Cryptocurrencies trading is a big industry, with millions of people taking part in it to buy and sell digital assets for making a profit. With so many options to choose from, it is easy to get puzzled by what Cryptocurrency app to use. Apps make trading cryptocurrencies easy even for novice traders. Nowadays, most platforms usually offer trading apps to their users. We have created a list of the best cryptocurrency trading apps in 2021, each one carefully scrutinised for their features, benefits, security, and a range of other factors.
Our List of The Top Cryptocurrency Trading Apps
Following are our selection of noteworthy cryptocurrency trading apps along with their features and advantages so you can make a well-informed decision.
What is a Cryptocurrency Trading App?
Like all assets, cryptocurrencies also witness changes in its value. The fluctuating prices can be capitalised in the form of buying when the cryptocurrency value drops and selling it when the price rises.
But for people who are looking to increase their wealth and crypto holdings, they need a common ground, a place where they can come together as buyers and sellers. This is where cryptocurrency trading apps come in. Apps are offered as small programs that run on your devices, consume less memory and resources, and help people to trade, anytime.
How Do Cryptocurrency Trading Apps Work?
A crypto trading app is an interface that lets people connect and exchange their tokens. To start, any person interested in trading needs to first download the app and install it on their device. An app may have multiple versions, each designed for a specific operating system. The three most common platforms are iOS, Android and Desktop.
Once the correct version is downloaded and installed, the first step is getting registered. This could be as simple as creating a username and password or could involve other information such as asking the users to upload their national identification document, proof of income etc. This extra information request comes under different KYC and AML laws that app developers have to follow and the amount of information required can vary from app to app. Many crypto trading apps can skip the KYC checks, only to ask for it later when the user has registered and is ready to trade cryptocurrency.
There are cryptocurrency trading apps that don’t ask for any KYC documentation. These cryptocurrency trading apps can seem attractive, but since they are not in compliance with any sort of regulatory body or law, we would suggest you stay clear of them.
After the registration (and any regulatory document verification) is completed, the next logical step would be to fund your cryptocurrency trading app. Navigate in your app to the wallet settings and locate the deposit option for your cryptocurrencies. You will be given a complex string of characters that would be the public key of your crypto wallet. Simply head over to the wallet where you normally store your crypto and use the public key from the app to transfer over your required crypto. Keep a close eye on the type of cryptocurrency public key you select in the trading app. Trading apps support multiple cryptos and if you send your crypto to a different crypto’s wallet, your coins will be lost forever.
Some trading apps also support fiat currencies. If this is your first experience buying crypto, check out this option in the crypto app wallets.
Once the transaction is done, the users can trade cryptocurrencies. Each app offers a different range of buying and selling order:
- Market: Instant crypto trades according to the current market price. The trader only needs to enter the amount of crypto they want to buy or sell.
- Limit: At times when a trader is not comfortable with the market price, he or she can use the limit order option. This lets the app user not only enter the amount of crypto to be traded but also the desired crypto exchange rate.
- Stop-Limit: A stop-limit order adds another input to the limit order type, this time asking for a required market price. The limit order is only executed when the desired market price is achieved. This can be very useful in mitigating losses or closing profitable positions automatically.
The cryptocurrency trading apps may have more complex order types, such as trail, iceberg and fill-or-kill. The inclusion of these orders depends on what kind of trader the apps are targeting.
Cryptocurrency trading apps also allow users to withdraw their funds. Just like deposits, the traders will need to navigate to their wallets within the app and select a withdrawal option. The apps typically have two data fields for withdrawal, the amount of crypto to be withdrawn and the public key of the destination wallet. If the app has withdrawal options for fiat currencies, the traders can link their bank accounts and transfer funds easily.
Key Things to Consider when Choosing the Best Cryptocurrency Trading Apps
Cryptocurrency trading apps come with a variety of options, features, benefits and limitations. Before deciding to use a trading app, keep in mind the different aspects of these apps and your requirements. Though each aspect may work independently, they all have a combined effect that can change your decision.
Security and reliability of the app (including the developers), of course, is the top priority. Most of the apps work with data and information stored on central servers and these can be hacked, with the malicious party siphoning off the funds. Always go for a reputable cryptocurrency trading app with good security. The reliability of the developers is also important. An app, even with the best of securities doesn’t guarantee the safety of your crypto assets if the team behind it is not reliable.
Check on the trading pairs and liquidity. Even if you find the app security to your liking, it is no good if you cannot trade for the cryptos you want. The app should also have enough traders on board for good liquidity.
We would also suggest that you look into the legal compliance aspect. An app that doesn’t conform to legal and industry standards is to be viewed with extreme caution. The trading app you want to use should support the country or area you live in. This can be easily found from reading up on their terms of service and policies.
Don’t forget to check out the trading interface too. Some cryptocurrency trading apps have interfaces that are designed for professionals, while some for normal users. This might not be much of an issue as most apps today offer both interfaces which you can select from the app settings, but it is worth checking out.
Trading fee is another important aspect. Cryptocurrency trading apps have a commission-based business model, where they charge for trades made. Check if the fee structure is to your liking. Some apps also charge withdrawal and deposit fees and you should check the fee structure before trading.
Pros and Cons of Using Cryptocurrency Trading Apps
Cryptocurrency trading apps have made trading in crypto easy for all types of traders. With 24 hours trading and a wide range of cryptos, using the right app can help anyone buy and sell crypto easily. Use our list of carefully selected best cryptocurrency trading apps in 2021 and the guide to simplify your crypto trading journey.
Frequently Asked Questions
Yes, if your app developer supports multiple platforms.
Trading apps impose a minimum withdrawal limit for some cryptocurrencies. Check your app wallet settings to know the limit.
Your trading app is probably decentralised. Decentralised trading apps don’t have wallets and users need to connect their own wallet to the app.
Look for a stablecoin trading pair for your crypto. Most trading apps, even pure ones, offer different crypto to stablecoin trading pairs.
Demo accounts allow new traders to practice their trading skills in a virtual environment.
Leverage is a derivative trading method that involves taking loans to multiply profits. Open a leverage position only if you are aware of the risks involved as losses can result in total loss of assets.
Yes. Most crypto apps allow 24/7 trading except for scheduled maintenance and upgrades.
Apps generally reduce costs by completing transactions in batches. In case of long delays, contact the app developers.