How cryptocurrency trading works? A comprehensive overview on how to trade and buy Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Monero (XMR) etc. can be found here. The purchase, sale, and exchange of Fiat currency for cryptocurrency are done in cryptocurrency exchange websites. Most cryptocurrency exchanges will require the user to have a verified ID and account while other exchanges do not require users to hold accounts. There are primarily two types of exchanges namely; forex brokers (with crypto CFD’s/stocks) and crypto exchanges (which include trading platforms and direct trading). When looking for a suitable exchange for your trading, you should consider the reputation, transaction fees, payment methods, verification requirements, geographical restrictions, and the exchange rate of each exchange. Some of the best cryptocurrency exchanges include;
Risk warning Advertiser disclosure
Organization
Info
Rating
Start trading
This is a very accessible and enjoyable forex broker to use. eToro is one of the first global platforms which is used in more then 140 countries. eToro supports the regular trading products like CFD stocks, indices, commodities and nowadays also cryptocurrencies. eToro supports 1:1 crypto trading, CryptoFund (best crypto's combined) and forks. May be the easiest way to start trading.
Read review
This platform allows cryptocurrency traders to trade CFDs, traders can choose between more then 10 of the most popular cryptos. Trading can be done on a 24/7 basis, also leverage is supported. No fees are charged for trading and you can familiarize yourself with Markets.com by testing this platform with a demo account. This is a very reliable platform with an excellent customer service. CFDs carry risk. 73% of traders lose. Read review
24option is a market leader in cryptocurrency CFD trading. It features an intuitive interface that is both user-oriented and beginner-friendly. The platform sophistication allows beginner cryptocurrency traders and advanced traders alike to move around the site’s wide range of indicators and instruments with ease, thereby assuring users of an easy flow in trading, analysis, and management of portfolio regardless of experience level. It also provides crypto users with adequate educational materials. This is why there is no other service that comes close to offering the speed and variety hosted by 24option. Read review
AvaTrade is very similar to eToro and Markets.com. It's a user friendly forex broker which provides over 200 instruments to trade including commodities, indices, stocks, and cryptocurrencies. Read review
It is backed by trusted investors and is one of the most popular exchanges. Coinbase is a quick and direct method of buying Bitcoin. However, it is limited to some countries, it supports just a few cryptocurrencies (nonetheless those cryptos can be send towards Bittrex, Poloniex etc. to trade altcoins) and payment methods are not as diverse. Read review
This exchange is ideal for both professional traders and beginners, with decent exchange rates and worldwide support. However, the verification process is quite lengthy and requires a high deposit on each account. Read review
This site provides for the exchange of cryptocurrencies for other cryptocurrencies, crypto's can also be bought with USD. It is backed by some of the leading experts on cryptocurrency markets such as Jaxx wallet, which is one of the most prominent wallets on the cryptocurrency community. It is integrated into cryptocurrency trading platforms using robots which makes the bids and asks on the platform.
Read review
This platform does not require users to hold an account. It is friendly for beginners, offers exchange for a number of cryptocurrencies and exchange can be done on a mobile app. However, it has no fiat currencies and has limited payment options.
Pros and cons
A great cryptocurrency exchange in terms of stability, customer support and the amount of available alt-coins. However there is no fiat support and there is a certain basic level of knowledge required to start trading.
Pros and cons
It is the largest Bitcoin exchange in euro volume and liquidity, with suitable transaction fees and exchange rate but has limited payment methods and is not suitable for entry level traders.
Pros and cons
It has high trading volumes with low trading fees, BTC lending, and fast account creation. However, it offers no fiat support and below average customer service.
Pros and cons
It is a global map of Bitcoin ATMs which primarily work like any other ATM, with no ID verification required and good customer support. However, it is not always possible to find a Bitcoin ATM located near you.
Pros and cons
| Organization | Interface + service | Payment methods | Diversity crypto's | Recognized platform | Location + availability | Storage required |
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| Organization | Info | Rating | Start trading |
|---|---|---|---|
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24option is a market leader in cryptocurrency CFD trading. It features an intuitive interface that is both user-oriented and beginner-friendly. The platform sophistication allows beginner cryptocurrency traders and advanced traders alike to move around the site’s wide range of indicators and instruments with ease, thereby assuring users of an easy flow in trading, analysis, and management of portfolio regardless of experience level. It also provides crypto users with adequate educational materials. This is why there is no other service that comes close to offering the speed and variety hosted by 24option. Read review | |
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This is a very accessible and enjoyable forex broker to use. eToro is one of the first global platforms which is used in more then 140 countries. eToro supports the regular trading products like CFD stocks, indices, commodities and nowadays also cryptocurrencies. eToro supports 1:1 crypto trading, CryptoFund (best crypto's combined) and forks. May be the easiest way to start trading. Read review | |
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This platform allows cryptocurrency traders to trade CFDs, traders can choose between more then 10 of the most popular cryptos. Trading can be done on a 24/7 basis, also leverage is supported. No fees are charged for trading and you can familiarize yourself with Markets.com by testing this platform with a demo account. This is a very reliable platform with an excellent customer service. CFDs carry risk. 73% of traders lose. Read review | |
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AvaTrade is very similar to eToro and Markets.com. It's a user friendly forex broker which provides over 200 instruments to trade including commodities, indices, stocks, and cryptocurrencies. Read review | |
|
| Organization | Info | Rating | Start trading |
|---|---|---|---|
| |
It is backed by trusted investors and is one of the most popular exchanges. Coinbase is a quick and direct method of buying Bitcoin. However, it is limited to some countries, it supports just a few cryptocurrencies (nonetheless those cryptos can be send towards Bittrex, Poloniex etc. to trade altcoins) and payment methods are not as diverse. Read review | |
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This exchange is ideal for both professional traders and beginners, with decent exchange rates and worldwide support. However, the verification process is quite lengthy and requires a high deposit on each account. Read review | |
|
| |
This site provides for the exchange of cryptocurrencies for other cryptocurrencies, crypto's can also be bought with USD. It is backed by some of the leading experts on cryptocurrency markets such as Jaxx wallet, which is one of the most prominent wallets on the cryptocurrency community. It is integrated into cryptocurrency trading platforms using robots which makes the bids and asks on the platform. Read review | |
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| |
This platform does not require users to hold an account. It is friendly for beginners, offers exchange for a number of cryptocurrencies and exchange can be done on a mobile app. However, it has no fiat currencies and has limited payment options. Pros and cons | |
|
| |
A great cryptocurrency exchange in terms of stability, customer support and the amount of available alt-coins. However there is no fiat support and there is a certain basic level of knowledge required to start trading. Pros and cons | |
|
| |
It is the largest Bitcoin exchange in euro volume and liquidity, with suitable transaction fees and exchange rate but has limited payment methods and is not suitable for entry level traders. Pros and cons | |
|
| |
It has high trading volumes with low trading fees, BTC lending, and fast account creation. However, it offers no fiat support and below average customer service. Pros and cons | |
|
| |
It is a global map of Bitcoin ATMs which primarily work like any other ATM, with no ID verification required and good customer support. However, it is not always possible to find a Bitcoin ATM located near you. Pros and cons | |
|
| Organization | Info | Rating | Start trading |
|---|---|---|---|
| |
24option is a market leader in cryptocurrency CFD trading. It features an intuitive interface that is both user-oriented and beginner-friendly. The platform sophistication allows beginner cryptocurrency traders and advanced traders alike to move around the site’s wide range of indicators and instruments with ease, thereby assuring users of an easy flow in trading, analysis, and management of portfolio regardless of experience level. It also provides crypto users with adequate educational materials. This is why there is no other service that comes close to offering the speed and variety hosted by 24option. Read review | |
|
| |
This is a very accessible and enjoyable forex broker to use. eToro is one of the first global platforms which is used in more then 140 countries. eToro supports the regular trading products like CFD stocks, indices, commodities and nowadays also cryptocurrencies. eToro supports 1:1 crypto trading, CryptoFund (best crypto's combined) and forks. May be the easiest way to start trading. Read review | |
|
| |
This platform allows cryptocurrency traders to trade CFDs, traders can choose between more then 10 of the most popular cryptos. Trading can be done on a 24/7 basis, also leverage is supported. No fees are charged for trading and you can familiarize yourself with Markets.com by testing this platform with a demo account. This is a very reliable platform with an excellent customer service. CFDs carry risk. 73% of traders lose. Read review | |
|
| |
AvaTrade is very similar to eToro and Markets.com. It's a user friendly forex broker which provides over 200 instruments to trade including commodities, indices, stocks, and cryptocurrencies. Read review | |
|
| |
It is backed by trusted investors and is one of the most popular exchanges. Coinbase is a quick and direct method of buying Bitcoin. However, it is limited to some countries, it supports just a few cryptocurrencies (nonetheless those cryptos can be send towards Bittrex, Poloniex etc. to trade altcoins) and payment methods are not as diverse. Read review | |
|
| |
This exchange is ideal for both professional traders and beginners, with decent exchange rates and worldwide support. However, the verification process is quite lengthy and requires a high deposit on each account. Read review | |
|
| |
This site provides for the exchange of cryptocurrencies for other cryptocurrencies, crypto's can also be bought with USD. It is backed by some of the leading experts on cryptocurrency markets such as Jaxx wallet, which is one of the most prominent wallets on the cryptocurrency community. It is integrated into cryptocurrency trading platforms using robots which makes the bids and asks on the platform. Read review | |
|
| |
It is the largest Bitcoin exchange in euro volume and liquidity, with suitable transaction fees and exchange rate but has limited payment methods and is not suitable for entry level traders. Pros and cons | |
|
| |
It is a global map of Bitcoin ATMs which primarily work like any other ATM, with no ID verification required and good customer support. However, it is not always possible to find a Bitcoin ATM located near you. Pros and cons | |
|
| Organization | Info | Rating | Start trading |
|---|---|---|---|
| |
This platform does not require users to hold an account. It is friendly for beginners, offers exchange for a number of cryptocurrencies and exchange can be done on a mobile app. However, it has no fiat currencies and has limited payment options. Pros and cons | |
|
| |
A great cryptocurrency exchange in terms of stability, customer support and the amount of available alt-coins. However there is no fiat support and there is a certain basic level of knowledge required to start trading. Pros and cons | |
|
| |
It has high trading volumes with low trading fees, BTC lending, and fast account creation. However, it offers no fiat support and below average customer service. Pros and cons | |
|
| Organization | Info | Rating | Start trading |
|---|---|---|---|
| |
24option is a market leader in cryptocurrency CFD trading. It features an intuitive interface that is both user-oriented and beginner-friendly. The platform sophistication allows beginner cryptocurrency traders and advanced traders alike to move around the site’s wide range of indicators and instruments with ease, thereby assuring users of an easy flow in trading, analysis, and management of portfolio regardless of experience level. It also provides crypto users with adequate educational materials. This is why there is no other service that comes close to offering the speed and variety hosted by 24option. Read review | |
|
| |
This is a very accessible and enjoyable forex broker to use. eToro is one of the first global platforms which is used in more then 140 countries. eToro supports the regular trading products like CFD stocks, indices, commodities and nowadays also cryptocurrencies. eToro supports 1:1 crypto trading, CryptoFund (best crypto's combined) and forks. May be the easiest way to start trading. Read review | |
|
| |
This platform allows cryptocurrency traders to trade CFDs, traders can choose between more then 10 of the most popular cryptos. Trading can be done on a 24/7 basis, also leverage is supported. No fees are charged for trading and you can familiarize yourself with Markets.com by testing this platform with a demo account. This is a very reliable platform with an excellent customer service. CFDs carry risk. 73% of traders lose. Read review | |
|
| |
AvaTrade is very similar to eToro and Markets.com. It's a user friendly forex broker which provides over 200 instruments to trade including commodities, indices, stocks, and cryptocurrencies. Read review | |
|
| |
It is backed by trusted investors and is one of the most popular exchanges. Coinbase is a quick and direct method of buying Bitcoin. However, it is limited to some countries, it supports just a few cryptocurrencies (nonetheless those cryptos can be send towards Bittrex, Poloniex etc. to trade altcoins) and payment methods are not as diverse. Read review | |
|
| Organization | Info | Rating | Start trading |
|---|---|---|---|
| |
24option is a market leader in cryptocurrency CFD trading. It features an intuitive interface that is both user-oriented and beginner-friendly. The platform sophistication allows beginner cryptocurrency traders and advanced traders alike to move around the site’s wide range of indicators and instruments with ease, thereby assuring users of an easy flow in trading, analysis, and management of portfolio regardless of experience level. It also provides crypto users with adequate educational materials. This is why there is no other service that comes close to offering the speed and variety hosted by 24option. Read review | |
|
| |
This is a very accessible and enjoyable forex broker to use. eToro is one of the first global platforms which is used in more then 140 countries. eToro supports the regular trading products like CFD stocks, indices, commodities and nowadays also cryptocurrencies. eToro supports 1:1 crypto trading, CryptoFund (best crypto's combined) and forks. May be the easiest way to start trading. Read review | |
|
| |
This platform allows cryptocurrency traders to trade CFDs, traders can choose between more then 10 of the most popular cryptos. Trading can be done on a 24/7 basis, also leverage is supported. No fees are charged for trading and you can familiarize yourself with Markets.com by testing this platform with a demo account. This is a very reliable platform with an excellent customer service. CFDs carry risk. 73% of traders lose. Read review | |
|
| |
AvaTrade is very similar to eToro and Markets.com. It's a user friendly forex broker which provides over 200 instruments to trade including commodities, indices, stocks, and cryptocurrencies. Read review | |
|
| |
It is backed by trusted investors and is one of the most popular exchanges. Coinbase is a quick and direct method of buying Bitcoin. However, it is limited to some countries, it supports just a few cryptocurrencies (nonetheless those cryptos can be send towards Bittrex, Poloniex etc. to trade altcoins) and payment methods are not as diverse. Read review | |
|
| |
This exchange is ideal for both professional traders and beginners, with decent exchange rates and worldwide support. However, the verification process is quite lengthy and requires a high deposit on each account. Read review | |
|
| |
This site provides for the exchange of cryptocurrencies for other cryptocurrencies, crypto's can also be bought with USD. It is backed by some of the leading experts on cryptocurrency markets such as Jaxx wallet, which is one of the most prominent wallets on the cryptocurrency community. It is integrated into cryptocurrency trading platforms using robots which makes the bids and asks on the platform. Read review | |
|
| |
This platform does not require users to hold an account. It is friendly for beginners, offers exchange for a number of cryptocurrencies and exchange can be done on a mobile app. However, it has no fiat currencies and has limited payment options. Pros and cons | |
|
| |
A great cryptocurrency exchange in terms of stability, customer support and the amount of available alt-coins. However there is no fiat support and there is a certain basic level of knowledge required to start trading. Pros and cons | |
|
Storage
Cryptocurrencies, like fiat currency, need to be stored (this is not the case at brokers, they will take care of it). Cryptocurrencies can be stored on your blockchain address called a Wallet. Each Wallet is assigned both a public and private address whereby the public address is used to receive funds while the private keys act as the password to accessing and sending your funds. The blockchain wallet can be further classified into;
| Type of storage | Explanation |
|---|---|
| Paper wallet | Which is ideally the most secure but least convenient. Funds are stored on paper through printing preferable on waterproof printing paper and stored anywhere safe. |
| Online wallet | Which is the easiest but least secure. However, it is convenient for online purchases and account financing. |
| Mobile and desktop wallets | Mobile wallet requires the use of the “Mycelium” app to store your funds on your phone. The desktop wallet, on the other hand, is where all funds are stored entirely on your computer. |
| Hardware device wallet | Whereby funds are stored in hardware devices such as; Flash Drives. |
Examples of the best hardware device wallets include;
| Hardware wallet | Explanation |
|---|---|
| Ledger Nano S | This is an example of a Hardware device wallet designed to resemble a flash drive, which can store cryptocurrencies such as Bitcoin and Ethereum and other Altcoins, in a safe, malware proof environment. It is connected via USB cable and can run multiple apps. |
| Ledger Blue | It essentially is a large colored touch screen which features the most advanced hardware security gear, offering easy transportation, storage, and security. However, the price for this device is quite high but the value it adds to your trading activities and just as significant. |
| TREZOR | This device offers Google Chrome extensions for a quick set up and easy use. It is one of the most secure and ideal for authenticating and storing cryptocurrencies. |
| Electrum | This platform uses remote servers to provide security for cryptocurrency traders to manage their portfolios and private keys. It integrates with hardware device wallets such as TREZOR or Ledger products. Account recovery is done using a secret phrase and private keys can be stored offline on Electrum. |
| Mycelium | This is a mobile app which allows its users to send and receive Bitcoin in a secure scene. It is android based and has a hardware wallet and is also integrated with TREZOR. |
| Jaxx | This wallet offers an integrated support system for ShapeShift. Its users are given a multi-currency wallet for the private keys they hold. The user interface is one of the best for entry level and expert level traders. They are launching their own hardware device wallet, Ice Cube, to enhance security. |
Once you have started trading cryptocurrencies, you probably would want to track the prices of the currencies in your portfolio. There are a few apps designed for cryptocurrency trading including;
| Tracking app | Explanation |
|---|---|
| Blockfolio | This app allows the user to create a watch list and add trades to track their portfolio and displayed in the currency of choice while other tracking apps insist on displaying in Bitcoin. |
| Coincap | This app allows the user to filter cryptocurrencies by market capitalization, volumes, and other ranking features. It also allows the user to display the information in the currency of choice. |
Payment methods e.g.
The higher the rating the easier and more convenient it is to start to trade and to enter the market. Brokers are generally an easy way to trade cryptocurrencies as those are well-established companies, have userfriendly interfaces (also for beginners), fiat payment options and you don’t have to think about how to store cryptocurrencies. Although a high degree of leverage can work against you as well as for you.
Most crypto trading platforms and direct trading websites are exchanges which are still busy building up a good reputation. Some of them are really good but can lack fiat payment options, are focused on experienced users or you need to take care of your own cryptocurrency storage. However a big benefit of some cryptocurrency exchanges is that they are available on a worldwide basis without restrictions concerning your location.
Furthermore, brokers tend to provide only the top tier cryptocurrencies, while some crypto exchanges offer a wide range of alt-coins.
Questions? Contact us!