*This is not investment advice and is for information purposes only. While the information is deemed to be accurate, we cannot make any representations to that matter. See our full disclaimer for more details.
Finding a broker for trading in Bitcoin against fiat currencies can be easy with numerous brokers offering the facility, but fewer platforms specialize in altcoin trading, and the features offered differ in many ways.
ARK Invest is known for targeting high-growth technology companies, with one of its most recent additions being DraftKings. In an interview with Maverick's Lee Ainslie at the Robinhood Investors Conference this week, Cathie Wood of ARK Invest discussed the firm's process and updated its views on some positions, including Tesla. Q1 2021 hedge fund letters, Read More
Therefore, it is important to choose a broker that can offer features that are critical for your trading strategy and needs. Major differences between the brokers include the range of altcoins listed by them, whether they support fiat currency for buying altcoins, and if only deposits of Crypto/Bitcoin are supported.
Your search for cryptocurrency brokers should also focus on pairings with a range of cryptocurrencies apart from Bitcoin itself. Other factors that would impact your trading are the trading fees and whether you are also considering margin trading. On that note, here are some reliable cryptocurrency brokers.
BitMex – Trades all major Altcoins, more leverage for BTC
Bitmex is recognized globally among well-known cryptocurrency brokers, and their trading volumes are high. You can only trade some of the major altcoins, although you can do so on leverage, making this a leading platform for margin traders. You can deposit or withdraw only Bitcoin, which means that you can use Bitmex to add to your Bitcoin holdings by trading Bitcoins against other altcoins. With this broker, you can expect up to 33.3% leverage, depending on the particular altcoin you are trading in. ETC, ETH, XMR, DASH, LTC, ZEC and XRP are among the major altcoins traded on this platform.
An initial account can be started with just your name and a valid email address. No other ID verification is needed. Bitmex has also enjoyed top-level security with no hacks reported so far, at least as of the time of this writing. This platform charges a 0.2% trading fee.
HitBTC – Large volume of Altcoins, supports EUR, USD
HitBTC is among the handful of cryptocurrency brokers that list a wide array of altcoins, which also demonstrates their level of specialization in the field. More importantly, HitBTC supports fiat currencies like USD and EUR. Most other brokers support deposit/withdrawal via cryptocurrencies only. Further, you can also withdraw or deposit any of the supported altcoins and not just Bitcoins, unlike Bitmex. Another interesting feature with this broker is the demo mode, which is great when you are a beginner. However, margin trading is not available on the demo mode.
The trading fee is 0.2%, and ID verification is essential only when you need to deposit or withdraw fiat currencies. The security is excellent, and no hacks have been reported so far, as of the time of this writing.
Cryptopia – Wide range of Altcoins, supports only transfer of Cryptos
Cryptopia is reckoned as a giant among cryptocurrency brokers, particularly when we consider the extensive range of altcoins, including some unknown coins with negligible market caps. Thus, if you focus on what some call “sh*tcoin trading,” this is a great place for you. You can withdraw or deposit all altcoins that are listed on the site. Fiat currencies like USD/EUR are not supported, though you can use USDT instead of USD. What sets this broker apart is the fact that over 800 Altcoins can be traded here.
This broker charges a 0.2% fee, and no leverage is offered. Security is considered good, though no details are available from the site.
Bittrex – Wide range of Altcoins, allows only cryptotransfers
Bittrex lists a wide range of altcoins in the middle and high range with regard to popularity and market cap. Fiat currencies/USD are not supported, though you can trade against all major altcoins using USDT. To start trading with Bittrex, you must own Bitcoin or other cryptocurrencies. Withdrawals and deposits are permitted with all listed coins. This broker does not support margin trading. This platform does not offer any leverage and charges a trading fee of 0.2%. Basic accounts do not need any ID verification, though you can have only limited withdrawals from basic accounts.
No demo mode is offered, and security is considered top notch with no hacks reported so far as of this writing.
Poloniex offers trading on a wide array of altcoins, but leverage is available only against some of them. Transfers are through cryptocurrencies only. While Poloniex offers an impressive range of altcoins and leverage on many of them, it does not support fiat currencies at all. However, you can trade most altcoins using USDT. The site offers very basic order types with stop loss function.
The leverage offered for many altcoins is 2.5x, but you must check if your coin is eligible. The trading fee ranges between 0.15% and 0.25%. ID verification is not mandatory unless you need large withdrawal limits. No demo mode is offered, and security is considered excellent, though the site experienced a small hack in 2014.
Yobit supports USD and a wide array of altcoins.
Yobit is reckoned as a trading giant among cryptocurrency brokers, particularly with regard to low and middle market cap altcoins, and it can in some ways be compared to Cryptopia. If you are in search of specific altcoins with low caps, it is more likely that you will find them here. Yobit does not offer any leverage, and you have just the basic order types. There is no stop loss against your order, and it is only limit sell/buy. However, this is an excellent way for beginners to get acquainted with trading in cryptocurrencies. Besides BTC, you can trade several altcoins against DOGE, ETH, and even WAVES.
The trading fee is charged at – 0.2%, and fiat currencies like USD and RUR are supported. No ID verification is needed, and the security is considered excellent, with no hacks having been reported as of the time of this writing.
Whaleclub offers leverage of up to 5x with a wide range of Altcoins, but only DASH/BTC are acceptable modes for transfers.
Whaleclub is a great place if you are looking to trade in a limited range of Altcoins on margin. Dash, Monero, Litecoin, Ethereum are among the altcoins included. However, this is not a specialized platform. The site allows withdrawals/deposits using DASH or BTC and does not support fiat currencies. Your trading margins should therefore be converted to BTC before you can encash the profits. However, USD can be used for trading ETH/LTC.
Whaleclub is also a broker for many other asset classes like stocks, commodities, forex, bonds and indices. You can trade all these assets using DASH/BTC deposits.
Generally speaking, you can access all the above cryptocurrency brokers from almost anywhere in the world, especially those with basic accounts which do not call for ID verification. But if trading in cryptocurrencies is banned in your country, you can use a VPN service like IPvanish, Express VPN, etc. to bypass these restrictions and access cryptocurrency brokers. *However, ValueWalk does not advocate for strategies that involve violating laws.