List of top CFD Brokers and Exchanges to Buy and Invest in Cryptocurrencies

Today, everyone knows that cryptocurrencies became one of the most popular and profitable asset classes in modern history. Initially, only crypto enthusiasts invested in Bitcoin and made a fortune, but over the last couple of years, cryptos became available to many ordinary investors too. We will get into the different methods that you can use to buy cryptocurrencies later. To begin, let us talk about how you can buy cryptocurrencies and the way you can make a profit from it.

First, let us explain what are the main differences between trading and investing in cryptocurrencies.

Trading is a market activity where you speculate or bet on the price moves. Trading strategies are usually run by professional traders who can make money in rising markets by taking long positions and also in falling markets by taking short positions. Traders can use fundamental analysis to evaluate the potential long term performance of the underlying asset or use technical analysis and indicators to predict short term price moves.  Usually, traders hold their positions for a short period of time, from minutes to hours or sometimes days and express their tactical views on the market. Cryptocurrencies such as Bitcoin are very popular among traders as its price is very volatile thus presenting many opportunities to profit from such price swings. Active trading requires constant involvement in the market and all traders use professional trading platforms which we are going to cover later. Trading also requires strong math skills, a good understanding of technical analysis and knowledge of the financial markets.

Contrary to trading, investing is a long-term play where people invest in something they believe will increase in value over time. Investors usually don’t bother with short-term price volatility as they usually have 5, 10 or even 20 years investment horizon. While investing also involves risk, you need to be confident in your investment strategy and asset that you are buying. One of the most famous investors of our times and richest man on the planet is Warren Buffet who is well known for buying undervalued companies and turning them around. When Warren buys a company, he will most likely be holding such assets for a very long period of time. 

So for example, if you think cryptocurrencies are a future and in 3-5 years everyone will be using them, it makes sense to invest in cryptos and forget about it for some time. A lot of people who invested in cryptocurrencies at the beginning could say that they made a great investment. If, on the other hand, you are not sure about its future but still want to regularly profit from this volatile asset class, then you can start looking at trading cryptocurrencies at one of the venues that we covered in this review.

Buy Cryptocurrencies Through CFD Trading

CFD means ‘Contract for Difference’, and it is a way of buying cryptocurrencies online that doesn’t involve actually buying the underlying asset. CFD is a financial instrument and allows you to bet on the price movements. As you are not buying an underlying asset, you don’t have to pay the full price and only need enough money to cover the price difference or a spread. Because of that, you can start trading cryptocurrencies with CFDs with as little as $25 per trade but still benefit from the full price upside. CFD brokers offer professional trading platforms, analytical tools as well as access to leverage (money that you can borrow to increase your return on investment). Because of the minimum investment amount and benefit from the full price upside, the return on investments with CFDs are usually considerably higher. But it is also important to remember the risks involved when trading CFDs and not to invest more than you are prepared to lose.

Pros:

  • You can take on both short and long positions to profit from both upward and downward trends. 
  • With CFDs, when you buy cryptocurrencies online, you usually don’t pay trading commissions 
  • Instant trading, meaning you don’t have to wait for any asset transfers as you are not buying an underlying asset
  • Leveraged trading provides a lot of room for enhanced returns, allowing you to expand your investment to a much bigger size than the actual asset value.

Cons:

  • When using leverage, financing fees can be high, especially if you end up holding the trade over a weekend.
  • You don’t own the underlying asset and can be exposed to the broker risk. That said, CFD brokers are regulated financial institutions and have robust risk management systems. 

There are a number of different platforms that you can use to buy cryptocurrencies online via CFD trading. Each of them has its own perks/benefits and even drawbacks. Important aspects are reliability, functionality, and regulations hence below is our top 3 picks for you.

Top CFD Brokers



Using Social Trading to Buy Cryptocurrencies Online

Of all the different types of trading, social trading is probably the easiest to understand. It basically involves a peer-based approach where you see how the people around you are trading. You then see the performance of their trading strategies and can choose to then follow their steps accordingly. People who you end up following can either be your own circle of friends or seasoned investment professionals. Social trading has become quite popular among professional traders who can also make additional money from people following them and not just their own trading activities. You could very well end up making decisions to buy cryptocurrencies online based on professional traders that you follow.

Pros:

  • A lot of collective experience coming from seasoned and professional traders. You can follow the best performing traders and copy their strategies. 
  • You can make informed investment decisions by using multiple information sources (different traders that you follow and their strategies)
  • Great for creating trading confidence for newbies wanting to buy cryptocurrencies 
  • A lot of learning by interacting with other traders, both of same calibre and higher experience

Cons:

  • Can create a false sense of security by thinking that nothing can ever go wrong
  • Trading situations can be different for traders and their followers because of timing

There are countless sources for people to go to for social trading. These dedicated platforms allow you to see how different people are investing their money to buy cryptocurrencies online and then you can use that information to make your own purchasing decisions. Two of the most popular platforms for social trading are shared here.

ZuluTrade

In the social trading network, ZuluTrade is probably the biggest name that you will hear. The company has been in operation since 2007 and is one of the best places to copy investment strategies. With over a million users, the company currently sits at a total trading volume of more than US$1.2 Trillion! The company also works with several regulated CFD brokers to manage its trades. Seasoned investors can share their investment decisions on this platform which other users can then copy if they see them fit and make their own investment choices. Naturally, this platform also allows users to buy cryptocurrencies online and other cryptocurrencies.

Trading and Investing at the Cryptocurrency Exchanges

While we may have used the word trading here, crypto exchanges are mostly used to buy cryptocurrencies for the purpose of investment. It is also possible to run active trading operations on multiple exchanges but that requires a real professional set up and trading infrastructure. People who use exchanges are not buying CFDs or any other instruments like that. On crypto exchanges, you buy the currency itself directly. People tend to buy cryptocurrencies and then hold them in their ownership until they can find the right time to sell. On the flip side, people tend to buy more when the market is in a downward trend, just like any other regular currency. One thing that is very important when you want to buy cryptocurrencies like Bitcoin is the availability of a secure wallet. You need a wallet to sell or buy cryptocurrencies online.

Pros:

  • You get user privacy when you buy cryptocurrencies online on many exchange platforms.  
  • No legal restrictions whatsoever since most crypto exchange are not regulated by any government.
  • Usually, crypto exchanges offer trading access to a wide range of cryptocurrencies, from most popular to very niche ones. 

Cons:

  • A huge lack of federal regulations means it is still not a mainstream channel of investment.
  • Fees can become quite huge with frequent use since the platforms rely solely on the investors making transactions.
  • The security risk of your cryptos being stolen from the exchange is relatively high and we have seen a number of cases recently about hacker attacks on crypto exchanges. 

There are so many different platforms that are currently operating as global crypto exchanges. As far as Bitcoin is concerned, you can use the following two exchanges for all your investments.

Coinbase

In operation since 2012, Coinbase is also one of the largest wallet services for digital currencies. It is one of the most popular platforms for all types of mainstream cryptocurrencies which naturally includes Bitcoin as well. The platform is used by more than 30 million users and it has seen a total of $150 billion dollars in trading activity since its launch.

eToro X

It is only natural for a fintech giant like eToro with major crypto engagement to have an exchange as well. in fact, not only does eToro X provide an exchange solution, but it is also a wallet that users can utilize to deal with cryptocurrencies like Bitcoin. Together with its other services, eToro X is one of the most comprehensive exchanges where you can buy cryptocurrencies with ease. It is also known for providing some of the best services in terms of quality among crypto exchanges.

Buy Cryptocurrencies with Crypto Trading Robots

Using automated trading systems to invest on your behalf may sound a bit sketchy, but things have become a lot more sophisticated. Long gone are the days when you could not even think about letting a computer program, or a trading robot, to trade for you in your absence. A proliferation of data and implementation of AI in every part of computing has led to some amazing developments. Therefore, when it comes to buying or selling cryptocurrencies, robots are naturally an option too. After all, why not give them a shot at crypto when they are already in charge of regular forex and other types of trading. Of course, it is not a one size fits all formula either and you will see that some bots work great while others simply don’t. The factors involved are different for everyone, so you must try it and see for yourself, even if you want to buy cryptocurrencies online.

Pros:

  • You can invest in cryptocurrencies on autopilot
  • All trades are run by computer algorithms. Trading robots use technical indicators and analyze market patterns to predict future movements in the price.
  • Informed decision making through backtesting which means they only buy cryptocurrencies when there are strong technical indicators.
  • Trading stays disciplined, even in harsh conditions. There is no emotional input so you can rely on it to stay steady if market shifts by a big margin.
  • Diversification of a portfolio is a big advantage of using automated software. The capacity for a human being to follow multiple trades can be very limited when compared to a machine. This means the investment can be divided into multiple portions and divided among different sources to buy cryptocurrencies online

Cons:

  • Even though the trading that the robots do are based on predefined algorithms, they don’t really share that information with the trader. This can make a huge problem for the trader as they are unable to understand how the trades are happening. The purpose of keeping these methods hidden is to protect the trading strategies and signals from getting copied.
  • Needs human monitoring of performance to determine success. These systems use different models that align the requirements you share. The result may or may not be what you desire so a little tweaking is sometimes needed before you can finalize the model.
  • Too much emphasis on trends can lead to bad real-time decisions. Sometimes quick changes in strategy are critical to successful trades and being prone to follow historic patterns means bots can miss such opportunities at times.

In order to trade cryptocurrencies online automatically using an algorithm, you can use either of the options below:

Bitcoin Evolution

In existence since 2009, this software is providing users with the ability to make money on the cryptocurrency market. It uses sophisticated algorithms to sell and buy cryptocurrencies online for its users and make them money on trades. The company is making most of its headlines by trading on CFDs and using historical data to find profitable transactions. You can start trading on this platform with as little as $250 in investment to buy cryptocurrencies via CFDs.

Bitcoin Evolution Review

Bitcoin Code

Another popular cryptocurrency trading robot, Bitcoin Code is also an 11-year-old venture and it uses the same kind of technology to buy cryptocurrencies online. The process is fairly simple as it involves registering an account, depositing money, and then determining the trading criteria. Once you are all set, the software starts finding and making profitable trades on your behalf. The scope of the company does go beyond the trading of Bitcoin only as they deal in other currencies as well.

Bitcoin Code Experts Review | EthereumTrading.pro

Payment Methods used to Buy Cryptocurrencies

You can buy cryptocurrencies just like you would buy any other product online, using credit card or digital services like PayPal. Depending on the platform and method you use for buying cryptocurrencies will affect the methods you are offered. Different platforms have different payment methods but debit or credit card, as well as PayPal, would be the most popular one. There is also a big advantage of buying cryptocurrencies with a debit or credit card compared to bank transfer – it is time. Bank transfer can take days but you can fund your broker or exchange account in a matter of minutes using debit or credit card.  

As for the methods provided here, you can easily find out how to pay for your investment by visiting individual websites of each trading platform. Some other questions regarding payment are also provided below for your convenience.

More FAQs

How to buy cryptocurrencies without an ID or anonymously?

There are a number of different platforms that let you buy cryptocurrencies online without having to provide any ID information. Make sure you check the reputation of the site before you opt for this method. There may be a lot of sites that offer such easy to use terms but are basically scams waiting to take all your money. It is important to remember, that while the cryptocurrency market is not regulated yet, many CFD brokers are and would require ID verification. Crypto exchanges also need to comply with Anti Money Laundering policies so many popular exchanges would require proof of ID as well. 

How to buy cryptocurrencies with cash?

There are some services that facilitate the sale and purchase cryptocurrencies using cash. You have to find someone from whom you can buy cryptocurrencies with cash. Once you do, you can transfer the cash to them and take the account number from that person. You then provide proof of payment to the site along with the account number of receiving cryptocurrencies. This activity is a bit off the beaten path and requires quite a lot of personal effort. This is particularly true from the point of finding a seller to buy cryptocurrencies from. Make sure you take all the necessary precautions and do not give your money to someone who you don’t trust or know. But overall we would recommend using an approved platform and don’t try to buy cryptocurrencies from strangers. 

How to buy cryptocurrencies instantly?

Pretty much all cryptocurrencies exchanges allow you to buy cryptos instantly upon registering your account. You can choose any of the sources provided above to make your purchase and buy cryptocurrencies immediately. All you have to do is provide your payment details and the designated amount of cryptocurrencies is immediately transferred to you.

How to buy shares in Bitcoin?

While you can buy Bitcoin online as a cryptocurrency using any of the above methods, buying actual shares in Bitcoin is not really possible. Bitcoin is not a company and does not have shares. It is an open-source project which means people (primarily students) are supporting its network out of pure personal interest. You may participate in that effort if you want by visiting the Bitcoin website. Therefore, if you are looking for an investment opportunity, you have to choose between any of the methods described above for your investment.

What is the easiest way to buy cryptocurrencies?

If you want to buy cryptocurrencies, you can choose any of the tools discussed here. However, in terms of overall results, the fastest way to buy cryptocurrencies is via CFD. Not only are you able to buy cryptocurrencies online via CFD, but it also provides the quickest results. Being a derivative means you can make transactions a lot more quickly as there is no underlying asset transfer involved.

After CFD, crypto exchanges are the fastest means for you to buy cryptocurrencies online. These only require registration of accounts and creating wallets. Once that is taken care of, you can immediately start to buy cryptocurrencies online and have it come to your wallet subsequently.

If you don’t have much experience in trading or investing, cryptocurrency trading robots or social trading platforms could be an ideal option for you. 

When to buy cryptocurrencies?

Whether you want to buy cryptocurrencies online or look for alternative ways, you have to make an informed decision. To make sure you choose the right time to buy cryptocurrencies, we highly recommend that you follow the latest developments. The level of market fluctuations that cryptocurrencies see on a daily basis is staggering. Being aware of what causes them can help you analyze those trends and make better investments.

Having a reliable news source can help you a lot in understanding how the crypto market moves. You can buy cryptocurrencies online with a lot more confidence, knowing that you have the latest information to bank your decisions on.

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