Best Cryptocurrency Trading Accounts
So you’ve done your research and are interested in Cryptocurrency. Crypto isn’t as new as some people think, it has been around since 2009 when Satoshi Nakamoto created the first-ever Bitcoin, in recent years the hype around cryptocurrency has really surged.
It is actually so new that nobody can 100% predict how well it will perform in the long run, whether it will be fully adopted globally or what purpose it may one day serve, one thing we can be pretty sure about is that it’s here to stay in some form, with so many coins around and incredible advances in blockchain technology the future looks bright.
There are many analysts who expect cryptocurrencies to overtake fiat currency at some point in the future and with the rise in inflation predicted a lot of people are moving into cryptocurrency due to its decentralized nature and some coins actually being deflationary, so are potentially a good hedge against conventional currencies.
Due to the recent uptake in cryptocurrencies and due to the nature that most of the coins work, they require miners to mine coins on blockchains, which essentially means using computer power to break extremely complicated maths puzzles, as more coins are created the puzzles become harder and this requires greater computer power, as a result of this it is more expensive to mine coins, this is passed on to people buying crypto in the form of fees, so be prepared for high fees when purchasing coins.
What types of accounts are there?
At present, there are a number of accounts you can use when trading crypto, however, it’s an ever-changing environment, with a recent surge in interest and due to its relatively new adoption many countries are changing policy on trading, with some countries banning owning any form of Crypto, some banning day trading of crypto and leveraged accounts, it’s always worth staying abreast of recent developments and checking what the rules are in your own country. At the time of writing owning crypto is legal and allowed in the UK so long as it is on regulated websites, however trading in CFD, leveraged accounts, or spread betting accounts is no longer allowed.
With the UK’s ban on retail traders, the most viable option over here would be to buy on a major crypto exchange where you buy the physical crypto itself and hold it. There are a few very good websites, that offer low fees, offer easy to use platforms, and where transactions are accepted by most major banks.
Part of the reason for the ban is due to the extreme volatility that crypto can bring, it would not be abnormal to see some major cryptocurrencies drop or rise by over 20% over a weekend. When you have leveraged accounts, this could have magnified the losses, so it is designed to protect the average retail investor.
Our recommended accounts to buy and hold Cryptocurrency
Below are our favorite 3 platforms where you can make accounts to buy cryptocurrency, offering a good range of coins, easy to use, and with low fees compared to competitors. Always look around before deciding where to invest your money and only invest in Crypto if you’re prepared to take the risk and understand that you could lose all of your investment.
|Binance||Offers the largest selection of crypto coins
Has low fees, as little as 0.1%
|Quite difficult to use for beginners
there are some issues at presnt with withdrawals to UK based bank accounts
|Coinbase||Great for Beginners, super easy to use platform
Lots of educational videos
|High fees compared to competitors|
Good selection of coins
|More complicated than Coinbase
Not as many AltCoins available