Bitcoin brokerage accounts

Instead, your investment remains with the regulated broker at all times, meaning that you can buy bitcoin or sell it at the click of a button.

Top forex bonus list

Best Bitcoin Accounts: How to Open a Bitcoin Account in 5 Minutes, bitcoin brokerage accounts.

You’ll also be able to view the current market value of your bitcoin account with ease. Although bitcoin is one of the most speculative asset classes in the online trading space, investor interest is still growing at an exponential rate. The overarching reason for this is that many believe that bitcoin is likely to play a major role in the future of money.

Best bitcoin accounts: how to open a bitcoin account in 5 minutes

Although bitcoin is one of the most speculative asset classes in the online trading space, investor interest is still growing at an exponential rate. The overarching reason for this is that many believe that bitcoin is likely to play a major role in the future of money.

As such, it’s still not too late to enter the market at a highly favourable price. Looking to find out the best way to invest in the cryptocurrency with a secure bitcoin account? If so, be sure to read our ultimate step-by-step guide!

Our recommended bitcoin account 2020

Buy, sell, trade and store BTC on the etoro platform

Social trading platform & copy trading

Cysec & FCA regulated

What is a bitcoin account?

Although the term is used widely by crypto-newbies, there is no such thing as a ‘bitcoin account’ per-say. On the contrary, bitcoin is a decentralized digital currency, meaning that you will not have an account with a third-party entity. Instead, you can invest in bitcoin by making a purchase from a cryptocurrency exchange such as bitcoin up & bitcoin era, and then withdrawing your coins to a private wallet. This allows you to retain full ownership of your bitcoin, as opposed to entrusting a middleman.

It is also important to note that you can open a bitcoin account with a CFD broker. For those unaware, a CFD allows you to speculate on the future price of an asset without actually owning it.

With bitcoin now a multi-billion dollar asset, you can now invest in the digital currency via a CFD. In doing so, you’ll be using a heavily regulated broker and thus – there is no need to worry about having your bitcoin hacked from your private wallet.

Best btc account providers

So now that you know what a bitcoin account actually is, in this section we are going to explore the best platforms to open one with, and how to setup a bitcoin account in a few simple steps. Take note, both of the following brokers facilitate the buying and selling of cfds, so you won’t need to store your coins in a private wallet.

Instead, your investment remains with the regulated broker at all times, meaning that you can buy bitcoin or sell it at the click of a button. You’ll also be able to view the current market value of your bitcoin account with ease.

1. Etoro: all in one exchange and wallet

If you're based in the US and wish to open a bitcoin account with a regulated broker, we would recommend social trading leader etoro, a well-regulated platform counting with licenses from multiple regulatory bodies. Etoro is an all in one bitcoin account solution allowing users to buy the physical coin and store it in the etoro wallet, or to trade bitcoin as cfds (europe customers only).

If you are interested in trading cfds, etoro provides a safe and intuitive platform with tight spreads, leveraged trading and short-selling, giving users the ability to make money on their bitcoin account even in times of market downtime.

Etoro does not charge any trading fees or commissions, so you will only need to worry about the spread. Being a social trading platform, etoro is also the best bitcoin account for beginners.

Their copy trading technology allows complete beginners to get started with bitcoin trading by learning successful investors portfolios and sharing trading tips and strategies on etoro's interactive social community.

Best cryptocurrency brokers for 2021

Daniel ‘harris’ major

I have tested 40+ crypto brokers. You can find the best cryptocurrency brokers below. This is by far the easiest way to get started with cryptocurrencies.

Cryptocurrency trading has become really popular in the past years. It’s growing more ever year.

Many big trading brokers have already added some of these cryptocurrencies. Everybody can sign up and start trading bitcoin or other crypto coins. This is the easiest and probably the simplest way to invest in cryptocurrency.

After trying out most brokers, here are the best cryptocurrency brokers:

Best cryptocurrency brokers (non-US traders only)

Plus500 – top rated trading platform

Plus500 is a big name in the trading industry. They have a really low minimum deposit requirement and a great trading site.

Buy/sell cfds on bitcoin in addition to buying stocks, commodities, forex etc (traded only through cfds). Plus500 is the most complete trading platform.

Trade cfds on bitcoin & many other cryptos

Minimum deposit is only $100

Regulated and trusted platform

Very fast signup process

Live chat

Many payment methods (even paypal)

You cannot withdraw any cryptocurrency

You have to complete a questionnaire, upon sign up

Plus500 disclaimer: 76.4% of retail CFD accounts lose money.

IQ option – lowest minimum deposit ($10)

If you don’t want to make a huge initial investment, then IQ option is the best broker for you. The minimum deposit requirement is only $10. This is by far the lowest in the industry.

You can trade many cryptocurrencies

Minimum deposit is only $10

Best trading platform

Multiple account currencies

Free demo account

Regulated by CYSEC (#247/14)

Etoro – top crypto broker

Etoro is a really popular trading site. They have been around since 2006. Etoro is regulated by CYSEC, FCA and ASIC.

Buy/sell bitcoin on etoro in addition to buying stocks, commodities, forex etc. Etoro is the most complete trading platform.

Trade bitcoin & many other cryptos

Minimum deposit is $200

Regulated and trusted platform

Australian traders are also accepted

Great support team

Many payment methods (even paypal)

You cannot withdraw any cryptocurrency

You have to complete a questionnaire, upon sign up

Etoro disclaimer: 71% of retail CFD accounts lose money.

Highlow – best all-round crypto broker

Due to regulation highlow stopped accepting traders from the EU and UK.

Highlow is an australian trading broker (AFSL no.364264). What I like most about this broker is the intuitive platform. It is so easy to use. Especially new traders will like the clean layout.

I’ve been using highlow for a few years now and I never had a problem. Highlow publishes their number of trades on the homepage. There are millions of trades on this broker each month.

I use the main platform which is web based. This means, that you don’t have to download any software. This platform is stable and safe (they use SSL).

I have also tried the ios app and the android app. They are great, but I just don’t like trading on smartphones in general.

The payouts on highlow are amazing (up to 200%, which is more than on other brokers).

Highlow is a great broker for cryptocurrencies (but only if you are not from EU,UK, US). They have a good reputation, great support team and awesome promotions for new traders.

Trade bitcoin & other cryptos

Minimum deposit is only $50

Regulated and trusted platform

Fastest signup process (no questionnaires)

Multiple account currencies

Free demo account (no registration needed)

Nadex – US traders welcome

Nadex is a CFTC regulated broker. In fact, this is probably the only US broker that has this regulation.

Only US traders are allowed on nadex. Non-US traders check out the next broker.

Update OCTOBER 2019: looks like nadex removed crypto trading. After contacting them I found out that they will add it back soon. Register on nadex now and get updated when they add it.

Recently, nadex started offering bitcoin trading.

Trade bitcoin, forex or binary options

Minimum deposit is $250

CFTC regulated broker

Great support team

Many payment methods (even paypal)

Crypto brokers with most cryptocurrencies

Here are the most popular cryptocurrencies offered by cryptocurrency brokers:

Etoro – bitcoin, ethereum, litecoin, dash, ethereum classic, NEO and ripple.

Plus500 – bitcoin, ethereum, litecoin, bitcoin cash, ripple, IOTA.

Avatrade – bitcoin, ethereum, ethereum classic, ripple, dash, bitcoin cash litecoin, monero and NEO.

Lowest minimum deposit brokers

These are the best brokers with low minimum deposit requirements:

Etoro – $200

Plus500 – $100

Avatrade – $100

This is really important because the crypto market itself is unregulated. Depositing on a regulated broker means that your money is safe.

We’ve also looked at the support team and the payment methods. You can deposit easily using multiple payment methods on the brokers below.

Top rated brokers that have cryptocurrencies

While we are all familiar with the broad definition of a broker, is there something more to it when it comes to cryptocurrencies?

Simply put, a cryptocurrency broker refers to a website that traders will visit to trade cryptocurrencies at a set price. In many ways, they are similar to forex brokers whose services are a lot more familiar to the general public.

Etoro disclaimer: 71% of retail CFD accounts lose money.

You still can’t decide which broker is best for you?

How to choose your cryptocurrency broker

Is leverage really necessary? Cryptocurrency markets are volatile in nature with prices fluctuating immensely thereby generating high profits even in the absence of leverage. But for some traders, the desire for more earnings justifies the use of leverage.

Before choosing your broker, settle yourself on whether the already immense profits that come from a cryptocurrency market are enough for you or you would like to use leverage to enhance them even further, bearing in mind, of course, that will also significantly increase the risk factor to your funds.

Negative balance protection: it is always advisable to trade with a broker that affords the negative balance protection facility. That way, you will never be at risk of losing more than what you invested in case you sustain very heavy losses.

How suitable is the required capital for you? This is another subjective part to your decision. Do you prefer trading with a small capital or bigger one to help you zero in on bigger returns? Find out what size trades your broker is offering before you open an account.

Narrow spreads for the win: let us be honest, it is only fair that your broker gets a cut from the money you generated having provided you with the essential facilities for it and all. But let us be honest, you definitely want every last dime for yourself.

A spread refers to the difference between the buying price and selling price of a trade and it varies with each broker. The spread is what counts as fees for your broker so the smaller it is, the lower the cost will be on your part.

Lets go into what aspects you as a trader must consider when choosing a broker to trade cryptocurrencies.

Which cryptocurrencies are you interested in trading?

Make sure you have decided on which cryptocurrencies you want to trade in before signing up with your broker.

If your choice is a prominent cryptocurrency like bitcoin (official site), litecoin (official site), or ethereum(official site), there will be a relatively broad availability of brokers that have trading options for those. However, less prevalent examples like monero, IOTA, or zcash may be a little harder to come by.

So study the cryptocurrencies being offered by a broker before you sign up for an account.

Pros and cons of cryptocurrency brokers

Here are some features that these broker have or don’t:
pros

Signup up with a crypto broker is probably the fastest way to get started with cryptocurrency trading

If you are less tech-savvy then a broker is safer for you

You can start buying cryptocurrency while traditional exchanges don’t always accept this payment method

Most of the time you can’t withdraw cryptocurrencies from a broker. You have to exchange it back to fiat money (USD/EUR etc.)

Cryptocurrency brokers – what to look for

Here are some of the more understated details about your cryptocurrency broker that could make your trading experiences so much more efficient and successful.

1. What are the weekend hours like?

This is a key detail that distinguishes cryptocurrencies from other prominent trading markets like forex, futures, and equity. Cryptocurrency brokers operate during the weekends as well.

There is virtually no difference in purchasing bitcoin at the end of the week as opposed to the middle of the week during peak hours.

But there is a catch. While digital currency exchanges are available during the weekend, your broker may not (why is the stock market closed on the weekend?). So in effect, if there is considerable movement within your relevant cryptocurrency market during a weekend when your broker is not operating, you may not have the ability to respond in any way.

2. How is it hedging?

Your broker is probably not keen on revealing if it is hedging cryptocurrency traders but it is important information for you to know.

Why is it so important for you to know?

Because, as a trader, you want to be absolutely in the clear regarding the policies for risk management being followed by your broker. Let us not forget that cryptocurrency markets are extremely volatile and an unhedged broker is more easily prone to major losses incurred by its clients. Naturally, those costs will warrant compensation via fatter spreads and additional costs for traders. It will be best to sign up with a broker that will not withhold the relevant information from you.

More great features you could be interested in

Commissions and trading on margin – an important thing to note while trading cryptocurrencies is that their prices tend to be more similar to equities than they are to real currencies. So your broker could be charging you commissions in addition to a wide spread on each trade. That, of course, raises the cost probably a bit much for your liking.

Another similarity with equities is that the margin conditions with cryptocurrencies are significantly more than they are with forex or cfds. Consequently, leverage is usually up to 10x. How considerable the margin rate will be for traders is down to what trading strategies and risk management they subscribe to.

Authenticity of market data – aside from merely evaluating how it influences spreads, market data for cryptocurrency CFD prices can be a good indicator of how the quality of the product will be in the future.

One of the more recent examples of this is BTC-e which was an immensely popular platform for trading bitcoin before it was shut down by feds. BTC-e was the first bitcoin exchange to incorporate forex trades and so made their exchange accessible via MT4 and supplied cryptocurrency liquidity for brokers.

But once it was shut down, every broker that depended squarely upon BTC-e was left with no hedging options or market data to put a price on its crypto cfds.

Are short sales available? For many traders, shorting is a crucial strategy option, the lack of which can be a deal breaker with a potential broker. Many brokers tend to offer ‘long’ only since there are only a few hedging solutions when opening short trades.

As you see, investing in cryptocurrencies can be a truly lucrative venture for you but only if you get it right.

And a lot of that is down to which broker you decide to trade with.

Ready to start trading?

Trade with the cryptocurrency brokers listed above to make sure that your money is safe, you pick a broker with a stellar reputation and you keep the fees low. Excel at trading bitcoin by creating your own trading strategy.

These cryptocurrency brokers make it really easy to trade bitcoin and other coins. You don’t have to be a trading expert. It helps if you know what a blockchain is or how the ledger and transactions work, but this is all optional.

Best bitcoin brokers with demo mode trading

Current top broker deals:

In the list below you find all brokers with bitcoin trading demo account at a glance – signup and practice bitcoin trading in demo mode with fake money. Only trade with real money or your real bitcoin when you are ready!

Tip for beginners: if you're not yet profitable or if you're doing okay but want to refine your trading skills, we can recommend trying a professional trading group. BTG is the best we know at the moment. Their members' accounts grow by about 20% per month (on average). They offer really good courses and share current trade setups with members. Read our review here.

Platforms with demo trading:

Brokers with bitcoin trading demo account at a glance

Trading in demo mode without real money

Some bitcoin trading sites offer trading in demo mode for newbies – or a demo account, which is pretty much the same. Trading with play money helps you to understand the functionality of the platform and simply get used to using it.

If you feel secure because you are familiar with placing orders and the way the system reacts and executes those orders, then you are ready to trade with your real bitcoin.

Why it is important to practice bitcoin trading

It's important to practice trading at the beginning, as successful trading is a skill which comes with time and experience. You can compare it to driving a car. At the beginning you have to learn some theory and then practice it by driving frequently a little bit, to get used to the system.

You cannot just jump into a sport car and start driving fast to anywhere, when you've never been driving before. The likelihood to cause an accident would be enourmously high. With trading it's the same – you cannot just start and achieve profits all the time.

Likely the opposite will happen – you lose all your funds very quickly. So make sure you learn the basics and take advantage of demo accounts or demo mode trading.

Demo accounts are also helpful for veterans

If you are already experienced, it might still be helpful to first use the demo mode of a new platform. Just to make sure the order types function exactly as you expect.

Sometimes it might happen that the functionalty of different platforms' order types is a little bit different and you might do a mistake by expecting a certain execution which then happens differently.

You can also generally practice trading in the stock market simulator on investopia.Com, to get the principles of trading.

However, if you intend to trade bitcoin on margin it's best to directly learn trading on bitmex on their testnet platform. You find a direct link to their testnet subdomain in the text on this page.

Bitcoin investing: compare accounts for buying & selling bitcoin

Use our comparison table of bitcoin accounts to compare costs and the different ways to buy and sell bitcoin. Please note: investing in bitcoin and other cryptocurrencies is very high risk and not regulated by the FCA. There is a very high chance you may lose all your money.

How to choose an account for investing in bitcoin

Here are three tips and things to consider when deciding which provider to buy bitcoin through:

Look for a regulated provider who also offers bitcoin

Even though bitcoin is an unregulated digital currency, many providers that offer bitcoin investing are regulated by the FCA for other things such as stocks, bonds, bank accounts and trading. By choosing a bitcoin account that is attached to a regulated entity, you will be dealing with a provider who is responsible for treating clients fairly (although not directly for cryptocurrency investing).

Compare the costs of investing in bitcoin

The costs of investing in bitcoin can vary dramatically. The key things to consider are:

Bitcoin commission- some bitcoin accounts will charge a fee when you buy and sell bitcoin on their platform.

Bitcoin currency exchange fees- if you are buying bitcoin against the USD (BTCUSD) but depositing GBP into your bitcoin wallet, there will be a fee for converting the GBP into USD. It is possible with some exchanges to buy bitcoin against GBP where you do not need to convert fiat currencies.

Bitcoin price spread- this is the difference between the buy and sell prices. As with investing in stocks, there is always a spread between where people are prepared to buy and people are prepared to sell. The bitcoin spread varies, depending on how active the market is (liquidity) and how much the price is moving (volatility), as well as which bitcoin platform you are investing through.

Understand the risks involved in investing in bitcoin

Before you start investing in bitcoin, decide if you should be investing in bitcoin. The major risks of investing in bitcoin are:

Sudden price moves- the price of bitcoin can drop and rise quickly and for no apparent reason.

High investment costs- compared to investing in stocks, it is still expensive to buy and sell bitcoin.

Bitcoin scams- there are lots of scammers using fake bitcoin ads to scam potential bitcoin investors, so always research bitcoin accounts before investing.

How do you invest in bitcoin?

The world's most famous crypto-currency is an obvious target for investors and traders due to its history of rapid gains and falls in value. This volatility makes it both very risky and potentially very lucrative as an investment.

How to get started investing in bitcoin

If you are buying bitcoins, then you will require a bitcoin address. This is a code to which the bitcoins that you buy will be allocated. You can acquire an address by downloading a bitcoin client to your computer or setting up an online wallet.

What to avoid when you start investing in bitcoin

When using cfds or placing spread bets, it is possible to lose more than your initial stake. This will be amplified if you use leverage. Don't risk more money than you can afford to lose when you take a position. Placing stop loss orders, which automatically close down your position when bitcoin hits a particular value, are an essential way to limit the risk that you face.

What to look for when choosing an account to buy bitcoin in

The various bitcoin exchanges and CFD/spread-betting companies have different fee structures for their services. Make sure that you're not being overcharged and that the trading platform on offer is to your liking. As with any investment, the more you know about factors that will impact the price of bitcoin, the more likely you are to profit.

To invest in bitcoin, you need a bitcoin wallet or account. You can compare bitcoin accounts with our bitcoin account comparison table.

Bitcoin FAQ:

Here are some of the most frequently asked questions people ask before they invest in bitcoin:

What is bitcoin?

Bitcoin is a digital currency. It was launched in 2009, can be mined, bought and sold against many fiat currencies, and is the largest cryptocurrency by market capitalisation.

How much is bitcoin worth?

The price of bitcoin moves all the time and is priced most commonly against the USD. See our bitcoin price chart for the current price.

How does bitcoin work?

Bitcoin works as a digital currency where a record of all transactions are kept on the block chain. Each bitcoin is stored in a digital wallet where it can be spent or sent.

How to get bitcoins

There are two ways to get bitcoin. You can either mine them or buy them through a bitcoin exchange platform.

Is bitcoin safe?

This is undermined yet and the safety of bitcoin is one of the major risks of investing in bitcoin.

Is bitcoin regulated by the FCA?

No, bitcoin is not regulated by the FCA. However, there are FCA-regulated providers that also offer options for buying and selling bitcoin.

Are bitcoin adverts real?

From peter jones to PSY, new scam adverts advertising get-rich-quick bitcoin schemes are flooding the internet. Despite a global ban from google on non-regulated brokers advertising derivatives products, they are still getting through. Amazingly, you see them in the header of the dailymail and other mainstream media websites. Martin lewis, the money-saving-guru from money saving expert, recently sued facebook because they failed to stop scammers using his image in scam ads for get-rich-quick bitcoin schemes. Martin lewis settled with facebook for a £3m charitable donation in the end.

Is bitcoin a scam?

If you see an advert for bitcoin investing, it may well be a scam as google and facebook have banned cryptocurrency advertising. If it looks like a scam, it's a scam. And always check the FCA register for any broker you deal with.

Keep in mind too though that the scammers make clone websites of real brokerages to scam you. So, double and triple-check any broker before sending money. A quick google search can save you from becoming a victim.

How to make money with bitcoin

It is possible to make money investing in bitcoin in the same respect that it is possible to make money investing in high-risk stocks. If you buy low, sell high, you will make money. But unlike investing in stocks where a company generates revenue and profits, bitcoin has no underlying value so it is also possible to lose money very quickly by investing in bitcoin.

Where to buy bitcoin

For more information on where to buy bitcoin, read our guide to choosing a bitcoin account.

Is bitcoin legal?

How to use bitcoin

Bitcoin is becoming more usable every day. Some online merchants accept it as payment and recently, paypal announced that it would accept bitcoin as a payment source.

Is bitcoin a good investment?

Whether or not bitcoin is a good investment is relative to your investment objectives. It is a very high-risk investment.

How to sell bitcoin

When you choose a bitcoin account, make sure there is also the option to sell the bitcoin on it as well.

Where can you get bitcoin investing ideas?

Never believe anyone who says they can make you rich or adopt trading as a career if you are a complete beginner. However, if you do want trading ideas, you can find news and analysis on bitcoin here:

Bloomberg

Reuters

Tradingview provides excellent crypto charts and lots of users post trading ideas.

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The good money guide is a london based guide to trading and investment accounts for clients based in the UK, europe, asia, south africa and australia. For more information on how this site makes money please find out more about us.

Disclaimer

The information contained in this website is for informational purposes only and does not constitute financial advice. The material does not contain (and should not be construed as containing) investment advice or an investment recommendation, or, an offer of or solicitation for, a transaction in any financial instrument.

RISK WARNING

ALL INVESTING INVOLVES RISK. Investing, derivatives, spread betting and CFD trading carry a high level of risk to your capital and can result in losses that exceed your initial deposit. They may not be suitable for everyone, so please ensure that you fully understand the risks involved.
ESMA & FCA risk warning – “cfds are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 68-89% of retail investor accounts lose money when trading cfds. You should consider whether you understand how cfds work and whether you can afford to take the high risk of losing your money. Capital at risk”

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Bitcoin trading demo account – how to start

Trading bitcoin can be quite risky when one does not have a lot of experience with the cryptocurrency market. Luckily, there is a way how to try bitcoin trading without taking any risks whatsoever. A bitcoin trading demo account is intended for this very purpose. A practice version can be created free of charge and any beginner, as well as any advanced trader, can experiment and test bitcoin and altcoin trading risk-free.

Unlike the real account, practise version is loaded with play money. Although trading with imaginary funds can’t simulate the psychological pressure of having your real money at stake, a practice account is still by far the best way to learn and understand the bitcoin market.

How to simply open a free bitcoin demo

There are numbers of bitcoin and altcoin trading platforms that offer a free demo account. These brokers, however, greatly differ and one should choose a company featuring low fees for crypto trading and minimum deposit requirements in accordance with your financial situation. Should you plan to trade less popular altcoins, always verify the broker you plan to choose has them in its offer. We have selected for you 3 industry’s leading bitcoin brokers that are regulated by the european regulator cysec or/and by the british FCA where no initial deposit is required to open a test account.

List of popular brokers who feature a free bitcoin demo account

Opening a new bitcoin demo account takes with each of these companies only about 15 seconds. All you need is a valid email address and a password.

regulated by regulatory agencies ensure that brokers operate in a transparent and honest way. They protect the best interests of clients and also feature an investor compensation scheme which protects trader's deposits up to a certain limit. Some of the major regulators in the industry include the cysec in cyprus, the FCA in the UK and the ASIC in australia.	Min. Deposit	trading platforms A trading platform is a computer or mobile software program used to execute transactions within the financial markets.	Cryptocurrencies	ad disclosure the table below contains links to 3rd party websites of our top partners from whom we receive compensation at no additional cost to you.
ASIC cysec FCA	£/€/$ 200	in-house built platform	30 crypto pairs	start tradingread a review
cysec FCA	£/€/$ 1	MT4 & xstation 5	33 crypto pairs	start tradingread a review
ASIC cysec FCA	£/€/$ 100	in-house built platform	13 crypto pairs	start tradingread a review

Cfds are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading cfds.
You should consider whether you understand how cfds work and whether you can afford to take the high risk of losing your money.

More information can be found within a separate review of each company. Do not forget to leave a comment under a company you select to trade with so other readers of the website would know your experience.

How to get started risk-free bitcoin trading

It is very easy to get started. Just select a brokerage company that supports on its platform bitcoin trading and also offers a free demo account. All 3 brokers listed above meet both these requirements, but there are also many other companies that offer this service as well. However, unlike the ones featured above, they might have higher fees, lack regulation or might not be trusted by hundreds of thousands of traders.

So, make sure to properly research the bitcoin broker you plan to trade with. To establish a demo account, only your name and an email address are usually required. Most bitcoin brokers offer a function that will replenish your funds in case you lose them while trading on a practice account. If this option is not available, I advise opening a new demo with a different email address.

The real purpose of a trading simulator

It is a great feeling not having to worry about losing your funds while trading cryptocurrencies. Nevertheless, a demo account for bitcoin or any other cryptocurrency should not serve only to learn how trades can be carried out, but also to:

Understand how the bitcoin market behaves – price fluctuations

Test selected company and all its tools

Test bitcoin strategies and techniques that you plan to use when trading with real money

New cryptocurrency fund finds a side door into your brokerage account

The securities and exchange commission just denied the latest application for a bitcoin exchange-traded fund last week, but a new product is about to be available in brokerage accounts that will give traditional investors even broader access to the cryptocurrency market.

A few days ago, the financial industry regulatory authority, a nongovernmental regulatory firm, gave the crypto asset manager grayscale the go-ahead to allow shares of an ETF-like product with multiple cryptocurrencies to start trading on public markets. It will be the first publicly-quoted security in the U.S. Deriving value from a diverse selection of digital currencies.

Grayscale’s digital large cap fund, which holds cryptocurrencies accounting for the top 70% of the industry’s market cap—including bitcoin, ethereum, XRP, litecoin and bitcoin cash—will have the ticker GDLCF and trade on over-the-counter markets. The final step, expected to be cleared within days, is for the depository trust company, a record-keeping organization, to agree to keep track of the security.

Some investing apps like robinhood allow customers to trade cryptocurrencies, though they’re separate from their traditional brokerage accounts. Grayscale’s publicly traded investment products sit right in a client’s brokerage account—and even their traditional retirement accounts.

And grayscale’s products are increasingly popular. In the third quarter, its products took in $255 million in new investments, with inflows tripling quarter over quarter, according to a report from grayscale released on tuesday. Most of that money went into the bitcoin investment trust (GBTC), which tracks the price of bitcoin, but grayscale also saw inflows for other products, including one tracking the second most valuable cryptocurrency, ethereum. Michael sonnenshein, managing director at grayscale, said in an interview that an increasing proportion of those investors—84% in the third quarter—are institutions.

Grayscale has created 10 crypto products that are structured as private placements available to accredited investors. They represent holdings of real cryptocurrency, and track the underlying digital assets. Three of them have been approved to trade on public markets, with the digital large cap fund being the fourth.

People who buy the assets in the private placements can then sell them to traditional investors through their brokerages after a year—making them more likely to be longer-term investors, and more likely to pounce on the securities when prices are low.

That may be why grayscale saw so much interest in the third quarter, a time when cryptocurrencies were weak—the bitcoin investment trust lost 29% of its value during the quarter.

“the price pullback is for a lot of our investors something they look at opportunistically,” sonnenshein said. “I think they are looking at an investment in digital assets over a medium- or longer-term time, instead of looking to the short-term swings and pricing that would maybe cause them to add or take exposure off.”

Buying the securities on the open market, however, generally entails paying a substantial premium to the price of the asset itself. Each share of the bitcoin investment trust holds $8.10 worth of bitcoin at tuesday’s prices, but the trust trades for $9.72 on the open market. In the past, it has traded for an even larger premium, largely because of the scarcity value of the asset. If investors can’t get this kind of exposure anywhere else, they’re going to pay up for it.

Of course, in the event that the SEC approves a bitcoin ETF, that scarcity value will diminish, and the value of grayscale’s trusts may decline too.

Best bitcoin brokers – learn 2 trade full 2021 guide!

Bitcoin brokers, looking to join the cryptocurrency revolution by buying some bitcoin of your own? If so, the easiest and most-effective way of doing this is through a bitcoin broker.

In a nutshell, the best bitcoin brokers allow you to quickly open an account, deposit funds with a debit or credit card – and then buy as much or as little bitcoin as you like.

With that said, there are hundreds of platforms active in the market, so knowing which broker to sign up with is no easy feat. As such, we would suggest reading our guide on the best bitcoin brokers.

Not only do we unravel our top 5 bitcoin broker picks of 2021, but we also explain why opting for bitcoin cfds is the safest, cheapest, and most convenient way of making an investment.

Table of content

Etoro - buy and invest in assets commissions-free

Buy over 800 stocks, cryptocurrencies, and etfs without paying any commissions

Trade thousands of cfds

Deposit funds with a debit/credit card, e-wallet, or bank account and paypal

Perfect for newbie traders

What are bitcoin brokers?

A bitcoin broker is simply an online trading platform that allows you to buy and sell cryptocurrencies. Much like a traditional online stockbroker, the process requires you to open an account, deposit funds, and then decide how much bitcoin you wish to buy. Brokers typically allow you to use everyday payment methods like a debit/credit card, bank account, or e-wallet, which makes the buying process super-easy.

In return, bitcoin brokers will charge you a fee. This can come in a range of shapes and sizes, so your costs will depend on the broker that you use. For example, while popular bitcoin brokers like coinbase charge fees to deposit funds and make a purchase – platforms like crypto rocket and etoro do not. As such, you need to understand the broker’s fee structure prior to taking the plunge.

With that being said – there are two types of bitcoin brokers active in the online space – so the one that you opt for will depend on your long-term investment goals. Crucially, this will either be a broker that requires you to store your bitcoin in a private wallet, or a broker that facilitates your investment via a regulated CFD.

Types of bitcoin brokers

It’s super-important for you to understand how your choice of broker can have a major say on the make-up of your bitcoin purchase, so we explain this in more detail in the sections below.

✔️ buying ‘actual’ bitcoin

Bitcoin is a decentralized currency – meaning that it is not controlled by any single person or authority. As such, those holding bitcoin in a private wallet are 100% responsible for keeping it safe. In other words, if your bitcoin wallet was hacked – or you transferred funds to an invalid address, your bitcoin would be lost forever.

Unlike a traditional investment, you would not be able to pick up the telephone and ask the broker to investigate the loss. On the contrary, this is the risk of buying ‘actual’ bitcoin, as you need to ensure that you keep it safe at all times.

Now, this isn’t necessarily an issuer per-say if you know how cryptocurrency wallets work. However, if you’re a complete newbie entering the bitcoin space for the first time, the thoughts of having to store your own coins is nothing short of petrifying – especially if large amounts of capital are involved.

Nevertheless, if you do want to own ‘actual’ bitcoin, the broker in question will facilitate your order via an everyday payment method. Once the coins have been purchased, you will then need to withdraw them to a private wallet. Some platforms allow you to store the coins within the broker’s ‘web wallet’ – albeit, this is extremely risky.

✔️ buying bitcoin cfds

So that leaves us with option 2 – buying bitcoin cfds. For those unaware, a CFD (contract-for-difference) is a financial instrument that allows you to invest in an asset without you taking ownership. Instead, you are simply speculating on whether the price of the asset will go up or down.

Not only does this include assets like bitcoin, but literally any financial instrument that is traded in the traditional markets. Think along the lines of gold, oil, stocks, indices, gas, wheat, and etfs. On the one hand, buying a bitcoin CFD will mean that you do not actually own the underlying asset.

However, does that really matter? Essentially, if you are looking to buy bitcoin because you think its value will increase in the future, then cfds can facilitate this. For example, if you buy a bitcoin CFD when it is valued at $6,000 – and sell it two years later at a price of $10,000 – you still make the very same profit that you would have done by owning ‘actual’ bitcoin’.

In fact, the benefits of using bitcoin brokers that specialize in cfds are four-fold – as we explain below.

1. Fees are much lower

One of the most popular bitcoin brokers in the online space is that of coinbase. The overarching reason for this is that the platform makes it super-easy to buy bitcoin with an everyday debit or credit card. However, coinbase charges handsomely for its services.

For example, you need to pay 3.99% to deposit with a debit/credit card, and then a further 1.5% every time you buy or sell bitcoin. These fees are huge in comparison to bitcoin brokers that specialize in cfds.

In fact, most of the bitcoin brokers that we recommend on this page not only allow you to deposit funds for free – but you can trade bitcoin without paying any commissions.

2. CFD brokers are heavily regulated

Much of the wider cryptocurrency broker space operates in an unregulated manner. This is mainly due to the fact that very few countries have yet to install crypto-specific legislation – meaning that platforms are able to trade without holding a license.

On the contrary, the CFD broker space is heavily regulated – which means that your funds remain safe at all times. For example, all of the top-rated bitcoin brokers listed on this page hold a tier-one regulatory license. This includes bodies such as the UK’s FCA, australia’s ASIC, or cyprus’s cysec.

3. Storage and selling is seamless

As we briefly noted earlier, buying ‘actual’ bitocin is a logistical nightmare. For example, you are required to withdraw the coins out of your chosen broker, and then keep them safe in a private wallet. When it comes to offloading your bitcoin investment, you then need to transfer the coins back into an online broker, and exchange them for cash. This is a highly cumbersome process that is fraught with risk.

With that said, by using a bitcoin broker that specializes in cfds, you do not need to worry about storage at all. This is because cfds merely track the underlying asset – meaning the financial instrument does not exist. As such, there is no fear of your bitcoin being lost or stolen!

Furthermore, this also makes it a breeze when it comes to cashing your investment out. As your bitcoin is stored at the broker via a CFD instrument, you simply need to place a sell order to exit your trade. As soon as you do, you can then withdraw the funds back to your debit/credit card, bank account, or e-wallet.

4. Ability to apply leverage and short-sell

Unlike a conventional bitcoin broker, those offering cryptocurrencies in the form of cfds allow you to apply leverage. For those unaware, this means that you will have the option of trading more than you have in your account.

In the UK, for example, investors are able to apply leverage of up to 2x when trading bitcoin, meaning that a £500 investment would allow you to buy £1,000 worth. In other regions, you can trade well up to 100x – meaning a £500 balance would allow you to trade with £50,000!

Similarly, CFD brokers hosting cryptocurrencies also allow you to short-sell bitcoin. This means that you can make gains in the event bitcoin goes down in value.

Payments at bitcoin brokers

So now that you know the two types of bitcoin brokers currently active in the market, we are now going to discuss payments. After all, you will be buying bitcoin with real-world money – so you need to think about how you intend getting funds in and out of the broker.

Payment methods

Most bitcoin brokers allow you to deposit and withdraw funds with a range of payment methods. This might include:

Debit cards

Credit cards

Local bank transfer

International bank wire

Paypal

Skrill

Neteller

Western union

It’s best to check whether or not your preferred payment method is supported prior to opening an account with the broker.

Deposit/withdrawl fees

In some cases, bitcoin brokers will charge you a fee to deposit and/or withdraw funds. As we discussed earlier, the likes of coinbase charge a whopping 3.99% on debit/credit card deposits.

This means that a £1,000 deposit would cost you £39.99 in fees. At the other end of the spectrum, the likes of etoro charge nothing on deposits, and a mere $5 on withdrawals.

Bitcoin broker fees

Bitcoin brokers are in the business of making money, so you need to have a firm grasp of the platform’s fee structure. This can include:

Trading commissions

This is a commission charged by the broker every time you place a trade. This includes a fee when you buy bitcoin, as well as when you sell it. If a trading commission is charged, then you will pay a percentage of the amount you wish to buy.

For example, let’s say that the broker charges a fee of 1.5%, and you wish to buy £2,000 worth of bitcoin. This would translate to an initial fee of £30. However, when it comes to selling your bitcoin you will also need to pay a commission.

For example, let’s say that your £2,000 bitcoin investment is now worth £3,000. This means that you will pay 1.5% on the current market value of £3,000 – which equates to £45. As noted earlier, most of the bitcoin brokers that we recommend on this page charge no trading commissions at all.

Spreads

All bitcoin brokers will charge a spread. Much like the traditional investment space, this is the difference between the ‘buy’ and ‘sell’ price of the asset.

For example, let’s say that bitcoin has a ‘buy’ price of $6,000, and a ‘sell’ price of $6,060. By calculating the difference between the two prices, we get a spread of 1%. This means that you need your bitcoin investment to increase by at least 1% just to break even.

There is often a trade-off between the spreads and commissions charged by bitcoin brokers, so you need to check this before signing up. For example, while a broker might not charge any commissions, you might find that its spreads are somewhat uncompetitive.

How do bitcoin brokers work?

Still confused how the investment process works at a bitcoin broker? If so, you’ll find a simple step-by-step guide outlined below. This unravels the end-to-end process of opening an account, depositing funds, buying bitcoin, and crucially – cashing out your investment.

Step 1: find a bitcoin broker

To get the ball rolling, you’ll need to find a bitcoin broker that meets your needs. If you like the sound of investing in bitcoin via cfds, you’ll find our top-five picks listed towards the bottom of this page.

If you want to own ‘actual’ bitcoin, it might be worth using etoro. This is because the platform is regulated, it accepts heaps of payment methods, and ultimately – you don’t need to withdraw your coins out.

Etoro - buy and invest in assets commissions-free

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Bitcoin is a digital currency and is being traded in the financial markets around the world ever since it was introduced in 2011. Over the years, the first cryptocurrency in the world has become immensely popular and this, in turn, has sparked immense price volatility. Within three years of the digital currencies inception, the price of a single bitcoin zoomed to around 1,200 USD. Currently, the bitcoin is traded at more than 3,500 USD.

Forex brokers acknowledged the cryptocurrency as a valid currency and started accepting payments in bitcoins in 2013. They have also made it possible for traders to execute trades in bitcoins. This digital currency is often traded against fiat currencies such as the USD and euro. As the concept is relatively new, there is only a limited number of best regulated bitcoin forex brokers as of now. However, this has made it easier for some traders who do not want to disclose their card or bank details to the forex brokers to fund their accounts through bitcoins.

Regulated FX brokers that accept bitcoin for deposits/WD

min deposit	spread	leverage	regulation	open account
0	non-spread, fee 0.1% per trade	non-leverage	-	visit broker
$1	from 0 pips	2000:1	FCA UK, cysec, FSP, bafin, CRFIN	visit broker
$300	floating, from 0 pips	500:1	FCA UK reference number 579202	visit broker
$1	fixed spread from 3 pips	up to 1:1000	CBR, cysec and FFMS	visit broker
$250	as low as 0.1 pips	up to 400:1	ASIC australia and FCA UK	visit broker

Top regulated forex brokers that offer bitcoin (BTC/USD) trading

info	bonus	open account
min deposit: $5 spread: from 0.2 pips leverage: 500:1 regulation: FSA (saint vincent and the grenadines), cysec	50% deposit bonus, real contest 1st prize luxury car BMW X5 M, copy trading, trade&win.	Visit broker
min deposit: $1 spread: from 0 pips leverage: 3000:1 regulation: cysec, IFSC	$100 no-deposit bonus, 100% deposit bonus	visit broker
min deposit: 0 spread: non-spread, fee 0.1% per trade leverage: non-leverage regulation: -	visit broker
min deposit: $1 spread: from 0 pips leverage: 2000:1 regulation: FCA UK, cysec, FSP, bafin, CRFIN	35% of the account deposit	visit broker
min deposit: $50 spread: starting 0 pips leverage: up to 400:1 regulation: FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA	visit broker
min deposit: $300 spread: floating, from 0 pips leverage: 500:1 regulation: FCA UK reference number 579202	visit broker
min deposit: $200 spread: starting 0 pips leverage: 500:1 regulation: ASIC australia, FCA UK	visit broker
min deposit: no minimum deposit spread: 1.2 pips leverage: 50:1 regulation: CFTC, NFA, FCA, MAS, ASIC, IIROC	visit broker
min deposit: $10 spread: leverage: regulation: cysec	-	visit broker
min deposit: $200 spread: from 3 pips leverage: 400:1 regulation: NFA, FCA, cysec	visit broker
min deposit: $100 spread: starting 0 pips leverage: up to 500:1 regulation: FCA UK, ASIC australia, MAS singapore	visit broker
min deposit: $1 spread: fixed spread from 3 pips leverage: up to 1:1000 regulation: CBR, cysec and FFMS	30% forex deposit bonus	visit broker
min deposit: $250 spread: as low as 0.1 pips leverage: up to 400:1 regulation: ASIC australia and FCA UK	visit broker

The production of bitcoin is limited to 21 million. It is expected that this will be achieved by 2040. As the price of the bitcoin fluctuates all the time, traders have to do both fundamental and technical analysis in order to decide as to when they can buy or sell the world’s first decentralized currency. Though there are a number of online exchanges where traders can buy bitcoins in exchange for USD, euro, or other currencies, bitcoins are often traded through the online platforms of a few reliable forex brokers.

Among forex brokers, the penetration level of bitcoin is the lowest when compared with the other online payment options. However, bitcoin offers the highest level of security and an opportunity for making payments without disclosing identity. This is unique compared to any of the other existing payment options. Most e-wallets require traders to verify their identity by means of bank transfers, credit cards, or other documents. On the other hand, bitcoin account holders can access their accounts without the need to go through any identification procedure.

As forex brokers ask for a number of identification documents from the trader when opening an account on their platform, the process involved in creating a new bitcoin account for funding the trader’s account is a complicated and tedious. Therefore, the anonymity associated with bitcoin seldom works when it comes to trading currencies. This is to say that it works only if the trader wants to trade currencies without making withdrawals. Regulators also want brokers to obtain a lot of information from their clients prior to allowing them to trade currencies. As such, it is sensible to choose an online forex broker that accepts bitcoins only if the trader has bitcoins in his/her account and want to fund his/her trading account through bitcoins.

Having said this, here are some of the best regulated bitcoin forex brokers you can consider working with: