Best Online Brokers for Crypto Trading in 2024

The Bottom Line

With the price of Bitcoin reaching new highs in March 2024, it is critical to choose the best online brokers that suit your personal preferences and needs as a crypto investor. eToro allows users to trade the largest variety of coins among all the brokers we reviewed, across user-friendly web-based and mobile applications. In addition, eToro’s unique social-focused platform allows individuals to follow along, copy the trades of and learn from top-performing traders, while the availability of smart portfolios provides the opportunity to invest in a managed collection of cryptocurrencies based on a specific theme or strategy.

If you’re a beginner looking to dip your toes into crypto for the first time, a beginner-friendly trading app with no fees or minimums like Robinhood can be a good place to start. Conversely, experienced traders looking to execute more advanced trading strategies in the crypto markets will appreciate what Interactive Brokers brings to the table with its selection of technical analysis indicators, charting tools and relatively low trading fees. Finally, if you are most interested in investing in crypto ETFs, Fidelity is your best choice as it offers a range of Bitcoin ETFs for its clients.

Compare the best online brokers for trading Crypto

Company Fees Account Minimum Currencies New Spot Bitcoin ETFs eToro 1% + variable spread $10 (for US residents)
90+ (total), 21 (in 47 US states) Yes Interactive Brokers 0.12% to 0.18% with no additional spreads, markup or custody fees $0 4 Yes Robinhood 0% $0 15 (in 48 – 49 US states), 25 (in the EU) Yes Fidelity Investments 1% $1 2 Yes

What is a Krypto broker?

A crypto broker is an online platform that allows traders and investors to buy and sell cryptocurrencies. Popular examples include Robinhood and eToro.

Unlike crypto exchanges, which are typically unregulated, online brokers that provide crypto trading support are generally regulated financial services companies, which assure investors that their funds are safe and that their investments comply with existing regulations.

Additionally, online crypto brokers are typically easier to use than crypto exchanges, which typically have a high learning curve for first-time users.

How to get into Crypto Trading

Getting started with crypto trading using an online crypto broker involves only a few steps. Let’s look at them.

Choose a broker: Choose an online brokerage account that fits your preferences and needs as an investor. Set up an account: Create an account with the online broker and deposit funds. In the case of online brokers, this will typically be dollars (or any other fiat currency). Buy crypto: Choose the cryptocurrencies you want to invest in after researching each asset to ensure you know what you’re buying and are comfortable with the level of risk you’re taking. Store your crypto investments securely: When buying crypto using an online broker, you are often given the choice between storing your investments with the broker or withdrawing them to a personal crypto wallet. Choose whichever option you feel more comfortable with after educating yourself on the pros and cons of self versus third-party crypto storage.

Pros and Cons of Crypto Brokers

Now let’s look at the pros and cons of trading crypto using an online crypto broker.

Advantages

A familiar look and feel: Investors who are used to buying and selling securities via an online broker will feel more at home trading crypto on the same platform than on a crypto exchange. Regulatory compliance: Online crypto brokers are typically regulated, ensuring compliance with existing regulations of all investments made via the platform. Customer Support: While crypto exchanges often lack effective customer support, online brokers, especially large established ones, typically offer high-quality customer support.

Disadvantages

Limited control of funds: Keeping your crypto assets with a broker means that you usually do not have access to your cryptocurrencies to spend them online or deploy them on decentralized finance protocols. Limited cryptocurrency support: Most online brokers tend to offer only a handful of cryptocurrencies to trade, limiting the potential for investors to build a widely diversified crypto portfolio.

Alternatives to Crypto Brokers

Crypto brokers offer an easily accessible and familiar way to trade cryptocurrencies. However, it may not be for everyone. Alternatively, you can also trade cryptocurrencies on centralized or decentralized crypto exchanges.

Centralized Crypto Exchanges: If you want to earn investment income through staking or lending, creating an account on a centralized crypto exchange would be the more suitable option. Decentralized Exchanges (DEXs): If you want to trade a wide range of digital assets and feel comfortable using a Web3 wallet, you can also trade crypto on decentralized exchanges (DEXs).

How to Store Cryptocurrency

As a cryptocurrency trader or investor, you have the choice between storing your cryptocurrency investments on an online trading platform or in a personal crypto wallet.

While the convenience of holding your crypto assets on an exchange or with an online broker may be tempting, storing your digital assets in a crypto wallet that only you can access is generally considered the safer option.

When it comes to crypto wallets, you have the choice between software and hardware wallets. Software wallets are applications you can download to your smartphone or computer to store your assets, while hardware wallets are physical devices used to store the private keys that give you access to your crypto holdings.

The right crypto storage solutions will depend on your personal preferences and level of technical expertise, but keeping your digital asset investment offline in a hardware wallet is probably the safest option for most crypto traders and investors.

Frequently Asked Questions

Crypto trading refers to actively buying and selling cryptocurrencies to generate regular trading profits. Unlike crypto investing, which involves buying and holding digital assets for the longer term, crypto trading focuses on short-term gains and typically involves following market trends and using technical analysis indicators to determine entry and exit price levels.

Trading of cryptocurrencies takes place on dedicated crypto exchanges or online brokerage platforms and can be done via the spot or crypto derivative markets.

When it comes to trading cryptocurrencies, you have the choice between using a broker or a crypto exchange. If you already have an account with an online broker that supports crypto asset trading, it is probably easiest to use it to trade digital currencies and tokens as well. The familiarity, convenience and ease of use speak for using a broker to trade crypto. In addition, brokers are regulated financial services companies that offer a high level of security and regulatory compliance.

Crypto exchanges are usually less regulated and have higher security risks, as they are popular targets for hackers looking to steal cryptocurrencies. In addition, it is usually a bit more difficult to use than popular online brokers, such as Robinhood and eToro. That said, crypto exchanges usually also offer additional investment options, such as staking and interest-bearing accounts, which allow crypto traders and investors to earn returns on their crypto assets.

Crypto trading can be profitable if you have a deep understanding of what drives price movements in the crypto market and are able to apply technical analysis in an effective manner. Implementing adequate risk management strategies is also an essential piece of the puzzle to limit downside risk in this highly volatile market.

It is important to note that while the increased volatility of cryptocurrencies can create a potentially profitable environment for traders, it can also lead to large trading losses for unskilled traders, especially when leverage is used.

Spot trading in crypto refers to the buying and selling of actual cryptocurrency with immediate delivery, as opposed to trading crypto derivatives, such as perpetual swaps, which allow you to speculate on the price of the underlying asset without having to really owning it.

How we choose the best brokers for crypto trading

Cryptocurrency traders seek to profit from price fluctuations, making use of market analysis and trading strategies. However, trading in cryptocurrencies carries risks of extreme volatility, regulatory uncertainty and security vulnerabilities. To help our readers find the best platform to meet their needs, we researched 26 online brokers and evaluated them based on a number of criteria critical to cryptocurrency trading, including fees, available crypto assets, trading and research tools, plus additional features.

Disclaimer for Uncirculars, with a Touch of Personality:

While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.

No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.

And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.

Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!

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