What Is A Coin Trading Broker?

What Is A Coin Trading Broker?

What is a coin trading broker?

A coin is a term often used to describe any online currency, so major digital currencies such as Bitcoin or Ethereum are all coins. A coin trading website is essentially a CFD trading website, which also offers CFDs on cryptocurrencies.

CFD, contracts for difference, simply allow you speculate or ‘bet’ on the future movement of price of the financial instruments, such as gold or Bitcoin, regardless of whether current prices are rising or falling.

CFD trading is a ‘bet’ in which you think the gold price will rise, so you would buy 1000 share CFDs. That shows how you speculate the market will move. 

Now, if the price of gold increases over the spread you will make a proportional profit however if it decreases, you would make a proportional loss.

However, these platforms don’t have any real-world market access, which means you won’t actually own a bitcoin, you’ll be betting on the possibility that the price rises. That means you can’t technically use a ‘bitcoin’ that you buy on the website for much other than selling it later on.

Is CFD trading safe?

The platforms that are online today are mostly regulated by different financial authorities. Therefore, you can be sure that these websites aren’t scams, for example, Plus500 is regulated by the UK’s Financial Conduct Authority.

Most of these websites also have high standards of safety in terms of deposit or withdrawal of funds. In terms of deposit, most of the platforms have secure payment gateways for Visa, Mastercard and major banks. You can even choose not to deposit money through your bank account, you can use PayPal for instant transfer.

Most usually, you will have to provide national identification for withdrawal of funds. This is important because you will have to verify your identity before withdrawing funds, so you virtually can’t get hacked. The withdrawal process is simple. Imagine you wake up tomorrow realizing your last few trades made you a few thousand dollars. Well, you only have to go through a verification process using your ID, after which you will be able to receive your profits.

Some coin trading website also offer two factor authentication as well. Two factor authentication is one of the simplest methods to avoid any type of hacking online, it’s like giving your bank your phone number so that when you carry out a transaction, the bank sends you a code on your phone in order to complete the transaction.

What’s the minimum investment on a Coin Trading Broker?

Since there’s many different websites with different deposits, here we will compare some popular CFD trading websites for clarity of the subject. Here’s a comparison of minimum deposits required by some of the major websites we recommend.

Avatrade accepts deposits through credit cards, wire transfers and online transfers such as PayPal. Deposits by credit cards have a minimum deposit of $100 which is pretty much an industry standard for most countries. Deposits through wire transfers have to be a minimum of $500 whilst online deposits can depend on your region.

One of the best features of Plus500 is the $25 bonus awarded to people who sign up and verify themselves; as it allows even the most beginner traders to experience what the world of CFD trading is. For seasoned traders, one can make a deposit on the website using major credit cards, PayPal or wire transfers. The website has no deposit fees, that is that if you deposit a minimum of $100 dollars into your account, you will have $100 to trade with.

You can deposit money into eToro when you create your account however it varies from region, it can range from $50-$1000 minimum first time deposit. Therefore, make sure to check what the minimum deposits are for your region on the website.

The payment options available are Visa, Mastercard, wire transfers and PayPal. So it has almost all of the different methods you could use. When paying with credit cards, the company uses an SSL technology to ensure safety of your information.

What’s the minimum withdrawal? Are there any special fees?

The withdrawal process on AvaTrade is quite straightforward. You need to verify yourself on the website by providing your ID and then the withdrawal will go into processing. This processing process can take about 1-2 business days. After this, your bank may take a few days to receive the payment. The withdrawal process can be made incredibly faster however, with the Ava debit card!

The withdrawal process is quite simple also for eToro, since the website provides withdrawal through all of the payment channels. However, you have to be verified on the website, after which you can withdraw your balance minus the margin used.

The minimum withdrawal is $20, which is quite low for a coin trading website! So if beginner traders start with $100 you can choose to withdraw only your profits which would be in the ballpark of $20-$50.

Plus500 has great withdrawal service, since you need to just verify yourself then the money is transferred to your personal banking account. Since there is no withdrawal fees as well, the profits that you make on the website, you can withdraw. The simplicity of the process is something that makes Plus500 stand apart, brokerage firms wouldn’t let go of your money as fast!

What’s the best website for coin trading?

Overall, the Plus500 coin trading website is one of the simplest and most powerful CFD trading website. The strong emphasis that plus500 has on being open to everybody is unparalleled. Anybody can use the platform to experience the world of CFD trading. You can get introduced to a new industry in the financial markets for free!

The extent of user knowledge that Avatrade offers, coupled with the number of financial instruments that it allows CFD trading on, I think it’s a very versatile platform to use. The freedom that users can have to trade on any commodities they would want to speculate on. That’s what makes Avatrade a great CFD platform.

However, the eToro website is quite a new and innovative idea; to mix the community of a social network to the complexity of CFD trading. This allows beginner users to master the platform with the help of the education programs on the website. The website is based on several interesting ideas. For example, if you have many followers who copy your trade, you receive a percentage of the earnings.

In my opinion, the website’s user traffic of 5 million shows that it’s a trustworthy website. Thus, it has great potential to grow in the future. Therefore, our recommendation is eToro, which has offers great services and is always beginner-friendly.

Check out our full tutorial on how to trade bitcoin here!

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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