Looking for the best crypto broker? Check out this month’s sign up bonuses from some of Benzinga’s top cryptocurrency brokers such as Coinbase and eToro.
Cryptocurrencies have gained widespread attention in recent years, with many people believing that they are the future of finance. The potential for transformative impact is clear, and as the cryptocurrency market continues to evolve, it is expected to become even more competitive. This year, new brokers are entering the scene, offering innovative features and services to cater to the growing demand for digital assets. Selecting the right crypto broker is crucial for success in trading or investing in digital assets, and Benzinga has compiled a list of the best cryptocurrency brokers to help simplify the search.
The Difference Between a Crypto Broker and an Exchange
A cryptocurrency broker is a company or individual that facilitates buying and selling of cryptocurrencies for a fee. They typically offer a more personalized service and may set their own prices. On the other hand, a cryptocurrency exchange is a platform where users can trade cryptocurrencies with each other. Exchanges have order books and allow for more direct trading between users.
Quick Look at the Best Crypto Brokers:
- Best Bitcoin Broker: Coinbase
- Best for Social Investing: eToro
- Best for Active Traders: Interactive Brokers
- Best for Buying and Selling Dogecoin: Robinhood
- Best for Crypto Futures Traders: Kraken
- Best for Businesses: ICONOMI
- Best for Auto Trade: Carbon DeFi
Table of Contents
- The Difference Between a Crypto Broker and an Exchange
- Best Cryptocurrency Broker Options
- What Does a Crypto Broker Do?
- Pros & Cons of Cryptocurrency Brokers
- How to Choose the Best Crypto Broker
- Are You Ready for the Future?
- Frequently Asked Questions
Best Cryptocurrency Broker Options
When choosing a crypto broker, it is important to consider their services and strengths. Some brokers offer social trading platforms and a wider selection of altcoins for trading. The best crypto broker for you will depend on your specific trading or investing style.
1. Best Bitcoin Broker: Coinbase
Read Review
Best For:
Active Crypto Traders
securely through Coinbase's website
Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
Coinbase is the most popular and one of the best brokers for cryptocurrencies in the U.S. and has served over 100 million users. It is well-known for its security and compliance with regulators. You can trade more than 250 cryptos on the platform with industry-standard trading tools and premier security. Coinbase also gives its users free crypto in a few different ways.
When you sign up for an account with Coinbase you get a chance to spin a reward wheel for a prize of up to $200 in Bitcoin or USD. Coinbase also has a great program called Coinbase Learn where you can earn a small amount of crypto by just reading about a token and taking a very short quiz. There is usually only about $20-$30 worth of crypto to earn from this, but it's much better than nothing. You can also stake your cryptos on the platform with ease to earn passive income on your tokens.
Pros
- Brand name recognition
- Over 200 cryptos to trade
- Rewards available
Cons
- Experienced trouble in the past
2. Best for Demo Accounts: eToro
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Best For:
Social Investing
securely through eToro's website
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
eToro fundamentally changed the way many people trade and invest with its social trading platform. Social trading involves mirroring another trader or investor’s transactions in a special social trading account. While you make the same amount proportionally as the trader you’re copying, you also take the same percentage of losses the trader takes. You can trade traditional investments like stocks and exchange-traded funds (ETFs) and cryptos on the same platform with eToro, making it a fantastic all-around platform.
Winner of Benzinga's FinTech Awards for Best Multi-Asset Platform.
Pros
- Social trading
- Access to several asset types
- Lots of information for new investors
Cons
- Fees can vary widely
3. Best for Active Traders: Interactive Brokers
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Best For:
Active and Global Traders
Interactive Brokers provides active crypto traders with numerous advantages over competitors. Did you know that most crypto exchanges charge a spread on your buy or sell orders? This means that you are paying extra for your crypto. Interactive Brokers charges no added spreads, markups or custody fees and charges low commissions from just 0.12% to 0.18% of the trade value. Interactive Brokers currently offers Bitcoin, Bitcoin Cash, Ethereum, Litecoin and more digital tokens from Paxos Trust Company.
Listmaker of Benzinga's FinTech Awards for Best Day Trading Software, Best Broker for Short Selling & Winner for Best Paper Trading Platform.
Pros
- Massive functionality
- No added spreads or markups
- Partnered with Paxos Trust
Cons
- Short list of digital assets
4. Best for Buying and Selling Dogecoin: Robinhood
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Best For:
Buying & selling Dogecoin
securely through Robinhood Crypto's website
Robinhood is a popular commission-free trading app that allows users to buy, sell and trade a variety of cryptocurrencies, including Dogecoin (DOGE). With its user-friendly interface, additional financial services, 24/7 customer support and crime insurance to safeguard against breaches or theft, Robinhood makes it easy to invest in the world of cryptocurrency.
Pros
- Offers commission-free trading on cryptocurrencies
- User-friendly interface for beginners
- Accessible on mobile devices for trading on-the-go
Cons
- Limited selection of cryptocurrencies
- The app is available to US-based users only
5. Best for Crypto Futures Traders: Kraken
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Best For:
Crypto futures traders
securely through Kraken's website
Kraken offers a range of business-friendly offerings and access to tough-to-find tokens like Gnosis, Kava and Dogecoin. In addition to these tokens, there are a total of over 50 to trade that allow you to diversify your portfolio as much as you like. You can set up a business account easily, hold your personal portfolio with Kraken and enjoy 24/7 customer support.
There’s also the Kraken Trade Desk and Kraken Account Management for corporate clients, making this platform much simpler for futures traders and corporate financial managers to use.
Pros
- Access to a range of unique coins helps you stay on just one platform
- Corporate account services that can help all sorts of institutional traders
- 24/7 customer service
Cons
- You may not want to focus on unique crypto assets
6. Best for Businesses: ICONOMI
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Best For:
Businesses Wanting Exposure to Cryptocurrency
securely through ICONOMI's website
ICONOMI is a unique crypto site that allows you to enter the crypto market at your own pace. For example, when you visit the site, it asks simple questions: do you want to trade crypto and automate your portfolio, or do you want to copy the strategy of a professional?
You can look through all the features on the site or check out strategies that could benefit you. From there, you fund your account and get to work on your portfolio. This platform works like a broker in that you can set up everything on the site, but it strays away from a traditional cryptocurrency brokerage in offering unique options.
ICONOMI is a great place to go if you’re just getting started or if you’re tired of the standard brokers that might not give you what you’re looking for.
You can also earn money by sharing your strategy with other users. Referral bonuses are available and business accounts are available if your company is trading or if you are a financial planner or advisor.
The robust platform lets you share information and learn from other traders, with a learning section for those who want to read up on the subject. Pricing is clearly noted on the site. You can open an account for free, start trading and enter the crypto market right away.
Pros
- Bonuses and extras help build your portfolio that much faster
- Free accounts help you get used to the platform before investing too much money
- Copy trading makes it far simpler to align with particular trading strategies which you prefer
Cons
- May be easier to use this platform as a financial manager rather than as a retail investor
7. Best for Auto Trade: Carbon DeFi
Read Review
Best For:
Decentralized Automated Trading Solutions
securely through Carbon DeFi's website
Carbon DeFi is a decentralized exchange (DEX) that offers custom trading bots on the Ethereum blockchain. What does this mean for you? This platform operates much like a traditional broker because it uses linked orders to mimic grid trading, giving you a better experience.
You can create fully transparent, automated trading strategies that take advantage of the movement of the market, current pricing and quick execution to increase profits and reduce losses. This is no different than using bracket orders through a traditional broker, and the interface is just as simple as one you would find through a standard broker.
Orders move in one direction on this platform so that active crypto traders can move take advantage of market movements to buy a token low and sell high. There are no counterparty risks, zero fees charged on trades and it supports ERC-20 tokens like ETH, MATIC, LINK and USDC.
Your bots are fully customizable, and you can adjust in or out of trends as you need. Carbon DeFi may be built for those who have a clear understanding of the DeFi space, but it can work well for those in the know.
Pros
- The interface you want with the customizable bots that will make your trading that much simpler
- Platform works a lot like a traditional broker
Cons
- Not necessarily a traditional broker and may require quite a bit of knowledge to use to its fullest potential
What Does a Crypto Broker Do?
A crypto broker is an individual or.a company that assists clients in buying, selling, and trading cryptocurrencies. They may offer advice on investment opportunities, help clients navigate different exchanges, and execute trades on behalf of their clients. Crypto brokers play a key role in the rapidly growing cryptocurrency market by providing expertise and guidance to investors seeking to navigate this complex and volatile market.
Pros & Cons of Cryptocurrency Brokers
Before you decide to use a crypto broker for your trading needs, it's crucial to weigh the benefits and drawbacks to determine if it aligns with your financial goals and risk tolerance.
Advantages of a Crypto Broker
- Provides easy access to a wide range of cryptocurrencies
- Offers user-friendly platforms for trading
- Offers educational resources for beginners
- Can provide liquidity to quickly buy and sell cryptocurrencies
- Can provide personalized investment advice and strategies
Disadvantages of a Crypto Broker
- May have high fees or commissions
- Trustworthiness of crypto brokers can vary
- Limited regulation and investor protection compared to traditional financial institutions
How to Choose the Best Crypto Broker
Here are some key factors to consider when selecting a crypto broker:
- Security: The security of your funds should be your top priority when choosing a crypto broker. Look for brokers that offer two-factor authentication, cold storage for funds and insurance against hacking or theft.
- Reputation: Research the reputation of the broker by reading reviews, checking online forums and asking for recommendations from other traders. A reputable broker will have a history of reliable service and transparent operations.
- Fees: Consider the fees charged by the broker for trading, withdrawals and deposits. Some brokers may offer lower fees but have hidden costs, so be sure to read the fine print and understand all fees associated with trading on the platform.
- User interface: The user interface of the broker's platform should be easy to navigate and user-friendly. Look for a platform that offers advanced charting tools, real-time market data and order execution capabilities.
- Customer support: Choose a broker that offers excellent customer service with multiple channels of communication such as phone, email and live chat. It is important to have access to support in case you encounter any issues or have questions about your trades.
- Regulation: Ensure that the broker is regulated by a reputable financial authority to protect your funds and ensure that the broker is operating within legal guidelines. Regulation provides an added layer of security for traders.
- Asset selection: Consider the range of cryptocurrencies offered by the broker. Some brokers may offer a wide selection of coins, while others may only offer a limited number. Choose a broker that offers the cryptocurrencies you are interested in trading.
Are You Ready for the Future?
The future of finance is pointing towards digital currency and blockchain technology, with cryptocurrencies becoming more widely accepted as a form of online payment. While they are currently volatile, they offer potential long-term investment opportunities and are gaining ground as powerful contenders in the financial landscape. It is recommended to start exploring the world of digital assets with a reputable cryptocurrency broker. The best crypto broker for you will depend on your trading style, preferences and level of experience. Take the time to research and compare different brokers to find the one that best suits your financial needs.
Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts
Frequently Asked Questions
Q
What is the role of a cryptocurrency broker?
A
Cryptocurrency brokers provide speculative contracts on the price of digital currencies. You own the right to buy or sell the contracts as prices shift, not the digital currency.
Q
What are the best cryptocurrency brokers to use?
A
You can choose from a number of brokers, including eToro, Robinhood and WeBull. The best one depends on your needs and if they support the altcoin that you’re interested in.
Q
How much do crypto brokers charge?
A
Crypto brokers typically charge fees in the form of spreads or commissions on each trade. These fees can vary widely depending on the broker and the specific cryptocurrency being traded. It’s important for investors to carefully research and compare different brokers to find the best fees for their trading needs.
Q
Do you need a broker to buy Bitcoin?
A
No, you do not need a broker to buy Bitcoin. You can purchase Bitcoin through various online platforms or cryptocurrency exchanges.
