Bitcoin Broker & Exchanges Comparison & Test

In our Bitcoin Broker & Exchanges Comparison you will find information and tests of the largest and best brokers for trading crypto currencies such as Bitcoin, Ethereum, ZCash, Monero, Dash, Litecoin and many more, who also offer trading of these digital currencies to German investors. In addition, almost every broker or exchange has customer reviews and trader experience that can help you choose the best broker for Bitcoins. So you can quickly and easily find the best broker for buying Bitcoins or other Crypto currencies for your needs.

Bitcoin and Crypto Broker Comparison

A new trend on the financial market, which is not so new anymore, but is currently receiving a lot of attention, is the so-called crypto coins. These are digital currencies, the crypto-currencies, with which consumers can pay on the one hand, but which on the other hand have so far mainly been used for speculation. Apart from Bitcoins, which can now be used to pay in various online shops and in some cases even in local shops, most alternative Bitcoins have so far been used almost exclusively for speculation.

There are various ways in which and where interested speculators can use cryptocoins to take advantage of the opportunity to profit from rising countervalues (prices). The following article therefore deals with crypto currencies, how and where they can be traded and what you should know about a Bitcoin and Crypto-Broker comparison.

Background knowledge about crypto currencies

Before we go into more detail about how and where you can trade crypto currencies and which of these coins are currently in demand and known, we would like to inform you a little more about the background. What are crypto currencies actually? Kryptocoins are digital currencies that work with a certain encryption technique and basically work on the basis of cryptography. The main feature of cryptocoins is that they function completely independently of banks, which is a striking feature and at the same time a decisive difference to so-called central bank money, which we know as classic cash or account balances. The transfer of cryptocoins, on the other hand, works similarly to a transfer from one bank account to another. In this case, however, it is not necessary to have a normal current account or securities account, but a so-called wallet instead.

This is a kind of electronic account that is used exclusively for managing the Kryptocoins. The whole system works with a private and public key. In principle, you can compare the public key with an account number that you know from your current account, for example. The public key is quasi the receiving address to which cryptocoins are sent by other people and from which you can also send crypto currencies to other recipients. The private key, on the other hand, is comparable to the secret code in online banking, so you should keep it secret. The private key is needed to confirm a transaction in the cryptocoin area.

How does the trade with Kryptocoins work?

The wallet is the basis for you to send and receive cryptocoins at all. However, it is only used for safekeeping and booking the coins, but not for speculation. Therefore, if you want to speculate on the performance of individual cryptocoins, you will need a different approach, similar to the one you use for speculating on commodities or other financial products. Currently, there are two ways in particular that you can use to buy cryptocoins or speculate on the price development, namely

  • Forex and CFD brokers
  • Exchanges (special cryptocoin exchanges)

These two ways and methods by which you can buy and sell crypto currencies and speculate with the cryptocoins are explained in more detail below.

Speculating on Cryptocoins via Forex and CFD brokers

Perhaps the easiest way to speculate on the price development of cryptocoins is offered by some Forex or CFD brokers. This is especially true if you are already speculating on currency pairs or, using CFDs, on shares, commodities or other financial products and therefore already have a trading account with such a broker. More and more CFD brokers are going over to offering CFDs on cryptocoins as well.

Currently, the following Forex or CFD brokers, for example, are among the service providers who also offer crypto-currencies (crypto-CFDs):

  • IG (Markets)
  • Admiral Markets
  • eToro
  • AvaTrade
  • Markets.com
  • CMSTrader

If you choose this way of speculating on crypto-currencies, trading will work the same way as if you chose to trade stock or commodity CFDs, for example. This means that you buy using the Contract For Difference cryptocoin, although of course in this case you can also benefit from the leverage provided by the CFD broker. As with all other CFD types, Crypto CFDs allow you to speculate on both rising prices and falling prices of the respective Coins.

Among the best known crypto-currencies, which also have a comparatively high market capitalization in contrast to most of the other crypto-currencies, which now have more than 800 cryptocoins, are currently

  • Bitcoin
  • Litecoin
  • Ethereum
  • Zcash
  • Ripple
  • Monero

In one of the following sections we will present a short portrait of the crypto currencies mentioned above.

Trading crypto currencies via so-called Exchanges

One way to speculate on the price development of individual cryptocoins via CFDs with a Forex or CFD broker is to speculate. There is, however, another option for trading cryptocoins, namely via so-called special exchanges. These are special cryptocoins exchanges where you can buy and sell coins in one transaction.

There are an increasing number of these Bitcoin Brokers & Exchanges on the market, for example:

  • Kraken.com
  • Bitfinex
  • Bittrex
  • Bitstamp
  • Coinbase
  • Poloniex

The big difference between trading the cryptocoins via these exchanges and the CFD trading described above is mainly that there is no leverage when buying or selling the coins via the Exchanges that would increase your potential profit – and of course a potential loss.

You buy and sell the cryptocoins via the Exchanges in a 1:1 ratio, but before you can trade Bitcoins or one of the numerous alternative crypto currencies via these exchanges, you need the wallet mentioned above. This is used to post incoming coins and in return you can also send crypto currencies to other recipients.

Bitcoin and Crypto-Broker in comparison

The previously mentioned CFD and Forex brokers, through which you can trade crypto currencies via CFDs, are now also called crypto brokers. So if you want to make a Bitcoin or Crypto-Broker comparison, you should include in the comparison those CFD and Forex brokers who now offer trading in Crypto CFDs. After all, the point is to find the best provider for you, through whom you can at least trade crypto currencies or speculate on the development of cryptocoins.

The choice of the provider will certainly also depend on whether you want to speculate with other financial products besides cryptocoins, such as commodity or equity CFDs, or whether you want to focus exclusively on cryptocoins. If the latter is the case, a Crypto-Broker or CFD-Broker who offers at least several crypto-currencies is the best choice. Basically you should pay attention to some aspects when comparing the brokers. For example, the following properties and characteristics play a role:

  • User-friendliness of the interface (trading interface)
  • Website in German language
  • Is there an easily accessible customer service?
  • Trading conditions and fees
  • Security of trade
  • How large is the selection of cryptocoins?

A particularly important point in the previous list is certainly the user-friendliness of the respective platform or trading interface. Here it is important that you can find your way around easily and can see at first glance which cryptocoins you can buy or sell. But also a good accessibility of the customer service, ideally in German language, can be an important aspect, especially in case of questions and problems.

Which cryptocoins can you currently trade?

As mentioned briefly in our article, there are now over 800 different cryptocoins available. However, only a small part of these more than 800 coins can be traded through a few CFD or Forex brokers.

In the Exchanges the choice is a little larger, but usually the offer is limited to a maximum of 50 to 80 coins. So if you want to speculate on the price development of certain cryptocoins or want to trade with the coins, you should stick to the most popular crypto currencies with the largest market capitalization. We would like to briefly portray six of the best-known cryptocoins, which we have already listed before, in the following.

Bitcoin

The Bitcoin was the first crypto currency ever and was launched in 2008. The price development was gigantic within the last nine years. While in the early days a Bitcoin had an equivalent value of less than a cent, today you have to pay over 1,800 euros for a Bitcoin. Bitcoin still has by far the largest market capitalization and is almost the only coin that is now accepted in some online shops and even in some local stores.

Litecoin

The Litecoin is also one of the established crypto currencies and was launched six years ago (2011). Technically the Litecoin is almost identical to the well-known Bitcoin system. A major difference to Bitcoin, however, is that transaction confirmations are much faster. In the Litecoin network, the blocks are generated every 150 seconds, while the frequency in the Bitcoin area is around ten minutes.

Ethereum

Ethereum is now the cryptocoin with the largest market capitalisation after Bitcoin. Insiders even say that Ethereum has the potential to enter the bitcoin segment in terms of the value of the coin. In the meantime, however, there is a differentiation between Ethereum and Ethereum Classic, which is due to a technical distinction in the past. The beginning of the crypto currency can be traced back to the year 2015, even though Ethereum was first described at the end of 2013.

Zcash

Zcash is a relatively new crypto-currency, which only came onto the market last year. A key feature of Zcash is that it uses a new type of cryptography and zero-perception credentials. This allows not only the amount but also the recipient of secured transactions to be protected.

Ripple

Ripple is an open source protocol, which has the advantage, among other things, that the network supports any currency. The basis for Ripple is a public database containing a register of account balances. Because of the transactions that can be made, Ripple is of course also one of the crypto-currencies.

Monero

The decentralized account currency Monero appeared in 2014 and is now one of the leading crypto currencies with a market capitalization of more than USD 725 million. A major difference between Monero and the well-known Bitcoins is the greater focus on anonymity and decentralization. In addition, there is a different approach to the Bitcoins in terms of coin scalability.

Conclusion on the Bitcoin and Crypto-Broker comparison

Crypto-currencies are currently a big topic in the area of finance, in which more and more private persons are interested. Speculation on the price development of the coins is mainly possible via certain CFD and Forex brokers, which offer several crypto currencies and are therefore also considered crypto brokers. Alternatively, there is also the option to trade the cryptocoins via a special exchange, such as Kraken.com. The crypto currencies will definitely be a topic in the coming months and years and perhaps help clever speculators to make enormous profits, as the example of Bitcoins has already shown in the past.


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