Best Bitcoin Brokers For Altcoin Trading
While Bitcoin Trading against fiat money is available on numerous brokers, altcoin trading is a niche in which only few platforms are specialized. And their features differ a lot in various manners.
Depending on which features are critical for your trading activities, you have to choose a convenient broker. Differences concern the range of listed altcoins, if they support fiat money to buy an altcoin with USD or if they support Bitcoin / altcoin deposits only.
Do you search pairings with other currencies than just BTC - such as ETH or USD? Do you want to trade on margin? What are the trading fees? Let's have a look at the best Altcoin Brokers available:
Here is a List of the best Altcoin Brokers and their individual Features:
90
1:3
0.1%
All supported altcoins
USD / Fiat: Not supported
- Limit/Market Buy
- Limit/Market Sell
- Stop Loss
Binance is a relatively new altcoin trading platform which is already among the most popular ones and often even listed as No 1 trading platform for many altcoins on coinmarketcap.com. The platform seems to be fast growing with a very ambitious team behind it.
91
up to 10x
0.04%
Tradable Cryptos
USD / Fiat: Not supported
- Limit/Market Buy
- Limit/Market Sell
- Stop Limit
- Stop Market
BitMax is one of the leading altcoin trading platforms, expecially since they offer margin trading with 2x to 10x leverage, depending on the coin. BTC, ETH, EOS, XRP, LTC, BNB and HT can be traded with 1:10 leverage, all other altcoins with 1:5 maximum.
90
No
0.25%
Fiat money: credit/debit card, wire transfer, SEPA transfer
Fiat: Not supported
- Limit Buy
- Limit Sell
- Trailing Stop
- Good 'til Cancelled
- Immedtiate or Cancel
Bittrex is listing many altcoins in the high and middle range concerning market cap and popularity. USD / Fiat money is not supported, however, the major altcoins can be traded against USDT. So you have to own BTC or the cryptocurrency you want to trade to start on Bittrex. Deposits and withdrawals are possible for all listed coins. Note that margin trading is not supported in Bittrex so far.
81
0
0.01% to 0.10%
(depending on maker / taker / volume)
No other cryptos, no fiat money
- Limit Buy
- Limit Sell
- no advanced orders
- no stop loss
Crex24 is an altcoin broker worth mentioning, since their list of altcoins is impressing. We haven't counted all of them, but it looks like several hundred altcoins, at least 400, maybe even way more. Crex24 is an altcoin trading platform where you can find many micro cap altcoins (cryptocurrencies with very low market capitalization).
The platform only offers basic buy and sell orders, not even a stop loss system. But it's a great place to invest in micro caps you expect to grow in the future.
Another great feature is their ability to accept fiat deposits, even in different major currencies such as USD, RUB, CNY, JPY and EUR. In case of fiat deposits users need to verify their identity.
91
up to 3.3x
0.0 to 0.2%
USD (with ID verification)
- Limit/Market Buy
- Limit/Market Sell
- Stop Loss
- Trailing Stop
- Take Profit
- Iceberg Orders
- TWAP
- Fill or Kill
- Post-Only Order
- Hidden Order
Bitfinex is also one of world's largest crypto brokers and one of the best known names. They list a hoge amount of altcoins, even more than 160, with focus on the most important ones, higher market cap and most promising projects.
Leverage: The brokers offers derivatives trading with up to 1:100 leverage, but this leverage doesn't apply to altcoin trading. Here we only have up to 1:3.3.
USD is supported, so you don't have to possess BTC yet to start trading on Bitfinex. However, for fait money transfers, you have to go through the ID verification. Also you can deposit and withdraw all listed cryptos as well as USD. So a big benefit is that you are more flexible concerning currency transfers.
90
No
0.2%
EUR, USD (with ID verification)
- Limit/Market Buy
- Limit/Market Sell
- Stop Oders
- Fill or Kill
- Immediate or Cancel
- Day
- Good-Till-Oders
HitBTC is one of the few brokers which lists a vast amount of altcoins, so they are really highly specialized in this field. Very significant compared to others (below) is that they also support fiat money. Other specialized altcoin brokers only support cryptocurrency deposits and withdrawals. Also you can deposit and withdraw all supported altcoins, not just BTC as on Bitmex.
Great for beginners: HitBTC has a Demo Mode. Up to date, margin trading is not enabled.
86
up to 33.3x
depending on Altcoin
0.2%
No other cryptos, no fiat money
USD / Fiat: Not supported
- Limit/Market Buy
- Limit/Market Sell
- Stop Loss
- Trailing Stop
- Take Profit
- Post-Only order
- Hidden order
Bitmex is one of the most professional crypto brokers globally, with high trading volume. Here you can trade just the few major altcoins - but on leverage. That's why the platform is No.1 for margin traders.
Note that you can only deposit and withdraw Bitcoin, meaning that Bitmex is used to get more Bitcoin by trading BTC against altcoins.
81
2.5x (not for all Altcoins)
0.15% to 0.25%
No fiat money
- Limit Buy
- Limit Sell
- Stop limit orders
Only for enhanced withdrawal levels
Small hack in 2014
Poloniex also has a big altcoin portfolio and you can trade many of them with leverage. USD / Fiat money is not supported at all. But the major altcoins can be traded against USDT. Order types are very basic, at least they have a stop loss function.
66
No
0.2%
USD, RUR (by Qiwi, Payeer, Capitalist, PerfectMoney)
Fiat: USD, RUR
- Limit Buy
- Limit Sell
Yobit again is a trading giant especially in terms of middle to low marketcap coins, somewhat comparable to Cryptopia. If you are searching for specific low cap altcoins you're likely to find them on Yobit.
Leverage is not supported and order types are as basic as can be, even no stop loss order, just limit buy and sell - but that suits well for beginners. Many altcoins can be traded against ETH, DOGE and even WAVES, besides BTC of course.
Fiat currencies are supported (USD, RUR) for deposits and cashouts. And you can trade many Altcoins against USD or RUR.
Geographical Restrictions
Generally there are no national restrictions, so those altcoin brokers can be used by anybody all over the world. Especially the basic accounts, which all don't require ID verifications.
People living in countries which ban cryptocurrency trading sites, can still use them anonymously by using a VPN. Using a virtual private network you trick the system into thinking you were in another country, as your traffic gets tunneled through a foreign server. ExpressVPN, NordVPN and VyprVPN are top providers in this area.
Bitfinex margin trade restriction for US traders: Unfortunately, margin trading got disabled for verified US traders, for unknown reasons. However, this means that you are still able to trade on margin with an unverified account. Those basic accounts (just e-mail and password ) only allow crypto deposits and withdrawals.
Altcoin Trading – Fundamentals and Considerations
What makes an Altcoin / Blockchain Project useful?
At the moment there are several thousands of altcoins on the cryptocurrency market – but to be honest, the big majority of them will likely not survive long-term.
The reason is simple: Many of those altcoins don't really solve a problem in their specific field.
Blockchain projects only make sense, in cases where a decentralization of data and the characteristics of a shared system would be highly beneficial for the users of an application.
The characteristics or special benefits of an open blockchain system are, that it is a peer-to-peer, borderless (worldwide, ignoring country borders made by man), neutral (not asking for background information of any user), non-stop operating system, that doesn’t require permission of authorities, and which is securing data immutably. Money is an excellent field where all those characteristics make sense and solve problems of the prevailing traditional money system.
Other Examples of useful Blockchain Projects:
Anonymous payments, decentralized VPN, Smart contracts, trading platforms, webhosting or filesharing – think of each of those applications as an open, borderless, neutral and immutable blockchain without single companies having power over the system or without the possibility for authorities to claim certain behaviours like prohibitions, restrictions or surveillance.
But there are altcoins where an open blockchain system simply doesn't make any sense compared to just using a traditional database system.
Examples: An adult movie video blockchain system isn't beneficial for anybody and doesn't solve problems of existing database-based video platforms (people can use thousends of websites for free already, and who cares if the files get safed in an immutable blockchain?).
Healthcare is also a field, where it is questionable if immutable data storage forever might really be beneficial. In cases of misdiagnosis, the incorrect data about a patient shouldn't be stored immutably. If health insurances would take the patient data on the blockchain to decide if someone gets an insurance or not, incorrect data, which cannot be changed anymore, could be a big problem for people. Blockchain would simply not solve any problems of currents data systems in that area.
What also often happens, is that existing altcoins just get a little modified and then launched as new coins. Who, for instance, needs dozens of anonymous payment coins?
Some people even think that no other coin than Bitcoin is going to last, especially if all the benefits of other innovative crypto projects should get implemented in Bitcoin as well.
Conclusion on Altcoin Trading
The truth is that the vast majority of altcoins are rather useless and often even just scams made to enrich the creators. That’s why you should always be aware that altcoin trading is nothing but gambling. You should never see an altcoin as a long-term investment.
There is likely no such thing as a serious investment in one of those projects, apart from Bitcoin and - maybe - Ethereum. Bitcoin itself is risky as well, no doubt about that, but it’s the only crypto project so far that can be taken for serious, rather than all the others, which are just tired attempts to create the “next big thing”.
But the one big innovation has already happened: Bitcoin. Everything else is kind of a weary copy. People create blockchain projects similar to Bitcoin, but with new fancy features on top, hoping that their new coin will be seens as another big innovation..
So if you want to trade altcoins for profit, only do it short-term, like with day trades or swing trades. It’s not recommended to hold altcoins for months or even years. If you want to understand how you can profit from altcoin trading, read the crypto trading book for beginners:
