Cryptocurrency, particularly Bitcoin, has proven to be a popular trading choice amongst investors, despite the fact that famed investors such as Warren Buffett believe it is worthless. The volatility of bitcoin contributes to its appeal, as these swings allow traders to profit from price movements.

For example, at the start of 2017, the price of Bitcoin surpassed the $1,000 mark. By the end of the year, the digital money had nearly doubled in value to about $20,000. Bitcoin was trading about $3,200 over a year later. However, it resurfaced in 2019, increasing to more than $10,000 and then substantially higher, hitting the $60,000 mark in early 2021 before settling significantly lower.

This type of price volatility has attracted traders hoping to benefit from the waves. While some traders prefer to possess the currency directly, others prefer to trade it in the futures market. Because futures allow traders to utilize leverage to multiply their winnings, thus, making it an even more appealing option to play the volatility of digital currencies like Bitcoin. However, futures imply far more risk in exchange for a potentially higher gain. Remember, if there are chances of your winnings multiplying, same can be said of the losses you might incur.

From Where can you Buy and Sell Crypto?

Crypto trading firms have the advantage of offering a diverse range of investment options, albeit you cannot usually trade Bitcoin, but only do future trading. Meanwhile, crypto exchanges are confined to digital currencies. You can hold them directly and frequently buy multiple crypto assets, rather than only Bitcoin or Bitcoin futures, as you would with a regular firm. PayPal has also gotten in on the act, allowing users in the United States to purchase and trade crypto.

Below are the best cryptocurrency trading firms, including the standard online firms and specialized cryptocurrency exchanges. You can also look into which firms give the best bonuses for creating an account to see where you can get a little something extra.

Robinhood

Robinhood is an excellent choice for purchasing cryptocurrencies directly. You’ll also be able to benefit from Robinhood’s massively popular trading commissions: $0 per trade or commission-free. If you’re interested in more than just crypto, you can also get stock and ETF trades for the same price. The fluid app of Robinhood makes trading simple, but anyone expecting a full-featured trading experience will be disappointed.

Commission: $0

Minimum Balance: $0

TD Ameritrade

TD Ameritrade is one of the market’s top full-service trading firms, and it not only provides access to traditional assets like equities and bonds but it has also expanded its offering to include Bitcoin futures. However, TD Ameritrade does not enable direct trading in digital currency. To begin trading Bitcoin futures, you must first meet the account minimum.

Commission: $2.25

Minimum Balance: $25000 for futures

Interactive Brokers

Interactive Brokers allows users to trade four cryptocurrencies directly, including Bitcoin and Ethereum, at one of the market’s lowest commissions. It also allows you to buy Bitcoin futures instead of owning the currency. In the case of this firm, you may buy futures on the Chicago Mercantile Exchange, with all-in contracts costing $15.01 and five bitcoins per contract. Furthermore, Interactive Brokers delivers its full array of investment products, allowing you to buy nearly anything that trades on an exchange.

Commission: 0.12-0.18 percent of trade value and $15.01 per futures contract

Minimum Balance: $0

Charles Shwab

Charles Schwab is consistently one of Bankrate’s best trading firms, and this investor-friendly firm offers Bitcoin futures trading. Schwab has no minimum account balance, but any futures contracts you trade will require some minimum margin to keep them open. Schwab offers an enticing commission of $1.50 for each deal, and if you bring a lot of money to the table, you’ll also get a welcome bonus.

Commission: $1.50 per contract

Minimum Balance: $0, but futures margin depends on contract

Trade Station

This trading firm offers a couple of options for traders, including direct currency trading using TradeStation Crypto and commission-based pricing. Your account balance with the firm determines the pricing and whether your order is directly marketable. Typically, the cost ranges from 0.05 per cent to 0.3 per cent of your order. Traders can also purchase and sell Bitcoin futures, as well as benefit from significant volume trading discounts.

Commission: 0.05-0.3 per cent

Minimum Balance: $0, but futures margin depends on contract

Coinbase

Coinbase is a cryptocurrency-focused site that allows you to directly exchange digital currencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. You’ll have access to over a dozen cryptocurrencies 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 steep. It charges a 0.5 per cent spread markup plus a transaction fee based on the size of the transaction and the funding source, albeit its Pro platform is less expensive.

Commission: At least 1.99 per cent of the total transaction value

Minimum Balance: $0

Final Verdict

When deciding on a trading firm, it’s critical to evaluate all of your requirements. Furthermore, for beginners dealing in cryptocurrency, you’ll need to decide if you want to buy the digital currency directly or trade futures. Remember, even though futures offer higher returns, the risk involved has to be taken into account too.

Lastly, you’ll also need to evaluate whether you want to trade something other than Bitcoin, which most traditional brokers limit you to. If not, you may want to consider using a cryptocurrency exchange, which has a more extensive selection of tradable cryptocurrencies.

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