Cryptocurrency trading has evolved significantly in the last three years, especially due to recent inclusion of these assets into more professional investment platforms. This means that traders around the world have access to more versatile tools to develop their investment strategies and increase their profits.
This article presents the three best platforms for trading cryptocurrencies in 2020.
Plus 500: The Online Brokerage Platform
Traditional brokers offer a robust environment to invest in any financial asset, especially reputable ones like Plus 500. The online brokerage platform holds multiple licenses (eg CySEC, FCA, SFSA, ASIC) that allow you to trade from almost anywhere in the world.
The inclusion of cryptocurrencies in its offering led the broker to record profits in 2018 — according to MarketWatch — with the global broker continuing to offer the latest investment options for crypto assets.
Similar to traditional indexes, such as the FTSE 100, S&P 500 or the DOW, Crypto10 gives fairly comprehensive exposure to the top 10 cryptocurrencies on the market.
Although there are almost 7,000 cryptocurrencies in circulation, the top 10 rankings represent 83% of the total market capitalization, making it a representative group of the entire market.
Binance: The platform with the most options for trading cryptocurrencies
Binance is the largest crypto exchange in the world and features specialised platforms for storing, buying and selling cryptocurrencies. Despite a significant drop in transaction volume, CoinMarketCap (the data repository now owned by Binance) is once again reporting a significant spike in transaction volume on the platform.
The effort made by the Malta-based company has seen this industry giant dominate many areas of the crypto industry. In addition to its trading platform, Binance has developed its own blockchain, its own cryptocurrency and has multiple decentralized technology research and development departments.
Binance is now tackling the derivatives market with margin futures contracts via USDT and other tokens. But the options don’t end there! To cover all the trading modalities offered by this platform in 2020, it is necessary to list the following features:
- Traditional trading of real cryptocurrencies. To meet different needs, the web version of Binance provides three interfaces with different options and tools, in addition to its mobile applications.
- Over-the-counter trading (OTC). Traders are able to negotiate directly with one another on price, with more than 60 payment methods to choose from.
- Crypto derivatives trading. For those who want to gain exposure by using tools such as leveraged positions. Binance has started offering futures contract trading for its top cryptocurrencies with a leverage factor of up to 125X. This has made the platform outperform leaders in this niche, such as BitMEX.
To add even more value to the above, Binance is one of the few exchanges offering staking for multiple cryptocurrencies, as well as returns for depositing funds in liquidity pools or “crypto loans”.
eToro: The best site for trading cryptocurrencies?
Technological innovations have not only brought cryptocurrencies with them, but have given way to new ways of investing, such as mining, robots or automatic trading tools or social trading.
If any platform knows this topic, it is eToro.
Undoubtedly, the broker has gained traction due to the multiple assets it offers. The multi-licensed, award-winning platform has gained traction as one of the best cryptocurrency trading sites due to the methods offered for investing; which are suitable for traders with varying levels of experience.
Social trading allows traders to copy the trades made by professional traders around the world. They can also track their operations and changes in the portfolio, which they can replicate partially or totally.
There are also CopyPortfolios, which take the figure of indices for those who want to gain combined exposure to various assets in a specific market. Currently, eToro’s CryptoPortfolio includes Bitcoin, Ethereum, Cardano, TRON and NEO as the main cryptocurrencies, while the other 38% is a compendium of the rest of cryptocurrencies.
But these are not the only benefits of eToro. With headquarters in London and Cyprus, eToro offers the choice to buy real cryptocurrencies to store in a wallet or to use CFDs to trade on price movements instead. This makes eToro a great option for trading cryptocurrencies.