Top Bitcoin Trading Sites
Welcome to our list with the top Bitcoin trading sites. We have used 20+ different trading sites but we ended up only using the ones listed here. We are using them for different purposes and also to diversify our own capital to minimize the risk for a hack. Binance we are unsing for staking and exchange. Bitfinex we use mostly to earn some extra passive income via their margin funding. On BitMEX we are trading futures and derivatives. Read more about our trading platforms below.
How Can I Find the Best Bitcoin Trading Site?
One of the most common questions we get is: which is the best bitcoin trading site? This is a very difficult question to answer, because there are hundreds of different crypto trading sites that specialize in different things.
A crypto trader must decide for himself/herself what qualities of a trading site are important for their own trading. They must ask more precise questions, such as:
If you find it hard to specify your own requirements, you will learn more about how to think about this problem in the course of this article.
Bitcoin Trading Volume
Bitcoin trading volume is an important parameter when you are looking for a Bitcoin trading site. If the trading volume is great it means that the spreads are low and the exchange rates are good.
At the same time the slippage is minimal.
The trading volume can be limited in some trading platforms. If you choose one of the major trading platforms, such as Binance or BitMEX, and intend to trade one of the major cryptocurrencies such as Bitcoin or Ethereum, the trading volume is nothing you need to consider.
However, if you are interested in smaller crypto trading platforms or trading in smaller alt coins, it is very important to check which trading platform offers most volume in market. This is because trading spreads are highly dependent on liquidity.
The lower the trading volume, the higher the spread – spreads can easily eat up your margins. The easiest way to investigate trading volume is to go to Coinmarketcap, click on the cryptocurrency you are interested in and then click on markets. You will see all markets listed in also the trading volume, which is the same as liquidity.
Bitcoin Trading Tools
Different trading platforms offer different types of crypto trading tools for their customers. Some offer very good tools for crypto technical analysis, while others offer helpful tutorials for their traders.
There are also platforms that offer free news, webinars, free trading signals and much more. It can be difficult to know what to look for as a beginner, but a platform with good education is always good for beginners.
Advanced traders usually know what tools they need for their specific trading. eToro has a beginner friendly interface, but they do charge high fees. Binance and BitMEX offer good trading tools for technical analysis.
Bitcoin Trading Security
Crypto trading security is very important to determine which trading sites are safe to use.
However, its a difficult point to review and compare; traders either do not understand the terms or have difficulty comparing similar terms.
If you use a large, well-known trading platform, you don’t have to worry so much about security. There are often many options you can do yourself to strengthen the security of your own account, such as:
- Withdrawal limits (Daily or weekly withdrawal limits)
- White IP (You can specify that its only possible to make withdrawals from your own IP)
- White listed withdrawal addresses (You can select which withdrawal address are allowed)
- Google Authentication (For login and withdrawal requests)
- Extra password for trading (Some platforms request a 2nd password for trading or withdrawal, different to the login password)
- Email verification for withdrawal (You can choose to verify withdrawals from your email)
One simple way to reduce the risk is to use 2–3 trading platforms and to have a part of their capital on a hardware wallet.
Most large trading platforms, including Binance and BitMEX, offer the standard security features nowadays.
Bitcoin Trading Fees
Crypto trading fees are extremely important for day trading and high frequency trading since you have small margins on each trade. The lower the frequency you have in your trading, the less important crypto trading fees are for you.
If you are HODL, you hardly need to worry about fees. If you are a swing trader or trend trader you should compare fees, but if there’s only a marginal difference between platforms, it’s more important that the trading platform offers the right crypto trading tools for your trading.
Binance offer the lowest crypto trading fees among all crypto trading sites.
Bitcoin Trading Deposit & Withdrawals
Crypto trading deposits and withdrawals are not so important to compare if you have little flexibility. In the worst case, it is always possible to make deposits or withdrawals via another exchange or trading platform that you do not just use for your trading.
Bitcoin Trading Pairs
It is very important that the trading pairs that you are interested in trading or investing in are offered on the platform you are thinking of using.
The most important thing to consider is whether fiat markets or crypto markets are offered. For example, if you want to trade BTCUSD but this isn’t offered on a chosen platform, you may need to reconsider.
Binance offer many crypto trading pairs and have replaced fiat currencies with stable coins. BitMEX, meanwhile, does only offer a few trading pairs.
Crypto Trading Bots
Many traders use crypto trading bots to facilitate their trading. The absolute best thing about crypto trading bots is that they can do your trading while you sleep or do other things.
However, you should not fall into the trap of thinking it’s possible to buy a crypto trading bot, switch it on and just collect the profits month after month.
A crypto trading bot needs to be optimized and maintained to create a sustainable profit over time. Binance and BitMEX offer the availability to connect crypto trading bots via their API.
More about Crypto Trading Site
What is a Bitcoin Trading Site?
A bitcoin trading site is a web based application, app or software where you can buy cryptocurrencies or derivatives of cryptocurrencies.
How should I choose crypto trading platform?
You must consider what parameters are important to you among deposit methods, fees, trading features, and deposit bonuses. Other things you must consider is region availability and KYC.
I am a complete crypto trading beginner and I dont know where to start...
If you are a complete crypto trading beginner we recommend you to browse over to our home page where we have a step-by-step crypto trading guide. Also, you can proceed to next question.
How can I start crypto trading?
First you must consider how much money you are prepare to invest in cryptocurrency. After this, you must decide what platform to invest in. We did a develop a short guide on how to start cryptocurrency trading.
What are Crypto Futures Contracts?
A Crypto Futures Contract is a derivative product and is an agreement to buy or sell a cryptocurrency at a predetermined price at a specified time in the future. Futures contracts do not require traders to post 100% of collateral as margin, because of this you can trade with leverage of up to 100x on some of BitMEX contracts.
What is Crypto CFD Trading?
A Contract For Difference (CFD) is a popular form of derivative trading. CFD trading allows you to speculate on rising or falling crypto currencies. These instruments are often traded with high leverage. CFD platforms often have well-developed functions and are regulated trading platforms. Read more about Bitcoin CFD trading.
What is Crypto Leverage Trading?
Crypto leverage involves borrowing a lot of money needed for trading. The money can be borrowed from brokers or peer-to-peer margin lending. Crypto leverage trading includes crypto margin trading, crypto futures trading, and crypto CFD trading.
Read our full guide about Bitcoin leverage trading.
What is Crypto Margin Trading?
Crypto Margin Trading means that you trade with borrowed money. By utilizing margin trading you can take financial positions that you would not be able to with your own equity. This is a common method to use for advanced traders. Margin trading means higher risk and should not be used by beginner traders. We recommend BitMEX for margin trading and you can read more about this topic in this blog post, Cryptocurrency Margin Trading Platforms – Parallel Comparison.
Where should I trade with 100x?
First of all, you must consider carefully what it means to trade with 100x. This is only appropriate for automated trading with very short positions since 1% decrease in the underlying asset will eliminate all your invested capital.
Which is the best crypto trading platform?
The easy answer is Binance. However, there are many small sites that have better niche features. For example, Binance doesn’t offer futures trading. Read more about the best bitcoin trading site.
What is a crypto trading strategy?
A crypto trading strategy is a methodology you should develop in order to have a chance to beat the market. There are many different categories such as day trading, scalp trading, and arbitrage trading. There are even more trading strategies and we cover them in our blog post about crypto trading strategies.
What is shorting Bitcoin?
Often you can speculate in an asset in both directions. This means, that you can take profit both when Bitcoin increase in price and when Bitcoin decrease in price. Of course, we have a dedicated article for shorting, How to short on BitMEX or Binance?
What is margin funding?
Margin funding is great alternative for passive income. You have the ability to lend your holdings for margin.
Basically, it means that you eanr interest and the other trader gets leverage. Bitfinex offers this feature to their customers. We have a dedicated article about how to make passive income with bitcoin lending on Bitfinex?
Do you have any guide for crypto trading for beginners?
Crypto trading differs a lot from stock trading and forex trading. Therefor, anyone going into crypto trading must read a guide about crypto trading for beginners before start trading. There are much more volatility and lower trading volumes compared to traditional markets like, forex, commodites, and stocks.
What is crypto trading risk management?
If you are serious about your crypto trading you must handle crypto risk management.
If you don´t handle risk management you will end up as a loosing trader.
We have created a guide about how to start handle your crypto trading risk managment.
What crypto trading sites are safe to use?
We will never list a crypto trading site we don´t beleive is safe to use.
However, how can you decide this on your own?
We did create a very simple guide on how you can stay to safe crypto trading sites and avoid scams or unsafe crypto trading platforms.
What is crypto fundamental analysis?
Crypto fundamental analysis is a method of measuring a cryptocurrency market cap by examining the use cases and adoption.
Fundamental analysts study anything that can affect the cryptocurrency value, from number of developers, the number of nodes, the number of wallets, the number of applications, trading volume and much more.
Read more about crypto fundamental analysis.
What is crypto derivative trading?
Derivatives are financial products that makes it possible to trade with leverage. When you trade derivatives you dont own the underlying asset itself. Read more about what Bitcoin futures are and where you can trade Bitcoin futures.
I am not interested in trading sites. I want to learn the basics of crypto trading.
Perfect, we have several articles you must read before you start trading and put your capital at risk. Go to our crypto trading blog and you will find the articles you are looking for.
I am a high frequency trader and I need some crypto software for automated reaports.
Great, we have an article about crypto tax software. Here, we list the best crypto software for automated reports. Also, the software can collect information from almost any exchange or trading site, via an API.
I want to try crypto trading bots, where can I find the best one?
Crypto trading bots are quite complex to setup and run. However, there are several great software that will help you develop n automated strategy and easy to install. We have listed them all in our article about crypto trading bots.
What are crypto trading instruments?
Crypto trading instruments are spot trading, margin trading or derivatives. Crypto derivatives is a category and including several trading instruments like CFDs, Futures and Perpetual Swaps. Read more about crypto trading instruments.
What are crypto trading tools?
Crypto trading tools are things that can help your trading. It can be bots, reporting software, tax software or analyzing tool. We have summarized all crypto trading tools in an article.
I want to trade ETH. What is the best Ethereum trading site?
There are many great Ethereum trading platforms. We have listed a few of them in our article, the best Ethereum trading platform 2020.