The cryptocurrency sector is the newest battleground in the Fintech sector. Innovation amongst digital currency exchange, investment, and lending startups is at an all-time high. These intense efforts are beginning to pay off. Crypto trading applications are now the sector’s leading cryptocurrency mass adoption channel. In this article, we will talk to you more about some of the best crypto trading apps.
As per a CNBC survey, 33% of cryptocurrency investors trade cryptocurrencies because of the ease of making trades via apps. A Reuters report observes that cryptocurrency trading apps are so easy to use that, in some countries, the crypto purchase process is easier than making an order for pizza.
Jacob Bernstein of the New York Times likens his cryptocurrency purchase experience via apps such as Purse to “ordering from Uber Eats, except that there wasn’t even a bag of cold food at the end”.
Benefits of crypto trading apps
You need to open an account to trade or invest in digital currencies. Crypto trading apps have a simple account opening process. Download your app, register an account, then complete your account verification. Follow a 2-step verification process and voila, you are ready to buy, invest, trade, lend or borrow cryptocurrencies.
Some benefits of crypto trading apps include:
- Buy and sell options at your fingertips. You can go speculate on cryptocurrency volatility or purchase crypto CFDs or derivatives from any corner of the globe via a crypto trading application.
- Digital currency apps are automated. They leverage artificial intelligence technology supporting real-time trading and bidding processes. For this reason, these apps are excellent 24/7 passive income generation platforms.
- Crypto trading apps lower the barrier of entry to financial investing. You do not need large sums of money to invest in the cryptocurrency sector. You can kick off your investment journey with capital as low as $1.
- They ease the crypto private key storage process since they automatically connect users to an exchange platform’s cryptocurrency wallet. That said, purchase a hardware wallet and store your long-term cryptocurrency investments offline.
Six of the best crypto trading apps
Crypto trading applications are a dime in a dozen and not all are secure, easy to use, or reliable. The best crypto trading applications have extra benefits, such as staking rewards, crypto airdrops, trading leverage, crypto purchase, and trading fee discounts. They may also provide high yield rates on crypto lending and yield farming. Below are 6 popular crypto trading applications.
Coinbase is one of the oldest cryptocurrency exchanges in the market. It is also the second-largest cryptocurrency exchange in the world, as per trading volume after Binance. Coinbase is fully regulated in most US states.
Its European subsidiary, Coinbase Europe is not a regulated entity, but Coinbase Germany GmbH has a BaFin crypto trading and custody license. The Coinbase app is designed for the less tech-savvy crypto investors and any newbie can use it to purchase cryptocurrencies.
It offers a safe and secure way to trade and invest with cryptocurrencies while on the go. You can trade over 100 cryptocurrencies on it or borrow crypto collateralized loans on your Coinbase app. Coinbase US customers can sign up for the Coinbase Visa Card and earn crypto rewards from their USD or crypto payments.
You only need a minimum of $2 to purchase crypto assets via the Coinbase app. The Coinbase app’s downside is that its trading fees are higher than Binance’s or Kraken’s. To this end, the small-time crypto trader might have higher profits on a cheaper or commission-free trading fee platform such as Robinhood.
On that note, Coinbase has announced that it might waive its trading commission fees in favor of a subscription service.
BlockFi is one of the most impressive crypto trading apps in the market. It is also one of the fastest-growing crypto platforms because of its robust crypto lending feature, which is very popular among its institutional and retail clients.
On BlockFi you can borrow against your crypto assets. Consequently, you do not have to sell your digital currencies when you need real money. Take a low-interest-rate loan from your BlockFi account’s simple and user-friendly application.
You do not need to go through the traditional financial industry’s extensive KYC and credit check processes, to access a crypto collateralized loan on the BlockFi app. All you need to access credit is adequate crypto assets to cover a 50% loan to value ratio. BlockFi’s interest rates are in the 4.5% range.
The BlockFi Interest Account (BIA) is also hit with savers. A long-term cryptocurrency investor can earn a 9.5% APY from their BlockFi app’s BIA. In contrast, fiat savings accounts earn a low 0.50% APY. Other outstanding BlockFi features include the BlockFi Visa card, which has a 1.5% cashback on purchase in bitcoin form. Additionally, if you stake your assets in BlockFi, you can earn up to 8% per year in return.
Binance is the world’s largest cryptocurrency exchange. It moves over $30 billion in cryptocurrency, trading volumes in a single day. In contrast, Coinbase has a daily turnover of $6 billion. This impressive exchange, however, has diverse regulation challenges.
As an illustration, US customers can only use Binance.US for their crypto purchases since Binance is banned in the US. It is also banned in the UK. The Binance app gives traders access to a wide range of digital tokens and NFT assets and is, therefore very popular amongst speculative traders.
This feature, however, is its Achille’s Heel. It is the main reason most financial regulators shun it. Binance does not have adequate investor protections. You can purchase just about any crypto asset on the Binance app. Watch out for scam tokens!
The Binance app, however, has fees as low as a 0.1% spot trading fee. It has excellent customer service features that include video call functionality.
eToro is a financial assets trading application that supports cryptocurrency trading. You can trade stocks, CFD, and cryptocurrencies on the eToro app. This platform launched in 2007, two years before the release of bitcoin, the world’s most popular cryptocurrency.
eToro is a regulated platform and has an FCA (UK) and CySec (Cyprus) trading license. Its unique use case is its ease of use and robust crypto social trading features. Use eToro’s crypto social trading feature to copy the moves of successful crypto traders and learn the art from the masters of the trade.
The Robinhood crypto trading app is popular for its 0% crypto exchange charge. Plus, you only need $1 to invest in cryptocurrencies on the Robinhood crypto app. Robinhood is particularly popular amongst young investors because of its clean user interface and cash management features.
As an illustration, you can set up a recurring investment service. Robinhood app has stocks, funds, gold, options, and crypto asset trading and investment services.
The Crypto.com app is well-loved by crypto fans. It has a non-custodial wallet that gives its users ultimate control of their private keys. For this reason, it has attracted millions of users. Its accounts are FDIC-insured on USD account balances. This app charges a 0.04% trading fee, but investors that stake their CRO enjoy 10% to 20% discounts on trading fees.
The Crypto.com platform has a Visa card feature that rewards users with an 8% CRO cash back on purchases. CRO is the Crypto.com platform’s native token. Its Earn and Credit features are also very popular with the crypto crowd.
Upcoming crypto trading apps
While we talked about the main crypto trading apps, you will find on the market many more possibilities with other smaller platforms to watch such as Celsius.Network, Youhodler, Hodlnaud or Bitcoin Evolution (Bitcoin Trading with Bitcoin Evolution).
Cryptocurrency trading apps ease trading, but they expose naïve traders to high-risk, high returns financial assets that may wipe out their trading capital. These apps are powerful hooks to the trading world, and you should first create a trading strategy that will secure your capital in the wild and volatile cryptocurrency trading ecosystem.