Online Crypto Trading for Beginners: Our Top Crypto Brokers
Looking for to get in the new meme crypto faze, but not sure where to start? This post is made just for you, in this post we will review some of the brokers where you will be able to make your first crypto purchase plus guide you through the decision-making process. We’re going to teach you how to start trading in crypto like a pro!
What is a Crypto Exchange or Broker?
First, you need to find a unique online store called a crypto Broker or instead a Crypto Exchange. This is where you can buy and sell crypto coins or digital money, like DOGE, Solana, Bitcoin or Ethereum. Next, you need to make an account on that store (exchange), just like when you create an Instagram account. Once we have an account, and pass the KYC (Know Your Customer) we can add money to it using our bank account or a credit/debit card. And then, you can start buying and selling different types of crypto, just like shopping on Amazon. But remember, we always have to be careful and not spend too much money and always have a level of risk that is not uncomfortable or too risky that you cannot pay next months rent.
It is very important you do research and understand the crypto coin or token you want to buy or sell before making a trade. And remember to always trade in what you understand, and always have an exit strategy in place.
The Importance of Doing Research on Crypto Coins Before Buying
Investing in cryptocurrency can be lucrative, but it also carries massive risk. Before buying any crypto coin, it’s essential to conduct thorough research to understand its potential. This includes analyzing the project’s whitepaper, its development team, market trends, security features, and use cases. Without proper research, you might fall victim to scams or make poor investment choices based on hype. Knowledge is crucial for navigating the volatile crypto market and ensuring that your investments align with your risk tolerance and financial goals.
Useful Resources for Research:
Why You Should Educate Yourself on Trading and Finance Before Getting into Crypto
If you’re thinking about trading crypto, it’s super important to learn the basics of trading and finance first. Crypto can be exciting, but it’s also risky, and without the right knowledge, you could end up losing money fast. Understanding things like how the market works, how to manage risks, and how to make smart financial decisions will give you a better chance of success. The more you know, the better prepared you’ll be to handle the ups and downs of crypto trading.
Here are the best Online Brokers/Exchanges for Crypto Traders:
Coinbase is one of the most popular and widely used crypto exchanges by traders in the US. It is easy to use, has a user-friendly interface, and offers a wide range of cryptocurrencies to trade. Best for Beginners.
One of the biggest advantages of Coinbase is its security features. It has a high level of security to protect your assets and personal information. It also offers a feature called Coinbase Pro within the same app, which is more advanced for experienced traders that offers more trading options, such as margin trading and advanced order types. Coinbase offers various trading types, including limit orders, market orders, and stop orders. The platform has margin trading for some cryptocurrencies, which allows you to trade with leverage.
Coinbase is available in many countries and has support for many different fiat currencies, which makes it easy for traders to buy and sell crypto with other currencies. You can fund the accounts with Coinbase using bank transfers, credit/debit cards, PayPal, wire transfers, and cryptocurrency deposits. These options come with different fees and processing times. In addition to deposit options, Coinbase allows you to connect your bank accounts thru the Plaid third-party app for deposits, which enables instant account verification and transfers but may have some restrictions based on your location and banking institution.
Overall, Coinbase is a great option for traders who are new to the crypto market, as well as experienced traders looking for a reliable and secure platform to trade on.
Pros
- User-friendly platform is easy to navigate, making it an excellent choice for beginners.
- High liquidity, making it easier to buy and sell cryptocurrencies.
- Security.
- Multiple payment options.
Cons
- High fees.
- Limited trading options compared to other exchanges.
- Coinbase is not available in all countries, so it may not be an option for some users outside the USA & PR.
EToro is a popular social trading platform that traders widely use. It allows you to trade various financial instruments including stocks, commodities, currencies, and cryptocurrencies. eToro’s platform is known for its user-friendly interface and its social aspect, where you can follow and copy trade ideas. This feature is called CopyTrader which allows you to copy the trades of other successful traders, this can be a useful tool for new traders who want to learn from more experienced traders without having to do the research and analysis themselves. The platform also offers a wide range of educational resources, such as webinars, e-books, and video tutorials, which can help traders improve their skills.
EToro offers several convenient and secure deposit methods, including credit and debit cards, bank transfers, and e-wallets like PayPal, Skrill, and Neteller. Deposits via credit/debit cards are instant, while bank transfers can take up to 5 days to process. E-wallets are processed instantly or within 24 hours, but may have fees of up to 2%. Choose between the flexible options to fund your accounts, depending on your preferences and needs.
Overall, eToro is an excellent option for traders who are new to the market and want to learn from other traders, as well as for traders who are looking for a user-friendly platform with a wide range of assets to trade.
Pros
- Best for its user-friendly Social investing.
- Etoro’s platform is easy to navigate.
- Provides users with all the necessary information and tools for investing.
Cons
- Relatively limited ETF.
- Limited stock selections.
Nexo is a crypto financial platform that has revolutionized how you can manage and grow your digital assets. Offering a cryptocurrency lending platform that allows you to borrow fiat currency or stablecoins against their cryptocurrency collateral. Nexo also offers interest-earning accounts, a crypto credit card, crypto trading, and a non-custodial wallet. Note this is at your own risk; we all know what happened with Celsius bankruptcy, which was a major blow to the cryptocurrency industry. It is the largest bankruptcy filing by a lending cryptocurrency company to date, and it has raised concerns about the safety of cryptocurrency lending platforms also it is important to clear Nexo operating like Celsius did to cause bankruptcy.
Nexo is a crypto financial platform that offers services such as crypto credit lines and interest-earning accounts, which it operates in the cryptocurrency space and does not fall under traditional banking regulations or FDIC insurance coverage. So no, Nexo is not FDIC insured. The Federal Deposit Insurance Corporation (FDIC) is a US government agency that insures deposits in banks up to $250,000.
However, Nexo does offer some protection for your funds. The platform uses cold storage like Ledger for the majority of its user funds, which means that they are stored offline. Additionally, in order to ensure that their portfolio is in full compliance with all applicable global and local regulations and standards, the Nexo companies hold licenses and registrations in numerous jurisdictions worldwide, which means they are constantly bringing their operations in line with newly adopted legislative changes, making security a priority.
Here are some of the features of Nexo:
- Earn Interest on Crypto: Nexo offers interest-earning accounts on a variety of cryptocurrencies, including Bitcoin, Ethereum, and others. The interest rates are variable, but they are typically around 5% to 16% APR.
- Instant crypto credit lines: Nexo also offers crypto credit lines, which allow you to borrow fiat currency or stablecoins against your crypto collateral. The interest rates on crypto credit lines are typically around 6% to 13% APR.
- Nexo card: Nexo offers a crypto debit card that allows users to spend their cryptocurrency directly at merchants that accept Visa. The card also offers cashback rewards in the form of Nexo tokens.
- Non-custodial wallet or Cold Wallet: Nexo offers a non-custodial wallet that allows you to store your crypto in a secure way. The wallet is open-source and audited by a third party, so you can ensure your funds are safe.
- Mobile app: Nexo has a mobile app that allows you to manage your Nexo accounts on the go. The app is available for iOS and Android devices.
Nexo offers 24/7 customer support through live chat, email, and phone. They also support a variety of deposit methods, including credit and debit cards, bank transfers, and cryptocurrency. The fees for these methods vary, but they are typically around 3%, 1%, and 0.5%, respectively.
Pros
- Offers a debit/credit card where you can also earn interest and have a credit line collateralizing your crypto.
- The exchange has an easy-to-use app that is simple for beginners to navigate and understand.
- Wide methods for deposit and withdrawal.
- Nexo App is available almost globally.
Cons
- Some features are not available for US Residents like Earning, Borrow and the Nexo Card is only available for residents of the European Economic Area (EEA) and the UK.
- Borrowing and deposit fees.
- The deposit methods that are available to you may vary depending on your country of residence.
Coinsmart is a Canadian based exchange that offers trading in a variety of cryptocurrencies. It is known for its user-friendly interface and its compliance with regulatory requirements, making it a trusted platform for Canadian & US.
One of the biggest advantages of CoinSmart is its integration with Interac e-Transfer, which allows you to easily deposit and withdraw Canadian dollars & US dollars with credit/debit cards. It also offers a wide range of cryptocurrencies to trade, including Bitcoin, Ethereum, Dogecoin and more.
CoinSmart also offers a feature called SmartTrade which allows you to trade with leverage, this can be a useful tool for traders who want to increase their trading power. CoinSmart has a good reputation for security and is known for its fast account verification process.
Overall, CoinSmart is a great option for mostly North American traders looking for a secure and user-friendly platform to trade on, with the added benefit of easy CAD deposit and withdrawal options.
Pros
- User-friendly app for beginners with a simple buying process.
- Wide variety of cryptocurrencies available for trading.
- Provides access to educational resources for beginners.
Cons
- Higher fees compared to other exchanges.
- Limited availability in some regions.
- Limited trading pairs compared to other exchanges.
Changelly is a cryptocurrency exchange that was founded in 2015. It allows you to quickly and easily trade one cryptocurrency for another without needing to create an account or go through a lengthy verification process. Changelly has gained popularity among traders due to its user-friendly app and competitive fees.
One of the main advantages of Changelly is its simplicity. You can trade between 500+ cryptocurrencies with just a few clicks, and the platform automatically finds the best exchange rate available. Changelly charges a flat fee of 0.25% for each transaction, which is lower than many other popular exchanges. Additionally, the exchange rate displayed on the site includes all fees, so you can be sure you’re getting a fair price.
A potential drawback of Changelly is that it does not offer a hot wallet service, so you will need to have your own wallet to store your cryptocurrencies. This can be inconvenient for some users, especially those who are new to the world of cryptocurrency.
Overall, We would recommend Changelly for those who are looking for a simple and user-friendly platform for trading cryptocurrencies, without the need for KYC and with more knowledge of Decentralized Finance (Defi).
Pros
- No KYC required to trade.
- Offers a wide variety of cryptocurrencies to trade.
- Low trading fees.
- High liquidity.
Cons
- Limited advanced trading features.
- Requires some basic knowledge of Defi and Hot Wallets, not recommended for beginners.
Robinhood is a public company and a well-established commission-free trading platform. It was founded in 2013 and It allows users to trade stocks, options and ETFs, and crypto including Bitcoin, Ethereum and others, without any additional fees, which can save traders a significant amount of money in the long run. The platform has a user-friendly interface and is suitable for both beginners and experienced traders. Robinhood is known for its commission-free trading and it’s easy to use a mobile app, very good for beginners. The app also allows you to track your portfolio and get real-time market data.
Robinhood deposit methods include wire transfers, ACH transfers, bank transfers, and credit/debit cards.
Robinhood’s trading platform is mobile-focused and has a slick, user-friendly design. It provides basic charting, analytical tools, and market data and news in real-time. The software also provides watchlists, customizable notifications, and a cash management account.
Overall, it’s worth noting that Robinhood has faced some controversy and criticism in the past, regarding certain practices. Still is a good exchange for its user-friendly platform for beginners traders or investors.
Pros
- Best for its zero-commission trading.
- User-friendly mobile app is sleek and intuitive.
- Easy for beginners to manage their portfolios.
Cons
- it’s worth noting that Robinhood has faced some controversy and criticism in the past regarding certain practices in trading activities.
Additional Tools
Before you dive into crypto trading, make sure you’re equipped with the right tools. Start using charting tools to help you analyze market trends, journaling to track your trades and decisions, plus performance analytics for you to assess your progress. These tools are essential for making smarter, more informed trading choices and improving your strategy over time.
Our Thoughts🤔
It’s worth noting that the best broker for you will depend on your personal investment goals, risk tolerance, and trading style. It’s important to compare the fees, crypto options, educational resources and customer service of each broker before signing up.
It’s important to note that while these exchanges are considered most have good reputation, it’s always a good idea to do your own due diligence before signing up for a brokerage/exchange and depositing funds. Keep in mind that the crypto market is a volatile market, so it’s crucial to manage your risk accordingly. We are here to guide and support you in your journey as a trader. And remember, always be willing to take calculated risks, because that’s how you will succeed as an entrepreneur and trader.
Note: To learn more, check on their website in the FAQ section to ensure you choose the best broker for your individual needs. Trading involves risk & potential risk of losing all your capital; you must stay disciplined & manage risk closely. Lastly, this is not financial Advise; consider talking to a financial adviser before any investment/ financial decision.
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