Trade on Bitfinex

Bitfinex is one of the most established digital asset platforms currently active in the crypto space. It offers a wide spectrum of state-of-the-art services dedicated to cryptocurrency investors and traders alike.

Established in 2012, Bitfinex has been able to accommodate the evolving interest of crypto enthusiasts. Over the years, the platform has cemented its position in the industry as one of the go-to platforms for all your cryptocurrency needs.

In this review, I will walk you through the different aspects of Bitfinex and examine whether it can be a trusted source for your cryptocurrency investments.

Bitfinex – An Overview

Bitfinex was first launched as a peer-to-peer margin lending service. At the time, not so surprisingly, the platform offered support only for Bitcoin. Over the years, it has since added hundreds of other cryptocurrencies and digital tokens to its list of supported markets.

Today, Bitfinex has upgraded itself to become a full-fledged tool for cryptocurrency traders and liquidity providers.

In a nutshell, Bitfinex offers six core products on its trading platform:

• Exchange trading
• Margin trading
• Margin funding
• Over-The-Counter (OTC) market
• Derivatives
• Paper trading

Apart from this, Bitfinex also has an entire section exclusively dedicated to cryptocurrency lenders. This will allow you to gain access to products such as:

• Staking
• Lending products
• Borrowing

Apart from the aforementioned, Bitfinex also has several other interesting features to make your trading and investing easier. For instance, the platform has developed Honey Framework, which you can use to create custom order types and automate your trading strategies.

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Cryptocurrencies have evolved to become one of the highest-growth asset classes that can be held in a financial portfolio. With that said, If you invest in or trade cryptocurrencies, it is crucial that you understand what your tax liabilities are.

However, compiling cryptocurrency transactions and figuring out the associated tax implications can be an overwhelming process – even for the most seasoned trader. This is where tools such as TokenTax come into play.

This crypto tax software can help you compile all your cryptocurrency transactions across multiple platforms, giving you an account of your total capital gains and losses.

In this review, I will examine TokenTax to gain a better understanding of how it works and how you can use it to file your cryptocurrency taxes in 2021 and beyond.

Prepare your taxes with TokenTax

TokenTax – An Overview

If you are new to the cryptocurrency markets, you might be still struggling with its many complexities. In its midst, one might end up overlooking the importance of crypto taxes. In simple terms, cryptocurrencies are taxed in the vast majority of jurisdictions if you are able to sell or exchange them at a profit.

This is potentially applicable even if you are spending your digital coins via online purchases. Meaning, you could owe capital gains taxes even if the digital coins you spent have gained in value compared to what you originally paid for them. Cryptocurrency tax software such as TokenTax aims to simplify this process for you.

It will scan the blockchain to identify crypto transfers between the different wallets you own – and provide you with reports of all transactions within a given tax year.TokenTax was first created by Alex Miles in 2017 – as an entry to the Product Hunt Google Global Hackathon. Not so surprisingly, the product ended up winning first place in the competition, and soon, he was joined by Zac MacClure.

Together, the pair was able to use the funding from the contest and build on the product to release it for the tax season of the same year. Given the broader unawareness regarding cryptocurrency taxes at the time, TokenTax was able to quickly garner attention from crypto traders and investors.

In the course of four years, the team behind TokenTax has managed to add several functionalities and tools that cater to the unique needs of cryptocurrency enthusiasts.

Currently, TokenTax offers four different products to assess your tax situation:

• Crypto Tax Reports
• Crypto Margin Trading Taxes
• Tax Loss Harvesting
• Tax Professional Suite

In fact, TokenTax is one of the few cryptocurrency tax software providers that can handle crypto margin trading and decentralized finance. It is also the only tax firm that offers in-built CPA services for accounting and auditing.

Moreover, TokenTax can be used to generate tax reports for residents across several regions. Whether you are located in the US, UK, Europe, South Africa, or Asia, – you will be able to get access to the full suite of TokenTax products.

How TokenTax Works

Before I take a closer look into the different features of TokenTax, I will explain how this software works. In a nutshell, TokenTax has partnered with several cryptocurrency exchanges in order to make sure that it can extract your cryptocurrency transactions. In fact, you can also find support for DeFi platforms such as yearn.finance, Uniswap, Sushiswap, Synthetic, and more.

You can get started with TokenTax in a few simple steps:

Step 1: Create Your Account on TokenTax

The first step is to set up your user account on TokenTax. Apart from providing your email address and password, the software will also require you to complete your tax profile.

For instance, you will have to fill in your country of residence, your estimated income, your filing status, the method you used for your previous tax filing, and so on. This is to give the tool a better idea of your tax profile.

Step 2: Upload your Cryptocurrency Transactions

TokenTax allows you to integrate your crypto wallets directly through an API. This way, transactions will be synchronized on both platforms. As I mentioned earlier, TokenTax works with a multitude of cryptocurrency exchanges – ensuring that the uploading process will be as smooth as possible.

Alternatively, you can also manually download a CSV file with your transactions and upload it to TokenTax.

Step 3: Choose Preferred Accounting Method

TokenTax offers support for a number of accounting methods such as FIFO, LIFO, minimization, and average cost.

At this stage of the setup process, you can choose which accounting system you want to opt for.

Step 4: Download Tax Forms

Once the platform has finished its calculation process, you will be able to download your tax forms right away. Crucially, TokenTax will automatically fill in your crypto tax forms on your behalf – making it easier for you to file them.

You can also import your completed forms directly to popular tax preparation services, such as TurboTax.

Features of TokenTax

In its simplest form, TokenTax is a software platform that can help you calculate tax on your cryptocurrencies. However, there is a wide variety of crypto investments and trade types and depending on the niche, it can be difficult to calculate net capital gains and losses – such as in margin trading.

This is where TokenTax truly shines. Unlike its counterparts, TokenTax can help you with any type of crypto tax statement. In this section, I will take a closer look at these unique products offered on this platform.

Crypto Margin Trading Taxes

If you are familiar with crypto margin trading, then you are already aware of its many intricacies. As you can imagine, the process of filing taxes on your margin trades can also be quite cumbersome. Generally, most tax rules for cryptocurrencies are identical to that of other assets – such as the likes of stock, forex, or CFD trading.

However, when you are dealing with margin trading, it can be a challenge to get the right data from exchanges in order to accurately report your transactions.In most cases, you will have to contact the exchange directly, requesting bespoke information – which will be provided in a different format.

For this reason, not every crypto tax software can calculate margin trading tax for you. If you have engaged in crypto margin and derivatives trading on platforms such as BitMEX or Derbit, TokenTax can automatically import your profits and losses from the respective exchanges.

On the other hand, platforms such as Bitfinex are even more complex. For such cases, TokenTax has a team of crypto CPAs and accounting experts that can offer you special guidance. They can help you account for earnings from lending interest and any liquidations involved with crypto margin trading.

Note that this service is reserved for only Pro and VIP level users. I will look at the Tokentax pricing structure later in this review.

Tax Loss Harvesting

It is common for cryptocurrency traders to sell off the assets they hold at a loss in order to reduce their capital gains liabilities. This method – called ‘tax-loss harvesting’, allows you to decrease the amount of taxes you owe. As such, even if you make a loss when selling your asset, you will be able to offset the capital gains from other investments, such as stocks.

• For instance, say you have made capital gains of $10,000 for this tax year.
• You also have holdings in Litecoin that is currency at a loss of $3,000.
• In such a typical scenario, you will have to pay the full amount of $10,000 in taxes.
• However, if you are able to sell your LTC holdings and harvest the losses – then your taxes will be reduced to $7,000.

TokenTax offers tax-loss harvesting tools that go through your crypto translation history to find out how many assets you hold and which positions are at a loss. This can give you a better idea of any tax-loss harvesting opportunities that you might have in your portfolio.

Not only that, but the TokenTax team itself is always ready to assist you in harvesting your losses to reduce your crypto taxes.

Tax Professional Suite

This TokenTax product is specifically designed for cryptocurrency accountants and accounting organizations. The platform will help your accounting firm build support for cryptocurrency traders using their exclusive features. You will be able to import your clients’ transaction histories, calculate their taxes and complete their tax forms – all in one place.

In effect, accountants will be able to manage your clients’ crypto taxes much more competently. TokenTax will also give you access to additional tools such as performance graphs, tax-loss harvesting, and finding missing extraction histories.

In other words, TokenTax can become your support system for offering cryptocurrency accounting services to your clients. It is also the first crypto tax software to offer tax harvesting and accounting services.

Note: Apart from these services, the TokenTax team also offers additional assistance for those that are facing IRS audits.

TokenTax Pricing

TokenTax has a unique pricing plan for cryptocurrency traders. To start with, it offers two types of services – one only for crypto tax calculations and the other to handle your entire tax filing needs.

Crypto Tax Software Plans

The plans listed below are best suited for those who seek help with filing crypto gains and losses.

Basic Account – at $65 per year

This account offers you support only for Coinbase, Coinbase Pro, and Binance.

The features include:

• Up to 500 yearly transactions
• Integration with TurboTax
• Support for IRS Form 8949/International Reports
• Unlimited Tax Form Revisions

Premium Account – at $199 per year

This account allows you to gain access to transactions across all supported exchanges of TokenTax.

The features include:

• Up to 5,000 yearly transactions
• Integration with DeFi platforms and margin trading.
• Tax-loss harvesting dashboard
• Includes all features of the Basic Account.

Pro Account – at $799 per year

The Pro account is best suited for advanced investors and margin traders.

The features include:

• Up to 20,000 yearly transactions
• Support for all margin exchanges
• Support for FBAR
• Includes all features of the Premium Account

VIP Account – at $2,599 per year

The VIP account gives you access to full functionalities on the platform, including advanced tax and accounting support.

The features include:

• Up to 30,000 yearly transactions
• Advanced tools for crypto reconciliation
• Integration will all DeFi protocols and cryptocurrency exchanges
• Private sessions with tax experts
• IRS audit assistance
• Includes all features of the Pro Account.

As you might have noticed, some of the exclusive products on TokenTax are reserved for those who sign up for Pro and VIP plans. If you are to benefit from the full functionality of the platform, you will need to pay a hefty fee. But, there is every chance that this will pay for itself – depending on how effective TokenTax is with your tax liabilities.

Full Filing Plans

TokenTax also has dedicated plans for those who want to use their services to file full tax returns, which is inclusive of crypto. You will also be able to work with a Crypto CPA to receive expert assistance.

Bronze Account – at $699 per year

• Best suited for those who only need the essentials of tax filing
• Up to 5,000 transactions
• Up to four tax forms
• Tax returns for one state
• Support for margin trading and tax loss harvesting

Silver Account – at $999 per year

• Best suited for those with multiple income sources
• Up to 5,000 transactions
• Up to 10 tax forms
• Tax returns for two states
• Support for margin trading and tax loss harvesting
• Support for one self-employed business

Gold Account – at $3,000 per year

• VIP tax filing services that offer support for the most advanced tax situations
• Up to 30,000 transactions
• Up to 10 tax forms
• Tax returns for two states
• Private sessions with experts
• IRS audit assistance
• Support for margin trading and tax loss harvesting
• Support for one self-employed business

TokenTax also gives you a 10% discount if you use its service for multiple years. However, one thing worth noting is that TokenTax does not offer any free trails. As such, there is no easy way to assess whether or not the platform is fit for your needs.

You might also have to pay extra if you are to file taxes in multiple states or regions, depending on your country of residence.

Paying for TokenTax in Cryptocurrency

As you can imagine, TokenTax also accepts payment for its services through digital currency. Currently, the platform allows you to make crypto payments in Bitcoin and Ethererum. However, the payment procedure is a bit indirect.

You will have to reach out to the support team, mentioning that you would prefer to pay for your plan using crypto. The TokenTax team will send you a price quote and the amount you have to send.

The address for the BTC and ETH wallet is available on the TokenTax website.

TokenTax Customer Support

TokenTax has a well-curated section on resources and guides – that provides you with all the information you need regarding the different facets of cryptocurrency taxes. You will be able to find extensive guides on the different rules and even find data that are relevant to your country’s tax system.

In addition, if you need customer support, the team is available through live chat or email.

TokenTax Review – My Verdict?

Reconciling all your cryptocurrency transactions across multiple sources can be a daunting task. Undoubtedly, TokenTax can make the entire process easier and convenient for all cryptocurrency traders. The software truly shines in terms of automation and user experience. It can give you a clear account of gains, losses, and more.

Most impressively, if you are in need of an expert’s opinion, TokenTax also has in-house CPA counsel that can offer you all the assistance you need. That said, such exemplary functionalities also come at an expensive price tag. If you opt for a cheaper pricing plan, the features you have access to are very limited.

As such, depending on your tax filing requirements, you might have to pay a high cost to avail of the full services of TokenTax.

Nevertheless, if you have traded cryptocurrencies multiple times across different exchanges, it might be a good decision to use TokenTax. The platform is arguably a market leader in this space and thus – can solve almost any cryptocurrency tax challenge you might be facing.

Who is TokenTax best for? TokenTax is primarily suited for investors in the US, UK, and Canada, where it generates country-specific tax forms (IRS Form 8949, HMRC reports, etc.). While it can generate gain/loss reports in any currency, it does not produce dedicated tax forms for most European countries. If you’re based in Europe — particularly in Spain, Germany, France, or other EU jurisdictions — you may be better served by Koinly or CoinTracking, both of which offer dedicated support for European tax regimes.

Sign up to TokenTax

I find the entire field of crypto assets incredibly fascinating — it really is one deep rabbit hole. One of the aspects that have captured the imagination of millions worldwide is crypto trading. We’ve all seen stories of young people who found incredible riches through trading cryptocurrencies, although there undoubtedly are many (less publicized) failures too.

Trading can be a brutal job, requiring long hours in front of screens and a significant emotional toll. I was looking into how things can be simplified and structured when I came across Coinrule. I eventually interviewed the founders on the Mastermind.fm podcast.

That sent me down the crypto trading bot rabbit hole, and I’ve been fascinated by how they work ever since.

Here are the best trading bot services available today:

• Cryptohopper
• Coinrule
• TradeSanta
• CryptoHero
• 3Commas
• HaasOnline

A significant portion of all cryptocurrency trading volume is driven by automated bots. Yet most hobbyist traders cannot write a single line of code. That gap is exactly what these platforms are designed to close — giving regular traders access to the same kind of algorithmic execution that hedge funds have used for years.

Clearly, bots can be a genuine asset for crypto trading.

Bots use technical indicators and tools to analyze market prices, charts, trends, and other factors to identify optimum conditions for entry or exit. The algorithm sends trade orders to a cryptocurrency exchange via API, which acts as a bridge between the exchange and the strategy. Bots can execute trades 24/7 at speeds no human could match.

[Read more…]

Bitcoin hit an all-time high above $106,000 in late 2024 and pushed past $123,000 by mid-2025. Even after a significant pullback in early 2026, it remains one of the highest-performing assets of the last decade. If you’re looking for ways to get exposure — or to put existing holdings to work — there are more options available now than ever before.

This guide covers everything from the simplest approach (just buying and holding) to more sophisticated tools like futures, options, spot ETFs, and automated trading strategies. I’ve also updated the sections on lending and Bitcoin mining to reflect what’s actually happened since the 2022 crisis and the April 2024 halving.

If you’re interested in gaining exposure to the world’s largest cryptocurrency, you can do it through direct ownership, CFDs, futures, options, or now — regulated spot ETFs available through your regular brokerage account. Read on.

How the Price of Bitcoin Works

It doesn’t matter which financial instrument you choose — whether that’s buying Bitcoin outright and storing it in a private wallet or trading CFDs. Your ability to profit comes down to one thing: the market price of Bitcoin.

Bitcoin’s price is determined by supply and demand, just like any other asset. When buyers outnumber sellers, the price rises. When sellers dominate, it falls. Bitcoin is also capped at 21 million coins — a hard supply limit built into its code — which underpins its long-term scarcity argument.

• If market sentiment is positive, more buyers than sellers push the price up.
• If sentiment weakens and sellers take over, the price drops.

Bitcoin trades 24/7, on every day of the year. Its price moves constantly and can be highly volatile in the short term — which creates both opportunity and risk depending on your approach.

Buying Bitcoin: The Simple Buy-and-Hold Strategy

Before we get into more complex instruments, the most popular approach remains the simplest: buy Bitcoin and hold it. If the price rises above what you paid, you sell at a profit.

Here’s a simple example using realistic 2026 figures:

• You invest $2,000 into Bitcoin
• Bitcoin is priced at $65,000 at the time of purchase
• You hold for two years
• Bitcoin has risen to $120,000 when you sell
• That’s an increase of roughly 85%
• Your $2,000 investment is now worth approximately $3,700

This is the classic buy-and-hold strategy — known in crypto circles as HODLing. The goal is to ride out short-term volatility and benefit from long-term appreciation. Historical data consistently shows that investors who held Bitcoin for four or more years have always come out in profit.

Dollar-Cost Averaging (DCA)

Rather than putting everything in at once, many investors use dollar-cost averaging — buying a fixed amount at regular intervals regardless of the price. This reduces the impact of timing the market.

The data backs this up. A $10 weekly DCA from 2019 through 2024 grew $2,620 into roughly $7,913 — a 202% return, outperforming both gold and the Dow Jones over the same period. Even investors who started buying at the 2017 peak ($19,500) are up around 400% today.

Most exchanges — including Coinbase — offer recurring buy features that automate this for you.

Where to Buy Bitcoin

The easiest and most cost-effective way to buy Bitcoin is through a reputable exchange. Coinbase remains one of the go-to options. You can fund your account via bank transfer (SEPA, SWIFT) at minimal cost, with trading commissions around 0.26%. Coinbase has been operating for over 12 years and is publicly listed on the Nasdaq — one of the stronger trust signals in a space where many platforms have come and gone.

Binance is another solid choice. It’s the largest exchange by volume, supports hundreds of trading pairs, and charges 0.1% on trades. You can read my full Binance review here.

Once you’ve bought, think carefully about storage. Bitcoin held on an exchange is technically in the platform’s custody — not yours. For meaningful amounts, consider a hardware wallet like Trezor or Ledger Nano. The collapses of FTX, Celsius, and others in 2022 were harsh reminders of counterparty risk. Self-custody is not paranoia — it’s prudent.

Bitcoin Spot ETFs: The Institutional Onramp

One of the biggest developments in Bitcoin’s history came in January 2024, when the SEC approved the first US Bitcoin spot ETFs. This was a watershed moment: for the first time, everyday investors could get direct exposure to Bitcoin through a regular brokerage account — no crypto exchange, no wallet, no custody to manage.

BlackRock’s iShares Bitcoin Trust (IBIT) quickly became the standout product. It hit $100 billion AUM in just 435 days — shattering the previous record of 2,011 days held by Vanguard’s VOO. IBIT attracted over $25 billion in net inflows in 2025 alone and has surpassed 800,000 BTC in assets under management.

By early 2026, total spot Bitcoin ETF assets represent roughly 6.3% of Bitcoin’s entire market capitalization — a sign of just how much institutional money has entered the space.

Who Should Use a Bitcoin ETF?

Spot ETFs make the most sense for investors who:

• Want Bitcoin exposure through tax-advantaged accounts (401k, IRA, ISA)
• Prefer dealing with a regulated product through their existing broker
• Don’t want the responsibility of managing private keys or wallets
• Are investing on behalf of institutions or pension funds

The trade-off is that you don’t hold the actual Bitcoin — you hold shares in a fund that holds it. You also pay an annual management fee (typically 0.12%–0.25% depending on the provider). For long-term holders who want pure price exposure without self-custody, this is a very clean solution.

The major ETF providers include BlackRock (IBIT), Fidelity (FBTC), Ark/21Shares (ARKB), and several others. You can buy and sell them like any stock on a US brokerage.

Trading Bitcoin CFDs

If you want to trade Bitcoin actively rather than hold it, Bitcoin CFDs let you speculate on price movements without taking ownership of the underlying asset.

CFDs (contracts-for-difference) track the current market price of Bitcoin. The two main advantages over outright buying are leverage and the ability to short-sell.

Leverage

CFDs give you access to leverage — the ability to control a position larger than your account balance. For example, with 1:2 leverage, a $500 stake controls a $1,000 position.

• You stake $1,000 on a Bitcoin CFD buy order
• You apply leverage of 1:2
• Bitcoin rises 3% — your profit is $60 instead of $30

Regulated brokers serving European and UK retail clients cap Bitcoin CFD leverage at 1:2. That limit exists for good reason — leverage amplifies losses just as effectively as gains. If your leveraged trade moves against you by 50%, you lose your entire stake.

Note: US citizens cannot trade CFDs. Americans looking for leveraged Bitcoin trading typically use regulated futures products instead.

Short-Selling

Bitcoin CFDs also allow you to go short — betting that the price will fall. If you believe Bitcoin is overvalued at $65,000 and it drops to $55,000, a short position lets you profit from that move.

• Bitcoin is priced at $65,000
• You place a $1,000 sell order via a CFD broker
• Bitcoin falls to $55,000 — a drop of roughly 15%
• Your $1,000 stake nets you $150 in profit

What to Know Before Trading Bitcoin CFDs

CFDs are short-term instruments. You pay overnight financing fees for each day a position stays open, which makes them uneconomical to hold for weeks or months. They’re best suited to active traders who open and close positions within days.

CFDs are also complex and heavily regulated. The industry has protections in place — segregated client funds, negative balance protection — but they don’t eliminate the risk of loss.

Read my full guide on CFD trading here.

Buying Bitcoin on Margin

Leverage and margin refer to the same underlying concept — trading with more than you have — but through different mechanisms.

• Leverage is expressed as a multiple (e.g., 1:2 means you trade twice your stake).
• Margin is the minimum deposit required to open a position (e.g., 10% margin means a $1,000 deposit controls a $10,000 trade).

Some exchanges offer margin trading outside the CFD framework. Coinbase has expanded its futures offering significantly — its regulated futures product (CFTC-overseen) now provides access to over 20 futures contracts with leverage options available to qualified US traders.

Be aware: the mechanics of margin trading mirror CFDs closely. You’ll pay ongoing fees for holding positions, and liquidation is a real risk if the market moves against you.

Trade on Coinbase

Bitcoin Derivatives

Derivatives are financial contracts whose value is based on the price of an underlying asset — in this case, Bitcoin. They allow you to take sophisticated positions on price direction and timing.

Bitcoin Futures

Bitcoin futures have been available on the CME since late 2017 and have grown substantially since. They allow you to agree today on a price at which you’ll buy or sell Bitcoin at a future date.

Each futures market has an expiry date (usually quarterly) and a strike price — the price the market expects Bitcoin to reach. You don’t need to hold the contract to expiry; you can offload it on the secondary market as the value moves.

Here’s a simplified example with current price levels:

• Bitcoin is currently priced at $65,000
• A 3-month futures contract has a strike price of $72,000
• You buy 10 contracts at 0.1 BTC each — total exposure of $65,000
• Two months later, Bitcoin is at $80,000 — $8,000 above the strike price
• You offload the contracts, locking in your gains

CME Bitcoin futures are primarily for institutional traders due to contract size minimums. For retail access, Coinbase offers various futures types — perpetual, monthly, quarterly, and semiannual — with a minimum contract size of $1. Leverage up to 1:50 is available on some products, though using high leverage requires careful risk management.

Bitcoin Options

Options give you the right — but not the obligation — to buy or sell Bitcoin at a set price by a specific date. Unlike futures, if the trade goes against you, you can simply let the contract expire and your maximum loss is the premium you paid.

Example of a Bitcoin Options Trade

• Bitcoin is priced at $65,000
• You buy 3-month call options with a $75,000 strike price
• The premium is $3,000 per contract
• You buy 5 contracts — total outlay is $15,000
• Two months in, Bitcoin is at $90,000 — $15,000 above the strike
• Each contract made $15,000 gross; subtract the $3,000 premium — $12,000 net per contract
• Total profit: $60,000 across 5 contracts

If Bitcoin had fallen below $75,000 and stayed there, you’d simply let the contracts expire. Your loss is capped at the $15,000 in premiums — nothing more.

Where to Trade Bitcoin Options

For US readers: The CME now offers regulated Bitcoin options alongside its futures products. This is the safest regulated route for American traders.

For everyone else: Deribit remains the dominant platform for Bitcoin options globally, with deep liquidity and a wide range of strike prices and durations. Fees are 0.0003 BTC per contract.

Read more about Deribit in my review of this platform.

Automated Bitcoin Trading

Automated trading bots place buy and sell orders on your behalf based on pre-set rules or strategies. They’ve been a fixture of the forex world for years and have found a natural home in crypto, which trades around the clock.

The appeal is obvious: consistent strategy execution without emotional decision-making, running 24/7. The reality is more nuanced. A bot is only as good as the strategy behind it, and the market can behave in ways no backtested model accounts for.

You have two main routes:

MT4-Based Bots

MetaTrader 4 (MT4) is the most widely used third-party trading platform in the CFD and forex world. You can install automated trading scripts (Expert Advisors) that connect to a Bitcoin CFD broker and execute trades on your behalf.

There are hundreds of MT4 bots available — most making claims they can’t substantiate. Treat any provider promising guaranteed returns with skepticism.

Specialist Automated Bitcoin Platforms

Read more: The best crypto trading bots

These are dedicated platforms where you either build your own bot or purchase a pre-built strategy from a marketplace. You then connect the bot to your preferred exchange.

Cryptohopper

Cryptohopper lets you build trading bots using a drag-and-drop interface — no coding required. You define the conditions under which the bot buys and sells, or you can purchase pre-built strategies from their marketplace.

Backtesting is built in, which lets you stress-test your strategy against historical price data before going live. Cryptohopper integrates with Binance, Coinbase, Bitfinex, KuCoin, Poloniex, and others. Plans range from a basic free tier to a top-tier plan supporting up to 500 positions across 75 cryptocurrencies.

Sign up to Cryptohopper

HaasOnline

HaasOnline is a desktop-based platform aimed at more experienced users. If you can code, you can fully customize the bot logic. If not, you can still use the pre-built bot templates and adjust parameters to suit your risk tolerance. Like Cryptohopper, it connects to most major exchanges.

Sign up to HaasOnline

Bitcoin Lending: What Changed After 2022

Crypto lending was one of the fastest-growing sectors in the industry — until 2022, when it became one of the most cautionary tales in finance. Celsius froze $4.7 billion in customer funds before declaring bankruptcy. BlockFi froze $1.2 billion before doing the same. These weren’t fringe operators — they were among the most-promoted platforms in the space.

The collapse of those platforms fundamentally changed how the surviving players operate and how investors should evaluate them.

What Remains Available

Lending platforms that survived the 2022 crisis did so by operating more conservatively: over-collateralized loans, third-party custody, independent audits, and cleaner balance sheets.

The two platforms I’m most comfortable recommending in 2026 are:

• Nexo — returned to the US market in April 2025. Uses real-time reserve attestation from an independent auditor, with custody through Ledger Vault and Fireblocks. Nexo holds roughly 11% of total centralized lending market share.
• YouHodler — Switzerland-based fintech, licensed as a VASP in Switzerland, Italy, Spain, and Argentina. Still offers up to 90% LTV on Bitcoin-backed loans. Read my review.

Earning Interest on Your Bitcoin

The core mechanism of crypto lending remains the same. You deposit Bitcoin into a platform, which lends it out to borrowers who must put up their own crypto as collateral. You earn interest in return.

Here’s a basic example:

• You have 0.5 BTC sitting in a wallet earning nothing
• You deposit it into a lending platform
• The platform lends it out to over-collateralized borrowers
• You earn annual interest, paid in BTC
• When you’re ready to exit, you withdraw your principal plus interest

The key point: your interest accrues in Bitcoin, not dollars. If the price of Bitcoin rises significantly while your coins are deposited, you benefit from both the appreciation and the interest income.

Borrowing Against Your Bitcoin

You can also flip the model — use your Bitcoin as collateral to borrow fiat currency or stablecoins, without selling your BTC. This is useful if you need liquidity but don’t want to trigger a taxable sale.

For example, at YouHodler you can deposit $10,000 worth of Bitcoin and borrow up to $9,000 in USDT, Euros, or US dollars against it. You keep your BTC exposure and get immediate liquidity.

The risk: if Bitcoin’s price drops sharply, your loan-to-value ratio increases and the platform may issue a margin call or liquidate part of your collateral. Understand the terms before committing.

One important note: the interest rates on crypto-backed loans are typically higher than traditional secured loans. Run the numbers carefully. If you’re paying 10% annually to borrow while Bitcoin appreciates at, say, 20%, the strategy works in your favor. If Bitcoin stagnates or drops, you’re paying interest while your collateral shrinks.

A Note on Risk

The events of 2022 should be treated as a permanent reference point for anyone considering crypto lending. Even platforms with strong reputations can face liquidity crises when markets turn sharply. Keep a portion of any lending position at a platform with strong reserve verification, and never deposit funds you can’t afford to be locked up for an extended period.

Bitcoin Mining in 2026

Mining remains one of the more capital-intensive ways to gain exposure to Bitcoin — and the economics shifted significantly after the April 2024 halving, which cut block rewards from 6.25 BTC to 3.125 BTC per block.

The network hashrate has continued to hit new all-time highs, briefly crossing 1 ZH/s (1,000 EH/s) in early 2026. More competition means each miner earns less per unit of computing power deployed.

Who Can Profitably Mine Bitcoin in 2026?

The honest answer is: large-scale professional operations with access to cheap electricity and modern hardware. Home mining on a general-purpose GPU is no longer economically viable for Bitcoin. Profitable mining in 2026 requires:

• Latest-generation ASIC hardware (Antminer S21 Pro or equivalent)
• Electricity costs below $0.05 per kWh — ideally lower
• Efficient cooling and reliable infrastructure
• Scale — the fixed overhead is only worth it above a certain threshold

At current difficulty levels and with Bitcoin trading in the $65,000–$85,000 range, the ROI on new mining hardware is around 1,000 days. That means most new rigs won’t recoup their cost before the next halving in 2028 — unless the Bitcoin price rises meaningfully in the interim.

For individual investors, the most practical way to get mining exposure without running hardware yourself is through cloud mining services or by investing in publicly listed mining companies like Marathon Digital or Riot Platforms.

The Regulatory Picture: MiCA for European Investors

If you’re based in Europe, the regulatory landscape changed substantially when the EU’s Markets in Crypto-Assets (MiCA) regulation came fully into force in December 2024, with full CASPs licensing enforcement ramping through 2025 and a hard deadline of July 1, 2026 for all providers.

What this means in practice:

• Any crypto exchange or platform operating in the EU must now hold a MiCA license or a national equivalent
• Platforms without authorization must stop offering services in the EU by mid-2026
• Major jurisdictions like Germany, France, and the Netherlands report over 90% compliance among crypto firms as of Q1 2025
• Platforms that are MiCA-compliant are subject to capital requirements, custody rules, and KYC/AML obligations — adding a meaningful layer of consumer protection

For investors, MiCA is broadly positive. It filters out lower-quality operators, mandates transparent disclosures, and creates a framework for consumer recourse. Bitcoin itself represents 48% of total trading volume on regulated EU exchanges.

Summary: Which Approach Suits You?

There’s no single right way to make money with Bitcoin. The best method depends on your time horizon, risk tolerance, and how involved you want to be.

• Long-term hold (HODLing or DCA): The simplest approach with the best historical track record for retail investors. Low effort, but you need the discipline to ride out significant drawdowns.
• Bitcoin spot ETF: Ideal if you want Bitcoin exposure through a regulated product in a traditional brokerage or retirement account. No self-custody required.
• CFDs or margin trading: For active traders comfortable with leverage and short-term positions. Higher potential returns, but real risk of significant losses.
• Futures and options: Sophisticated instruments with defined risk profiles. Options in particular are worth understanding if you want to limit downside while maintaining upside exposure.
• Automated bots: Worth exploring if you want to take emotion out of trading and have time to set up and monitor a strategy properly.
• Crypto lending: A way to earn yield on idle Bitcoin holdings. Now viable again through surviving, audited platforms — but always with awareness of counterparty risk.
• Mining: Only realistic for well-capitalized operations with access to cheap power. For most individuals, not the right entry point.

Whatever route you take, Bitcoin remains a volatile asset. Position sizing matters. Don’t allocate more than you’re comfortable seeing temporarily cut in half — because historically, that’s always been on the table.