re looking to trade small-cap tokens that might not have been listed yet. 

Therefore, you need to always check the markets supported by the crypto trading platform. A good example here is Capital.com, as the platform supports a long list of cryptocurrency markets that now exceeds 200+ pairs. This includes various fiat-to-crypto and crypto-cross pairs, in addition to Defi tokens. So, if you’re unsure of where to get a coin you’re looking to trade, you might want to check out Capital.com. 

Payment Options

The best crypto trading platforms give you many options to make a deposit. 

  • The best platforms support everything from debit/credit cards, e-wallets, and bank transfers.
  • You also need to check what the minimum deposit is for your chosen payment method. For example, while Capital.com allows you to deposit from just $20 when using a debit/credit card or e-wallet, the minimum jumps to $250 when opting for a bank wire. 

Be sure to also check what fees are applicable to your chosen payment method.

Support for Research

A significant part of cryptocurrency trading is being able to speculate the future price of tokens correctly. To do this, you must be able to research adequately on projects and leverage technical analysis alongside market indicators.

Therefore, when choosing a crypto trading platform, you might want to consider a broker that offers technical analysis and learning materials. This makes it more convenient for you to trade cryptocurrencies.

What is Cryptocurrency Trading?

In simple terms, trading cryptocurrency means you’re buying and selling digital token pairs. Here, you assess the market and determine whether to place a buy or sell order on a token. When you do the former, you’re predicting that the token’s price will increase soon.

  • For instance, you might place a $300 buy order on ETH/USD at a price of $4,000. After your stake reaches $4,500, you might decide to close the position and secure your profit. 

Essentially, when you trade a token, you do so in pairs. This is why we have it as ETH/USD. Another example is BTC/USD, which means you’re trading Bitcoin against the US dollar. This works in a similar way to forex and the exchange rate of each pair changes based on the market forces of demand and supply.

Therefore, your task as a cryptocurrency trader is to speculate on the movement of exchange rates. That is, whether they will go up or down. The interesting thing here is that you can trade crypto from the comfort of your home. Once you know the best crypto trading platforms available, you’re good to go.

67% of retail investor accounts lose money when trading CFDs with this provider.

How Does Cryptocurrency Trading Work

Now that you know the best brokers to use, you should consider having a more in-depth understanding of how cryptocurrency trading works. Trading crypto simply means you’re risking your money to make financial gains.

That is to say, you’re risking your money based on your expectation that the token being traded will increase or decrease in value.

Here’s all you need to know about opening and closing positions on the best crypto trading platforms.

Cryptocurrency Pairs

As noted above, you trade crypto in pairs. The two assets in a pair will have an exchange rate that’s subject to change every second based on the forces of demand and supply. This means that if there are more buyers on a pair, its price will increase. On the flip side, if there are more sellers on that pair, the value will drop.

So, your job as a trader is to speculate on the movement of this exchange rate. This is how you make a profit from cryptocurrency trading. There are two types of cryptocurrency pairs for you to trade online and they are:

  • Crypto-to-Fiat: This refers to a pair where you have both crypto and fiat currency. In most cases, the fiat currency will be the US dollar and pairs in this category include the likes of ETH/USD and BTC/USD.
  • Crypto-Cross: This refers to a pair where two cryptocurrencies are traded against each other. For instance, if you’re looking to trade Maker against Bitcoin, the pair would come in the form of MKR/BTC pair.

Although this pair type is an alternative to crypto-to-fiat, it can be challenging to trade. This is because you need to know how two individual cryptocurrencies are correlated to one another – in terms of price. 

Therefore, if you’re a beginner, you might want to stick to crypto-to-fiat pairs when using the best trading platforms, as they are simpler to understand.

Cryptocurrency Trading Orders

After you choose the pair you intend to trade, you’ll need to set up an order that instructs the broker on how you wish to enter the market. Essentially, you’ll have to choose between placing a ‘buy’ or ‘sell’ order.

  • If you think the value of the cryptocurrency pair will rise, you place a ‘buy order.’
  • On the flip side, if you think that the cryptocurrency pair’s value will decrease, then you place a ‘sell order.’

Furthermore, you’ll also need to decide on the order type you’re going with. There are different order types in the crypto market – which gives you great flexibility. In most cases, you’ll need to choose between a ‘limit’ or ‘market’ order. 

  • If you have a desired price at which you’d like to enter the market, you should choose a ‘limit order.’
  • However, if you want your trade to be instantly executed at the next available price, you’ll be able to use a ‘market’ order’ 

The order type you go for between the two will be based on your trading goals. If you’re looking to trade short-term, this must mean you have a certain entry price at which you intend to enter the market. That way, you can precisely open your trades at a specific price and exit when it reaches a certain value.

Therefore, in this case, using a limit order is your best option. As you can imagine, your limit order will not become operative until the coin reaches your set entry or exit price. 

Strategies to Use on the Best Crypto Trading Platforms

When you’re learning about the best crypto trading platforms, you’d want to understand strategies that can make your journey more fulfilling while using these brokers. Experienced crypto traders always have some strategies they leverage to maximize their investments.

Therefore, if you want to make meaningful profits from buying and selling cryptocurrency pairs, you must understand the best ways to go about it. Here, we discuss some of the key strategies you should consider when using your chosen crypto trading platform.

Swing Trading

This is one of the popular strategies in the cryptocurrency trading scene. Swing trading refers to when you look for cryptocurrency pairs that are currently enjoying a positive or negative trend in the market. Then, you buy or sell such a pair and hold it for as long as the trajectory lasts.

best crypto trading platforms

This strategy is suitable if you’re a beginner looking to make a profit in a convenient trading manner.  The good thing about swing trading is that you can keep your position open for as long as the trend persists. This means that, unlike day trading, you have nothing to worry about if you leave a position open over 24 hours. 

For instance, suppose BTC/USD is having a ‘bullish’ period. As a swing trader, you can buy the pair and keep your position open for as long as the market moves in favor of the token. Eventually, such a bull run will come to an end. When you see that this is about to happen, you can close the position and secure your profit. 

Taking Advantage of Market Corrections

Market corrections are inevitable in the cryptocurrency world. This happens when a coin that has enjoyed an upward movement suddenly starts to witness a decrease. This is why you need to understand how the cryptocurrency markets work.

  • A token cannot continue to increase indefinitely without having moments where the market briefly moves in the opposite direction.
  • This means that a cryptocurrency pair like ETH/XRP could have enjoyed a positive market movement for about four weeks.
  • Then by the fifth week, the token begins to witness a drop in price.

This can happen due to many reasons, one of which is that there might be more sellers than buyers in that fifth week. Now, here is where it gets interesting. A market correction doesn’t mean that a cryptocurrency pair will be halted in value long-term.

Therefore, when a token’s price suffers a drop, that might be the right time to open a position on that pair. That way, you can gain a profit when the coin eventually starts moving upward again. So, when performing analysis on the best crypto trading platforms, you want to ensure you monitor the market corrections of different digital asset pairs. 

Relative Strength Index (RSI) Indicator

As you become more experienced in trading cryptocurrency, the RSI indicator is one of the essential tools you’ll come across. The indicator assesses a token’s price movements to determine if it has been overbought or oversold.

  • If a cryptocurrency pair is overbought, this is an indication that the asset might be about to drop in price. This is because, at some point, buyers are going to look to cash out their profits – resulting in a slight market drip.
  • Here, your best bet might be to trade the pair short-term and gain a profit from the reversal of the market movement.

Alternatively, if the cryptocurrency pair has been oversold according to the RSI, this might mean that more buyers are looking to open positions on the asset. In that case, you can make a quick entry on the token and exit once you gain profits after the cryptocurrency pair’s market reversal.

3 Tips to Maximize Your Trades on the Best Crypto Trading Platforms

In this guide, we have explained how to identify the best crypto trading platforms and how to use them effectively. By now, you’d know that crypto trading requires some level of care and diligence. Therefore, it’s wise to brush up on your knowledge before getting started at the best crypto trading platform.

Take a Course in Cryptocurrency Trading

In the cryptocurrency trading world, research is an important tool. Therefore, you must always look to read and learn more about trading and digital asset pairs. One of the most effective ways to do this is to take a cryptocurrency trading course. 

There are many of these courses available online and you can choose to learn at your own pace. Taking these courses will expose you to different tactics and lessons when it comes to trading cryptocurrencies. 

Understand How to Read Charts

If you’re investing in cryptocurrency on a long-term basis, you may not need to worry about reading charts. However, if you’re looking to trade cryptocurrencies—meaning you’d be opening and closing multiple positions to make profits—you have to get more acquainted with pricing charts. 

Since most cryptocurrency traders open and close their positions within a short period, they need to monitor the charts to understand price movements. Therefore, you have to know when the market is moving in the favor of the cryptocurrency pair you’re trading. This can only be known when you understand how to analyze charts. 

Practice First

The best crypto trading platforms will offer you a demo account to practice trading. This will simulate real-life trading conditions and allow you to gain insights into how things work in the markets. Therefore, if you’re a beginner, it’s imperative that you start with a demo account to get acquainted with cryptocurrency trading.

Best Crypto Trading Platforms – The Verdict?

When you’re learning how to trade cryptocurrencies, you must consider the best platforms to do so. The best crypto trading platforms will offer you cost-effective services on an easy-to-use interface.

Most importantly, your chosen platform must be regulated – which will ensure your capital is safe at all times. This is why eToro, Capital.com, and AvaTrade stand out as the best crypto trading platforms in this space. 

eToro – Best Crypto Trading Platform

 

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

What are the best crypto trading platforms?

There are many crypto trading platforms online. However, not all of them offer a suitable trading experience. This is why you should know the important things to look out for when choosing a crypto trading platform. To save you the trouble of searching – eToro, Capital.com, and AvaTrade are the best crypto trading platforms in the market right now.

What should I look out for when choosing a crypto trading platform?

When you’re contemplating choosing a broker, some of the things you should consider include whether the platform is regulated, if it has a low-fee structure, if it supports many cryptocurrency markets, and if it comes with a simple user interface. If you’re a beginner, you should also consider whether the platform offers a copy trading tool.

How do you trade cryptocurrencies?

You can get started by creating an account with a cryptocurrency trading platform. Following that, decide whether you want to go long or short. Input your stake, decide on the order type you want to use, and open the trade.

What is the best cryptocurrency pair to trade?

The most traded cryptocurrency pair is BTC/USD. This pair comprises Bitcoin and the US dollar. Furthermore, trading the pair allows you to enjoy the largest liquidity levels and the tightest spreads.

How do you short cryptocurrencies?

You go short when you think that a cryptocurrency pair is overvalued. In that case, you can instruct a CFD trading platform to place a sell order.