If you are looking to buy, sell, and trade cryptocurrencies on your smartphone, you’ll be pleased to know that there are heaps of options in the market. But, with so much choice, this can make it difficult to know which trading app to go with.
For example, are you looking to focus on an app that offers industry-leading fees, or are you more concerned about trading a specific pair? Either way, you need to perform in-depth research before taking the plunge.
Here are my top suggestions right away:
- eToro – Best all-round crypto trading app
- Coinbase – Best crypto trading app for beginners
- Binance – Best range of tradable pairs
- YouHodler – Best app for earning interest and borrowing
- NSBroker – Best advanced app for crypto CFDs
To help point you in the right direction, here I discuss my top-rated cryptocurrency apps of 2021. On top of this, I also explain some of the key metrics that you need to look out for prior to selecting a provider.
Choosing a Suitable Platform
Before I delve into the best crypto trading apps of 2021, it is worth me quickly outlining what you need to look out when searching for a broker/exchange that meets your needs.
In my view, the most important metrics are as follows:
Ownership or CFDs?
First and foremost, you need to assess what your short or long-term objective is. For example, are you looking to buy leading cryptocurrencies such as Bitcoin or Ethereum, and then hold on to the coins for several months or years? If so, you might be better suited for a cryptocurrency broker that accepts everyday payment methods.
Alternatively, if you are looking to actively trade cryptocurrencies to make frequent profits from every-changing price movements, you might be more suited for a CFD trading platform. This is because CFD providers typically allow you to trade cryptocurrencies without paying any commissions. As such, it’s only the spread that you need to take into account.
Note: CFDs (Contracts-for-Differences) track the market price of an asset. This allows you to speculate on cryptocurrencies without you owning the coins. Instead, you are speculating on the future price of the cryptocurrency.
Regulation is a bit of a grey area in the cryptocurrency trading space. If using a CFD provider, then it is all-but-certain that the platform will be heavily regulated.
For example, the likes of eToro, IG, and Plus500 all hold licenses with the UK’s Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC). Other reputable license issuers include the Cyprus Securities and Exchange Commission (CySEC) and the Monetary Authority of Singapore (MAS).
At the other end of the spectrum, conventional cryptocurrency trading exchanges like Binance still operate largely unregulated. This is somewhat surprising when you consider the billions of dollars worth of trading activity that goes through its books each and every day.
However, I would argue that Binance is still worth considering, as it has industry-leading security practices.
Supported Pairs and Financial Instruments
The term ‘Cryptocurrency Trading’ is somewhat of a broad one, not least because it can refer to several financial products. For example, if you’re looking to trade cryptocurrencies against the US dollar, you need to ensure your chosen app supports fiat-to-crypto pairs.
Alternatively, you might be looking to trade crypto-cross pairs. These are currency pairs that contain two digital assets. This might include BTC/ETH or XRP/ETH. If you’re a seasoned crypto trader looking to take things to the next level, then you’ll want to look out for things like margin trading, leverage, and short-selling facilities.