There are many crypto brokers to watch out for as we march into the new year. It is no longer news that the cryptocurrency market is evolving in a very rapid manner. We have seen the price of Bitcoin hit an all-time high as we close the year 2020.
The recent occurrence in the crypto space is an indication that the coming year (2021) will be one of unprecedented innovation in the crypto industry. Therefore, as a newbie or a seasoned crypto holder, you will be coming across many crypto brokers or cryptocurrency exchanges.
The major challenge will be identifying the best among the many crypto brokers you are bound to interact with. This post will help you narrow it down to know which crypto exchange is best for you.
What makes an ideal Crypto broker?
It is not any platform that can offer the services of a crypto exchange. Certain things set these crypto brokers apart from the rest of the market. We shall explore three of these reasons:
- It must have a good liquidity pool.
For you to consider any platform a crypto broker, the platform must have a greater liquidity pool. Any cryptocurrency that is bought or sold requires someone to buy from or sell to. The more people buy and sell, the more “liquid” the platform will be. Before a platform can be seen as a good crypto exchange, it must have a good number of sellers and buyers.
In other words, the exchange needs to populate its trading pairs order books with buyers and sellers. By doing this, the exchange provides a viable market for its users.
- Reduced spread and slippage fees
One key feature of a suitable crypto broker is that it has reduced spread and slippage fees. Ideal cryptocurrency exchange with high liquidity in the order book will lead to low spread and slippage fees. A low liquidity crypto broker will result in the high spread and slippage fees that will eat deep into your funds.
- Higher cryptocurrency pairs to trade
Every good crypto broker will have an increased crypto pair to trade. The ability of a cryptocurrency exchange to offer assets without liquidity losses is a great advantage. Users can use a single cryptocurrency broker trade, manage their crypto portfolio, and store assets in one location without the need to register with multiple exchanges to trade.
Leading Crypto brokers to watch in 2021
This list follows no specific order but explores all the top crypto exchanges that you need to follow closely.
eToro is an Israeli based social trading broker that was founded in 2007. eToro serves its UK customers through a regulated unit by the Financial Conduct Authority (FCA). It also serves its Australian customers through a regulated unit by the Australian Securities and Investment Commission (ASIC). However, all other customers are served by the Cypriot unit that is regulated by the Cyprus Securities and Exchange Commission (CySEC).
Although eToro does not disclose its annual report on its site and does not also have a bank parent, it is considered safe. The major reason it is considered safe is that top-tier financial authorities regulate its UK and Australian arms.
eToro offers products like stock, Exchange-traded fund (ETF), Forex, Contract for Difference (CFD), and crypto. There is a charge for inactivity, and the withdrawal fee is $5.
- eToro offers seamless account opening.
- There is social trading experience
- A demo account is made available for new users to get used to the platform.
- Users can make deposits with bank cards and electronic wallets.
- There are high non-trading fees
- It has only one account base currency
- The customer support system needs improvement
Take nothing away from eToro; it is arguably one of the top crypto brokers to look out for in the coming year.
Stormgain is one of the exciting crypto brokers that you should watch out for in 2021. Users can leverage the volatile crypto market with well-known crypto pairs and use high leverage of up to 300x. Every contract is settled in the stablecoin Tether (USDT). The stablecoin will appeal to traders to limit their portfolio exposure and limit the exchange rate risk peculiar to Bitcoin and Ethereum.
Stormgain supports the following crypto; Bitcoin, Bitcoin gold, Cardano, Dash, EOS, Ethereum, Ethereum Classic, Ripple, NEO, Stellar, Tether, Tron, and a host of others. This crypto broker also risks management tools like stop loss, take profit, crypto forecasts by Stormgain specialists, and indicators.
- It has an excellent demo account
- It has a multiplier of up to 300x
- It has a web-trader, desktop, and mobile app to provide easy access to users.
- The leverage is up to 300
- Low trading and exchange fees.
If you are a cryptocurrency enthusiast, you must have heard of Coinbase crypto exchange. It is one of the biggest cryptocurrency brokers, available in more than 100 countries with over 30 million users worldwide.
This platform is duly registered and regulated in the United States. Although it started as a Bitcoin brokerage service, additional services got incorporated along the line. Coinbase supports more than 20 different cryptocurrencies; examples include Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, EOS, Stellar Lumen, Ethereum Classic, USD Coin, Zcash, etc.
- It gives you access to about 30 different cryptocurrencies.
- Low minimum to fund account.
- Your cryptos are insured in the event the website is hacked.
- You don’t have control of your coins on Coinbase. In other words, Coinbase stores your coins for you just like banks keep your cash.
- It is only available in 42 states in the United States.
Binance is one of the leading crypto brokers in the world, and this is the more reason you need to watch out for it. By trading volume, Binance is the world’s largest online cryptocurrency exchange. There is a wide range of cryptos available on the Binance crypto exchange. You can find the top 20 cryptos by market capitalization on Binance and other smaller and less known cryptos.
You have the Bitcoin, Ether, BNB, and Tether trading pairs, and there are also crypto/fiat pairs on Binance.
- The platform is user friendly
- Binance has one of the widest range of cryptos in the market and a comprehensive range of crypto pairing to trade.
- High liquidity due to high trading volumes.
- It supports the deposit and withdrawal of crypto and fiat money.
- Binance has a comprehensive support center with 24/7 customer support.
- Although the KYC will be positive for some traders, it is negative for traders that need to remain anonymous.
- The demo account is only available for the Binance Futures platform.
- Its more advanced trading platform is difficult for new traders.
This is one of the top and well-known crypto brokers supporting the trading of more than 70 cryptos. It was founded in 2016 and is designed to provide crypto traders and investors with a wide range of crypto options. Crypto.com supports all the leading cryptos by market capitalization. Examples include Bitcoin, Ether, Ripple, Stellar Lumen, Tether, USD Coin, Cardano, etc.
It also supports the lesser-known cryptos like Cosmos, Enjin Coin, ICON, Tezos, and VeChain. Users who already own cryptocurrencies that are supported by Crypto.com can transfer them to Crypto.com compatible wallets. Users can also deposit fiat through wire transfer or buy cryptos with a credit card using the Crypo.com App.
- It is a user-friendly platform
- The platform provides a wide range of cryptos and a comprehensive range of crypto pairings to trade.
- It supports both deposits of fiat and cryptos
- Permits the withdrawal of fiat through the Crypto.com App
- Insurance protects the user base from physical damage and third-party theft.
- You can earn a referral bonus through the exchange affiliate program.
- The KYC is considered negative for traders that seeking anonymity
- It is a relatively new player in the crypto market, and it has a shorter track record.
Another one of the great crypto brokers to look out for in 2021 is Prime XBT. Prime XBT is both a cryptocurrency and forex broker that provides leveraged trading to traders across the world. Since it was founded in 2018 in Seychelles, the platform has grown to serve customers in more than 150 countries.
There is a range of visualization tools, execution methods, and trading histories. You can execute different order types on Prime XBT, with the option to simultaneously place stop losses and take gains. The leverage rates at Prime XBT are very competitive, especially when crypto pairs offer up to 1:1000. Prime XBT deals exclusively on cryptos when it comes to transactions.
- The platform provides round the clock trading hours.
- Easy signup and login process
- You don’t have to provide your personal data.
- The platform provides a high leverage rate.
- It has limited deposit and withdrawal methods.
- The platform provides only online customer support.
- There is no automated trading.
- New users do not have access to a demo account.
The last but not the least on our list of top crypto brokers to watch out for in 2021 is Gemini. Gemini is built on transparency and user empowerment. It is exclusively a Bitcoin and Ether exchange platform. Currently, Gemini is a New York Trust Company and has acquired the Bitlicense. This means that Gemini is certified as a crypto company operating under the supervision of the New York Department of Financial Services (NYDFS).
Gemini also has insurance for all user funds deposited on the exchange. In 2016, Gemini became the world’s first licensed Ether exchange. According to coinmarketcap, Gemini is the 39th largest exchange in the world. This platform also provides crypto to fiat payments and BTC/ETHC market. Gemini accepts fiat currency (only USD).
- It has strong security
- The US dollar accounts are all ensured
- It is user-friendly
- There is a limited section of cryptocurrencies on the platform
- It requires lots of personal information from users
These top crypto brokers to watch out for in 2021 are positioned to lead the crypto exchange market. The question is, which one of them will take it all as we head into the New Year? Well, time will tell.