Cryptocurrencies are becoming more and more successful as time goes on, and not just in Bitcoin, but across the entire investment spectrum. Some speculate that they will continue to evolve into new currencies, while others believe that they will become an asset class dedicated to a limited number of business interactions.
However, investing in cryptocurrencies does not require a high level of theoretical knowledge, just as investing in other asset classes does not require a high level of economic knowledge.
The 8 best sites for investing in Bitcoin and cryptocurrencies
At the beginning of 2021, the cryptocurrency market experienced record levels of volatility. With more and more people investing, it’s crucial to choose the right exchange for your situation.
As with many things in life, there is no one-size-fits-all solution, so it’s important to determine what works best for you.
- trading station
With countless investment assets including cryptocurrencies, exchange-traded funds (ETFs), stocks, and options, TradeStation is billed as the all-in-one investment platform.
With numerous awards and uptime of 99.999%, the platform is expected to remain competitive in 2021 and beyond.
– Uncompromising affordability: TradeStation offers many more asset classes than just cryptocurrencies, at incredibly competitive prices. Deposits and withdrawals are free of charge and you can buy many shares. In addition, the average interest rate on cryptocurrency account balances is 0.5%, making it a very competitive option.
– Minimum Deposit: TradeStation requires a minimum deposit of $2,000 to use almost all of their services. There is no minimum deposit required to use cryptocurrencies.
– Awards: TradeStation has won numerous awards, including “Best New Product” at the 2020 Benzinga Global Fintech Awards and “Technology Platform” at StockBrokers.com for eight consecutive years. We are proud of our achievements.
Soon to be listed on NASDAQ, Coinbase offers an advanced trading platform and secure tools to help you invest. It’s a solid all-around choice.
Many newcomers turn to Coinbase as a launchpad for investing in cryptocurrencies because it offers some robust tools, as well as a deeper understanding of the market and learning curve.
– Robust portfolio and one-stop exchange: Most cryptocurrency exchanges now have a tied portfolio, but Coinbase maintains much of its appeal based on a simple, straightforward interface that allows you to cut through the complexity and get to work.
– High liquidity: With so many users on the exchange, you don’t have to worry about a lack of liquidity in the market, which can lead to stalled transactions or the inability to make certain trades.
– MIA Wallet Key: As with many cryptocurrency exchanges that maintain their own wallets, you will not have access to your own wallet key and will not have full control over your coins.
– Altcoin options: With access to more than 25 coins outside of Bitcoin, Coinbase offers options outside of the mainstream of cryptocurrencies. This includes its own coins pegged to the US dollar, which continue to hold their value during market fluctuations. While other platforms may offer a greater variety of alternative currencies, Coinbase strikes a balance between accessibility and clarity for newcomers.
As a non-bank lender, BlockFi combines cryptocurrency investment options with the ability to borrow using cryptocurrency as an asset.
– Effective Savings Account Rates: BlockFi allows individuals to earn up to 8.6% per year on their cryptocurrency holdings, far outstripping many other savings options.
– Lending options: BlockFi allows you to use your coin holdings for loans. This can be very useful, but if the price of cryptocurrencies changes rapidly, you may run afoul of the loan’s threshold agreement.
– Lack of Insurance: Despite offering loans and actual savings rates through the cryptocurrencies you hold, these accounts are not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC). This insures against bank and brokerage failures and some fraudulent activity by the companies they deal with.
– Rates are subject to change: BlockFi currently offers an interest rate to hold your cryptocurrency, but you are free to change the rate at any time.
If you’re looking for investment options in a number of cryptocurrencies and prefer a day trading approach to invest, Binance may be the perfect platform for you.
It offers access to a lot of data and a variety of coins. This avoids exchanges sitting out because they don’t have access to coins that are making big moves.
– Plenty of options: Binance has a huge number of cryptocurrency options, including altcoins, which are alternatives to some of the most well-known and traded coins. over 100 different coins are available.
– Basic or Advanced: Binance has options for beginners and advanced traders and provides all the information you need. Whether you are trading a lot or just starting out, Binance has what you need.
– Initial Offerings: Every time a new coin is issued, there is an Initial Offering of the already mined coin to the public. Binance is the first to release these coins, allowing investors to get their hands on the new coins at a discount before their valuations settle.
– Trustpilot warning: Despite being a bit of a favourite amongst reviewers and commentators, Binance has received relatively low ratings from customers on several different websites. Many of the complaints seem to be about customer service and other issues. Many of the complaints may not be legitimate, but given the prevalence of such complaints, they may serve as a warning.
Founded in 2011, Kraken is one of the longest-running beasts in the cryptocurrency world.
– Advanced Contracts Kraken’s exchange offers a contract type that is relatively rare in the cryptocurrency space. You can buy a variety of currencies as well as options and futures contracts similar to traditional exchanges.
– Geographical restrictions: Currently, Kraken is not available to residents of the US states of New York and Washington, and some other countries, including Japan. This is an interesting restriction as Japan has historically been a cryptocurrency-friendly country.
– Unlimited deposits before verification: In order to comply with certain regulations as well as basic security issues, Kraken requires verification of your personal identity before you can make unlimited withdrawals of earnings. However, before you can do so, you can make unlimited deposits and earn almost immediately.
– Derivative-free leverage: Many derivative trading platforms, such as BitMEX and Bitfinex, are not available due to regulatory restrictions; Kraken avoids this problem by allowing you to trade on margin while trading the aforementioned advanced contracts. Kraken partially avoids this problem by allowing trading on margin while trading the aforementioned advanced contracts.
Gemini is run by the Winklevoss twins. They claimed that their business idea was stolen by the founders of Facebook when the three of them were classmates at Harvard University. They went on to become billionaires as early investors in cryptocurrencies.
Gemini started 2021 by launching a credit card and adding new currencies, including several DeFi (decentralised finance) tokens, amid rumours of a public listing. With high-interest subscriptions available in all 50 US states, Gemini is set to be big news in the coming years.
– Aiming to be professional: Since its inception, Gemini has operated with the clear intention of being the choice for institutional investors with multi-million dollar transactions. We have avoided the Wild West-style branding that many other exchanges would have required. We use Nasdaq technology to manage our exchange and have partnered with Samsung wallets to make that technology available to everyone, from institutional investors to the general public.
– The company’s new service, Gemini Earn, allows people to deposit their coins with Gemini and lend them to others, promising higher interest rates instead of letting the company operate like a traditional bank. This means increased risk, as there is no FDIC insurance to protect deposits in the unlikely event of the account provider’s failure.
– New interest rate: Depending on the size and nature of your holdings at Gemini, we currently offer an interest rate of 3.05% for Bitcoin and up to 7.4% for Filecoin on all deposits with Gemini. These interest rates are better than most bank accounts and some bond investment options.
Coupled with these new developments for 2021 is the promise of a number of tools to help you seamlessly transfer your positions from other exchanges to Gemini. With digital asset insurance brokered by Aon, this exchange has a level of insurance that is unmatched by other cryptocurrency exchanges.
As a “social trading and investment” network, eToro has a number of services that set it apart from other exchanges. Originally a forex (foreign exchange) platform, it now offers cryptocurrencies.
eToro is graphics-heavy and provides a lot of information in an easy-to-read format, but as a result, it is aimed at day traders.
– Come for the trading, stay for the community: Unlike other exchanges, eToro offers a social media and community aspect. A community of other traders is available 24/7, where you can exchange tips, insights, and war stories if you are interested. More recently, communities such as WallStreetsBets have been growing and could be your secret weapon for understanding trading.
– Copy-trading: One of the unique features of eToro is copy trading. This is an option that allows you to automatically follow and execute trades of your favourite financiers on the eToro platform and trade at scale depending on the size of your account.
– Spreads and Rows. Users report that eToro still has wide spreads on many cryptocurrencies, suggesting low liquidity in the market. Related to this, the minimum amount required to buy or copy someone else’s trade is relatively high.
Robinhood was on this list and a top choice before the GameStop and Dogecoin debacle in early 2021, during which the platform temporarily restricted trading in certain stocks and cryptocurrencies that were experiencing extreme volatility.
The episode created a huge PR impact, and the subsequent congressional hearings put the company’s CEO in a difficult position, but Robinhood was able to raise money from investors to get through the incident and may still be able to recover.
– Commission-free investment; Robinhood’s promise has long been the benefit of an affordable investment that works. For cryptocurrencies, transactions take place at 0% commission.
– All the blockbusters: With coins like Bitcoin, Dogecoin, Ethereum, and Litecoin available, the Robinhood platform gives you access to the most popular and most traded cryptocurrencies.
– The question of stopping: With some cryptocurrencies becoming untradeable in early 2021, many people are starting to wonder if Robinhood is right for them. This question drew attention to the fact that it is not possible to transfer positions from Robinhood to other platforms: in order to exit the Robinhood cryptocurrency ecosystem, you have to sell all your positions. This creates a taxable event and is generally frustrating.