Since the cryptocurrency boom in 2017, many investors have seen the potential of these financial instruments and included them in their investment strategies. Their intrinsic volatility makes them the grail of the most intrepid traders, mixing risk with opportunity for faster results. However, to get the most out of these instruments, only the best platforms should be used. In this article we present 4 cryptocurrency trading platforms that we believe can take your strategies to the next level.
eToro: Social Trading at your Fingertips
eToro is a regulated exchange platform that distinguishes itself from the rest of the market for its model of operating, which combines the typical characteristics of a traditional investment platform with a kind of social network. The platform has gradually become involved in the cryptocurrency market and has expanded its coin offerings, with a number that today amounts to an impressive 17 digital currencies.
One of the great advantages of operating through eToro is that the investor has the possibility of expanding their strategies both in the short and the long, since cryptocurrencies are offered through Contracts for Difference (CFD).
Cryptocurrencies act as underlying derivatives to set the price of CFDs. The advantage is that the operator can open long trades, which win if the price of the cryptocurrency increases, but short trades can also be opened, which win if the currency price falls. In addition, advanced tools such as leverage are included, which increases risk exposure but accelerates results.
Going a step further, eToro has also included the possibility of converting these CFDs into real cryptocurrencies that are stored in a wallet (eToro Wallet) that has advanced security elements integrated.
But eToro’s greatest feature is social trading. On this platform, the trader can monitor the strategies of other successful traders from around the world. If you so choose, you can literally copy your portfolio and transactions in real time. With hundreds of experts with different risk profiles, it is a unique opportunity for investor, regardless of their level of experience.
Binance: The Mecca of Cryptocurrencies
For those who really want to be connected not only with the market, but with the underlying technologies of cryptocurrencies, Binance is a great candidate. It has remained one of the most important exchanges over the last 3 years and is currently positioned – according to CoinMarketCap – as the exchange with the highest reported volume of operations in the world.
In addition to the intrinsic benefits of the experience and stable trading platform of this Malta-based company, Binance has introduced advanced trading tools. Among them is ‘margin trading’, which allows you to use and establish a loan model, providing benefits for all parties.
For its part, the Binance Launchpad platform allows participation in decent ICOs (Initial Coin Offering) previously audited by the Binance team, which places operators in the closest place to a typical IPO (Initial Public Offering).
Finally, Binance offers hundreds of cryptocurrencies in over 400 different currency pairs. They are stored in real wallets and the user decides what to do with their digital currencies, bringing them closer to the technology that these digital assets are built upon.
BitMEX: Fully Comprehensive!
If are not necessarily looking for a balance between risk and opportunity, BitMEX could be the ideal platform for cryptocurrency trading. In a market that is moving so fast, it is important to be in the right place.
BitMEX agglomerates 8 cryptocurrencies (Bitcoin, Ethereum, Ripple, Litecoin, TRON, Bitcoin Cash, EOS and Cardano) into 12 different currency pairs. As with eToro, these pairs are contract-based, although “futures contracts” are traded in this case. These have an expiration date and are typical in professional investment environments.
With a more advanced interface, BitMEX’s true unique feature is its leverage rate. Here, traders can open positions with a leverage rate of up to 1: 100 (for BTC). In this way, in exchange for greater risk exposure, the investor can multiply his initial investment by 100. The advantage is that with just a 1% increase in the price of the cryptocurrency, the operator can make 100% profits. However, the risk increases dramatically and 1% would mean the loss of the entire investment, a concept known as ‘position liquidation’.
Thus, BitMEX is not a platform for everybody, and has received hundreds of criticisms for its regulatory loopholes and for the fact that it does not require a mandatory KYC identity verification. However, it remains the favourite of many followers of the digital currency market.
Plus500: Traditional Broker with Unbeatable Conditions
Traders who are more familiar with traditional trading will be able to enjoy a modern interface, but with similar elements to legendary platforms such as the MetaTrader MT4 / MT5. This broker has all the relevant regulatory compliance, but also offers very competitive conditions at the level of spread and maintenance fees.
Plus500 offers 7 different cryptocurrencies and includes an index whose value moves according to the price of the top 10 digital assets currently on the market. Its cross-platform scheme allows user access through mobile devices (iOS, Android, Windows Phone) and the CFD’s broker platform can also be accessed through any web browser.
Clarification: Plus500 is a CFD broker, and all of their instruments are CFDs.