Investing in digital currencies is an excellent way to build your wealth. Since the advent of Bitcoin, some merchants have earned billions and built fortunes by making wise investment decisions. At the same time, some people have suffered heavy losses by selling their assets at the wrong time. There are so many options available at this moment that it is difficult to pick the best crypto trading platform. To help you out, we have listed some of the top platforms in 2021.
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Why do traders choose crypto?
Digital currencies are ideal for long-term dealers. Unlike regular currency, crypto coins are not centralized, so there is no question of a bank or the government getting involved. You have 100% control over your investment.
While dealing in regular currency, you must be aware of the exchange rate. Each country has its own currency, so you need to pay a certain amount in terms of conversion fees. This is not the case with crypto coins. They do not belong to any particular country, so their values remain the same worldwide. Also, you have the freedom to conduct your trading operations without any time restrictions.
What to consider before trading crypto?
It is quite tempting to trade in crypto in the hope of becoming rich overnight. However, you need to remember that the price of digital assets can swing drastically. They can soar up at a rapid pace and then drop suddenly without warning.
There is no guarantee that cryptocurrency will be lucrative in the future. While some nations have accepted digital currencies, others have pushed several regulations on them. China has recently made it illegal to deal in crypto. It can be a complex process to determine the inherent price of a crypto asset. By gaining some industry insight, you can make better trading decisions.
What should you know about crypto trading platforms?
A cryptocurrency trading platform is an exchange where you can trade digital assets. Some of them also allow you to exchange cryptocurrency with government-backed currency. These platforms allow you to understand how the transactions are carried out for digital assets. Thus, if you are a serious crypto dealer, you should gather the maximum possible information on them.
Some platforms let you use bots that analyze the market with the help of certain indicators. The developer programs certain instructions into them, and once all the conditions are satisfied, they carry out the trade operation automatically. This way, you can earn profits without any manual effort.
How do crypto trading platforms function?
Just like Forex and stock trading lets you earn gains by taking advantage of the changing prices, crypto platforms let you profit from the extremely volatile rates for crypto assets. Before you can conduct your trades, you must register on the platform, sharing your personal information.
While some platforms have definite pricing structures, others allow for P2P trading, where you deal with another user directly. They compute the price of assets on the basis of the trading volume. The top trading platforms serve as market makers, and some of them earn money through commissions.
What to consider before choosing a cryptocurrency trading platform?
Prior to signing up on a platform, you need to ensure your funds are well-protected. There have been instances where traders have lost their funds due to the company suffering from bankruptcy. You also need to determine which assets you can trade using the platform.
The majority of platforms earn money through commissions. Therefore, comparing the pricing plans for different platforms is necessary. You don’t want to sign up with a company that asks for a hefty monthly fee. In case you are a novice trader, you need to choose a platform that is user-friendly.
How to start trading for beginners?
Here are the steps you need to follow to begin trading on the best cryptocurrency trading platform:
After selecting a reliable crypto platform, you ought to complete the registration process. Based on your investment amount, the available assets, and the services chosen, the company will authenticate the information you provide. In some cases, they will ask you to upload your identity proof.
Before you can trade in crypto assets, you must deposit funds into your account. You may need to connect your bank account with the one you use for trading in digital currencies. Some platforms require you to stand by for some time before you can commence trading.
Start live trading
After transferring money into your account, you need to select the assets you wish to trade. There are several digital currencies available on the market these days, but some can only be traded via P2P transactions.
You need to ensure the safety of your funds by storing your purchases in a wallet. Some platforms allow you to choose from several in-built strategies, while others let you develop your own trading schemes from scratch. If you are a beginner, you should carefully research the market and begin with small volumes.
7 best cryptocurrency trading platforms
Let us look at the best trading platforms available on the market today:
Bitstamp – the best crypto exchange of 2022
Bitstamp describes itself as the ‘cornerstone of the Bitcoin industry,’ being one of the first official exchanges providing BTC trading in 2011 and the oldest crypto exchanges generally. According to its website, more than 4 million clients globally use Bitstamp.
Of course, the exchange offers more cryptocurrencies nowadays (a total of 54) like Ether, XRP, Tether, Cardano, Litecoin, etc. Clients can use TradingView with Bitstamp to buy or sell coins through the standard order types.
While Bitstamp is a long-standing exchange, its product line is lean, making it one of the most accessible crypto trading platforms for beginners.
So, what are Bitstamp’s main features? The exchange provides about 138 markets from 54 coins, a combination of USD, EUR, and GBP-based pairs. Bitstamp charges a maximum of 0.5% for every trade, and as with virtually all exchanges, a higher trading volume in 30 days lowers the costs.
To begin trading, you only need 10 USD/GBP/EUR (0.0002 BTC for BTC pairs; 0.002 ETH for ETH pairs).
Besides using a supported crypto, Bitstamp offers other fiat-based funding options like bank wire and credit/debit card. Users can trade using a web-based interface or a mobile app available for Android and iOS users.
‘Bitstamp Earn’ is Bitstamp’s staking service where you can currently earn 4.94% APR staking Ethereum and 5% APR staking Algorand. Unlike most exchanges, you can contact the exchange 24/7 via phone and email.
- Founded in 2011
- Competitive trading fees
- 24/7 email and phone support
- Supports USD, EUR, and GBP markets
- Reasonable account minimum
- Mobile app provided for Android and iOS devices
- Integrated with TradingView
- No live chat support
- Minimal coin selection for staking
- No wallet offered
eToro – the best social crypto trading platform
eToro was introduced in 2007, and now it has millions of members all over the world. Via this platform, you can deal in 17 distinct crypto assets. It is possible to use your own digital wallet and benefit from the convenience offered by the mobile apps for Android and iOS. eToro also lets you mimic the trades of experts and view their trading statistics and portfolios.
Tier-1 regulators like the FCA and the ASIC have authorized this broker. You can start with as little as $20, and the fee is quite affordable, lying between 0.75% and 2.9%. The company is transparent, and on the official website, you can find a lot of information on its history.
If you are a beginner, this platform is perfect for you. It has demo trading facilities that let you check the performance of your strategy without investing real money. You can deal in numerous assets like Litecoin, Cardano, Ripple, Bitcoin Cash, Ethereum, and Bitcoin. It also lets you follow up to 100 merchants at the same time.
- A large number of investment options
- Funding an account is cheap
- Advanced social trading functionalities
- Not available in certain US states
FTX – the best crypto trading platform
‘Built by traders, for traders,’ FTX’s team consists of employees with experience from leading Wall Street trading firms and globally-recognized tech corporations like Facebook and Google.
The exchange has increasingly become the go-to platform for the most advanced traders and investors looking for industry-first derivatives, ranging from futures, leveraged tokens to options and volatility tokens.
These qualities have resulted in FTX presently being in the top 3 for exchanges with the highest trading volume, according to CoinMarketCap.
So, what are the main features of FTX? The exchange provides derivatives trading in futures, spot, options, volatility, and prediction markets. It offers around 446 markets from 312 different cryptocurrencies.
The exchange is relatively stripped-down in fees as no minimum deposit exists, and no deposit/withdrawal fees apply with most of the coins provided. This allows clients to focus on trading without any hassles.
If funding through bank wire, you can choose between an impressive range of eight fiat currencies, which is quite remarkable for an exchange. The other benefit is FTX has its own utility token, FTT.
By staking this coin, one receives many benefits like discounts on trading fees, bonus votes in polls, tickets to initial exchange offerings on FTX, increased airdrop reward, etc.
- One of the most valuable crypto exchanges globally
- Has the FTT utility token
- Expansive selection of tradable markets
- Provides different types of derivatives trading
- Supports eight fiat currencies
- No live chat or phone support
- May be not suitable for beginning traders
Coinbase – the best crypto exchange for newbies
Coinbase has been around for almost a decade, and many experts consider it the best crypto platform. In terms of trading volume, it currently occupies the third position, and it tells you that many people trust this platform. Both Android and iOS users can use the Coinbase wallet without any extra fees. It is one of the few places where you can conduct crypto-to-crypto trades.
There are over 50 crypto coins available on Coinbase. The minimum balance for your account is $2, which makes it ideal for novice merchants. Almost every US state allows trading through this platform. While the Coinbase platform requires you to make payments via USD, the Coinbase Pro platform lets you conduct transactions using cryptocurrency. It also has complex charting tools that allow you to make better decisions.
Coinbase is an affordable service where you need to pay a fee based on the net trading amount. The spread is quite low at 0.5%, although it can go up to 2% if the market fluctuates a lot. Your assets are well-protected by insurance.
- Extremely low minimum deposit
- Funds protected through insurance
- Available in most US states
- Lack of transparency regarding fee structure
OKX – best for cheapest fee rates
OKX (known beforenas OKEx) is a top Seychelles-based crypto exchange used by tens of millions of clients in more than 100 countries. Founded in 2017 by Star Xu, OKX has become an all-encompassing trading platform for all things crypto under one roof.
The exchange supports a number of trading, earning, borrowing, and DeFi services, along with even its own blockchain (OEC), utility token, and proof-of-work mining pools. Whether it’s the first time you’re exchanging cryptocurrencies or doing so for years, OKX will surely have a facility that interests you.
There are several distinct advantages of OKX over other exchanges. Firstly, the company has some of the lowest trading fees in the industry (0.08% maker and 0.10% taker fees). OKX permits their clients to trade roughly 334 coins, an impressive selection only matched by a few exchanges.
For these reasons, it’s no surprise OKX ranks highly in trading volume, regularly processing several billion dollars daily. With no starting balance, you can simply exchange two cryptocurrencies or one with over 30 fiat currencies supported by the platform.
Or, if you’re a bit more seasoned, you can use a number of advanced derivatives, namely margin, perpetual swaps, futures, and options, to speculate in the markets. Trading can be conducted via a browser, a Windows/Mac desktop application, or their branded Android/iOS mobile app.
Clients can fund via crypto, bank transfer, VISA/Mastercard, and Apple Pay. Like Binance, KuCoin, and FTX, OKX has its own utility token allowing users discounts on trading fees, passive income opportunities, and exclusive access to token sales.
- One of the most prominent exchanges by trading volume
- A comprehensive selection of cryptocurrencies
- No account minimum
- Offers its own utility token
- Mobile app available for Android and iOS
- Provides numerous DeFi services
- Not available for US users
- Less preferable for novice traders
Paxful – best for security features
If you are interested in P2P trading, then Paxful is the best platform to buy cryptocurrency. Launched in 2015, Paxful is trusted by more than 4.8 million traders worldwide. While other exchanges require you to use an order book, this one lets you connect with other users for dealing in digital currencies. You don’t have to pay a transaction fee while buying assets. When selling, you need to pay an amount based on the payment mode.
Paxful is a transparent company that shares the details of its team members. It uses 256-bit SSL encryption to protect your sensitive data. The wallet is safe from hackers, thanks to the 2-factor authentication.
There are more than 300 payment modes available on this platform. In case you face any issues, there is a support forum you can visit. It has a great affiliate program that lets you earn money by referring users through your blog and social media handles. You can even chat with the vendor from whom you’ll be purchasing the asset.
- Multiple payment options
- Helpful support forum
- The advanced biometric verification process
- Not regulated
- High exchange rate
Kraken – reputable crypto trading platform
This is one of the oldest cryptocurrency platforms out there. Due to its several years of experience, it is hardly surprising that Kraken is one of the top crypto trading platforms. Here, you can choose from over 60 digital assets. You also receive valuable market insights from experts and personalized consultation sessions. Thanks to its margin trading features, you can borrow large sums of money that allow you to conduct more trades.
Kraken offers low trading commissions and high-end security and this makes it ideal for both novice and seasoned traders. It stores most of the deposits at offline facilities and protects its servers through armed security. On the platform, you can find a wealth of educational resources that will help you get started. Additionally, you can stake your assets and reap the rewards twice each week from the exchange. One of the unique features of this platform is the dark pool. This is for traders dealing in high volume who wish to remain anonymous.
- Advanced security features
- Futures and margin trading facilities
- Low minimum deposit of 0.0001 BTC
- Tax support not available
iTrustCapital – best for retirees
If you wish to invest using an Individual Retirement Account or IRA, then iTrustCapital is the best trading platform for cryptocurrency. Here, you can trade in 7 cryptocurrencies while using simple analysis tools that even beginners can master. You need to pay a small monthly fee of $29.95, and every time you make an investment, you need to pay an additional charge. There is a comprehensive setup guide and 24*7 support that makes using this platform really easy.
The platform can be navigated easily, and you can closely monitor the changing investments over a certain time period. The company has a knowledge center where you can gain vital insight into the coins you are about to trade. iTrustCapital offers on-call and live chat support and allows you to invest in crypto without worrying about taxes. It stores all assets on the Curv wallet that complies with international security standards. Also, you can transfer your existing IRAs and roll over your retirement plans.
- Extremely fast transaction speed
- The customer support offered via phone and live chat
- Affordable trading fees
- A limited number of assets compared to others
There was once a cloud of controversy surrounding the crypto industry, but today it is a thriving financial market ripe with opportunities. That being said, wise traders ought to understand the risks associated with crypto trading and educate themselves on the assets and the factors that affect the prices.
Before signing up on a platform, you need to consider your investment goals and requirements. All of the platforms mentioned above are legitimate and safe, but you still need to do your own research before investing real money. Once you understand how the market works, you can reap the benefits and establish a parallel income source.