Mar 20, · 10 Best Bitcoin Trading Platform - Are you perform trade with cryptocurrencies and looking best crypto trading exchanges, where you can perform your long-term or day to day trading, but don't know which platform will best for you, and how you can save your money on these cryptocurrency exchanges, check out this post. Thus far, we have had three such cycles. The latest one, that of December , took the price of one bitcoin to almost $20, If you want to trade bitcoin you can use one of the best crypto trading platforms in the UK above. For further reading, you can see our reviews of the overall best trading platforms in the UK here. Please comment below. Choose a bitcoin trading platform that offers the most markets, best pricing and client security. CFD, spread betting and trading Bitcoin on leverage carries a high level of risk and can result in losses that exceed your deposits. CFDs are complex instruments and come with a .
Best platform to trade bitcoin ukBest Bitcoin Trading Platform UK - Cheapest Platform Revealed
This is useful, as most Bitcoin trading platforms only offer a market against the US dollar, with the exception of eToro. Luno is an FCA-regulated cryptocurrency broker. The provider also offers trading services, with the platform coming jam-packed with technical indicators and other advanced tools.
On the one hand, we really like the 0. This makes the platform one of the cheapest in the cryptocurrency trading scene. However, if you are planning to deposit funds with a UK debit card, you will need to pay a whopping 3. When it comes to tradable cryptocurrencies, Luno only supports Bitcoin, Litecoin, Ethereum, and Ripple. As such, this is somewhat limited. Finally, we really like the cryptocurrency savings account that Luno offers.
The former simply means that you will be buying Bitcoin, keeping hold of the investment for several months or years, and then hopefully — cash out at a higher price. This is no different from investing in traditional shares. However, Bitcoin trading is a completely different kettle of fish to investing in the long-term.
This is because you will be looking to actively buy and sell Bitcoin pairs — making small, but frequent profits from ever-changing prices. As you can see from the above, you kept your Bitcoin trading position open for just a few days.
However, some traders will often keep a position open for a matter of hours or even minutes. This is known as day trading — and it involves placing several positions throughout the day.
It is also important for us to explain that there are two types of pairs that Bitcoin trading platforms in the UK offer. This covers crypto-to-fiat and crypto-cross pairs — which we explain in more detail below. As such, by trading crypto-to-fiat pairs, you will be trading the exchange rate between Bitcoin and a mainstream currency. This pair benefits from the largest amount of trading volume, tightest spreads, and huge amounts of liquidity.
As such, this is the best Bitcoin trading pair to focus on. With that said, Bitcoin trading platforms like eToro offer several other crypto-to-fiat pairs that contain Bitcoin. As such, if you feel more comfortable trading Bitcoin against the pound, then eToro is going to be your best option.
The best UK Bitcoin trading platforms also offer crypto-cross pairs. Put simply, this means that you will be trading Bitcoin against another cryptocurrency. As you can see from the above, there is no fiat currency involved in the pair. This can make it difficult to quantify your profits and losses. An additional learning curve that you need to get your head around is that of the Bitcoin trading price.
The good news is that the value of Bitcoin works no different from any other asset class. That is to say, the Bitcoin trading price will go up and down on a second-by-second basis — fully dictated by market forces. So, if the demand for Bitcoin is high, more people will buy it.
In turn, the price of Bitcoin will naturally go up. And of course — the same is true when demand for Bitcoin is low — meaning its price will decline. As you can now see, this is exactly the same as stock trading or forex trading. Crucially, Bitcoin is traded on public exchanges. This means that its value will rise and fall naturally — depending on where the money is. Make no mistake about it — generating profits by buying and selling pairs at a Bitcoin trading platform is no easy feat.
After all, you need to have a firm understanding of how technical analysis works — especially if you are trading in the short-term. Learning how to read charts effectively will take months or even years to master. This covers Bitcoin trading robots, third-party signals, and Copy Trading.
Automated trading is big business in the traditional stock and forex trading scenes. In fact, the vast majority of hedge funds and financial institutions utilize advanced robots to buy and sell assets on their behalf. After all, automated robots have the capacity to perform at a significantly faster rate than the human brain.
Fortunately, these automated Bitcoin trading robots are not reserved just for large institutions. On the contrary, there are thousands of robot providers active in the space — some good, some bad, and some very ugly. As such, you need to perform lots of research on the robot provider before signing up.
Nevertheless, in order to make use of a Bitcoin trading robot, you will need to use an online broker that compatible with MT4. This is a third-party trading platform that sits between you and your chosen Bitcoin trading platform.
Once you follow the above instructions, the automated Bitcoin trading robot will begin placing buy and sell for you. While Bitcoin robots do all of the bidding for you — some investors in the UK find the phenomenon somewhat uncomfortable. This is because you will be allowing software to use your hard-earned trading capital.
Put simply, signals are trading suggestions sent out by a third-party. In most cases, this will be an experienced human trader that spots a profit-making opportunity.
Then, the trader will tell you what orders to place to capitalize on their findings. This will usually come via Telegram, email, or SMS. As you can see from the above, the best Bitcoin trading signals will provide you with all the required orders need to not only access the trade — but to do so in a risk-averse manner. The underlying concept of automated Bitcoin robots and signals are great.
After all, you can sit back and make money without needing to do any of the legwork. However, there are thousands upon thousands of providers active in this space — most of which are scams. But, rarely do these guarantees come to fruition. As such, if you like the sound of automated Bitcoin trading but want to ensure that you avoid unsavory scam-artists, we would suggest checking out what eToro has to offer.
Regarding the former, this allows you to select an experienced Bitcoin trader that has a long-standing track record of making monthly gains at eToro. Then, your personal eToro portfolio will be mirror your chosen Copy Trader like-for-like. As per the above, you made a profit without needing to lift a finger. Best of all, you can rest assured that you are automating your Bitcoin trading endeavors in a safe and secure environment — as eToro is FCA-regulated! This works in a similar way to the former, albeit, these are professionally managed portfolio investments.
In other words, eToro will determine which assets to add to the CopyPortfolio, when to buy and sell, and when to rebalance. In particular, eToro offers a CopyPortoflio that focuses exclusively on cryptocurrencies.
This is as close to a traditional index fund as you will get in the Bitcoin trading space — as the portfolio is weighted based on factors like market capitalization, coin value, and recent performance. Margin trading — otherwise referred to as leverage, allows you to trade with more money than you have in your account. Although the UK has technically left the EU, these rules still remain in place. This means that the most you can apply is major forex pairs , with other assets coming with lower limits.
In order to access these markets, you need to use a CFD broker. With that in mind, the only way that you will be able to engage with Bitcoin margin trading is to use an unregulated, offshore broker that offers crypto derivatives. It will come as no surprise to hear that we strongly suggest avoiding such platforms, as your capital is at risk.
After all, if the broker collapses — it will likely take your funds with it. There are many benefits — as well as risks, of using Bitcoin trading platforms to buy and sell crypto assets. The obvious starting point here is that Bitcoin — albeit, 12 years old, is still a new and exciting technology that is still well in its infancy. The underlying technology — the blockchain, can do things that we have never seen before.
In addition to the above, Bitcoin is decentralized. All in all, the above characteristics mean that by trading Bitcoin, you can enter the crypto market at a very early stage. This is no different from investing in top-rated internet stocks like Amazon back in the s.
But of course, there is no guarantee that you will make money by trading Bitcoin, so do bear this in mind. As we briefly covered earlier, the best UK Bitcoin trading platforms offer heaps of markets. This covers both crypto-to-fiat and crypto-cross pairs. This ensures that you can take full advantage of short-term price movements. For example, you might think that Bitcoin is undervalued against the British pound — and place a trade accordingly.
On another occasion, you might think that Bitcoin is underpriced against Ethereum. Whatever your prediction, Bitcoin trading platforms offer heaps of pairs and markets that you can access at the click of a button.
When you trade traditional assets like stocks and shares, you can only do so during standard market hours. As such, anything trades outside these hours must wait until the market reopens. However, Bitcoin trading platforms in the UK operate 24 hours per day, 7 days per week. Sure, you might not have a requirement to buy and sell Bitcoin during the early hours of Sunday morning. But, knowing that the markets never close is a handy safeguard to have.
After all, you might want to cash out your position instantly and not want to wait until Monday morning to be able to do so. Back in the early days of Bitcoin trading, volume was minute. This went from a few hundred dollars a day, to thousands, and eventually millions.
However, fast forward to , and Bitcoin trading platforms collectively see billions of pounds worth of activity each and every day. The best Bitcoin trading platforms in the UK allow you to get started with ease. Best of all, you can trade Bitcoin with small amounts.
This ensures that you can trade Bitcoin online without needing to risk large amounts of money. This means that you can speculate on the price of Bitcoin rising, as well as falling.
However, there is a slight caveat to this benefit. This was the go-to avenue to short-sell cryptocurrencies like Bitcoin. The good news is that you can still short-sell Bitcoin if this is something you want to achieve.
This means that you will be trading Bitcoin against Tether — which is pegged to the US dollar. It goes without saying that any asset class can lose you money when trading it online. This is no different from trading Bitcoin. As such, you need to understand the financial risks involved. As we cover shortly, you can mitigate these risks by deploying a sensible risk management strategy.
Bitcoin is a new and often volatile digital currency — meaning that you stand the chance of losing more than you had hoped. This is much more likely to happen than a blue-chip stock — so do bear this in mind.
When you trade established, stable stocks — you will find that the spreads on offer are super competitive. However, as Bitcoin trading platforms experience high levels of volatility throughout the day, this often results in wider spreads. For those unaware, this is the difference between the buy and sell price of Bitcoin. The wider the spread, the more you indirectly pay in fees.
For example, at eToro, while the spreads on major stocks average 0. Depending on which Bitcoin trading platform you sign up with, you might need to have an understanding of how crypto wallets work. This is because cryptocurrencies like Bitcoin are stored in a digital wallet on your desktop or mobile device.
This means that you need to have an understanding of private keys, public addresses, and backup phrases. This is because eToro will safeguard your digital coins in their own wallet. Trading Bitcoin and expecting to make a profit from day one is wishful thinking. After all, you need to understand what drives the price of Bitcoin and thus — how to capitalize from this.
To help you along the way, below we have listed some of the most utilized Bitcoin trading strategies. This entails buying Bitcoin and then holding on to the investment long-term. This might be for several months or even years. The reason that this strategy is useful for newbies is that you do not need to worry about short-term volatility.
This is a short-term approach to Bitcoin trading, as you will be looking to stay with wider trends. For example, if Bitcoin is on a prolonged downward trend, then you will want to short-sell the digital currency.
Skilled swing traders will look to keep this sell position open for as long as the Bitcoin trend is bearish. When it appears the trend is coming to an end, the swing trader will exit the position. Then, if and when a new upward trend kicks in, the swing trader will once again capitalize. Only this time, with a buy order. Day trading is the process of buying and selling Bitcoin pairs throughout the day.
Jonathan Hufford. Plus City Index. ETX Capital. The world's most famous crypto-currency is an obvious target for investors and traders due to its history of rapid gains and falls in value. This volatility makes it both very risky and potentially very lucrative as an investment. The most obvious way to invest in Bitcoin is simply to buy Bitcoins. However, buying Bitcoins limits the investor to betting on an increase in the currency's value. If you believe that it will decrease in value and you would like to bet on this happening, then you'll need to acquire a contract for difference CFD or place a spread bet.
These two approaches are fairly similar in operation. If the value moves in the opposite direction then you will pay the issuer of the contract the difference multiplied by your stake. Spread bets are similar except that you are placing a bet with a bookmaker.
If you are buying Bitcoins then you will require a Bitcoin address. This is a code to which the Bitcoins that you buy will be allocated. You can acquire an address by downloading a Bitcoin client to your computer or setting up an online wallet. Once you have your address you can purchase Bitcoins via an online exchange.
If you are taking out a CFD or placing a spread bet then you'll need to do so via a broker that offers these services. This will require you to open an account and deposit money. Many traditional foreign exchange brokers now offer the option to trade in Bitcoin. They also generally offer the option of leverage, which is betting using money loaned by the broker.
When using CFDs or placing spread bets it is possible to lose more than your initial stake. This will be amplified if you use leverage. Don't risk more money than you can afford to lose when you take a position.
Placing stop loss orders which automatically close down your position when Bitcoin hits a particular value are an essential way to limit the risk that you face. Make sure that you're not being overcharged and that the trading platform on offer is to your liking.
As with any investment, the more you know about factors that will impact the price of Bitcoin, the more likely you are to profit. Say that a spread betting company is offering a bid price of 4, and and ask price of 4, I'm a big believer that traders should have access to markets they want to trade. However, this market needs to be regulated. After all, people want to trade and they should be provided with a safe, secure and regulated environment to do it in.
Anyway, if you are want to take on the massive risk of trading Crypto CFDs you can compare bitcoin CFD brokers here , but if you just want to know who has the tightest Bitcoin CFD spreads here is a quick comparison below:. Read our ETX Capital review here. Read our Plus review here. Read our eToro Review here. To decide which broker is best for you check out all of our broker reviews.
The answer is, of course, yes and no. You can make money trading Bitcoin, if you buy low and sell high. Or, if you're a bear, sell high, buy low. The majority of people who trade highly volatile products like Forex tend to lose money. In fact, the recent regulatory changes have forced forex brokers to publicise the percentage of the clients that make money trading. But just because most people lose money trading, it doesn't mean you will.
But you probably will, especially if you are trying to make money trading Bitcoin, because unlike Forex trading , index trading or investing in the stock market , where the markets have fundamental value and are swayed by economic events, crypto trading is driven entirely by sentiment.
Which of course makes it harder to predict. And being such a volatile asset class means that crypto prices can move dramatically. But a crypto can double or half in the blink of an eye. So, if you do think you can make money trading Bitcoin, be prepared to lose all your money doing so Despite a global ban from Google on non-regualted brokers advertising derivatives products , they are still getting through.
Amazingly you see them in the header of the DailyMail and other mainstream media websites. What's shocking about this is that they all seem to point to the same scam and no-one has been able to shut it down yet?
Martin Lewis, the money-saving-guru from Money Saving Expert, recently sued Facebook because they failed to stop scammers using his image in scam ads for get rich quick Bitcoin schemes.
The answer is of course yes. There are many traders who trade Bitcoin. Some do it through spread betting where profits are tax-free. They will not, I repeat not, be marketing their services as a get rich quick scheme.
In fact they are not allowed to advertise at all. Further reading: Should you enrol on a trading course to learn trade forex, spread betting or CFDs? We're already written about how not to get scammed in crypto trading so won't go into that again. But suffice to say, if it looks like a scam. It's a scam. Keep in mind too though that the scammers make clone websites, of real brokerages to scam you.
So, double and triple check any broker before sending money. You can compare FCA regulated Bitcoin trading brokers here. Never believe anyone who says they can make you rich or adopt trading as a career if you are a complete beginner.
Trading CFDs and spread betting are high-risk forms of investment and should only really be used for hedging and a small percentage of a self-managed investment portfolio. All content copyright Good Money Guide. VAT registration number: