Best online brokers for buying and selling cryptocurrency in March 2022

Cryptocurrencies, especially Bitcoin, have proven to be popular trading tools, even if legendary investors like Warren Buffett consider them of little value. Part of the popularity of cryptocurrencies is due to their volatility, as these fluctuations allow traders to make money from price fluctuations.

For example, the price of Bitcoin topped $ 1,000 in early 2017. By the end of the year, digital currencies had reached nearly $ 20,000. Almost a year later, Bitcoin was hovering for about $ 3,200. However, it revived in 2019, surpassing $ 10,000 and then rising significantly, surpassing $ 60,000 in early 2021. It hit a record high of over $ 68,000 in November 2021, but has been under pressure since then, approaching the March mark at nearly $ 40,000.

It is this type of price behavior that has attracted traders trying to ride the wave to make a profit. Some traders prefer to own the currency directly, while others are looking to the futures market. Futures are an even more attractive way to take advantage of the volatility of digital currencies like Bitcoin, as traders can increase their profits (and losses). However, futures carry far more risk in exchange for their potentially high rewards.

Where can you buy and sell cryptocurrencies?

Traditional brokers have the advantage of offering a wide range of investable securities, but usually Bitcoin cannot be traded directly, only futures. On the other hand, cryptocurrencies are limited to digital currencies, but they own the currencies directly and can often buy multiple currencies, not just Bitcoin and Bitcoin futures like a typical broker. Services such as Cash App and PayPal have also emerged, allowing US users to buy and sell cryptocurrencies.

This is the best broker for trading cryptocurrencies, including traditional online brokers, as well as a new specialty cryptocurrency exchange. You can also see which brokers offer the best bonuses to open an account and see where you can get a little extra.

Overview: Best brokers for cryptocurrency trading in March 2022

Robinhood

Robinhood is a great option for buying cryptocurrencies directly. You can also take advantage of Robinhood's very popular transaction fees. You will pay $ 0 per transaction, or no fees, but you will pay a built-in spread markup for every transaction. And if you are interested in more than cryptocurrencies, you can stay for stock and ETF trading at the same low price. Robin Hood's nifty apps make trading very easy, but those looking for a full-featured trading experience will be disappointed.

Commission: $0

Account minimum: $0

Interactive Brokers

Interactive Brokers allows you to trade four cryptocurrencies, including Bitcoin and Ethereum, directly with one of the lowest fees on the market. You can also buy Bitcoin futures instead of owning the currency directly. You can also buy futures on the Chicago Mercantile Exchange for this broker. The cost of an all-in contract is $ 10.02 for 5 Bitcoins per contract. In addition, Interactive Brokers offers a complete suite of investment products, so you can buy almost anything traded on the exchange.

Commission: 0.12-0.18 percent of trade value; $10.02 per futures contract

Account minimum: $0

Webull

Webull, lesser known than its rival, fee-free trading app Robinhood, offers investors solid services, including cryptocurrency trading. We do not pay fees for crypto trading (or stocks and ETFs), but Webull charges a spread premium of 100 basis points (1% of the purchase price) on either side of the trading. Several cryptocurrencies are available for trading, such as Bitcoin, Ethereum and Cardano. Charting tools and an impressive mobile app make Webull a worthy broker to consider.

Commission: $0

Account minimum: $1 to trade crypto

TradeStation

Traders, this broker has several options for introducing direct forex trading via TradeStation Crypto and setting commission-based pricing for traders. The price is based on the balance of your account with the broker and whether the order can be sold directly. Prices typically range from 0.05% to 0.3% of the order. Traders can also buy and sell Bitcoin futures and benefit from large trading discounts.

Commission: 0.05-0.3 percent

Account minimum: $0, but futures margin depends on contract

Binance

Binance is a specialized trading platform that allows you to buy and sell not only the largest currencies such as Bitcoin and Ethereum, but also digital currencies including dozens of other much smaller coins. In total, you can access about 60 cryptocurrencies. Binance's fee structure is low, and the more you trade, the cheaper it will be. Transaction fees start at 0.1% of the transaction amount (that is, $ 10 per $ 10,000 transaction amount) and decrease from there depending on the transaction volume over the last 30 days.

Commission: 0.1 percent of the transaction value or less

Account minimum: $0

Coinbase

Coinbase is a special cryptocurrency-focused platform that allows you to directly trade digital currencies such as Bitcoin, Ethereum, Solana and Tether. In total, you can access over 100 cryptocurrencies. You can also delay payments and store coins in the vault for added protection. The fee structure of the exchange is steep. The Pro platform is cheaper, but charges a spread premium of about 0.5% and adds transaction fees depending on the size and source of the transaction.

Commission: At least 1.99 percent of the transaction value

Account minimum: $0

eToro

eToro offers fee-free cryptocurrency trading, but like many other brokers, it charges spreads based on the cryptocurrency being traded. You pay Bitcoin a premium of 75 basis points, but more ambiguous cryptocurrencies can approach 500 basis points, or even 5 percent. An important feature of eToro is CopyTrader. It allows you to follow and identify other top traders on the platform and copy those transactions. Be sure to do some research before working on this strategy.

Commission: $0 plus a spread markup based on cryptocurrency being traded

Account minimum: $50

Kraken

Kraken is a cryptocurrency exchange where you can trade dozens of different digital currencies such as Bitcoin and Ethereum, as well as emerging currencies such as Cardano and Solana. In addition to the 1.5% fee, or 0.9% for Stablecoin, you will pay an additional fee if you use your card to deposit through a bank. More active traders can benefit from a premium tier called Kraken Pro, which reduces the price range from 0.16% to 0.26%. Residents of New York and Washington are not yet available to Kraken.

Commission: 1.5 percent, or 0.9 percent for stablecoins (lower with Kraken Pro)

Account minimum: $1

Charles Schwab

Charles Schwab is one of the top bankrate brokers on a regular basis, and this investor-friendly company offers Bitcoin futures trading. Schwab also does not have a minimum account, but all futures contracts you trade require a certain minimum margin to keep them open. Schwab offers a compelling commission of $ 1.50 per contract, and if you can spend a lot of money on the table, you'll also get a welcome bonus.

Commission: $1.50 per contract

Account minimum: $0, futures margin depends on contract

TD Ameritrade

TD Ameritrade is one of the top full-service brokers on the market, providing access to traditional commodities such as stocks and fixed income, as well as expanding to include Bitcoin futures. However, TD Ameritrade does not allow direct trading of digital currencies. To start Bitcoin futures, you must meet the minimum requirements of your account. (Charles Schwab will acquire TD Ameritrade and eventually merge the two companies.)

Commission: $2.25 per contract

Account minimum: $25,000 for futures

Bottom line

Whenever you’re selecting a broker, it’s important to consider all of your needs. And for new traders in cryptocurrency, you’ll want to figure out whether you want to own the virtual currency directly or whether you want to trade futures, which offer higher reward, but also higher risk.

You’ll also need to consider whether you want to trade more than Bitcoin, which is what the majority of traditional brokers restrict you to. If not, you may want to turn to a cryptocurrency exchange, since they offer more choice of tradable cryptocurrencies