Bitcoin, Ethereum, Ripple, Litecoin - all these long-established cryptocurrencies, along with the latest generation of tokens, dubbed altcoins, are attracting the attention of plenty of investors from all over the world. And many brokers are struggling to absorb the incredible demand for new trading accounts, opened to wager on the cryptocurrency’s prices, especially Bitcoin.

The speculation on cryptocurrencies has reached such a point that many investors think if they wait any longer, they risk missing the Bitcoin bandwagon. Everyone has an opinion regarding this highly-volatile market, with some analysts, and investors, expecting an imminent crash, while others think that another price surge will happen, to levels never reached... who will be right?

Check out the Bitcoin versus the USDT price action for the past weeks on the Binance exchange.


Still, this incredible and decentralized market of cryptocurrencies trading is full of trading opportunities; for day-traders, medium-term traders and even long-term investors. Despite the several attempts to clamp down an unregulated market, and the negative news affecting Bitcoin prices, such as the UK’s FCA banning crypto CFDs trading and China’s Government ordering the closing of Bitcoin mining operations, cryptocurrencies are here to stay, and that is a fact.

Especially now that cryptos, for the past two years (period 2020-2021), are on the crosshairs of several worldwide companies (Tesla Inc.), mutual-funds (Ark Invest) and banks (Santander Group).

KEY TAKEAWAYS

  • The 3 best performing cryptocurrencies of all time are Bitcoin (BTC), Ether (ETH) and Litecoin (LTC).
  • Trading cryptos with CFDs brokers allows traders to go long or short on the price action.
  • Unlike fiat currencies, cryptos are not subject to any financial regulations, nor official reports from central banks, but rather to news on social media. Thus, these assets can be extremely volatile.
  • Leverage for cryptocurrencies CFDs is restricted to 2:1 in Europe and Australia, and cryptocurrencies CFDs (and any crypto-derivatives) are banned in the UK for retail traders.

How to Trade Cryptocurrencies

Trading Cryptos via an Exchange

To trade a cryptocurrency versus a fiat currency there are two options. The first option is via an exchange, like CEX.IOKraken, or Binance. Any of these 3 reputable exchanges originate billions of dollars of liquidity, on a daily basis, for the most popular cryptocurrencies, so order filling won’t be a problem.

Trading via an exchange also gives access to the Alt markets, allowing investors to trade one cryptocurrency vs another, like the DOGE/BTC or the XRP/ETH, for example. And now, exchanges are also catering for investors with low trading capital, by offering leveraged trading, giving traders the possibility of using it to buy larger positions.

The only drawdown of trading cryptos via an exchange is the single option of buying only, meaning that short-selling is not allowed and traders cannot benefit from bearish trends.

 TIP  If you decide to trade cryptocurrencies via an Exchange, we strongly recommend Binance for its range of cryptocurrencies and services offering. Take advantage of their latest promotions and open a free account with Binance today.

Trading Cryptos via a CFDs Broker

The second option to trade cryptocurrencies is via a CFDs broker. Contrarily to trading cryptos via an exchange, where traders need a wallet and own the asset, a CFD (Contract for Difference) is a financial instrument that allows investors to buy (or sell) leveraged contracts of an asset - leverage for cryptocurrencies CFDs is restricted to 2:1 in Europe and Australia - without owning them. Thus, crypto CFDs trading does not require a wallet for holding the cryptos, and investors are free to close the trading position at any time.

CFD trading is currently the easiest and most straightforward way to invest in cryptocurrencies without having to mine, or buy them on an exchange and wait for the price to go up to sell and make a profit.

Contrarily to exchanges, crypto brokers allow short-selling, thus, when there are some negative news impacting the BTC price, for example, traders can make money by selling the asset price.

We would like to highlight the fact that trading cryptocurrencies via CFD brokers is an alternative to unregulated cryptocurrency exchanges, as CFD brokers are highly-regulated, and supervised, by several financial authorities, with most of them also offering a regulatory deposit insurance and negative balance protection.

Overview: Best Cryptocurrency Brokers 2021

  • Axi broker
    Axi5 pairs, BTC/USD spread 63.00, minimum deposit 0 USD
  • FXOpen broker
    FXOpen43 pairs, BTC/USD spread 37.00, minimum deposit 10 USD
  • IC Markets broker
    IC Markets13 pairs, BTC/USD spread 42.00, minimum deposit 200 USD
  • RoboForex broker
    RoboForex4 pairs, BTC/USD spread 32.00, minimum deposit 10 USD
  • ThinkMarkets crypto broker
    ThinkMarkets16 pairs, BTC/USD spread 40.00, minimum deposit 0 USD
  • TradeviewMarkets broker
    TradeviewMarkets4 pairs, BTC/USD spread 33.00, minimum deposit 100 USD
  • Pepperstone broker
    Pepperstone9 pairs, BTC/USD spread 40.49, minimum deposit 200 AUD
  • LiteForex broker
    LiteForex19 pairs, BTC/USD spread 105.00, minimum deposit 50 USD
  • Instaforex broker
    Instaforex11 pairs, BTC/USD spread 192.00, minimum deposit 1 USD

To learn more about each broker, and to help you select the right one for your trading strategy, we have prepared a quick overview, for each cryptocurrency broker, focusing on three main features:

  • Range of cryptocurrencies crosses available for trading,
  • Minimum deposit required to open a trading account,
  • Spreads and commissions on the most popular crypto cross, the BTC/USD.

You can also check how other traders, with a verified trading account, rate each crypto broker and what they like and dislike about them, by clicking the “read the full review” link.

Axi broker

Axi
Zero commission when trading cryptos

Main Features
  • 5 cryptocurrencies vs. the USD: BCH, BTC, ETH, LTC, XRP
  • 1 account type, Standard (minimum deposit from 0 USD)
  • BTC/USD average spread 63.00 - 0 commissions

With headquarters in Australia, Axi (formerly AxiTrader) offers services in leveraged CFDs trading, giving clients the potential to generate financial returns on both rising and falling prices across a selected range of cryptocurrencies versus the USD.

While leverage is limited to 2:1 for European and Australian clients, investors opening a trading account with AxiTrader Limited, registered with company number 25417 BC 2019 and regulated by the Saint Vincent and the Grenadines Financial Services Authority (FSA), can apply for a 5:1 leverage for cryptocurrencies trading.

When trading cryptos with Axi, you don’t need to pay commissions on any transaction, and combined with their low spreads, Axi makes it more affordable to trade cryptocurrencies. Crypto trading can be done with the MT4 NextGen platform, EA compatible, with free access to the excellent Autochartist tool. Also on a positive note, and for those looking to analyse their trading performance, Axi offers access to the PsyQuation Premium platform. The PsyQuation platform uses the power of Artificial Intelligence and Machine Learning algos, to guide traders towards smarter trade decisions and improved profitability.


Check out how other traders, with a verified trading account, rate Axi for its services and product offering: Read the Axi full review.



FXOpen broker

FXOpen
Excellent range of 43 pairs available for trading

Main Features
  • 43 cryptocurrencies vs.:
  • USD: BCH, BTC, DSH, EMC, EOS, ETH, LTC, NMC, PPC, XRP
  • EUR: BTC, EOS, ETH, LTC, XRP
  • RUB: BTC, ETH, LTC
  • GBP: BTC, EOS
  • JPY: BTC, EOS, ETH, LTC
  • CNH: BTC, DSH, ETH, LTC
  • Altcoins: BCH/BTC, DSH/BTC, EOS/BTC, EMC/BTC, ETH/BTC, ETH/LTC, ETC/BTC, IOT/BTC, LTC/BTC, NMC/BTC, OMN/BTC, PPC/BTC, XRP/BTC  
  • 1 account type, Crypto (minimum deposit from 10 USD)
  • BTC/USD average spread 37.00 - 0.5% trading commission

FXOpen was originally created as an educational centre, offering technical analysis and financial markets trading courses. Early in 2005, the company launched its brokerage services to satisfy the need for transparent and advanced trading conditions. Following on this, FXOpen was the first broker to offer its clients ECN trading via the Meta Trader 4 terminal.

Offering an excellent selection of 43 cryptocurrencies crosses (including a wide range of Altcoins) available for trading, FXOpen is betting on the popularity of this asset, and to confirm it, the broker also accepts Bitcoin deposits. FXOpen unique price aggregation makes them one of the best crypto trading platforms for expert traders, and their ECN accounts delivers the most cost-effective form of trading, meaning that traders can benefit from the most favourable market conditions.

Trading can be done via the robust MetaTrader 4, including with the aid of Expert Advisors and trading scripts, while scalping and hedging are also possible thanks to their ECN technology. Trading can be done 24/7 with a 0.01 lot minimum transaction size (no maximum).


Check out how other traders, with a verified trading account, rate FXOpen for its services and product offering: Read the FXOpen full review.



IC Markets broker

IC Markets
Low trading costs and great customer support

Main Features
  • 13 cryptocurrencies vs. the USD: BCH, BTC, DOT, DSH, EMC, EOS, ETH, LINK, LTC, NMC, PPC, XLM, XRP
  • 2 account types, Raw and Standard (minimum deposit from 200 USD)
  • BTC/USD average spread 42.00

Established and incorporated in Sydney in 2007 by a team of professionals in the financial services industry, IC Markets is currently Australia's largest CFDs provider. As an ASIC and CySEC regulated entity, IC Markets is required to meet strict financial standards, including capital adequacy and audit requirements.

IC Markets cryptocurrencies CFDs allows traders to go long or short, 24/7, without actually holding the cryptocurrency, meaning that traders can trade the asset's price action, without worrying about the security risks associated with storing it and the counterparty risk from the exchange.

This broker is extremely popular with traders for their overall low trading costs and their great customer support, always at hand to help clients and novice traders. Crypto trading can be done with fast execution speeds and flexible trading conditions on the robust MetaTrader 4 platform, and on the last-generation MetaTrader 5. IC Markets Raw Pricing connectivity makes MetaTrader 5 one of the most powerful platform for active traders.


Check out how other traders, with a verified trading account, rate IC Markets for its services and product offering: Read the IC Markets full review.



RoboForex broker

RoboForex
Trade the BTC/USD with a Cents account

Main Features
  • 4 cryptocurrencies vs.: USD: BTC, ETH and EUR: BTC, ETH
  • 4 account types, ProCent, Pro, ECN, Prime (minimum deposit from 10 USD)
  • BTC/USD average spread 32.00 + variable commission

RoboForex is a CFDs broker supplying customers and partners with quality and reliable brokerage services using modern tools and technologies. RoboForex follows a hybrid business model, serving both as a Market Maker as well as offering ECN/STP trading conditions as a non-dealing desk broker.

Despite a limited offer of only 4 cryptos crosses to trade, RoboForex is on our list of best cryptocurrency brokers for two reasons. First, for its flexible leverage ratio. While crypto leverage is limited to 2:1 for European clients, investors opening a trading account with RoboForex Ltd Belize, an entity registered in Belize and regulated by the Belize International Financial Services Commission (IFSC), can apply for a 50:1 leverage for cryptocurrencies trading.

The second reason why RoboForex is on our list regards the availability of Cent accounts, allowing novice traders to try their hand at cryptocurrency trading in a safer environment, only requiring a small deposit of 10 USD to start. Together with these two features, RoboForex competitive spread on the BTC/USD cross, makes them also one of the cheapest brokers for trading Bitcoin CFDs.


Check out how other traders, with a verified trading account, rate RoboForex for its services and product offering: Read the RoboForex full review.



ThinkMarkets broker

ThinkMarkets
24/7 crypto trading, with competitive spreads.

Main Features
  • 16 cryptocurrencies vs. the USD: ADA, BAT, BCH, BTC, DOGE, DOT, DSH, EOS, ETH, LINK, LTC, XLM, XMR, XRP, XTZ, ZEC
  • 2 account types, Standard (minimum deposit from 0 USD) and Zero (minimum deposit from 500 USD)
  • BTC/USD average spread 40.00

Established in 2010, ThinkMarkets (formerly ThinkForex) is a premium multi-asset online brokerage with headquarters in London and Melbourne and hubs in the Asia-Pacific, MENA region, Europe and South America.

ThinkMarkets offers 24/7 access to several crypto markets, so traders never miss an opportunity again. With this excellent broker, cryptos can be traded any day of the week, including Staurday and Sunday, and investors can benefit from their consistently low spreads on all trading platforms. 

Trading is available on the platform that best suits the trader's needs; the robust ThinkTrader (the excellent ThinkMarkets proprietary platform), the next-generation MetaTrader 5 and the ever-popular MetaTrader 4.


Check out how other traders, with a verified trading account, rate ThinkMarkets for its services and product offering: Read the ThinkMarkets full review.



TradeviewMarkets broker

TradeviewMarkets
Access the best bid/offer from 50 prime liquidity providers.

Main Features
  • 4 cryptocurrencies crosses: BTC/USD, BTC/JPY, ETH/USD, LTC/USD
  • 1 account type, X Leverage (minimum deposit from 100 USD)
  • BTC/USD average spread 33.00

Tradeview was established in 2004 with the goal to provide innovative online trading solutions to a broad range of traders and investors around the world. More than just a brokerage, Tradeview enables its clients with the latest trading technology, flexibility and personal support from their team of industry professionals. Tradeview Ltd is a fully registered Securities and Investment Business entity (SIBL) with the Cayman Island Monetary Authority (CIMA), with licence number 585163.

TradeviewMarkets offers its clients access to the best bid/offer quotes from 50 prime LPs, and with its ECN technology, the broker has the ability to aggregate all liquidity providers, building a solid order book and providing the best quotes to clients.

TradeviewMarkets proposes three trading platforms, suitable for crypto trading; from the classic MetaTrader 4 and the next-gen MetaTrader 5, to the more complete, and with advanced capabilities, cTrader platform.


Check out how other traders, with a verified trading account, rate TradeviewMarkets for its services and product offering: Read the TradeviewMarkets full review.



Pepperstone broker

Pepperstone
Competitive trading costs, fast withdrawals.

Main Features
  • 9 cryptocurrencies vs. the USD: BCH, BTC, DOT, DSH, ETH, LINK, LTC, XLM, XRP
  • 2 account types, Razor and Standard (minimum deposit from 200 AUD)
  • BTC/USD average spread 40.49

Pepperstone was founded in 2010 by a veteran management team with years of experience in the trading and technology industries. With an excellent range of social trading platforms, including Mirror Trader and Duplitrade, the company offers direct access to multiple liquidity providers.

With Pepperstone, traders have the availability of trading Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ripple, Polkadot and more, over the weekend, as the broker offers 24/7 trading. Pepperstone is a global CFD broker regulated by ASIC, BaFin, CMA, CySEC, DFSA, FCA and SCB and offers 99.88% fill rate with no-requotes, fast execution and no dealing desk intervention.

In conjunction with the above, Pepperstone offers competitive trading costs and fast withdrawals, allowing traders to cash-in their earnings quickly and smoothly. Crypto trading can be executed via MT4, MT5 and cTrader, with a flexible leverage of up to 10:1 on all of their trading platforms.


Check out how other traders, with a verified trading account, rate Pepperstone for its services and product offering: Read the Pepperstone full review.



LiteForex broker

LiteForex
Accepts account deposits in BTC, ETH, LTC.

Main Features
  • 19 cryptocurrencies vs.:
  • USD: BTC, DSH, EDO, EOS, ETH, ETP, IOTA, LTC, NEO, SAN, XMR, XRP, ZEC
  • BTC: DSH, ETH, LTC, NEO, XMR, ZEC
  • 2 account types, ECN and Classic (minimum deposit from 50 USD)
  • BTC/USD average spread 105.00

With thousands of accounts opened, in nearly 10 years of business, and operating in more than 100 countries, according to their corporate website, LiteForex seems to have their fair market share.

Founded in 2005, LiteForex is one of the leading brokerage companies, offering an ECN environment trading experience and catering for traders from all over the world. LiteForex is on the list of top 100 companies according to World Finance. In 2008 the company became a member of the Russian Association of Financial Market Members (the RAFMM).

LiteForex was among the first brokers to offer cent accounts, with low deposits, as little as $1. This unprecedented step made online trading available to hundreds of thousands of clients, and the great thing about trading cryptos with this broker, is the availability of account deposits in BTC, ETH and LTC. Cryptocurrencies trading is available via the MetaTrader 4 and MetaTrader 5.


Check out how other traders, with a verified trading account, rate LiteForex for its services and product offering: Read the LiteForex full review.



Instaforex broker

Instaforex
Accepts deposits in BTC and LTC.

Main Features
  • 11 cryptocurrencies vs. the USD: ADA, BCH, BTC, DOGE, DOT, ETH, FIL, LINK, LTC, UNI, XRP
  • 2 account types, Insta.Standard and Insta.Eurica (minimum deposit from 1 USD)
  • BTC/USD average spread 192.00 + 0.1% commission

Established in 2007, Instaforex offers quality online trading services in the several asset classes, including cryptocurrencies. With over 500,000 individual and corporate customers, every day nearly 400 new traders open an account with Instaforex, choosing this broker as their partner to invest in the financial markets.

For international clients, Instant Trading Ltd (BVI) is licenced by the BVI FSC, with licence number SIBA/L/14/1082. In Europe, Instant Trading EU Ltd is regulated by the Cyprus Securities and Exchange Commission (CySEC), with licence number 266/15. Instaforex offers 11 pairs to trade, and with a very low deposit of just US$1 and accepting Bitcoin and Litecoin account deposits, this broker could be positioned to cater for investors looking to trade cryptos.

Instaforex also grabs the attention of many traders for their huge and excellent range of trading education materials, especially the Instaforex fundamental & technical analysis reports and the broker's own media channel, the InstaForex TV. Crypto trading is available via MT4 and MT5.


Check out how other traders, with a verified trading account, rate Instaforex for its services and product offering: Read the Instaforex full review.



Conclusion

Cryptocurrencies are portraited as a great investment opportunity, thanks to their extremely volatile nature, representing a particularly lucrative option for any investment portfolio, so much so, that they are now one of the most popular options among traders at all levels of experience, including institutional investors.

The most important digital currencies are Bitcoin, Ethereum and Litecoin, also the most capitalised cryptocurrencies, with daily trading volumes reaching hundreds of millions of dollars, on the money market.

But there are several other electronic currencies that have achieved high market shares such as Dash (DSH), Bitcoin Cash (BCH), Ripple (XRP), Monero (XMR) and Cardano (ADA).

The primary objective of these currencies, and this new technology, is to allow trading without the intervention of banks or other financial institutions. The value of cryptocurrencies is largely controlled by the technology behind them, which determines the protocol for identifying and transferring money.

CFD brokers who have included cryptocurrencies in their asset classes have multiplied with the rise in popularity of these markets, but not all of them offer the opportunity to truly exploit the potential of electronic currencies, as only leveraged speculative trades are allowed, without the actual ownership of the underlying asset.

Before trading these assets, however, it is important to know and understand that cryptocurrencies are traded on non-regulated decentralized digital exchanges (from where CFD brokers get their quotes), and the price volatility of these assets is subject to general market sentiment, negative and positive news affecting it, like cryptocurrency theft, central government interventions, or positive outlook by social media moguls. Trading cryptocurrencies is therefore at the investor's own risk.

Disclaimer:

Cryptocurrencies CFDs are not suitable and/or appropriate for all traders. Investors intending to trade, or invest in cryptocurrencies CFDs, should consider whether they understand how CFDs work, the volatility of cryptocurrencies and whether they can afford to take the high risk of losing their capital.