How to buy crypto is easier than it was, but it can still confusing. Plus, knowing where you can buy crypto – and what crypto coins you can trade where, is an on-going game of keep-up! We’ll help you get started identifying the best platforms to buy bitcoin and trade altcoins.

Just like taste in shoes, traders have their own style. And based on your favourite style of shoes a certain brand and store typically fits you’re your style the best. When it comes to trading crypto, different trading platforms fit different styles of traders. That is why finding the right fit platform for you to buy crypto is key. The wrong platform and you’ll forever be finding it harder than desired!

The two main differences are:

  • Do you want to trade money ($, £ or €) with crypto?
  • Or do you want to trade crypto with crypto?

 

Different types of platforms to trade crypto

Trading money with crypto

Trading money (which in financial circles you may hear as “fiat”) is easily the easiest way to get into crypto trades. It will also mean it is easier to get money out back to ‘real’ money after trading.

The downside is that you have a far smaller range of alt coins to trade.

‘Alt’ coins just mean Alternative coins, basically anything that isn’t Bitcoin

These platforms do tend to operate margin models, so £1 in a trade can be treated as £3 or even up to £30 in the trade! This means higher returns, but far high risk especially with crypto volatility. If you don’t understand margins and leverage, best you read about margins and leverage here first.

Typically, being CFDs (contract for difference) platforms they don’t give you any option to invest long-term in crypto coins as you’re not actually buying or owning anything. The easiest way to view a CFD is comparing it to a borrowing a pair of shoes. You’re not owning anything, just borrowing and your profit is on the change in the price.

Disclaimer: 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.

PlatformBest ForHighlightsFeesAccount MinimumStart Investing
Plus 500High volume trades: Swing and day tradersCompetitive fees, no commission. Easy to use interface. Desktop and mobile app. Wide range of CFDs on trading instruments.No commission on trades. Competitive tight spreads.£100Trade Today
eToroHands-free and competitive (gamified) tradersSimple interface. Copy professional trader features. Wide range of crypto assets to trade. Demo account.No commission on trades. Spread is higher than other platforms (0.75% on BTC up to 2.9% on some alts).$200Trade Today
BinanceAlt coin tradersLargest range of cryptocurrencies in any exchange. Fiat deposit and withdrawal. Low commissions.No minimumTrade Today

 

Trading crypto with crypto

Trading crypto with crypto is what most professional crypto traders do. They count their balance in BTC (Bitcoins) and trade Bitcoin (or Ethereum) for other alt coins. Until recently, this meant a really complex process to trade.

You had to buy Bitcoin (in one place like Coinbase), transfer it to another place (like Binance), show ID at both places, then you could trade. Just like when you go on holiday and exchange £ (your local currency) for $ (currency on where you’re going) you got to a foreign currency exchange, these platforms are called exchanges because you’re effectively exchanging one currency for another.

Some also have margins and leverage options. They’re also the place to invest and buy alt coins you’d like to invest in over quarters and years.

 

PlatformBest ForHighlightsFeesAccount MinimumStart Investing
BinanceAlt coin tradersLargest range of cryptocurrencies in any exchange. Fiat deposit and withdrawal. Most liquid markets (highest volume).Low commissions.No minimumTrade Today
KuCoinSmaller market cap alt coin tradersLarge range of cryptocurrencies. Many smaller cap coins. Unverified withdrawals.Low commissions.No minimumTrade Today
BitMEXMargin and leverage tradersHighest margin trading exchange (up to x100 BTC and x50 on alts) Large range of cryptocurrencies in any exchange. Fiat deposit and withdrawal. Low commissions.No minimumTrade Today

Best to platforms to trade money with crypto

Plus500

“Think a trading platforms meets an online streaming service”

Plus500 sits as a leader for professional traders due to its zero-commission structure suiting high volume users. Even with no commission it has a tight spreads (which is where it makes its margin) operating as a CFD (Contract For Difference) platform.

The interface is also really intuitive and simple to get used to so appeals to those that don’t want complexity. Plus, desk desktop and mobile application versions it makes accessing anywhere really easy.

The range of crypto assets is relatively limited with only a few handful available, however Bitcoin, Litecoin and Ethereum are all present.

Probably the best part for those starting out is the Demo Account, so you can get used to the interface and practice trading risk free, for as long as you want!

Disclaimer: 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.

eToro

“Think Facebook, meets a trading platform”

A new challenger on the trading platform landscape, eToro is fast becoming a favourite with professional, beginner and part-time traders.

Innovative features include Copy Trades where you can automatically mirror trades of professionals in a hands-free fashion. CopyPortfolio also works for stock investments.

In addition, eToro also have competitive fees and a broader range of crypto assets than Plus500 to trade. However, If you’re looking for a wider range of crypto alts to trade you’ll need to look at specialist cryptocurrency exchanges like Binance below.

A big plus for newer traders is the ease of access to the platform with quick fiat currency deposits and a simple sign-up process. It has also been built for a new generation of traders with an extremely intuitive interface and built in social aspects suiting a younger generation. eToro also has a demo trading account feature before you trade with real money.

Best Place to Buy Crypto

Binance

“Think the Macy’s of cryptocurrency”

Where a traditional crypto exchange works with crypto trading with crypto – Binance has evolved into the dominant player. So much so that it now accepts fiat money payments to purchase bitcoin directly with from within the exchange to then trade.

Since launching relatively late in the game (2017), Binance has become the default trading platform with trading volume over $500m per day. Lightning fast, never had a security issue and a transparent open founder and CEO (CZ, Twitter Profile) it quickly grew from a start-up into the dominant exchange.

It has a huge (and ever growing) range of alt coins, trading pairs in BTC, ETH and USD. Trading fees are competitive (and can be halved if BNB is used to pay them). BNB is Binance’s own currency.

If you want to trade or invest in crypto to own it (unlike CFDs), then this is the place to start.

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Top Resources For Traders:

Platforms

Whatever your plan is, our theme makes it simple to combine, rearrange and customize elements as you desire.

Books

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Courses

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TOOL

Whatever your plan is, our theme makes it simple to combine, rearrange and customize elements as you desire.

Best Exchanges to Trade Crypto

Binance

I’ve already covered Binance here, so won’t repeat anything. It is the best platform to buy bitcoin and the best place to trade altcoins.

Winner Winner, Bitcoin dinner.

The only thing I’d add is a daily withdrawal limit of 2 Bitcoin (BTC) for unverified users.

KuCoin

“Think the challenger retail brand of the trading world”
The biggest exchange in Korea, KuCoin has established itself as a leading platform with a huge range of cryptocurrencies and alt coins. One upside of KuCoin compared to Binance is the listing of a few alts that are not on Binance. This means an opportunity to pick up undervalued coins due to having less liquidity in the market and less visibility to traders.

KuCoin also has no verification for withdrawals (up to 2 BTC daily limit) allowing for quicker deposit and withdrawals on the platform.

BitMEX

“Think largest lending bank meets trading platform”

BitMEX is a hugely popular crypto trading platform for traders due to its high leverage options, including from USD equivalent trading pairs. Bitcoin can be traded at up to x100 leverage (with the XBTUSD paid) and popular alt coins can be traded up to x50 leverage. There is also no daily expiry which suits long-term traders as positions do not need to re-entered as with some other platforms.

Being a peer-to-peer platform that tracks the index price, you’re not actually trading direct ownership of coins, more just against the market equivalent. Fee structures are also competitive with other platforms, although do vary by contract.

Users who sign up through this link will receive a 10% fee discount for 6 months.

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So know you know how to buy crypto and bitcoin… what are you waiting for, get trading today!

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