2019 has been a year full of volatility when it comes to cryptocurrencies, but -despite the bearish seasons that hit bitcoin and other altcoins hard- the overall outlook is more than positive. With the growing enthusiasm of the crypto and blockchain industry at the institutional level, the appearance of grand announcements such as Libra or GRAM and the participation of big players in the “stablecoins” arena, 2020 is full of high expectations. When using cryptocurrencies it is common to use 2 types of platforms: brokers and exchange platforms. But how can we get the most out of them? In this article, we present the top 3 of the best places to buy crypto coins in 2020.
Brokers or exchanges: which way to go to buy crypto coins in 2020?
Exchanges are the traditional platforms for investing in the cryptocurrency market. They offer several advantages, especially for those who want to invest and at the same time get involved in the intrinsic use of crypto coins by using them through the project’s own purses and platforms (e.g. decentralized development with Ethereum or cloud storage with Siacoin). However, from an investor’s point of view, most exchanges have a lot of limitations.
This is where broker platforms come into play. These are investment platforms generally regulated by a financial authority that allows you to invest in various instruments in a more versatile way. In the case of cryptocurrencies, they are mostly offered through financial derivatives, either a futures contract or a contract for difference (CFD). Soon, bitcoin will also enter the options market. In any case, the investor can invest in these derivatives that are based on the price of the underlying asset (in this case, the cryptocurrency).
In addition to the security provided by regulation, another advantage is the extension of the tools available. With these derivatives, it is possible to open short positions that win when the price of the cryptocurrency drops or long positions that win when the price increases. Other advanced tools such as leverage, trailing stop loss and more are also added features when trading on a broker platform. Thus, a much wider range of possibilities is opened up when taking advantage of the intrinsic volatility of the “cryptouniverse”.
Our ranking of the best brokers to invest in cryptocurrencies in 2020
eToro
This broker probably represents the most powerful option to invest in cryptocurrencies today. In addition to being one of the most renowned platforms in the financial world, its commitment to digital currencies has been truly solid, unique and diverse. Yes, we have already mentioned that brokers allow you to buy Bitcoin and other cryptocurrencies through financial derivatives. However, eToro went a step further and recently introduced its eToro Wallet: a wallet where users can store their digital currencies. Derivatives can be converted into real cryptocurrencies there- almost in an instant.
This versatility is something that we have not been able to see on any other platform, except for some similar approaches such as Bakkt. eToro’s portfolio of cryptocurrencies is quite extensive and the broker frequently continues to add new options. Currently, there are more than 16 crypto coins that we can trade vs. the US dollar. But other interesting crosses of cryptocurrencies against cryptocurrencies, FIAT and even gold are also offered.
The platform is also committed to supporting the new big bets of 2020, such as the Telegram (Gram) or Libra (Facebook) cryptocurrency. It is possible that they will touch the spotlight in 2020 and this platform presents us with one of the best options for investing in a robust and safe way. In addition, the social trading approach allows many less experienced operators to quickly get involved in the world of cryptocurrencies by following other expert investors, copying or replicating specialized ‘Cryptoportfolios’.
StormGain
New year, new resolutions, new places to buy crypto in 2020? Yes, we’re adding a brand new platform to this list and there’s a reason why. StormGain was founded in 2019 and it operates in more than 150 countries around the globe. If you’ve been involved with cryptocurrencies for a while, you should know that this is a volatile market, but what happens when you’re even more risk-tolerant and you want more exposure to these markets. That’s when leverage comes into place. Even though brokers are a good alternative for this, most of them only offer a maximum leverage of 2x when trading cryptocurrencies.
Well, StormGain has come to save the game of those fearless traders. But watch out, they take it seriously… you’ll get a multiplier of up to 150X. What does it mean? If you invest $10, you’ll get an exposure of $1,500. The same applies to your gains and losses. If the financial asset in which you invested wins 1 %, then your initial investment will earn 150 %. The tricky part? If the financial asset losses 0.6 %, then you’ll lose 100 % of your initial investment and your position will be liquidated. This platform works with crypto pairs only and it combines a handful of trading tools, along with a much appreciated 24/7 customer support.
If you don’t have crypto yet, StormGain offers the possibility of buying base cryptocurrencies with your debit/credit card via Simpelx. One of our favourite features is that you can also trade using their Android/iOS apps. Using futures contracts you’ll be able to trade the following pairs with very low commissions:
- Buy Bitcoin (BTC) – BTCUSDT
- Buy Ethereum (ETH) – ETHBTC and ETHUSDT
- Buy Litecoin (LTC) – LTCBTC and LTCUSDT
- Buy Ripple (XRP) – XRPUSDT
- Buy Bitcoin Cash (BCH) – BCHUSDT
iTrader
iTrader is another broker that has been recently introduced to the crypto arena. It has made it to our top places to buy crypto in 2020 for several reasons. One of them is precisely its regulation with Cyprus Securities and Exchange Commission, aka CySEC (license number 198/13). It allows it to work under a regulated framework that will keep your money safe. In 2020, this broker is set up to keep expanding and providing their unique trading tools. Even though we love crypto, it’s great when you have the chance to trade and gain exposure to several markets including currencies, stocks, commodities and others. With iTrader, you’ll get a Daily Review, i.e., a technical analysis of the top trading pairs so you can confront to your own ideas. It currently includes 8 crypto coins:
- Buy Bitcoin (BTC)
- Buy Ethereum (ETH)
- Buy Bitcoin Cash (BCH)
- Buy Litecoin (LTC)