Ethereum (ETH) is one of the world’s leading cryptocurrencies, second only in value to Bitcoin.
However, the advantage ETH has over the mother coin is its promising technology – so innovative in the fact that major players are backing ETH.
Playboy is the latest household name to bring ETH on-board as a payment option to customers; a major announcement that could pump the price of Ether in the coming weeks. Investors looking to cash in on digital companies will need to be quick to join the ETH party.
Here are the eight best Ethereum trading platforms where you rock with the hottest investors on the planet.
In this article we will cover:
- Ethereum Trading vs Bitcoin Trading
- Why Is Ethereum a Better Investment?
- The Best Ethereum Trading Platforms:
– eToro
– Bitfinex
– Binance
– AvaTrade
– CEX.io
– Kraken
– IQ Option
– Poloniex - Our Top Choice
Ethereum Trading vs Bitcoin Trading
As a store of value Bitcoin continues to hold the cards.
Despite the dramatic collapse from its all-time high, early investors have still made tidy profits. Late-comers have probably missed the boat, although some traders predict Bitcoin still has plenty of life in it.
Ethereum is arguably the best option in the current climate.
However, it can be harder to purchase outright. Some exchanges insist on investors buying Bitcoin first then trading them in for ETH.
Needless to say then, that Bitcoin trading is the most straightforward option. BTC is available from all cryptocurrency exchanges and is often used as the entry token.
That doesn’t mean you can only buy Bitcoin and have to stick with it. You can exchange BTC for other digital coins such as ETH.
Predicting whether trading in Bitcoin is a better investment than Ether is impossible to say at the moment. Nobody knows what the value of these coins will be and how their similar technologies will work in the future.
For the time being, Bitcoin has a firm footing in the value stakes.
The reasonable likelihood is that Bitcoin will maintain its number one spot and continue to grow in value. However, realistically, Bitcoin will only do this if a decision is taken for BTC to be tethered to the progress and expansion of other cryptocurrencies.
One thing that is for sure is that Bitcoin and the blockchain technology it is built on has no practical value. The time it takes to process payment takes anywhere between 10 minutes to almost an hour, and the number of digital tokens is limited to 21 million.
The opposite is exact of Ethereum.
It is the principles of the technology behind Ethereum that is propelling the cryptocurrency world forward.
ETH tokens will always be reproduced, transactions are processes around 15 seconds, and the platform supports other cryptocurrencies.
Why Is Ethereum a Better Investment?
The most prominent advantage of the Ethereum blockchain is what founder, Vitalik Buterin, called smart contracts.
It is this function that creates a contract between the parties and stores the terms and conditions online. Because blockchains cannot be tampered with or corrupted, both parties are assured that the terms of the contract will be fulfilled.
A likely scenario will be that between consumer and retailer.
Let’s say you want to buy a new pair of shoes. You visit a website that sells footwear, select the pair you want and go through the payment process as usual. Once you confirm your order the smart contract kicks in.
The money you send to the merchant in exchange for your new shoes, however, does not go immediately to the merchant. Instead, funds are held in an escrow account and will not be realised until you authorise payment – which will be when the shoes arrive.
Here we have the intervention of the supply chain.
The courier will also be linked to the same blockchain and will ask the consumer to confirm delivery which will prove the terms of the smart contract have been fulfilled, and the money held in escrow will be released to the merchant.
It is because of its practical uses that Ethereum has a place in the real world.
And it seamlessly knits into the fabric of the virtual world for the benefit of everyone. The value of Ethereum is destined to increase which makes it such a valuable investment asset.
Bitcoin may have already proven its worth, but it has also revealed the path that many other digital tokens will take.
This time last year, we said to buy Bitcoin. And our advice was proven (almost) right because the value of BTC earned gains of 1400%.
To be fair, Ethereum’s value rocketed by 1600%, but let’s not talk about that.
If we had a choice of Bitcoin or Ether right now and could only buy one coin, we would go for Ether. So if ETH is not already in your investment portfolio, it should be – and now is the time to pop it in your wallet.
Read more about Bitcoin vs Ethereum.
The Best Ethereum Trading Platforms
The easiest way to buy Ethereum online is to use a cryptocurrency exchange that sells ETH without having to buy Bitcoin.
If you don’t own Ethereum yet and want to use the platform that doesn’t sell it, check our guide to The Best Cryptocurrency Exchanges For Ethereum.
The exchanges featured in this article are a mixed bag that appeals to different sensibilities.
The best one for you will depend on your experience in the cryptomarket, and trading in general, where you are in your crypto journey and how comfortable you are with financial software.
Let’s get this party started!
eToro
In the early days, eToro was geared towards inexperienced traders and newcomers to the cryptomarket. Even though more features have been added, the exchange has stuck with the original philosophy.
The platform is therefore easy to use and quite fun at the same time. The eToro platform has won awards for innovation.
Some of the innovative features include social trading which allows you to monitor trends and invest in coins other investors are buying.
Accounts are easy to open and have low entrance barriers. All you have to do is confirm who you are in the same way you would when opening a bank account.
Users can access the eToro exchange via a desktop app or web browser together with a mobile app which is available on Android and Apple.
The minimum requirement to open an account with eToro is $50, up to $1000, but the firm pays $200 for introducing a friend.
Read more in our eToro Review.
Bitfinex
Before government regulations were put in place, all you needed to subscribe was a working email address. You were then sent a verification link, and that was it – you were free to go about your trading incognito.
Fortunately, the registration process has not been over-complicated by KYC (Know-Your-Customer) regulations that have since been enforced upon cryptocurrency exchanges.
Despite the slurs, Bitfinex is one of the best exchanges out there.
They still have the same registration process, although now have to ask for more information together with photo id to verify subscribers to prevent fraud. The photo-id slows down registration times, but it is the same protocol for all cryptocurrency exchanges now.
The platform is feature-packed with useful tools, and the user-friendly interface is easy to navigate, trade and check your account balance.
Investors also have a wide choice of digital tokens to choose from including Ethereum, Litecoin and Monero.
Read more in our Bitfinex Review.
Binance
Binance has one of the most comprehensive selections of cryptocurrency and is a great place to trade Ethereum.
There are two trading platforms; basic and advanced. Even the primary interface can be complicated, so if you’re not technically minded, Binance is probably not for you.
One glance at the central dashboard and it is clear to see that Binance is not created for casual investors. There are a host of tools, graphs and charts to monitor the market.
Ideal for experienced traders.
Flat fees of 0.1% per trade are pretty reasonable pricing plan, although Binance only trades virtual coins for other digital tokens. This is not a starting point for newcomers that just have a fiat currency.
Read more in our Binance Review.
AvaTrade
AvaTrade established itself as a renowned Forex trader before cryptocurrencies came along and had a solid reputation as a high-end trading service in more than 150 countries worldwide.
Regarding trust and reliability, Avatrade is backed by regulatory bodies and held in high regard by traders.
The interface is easy enough to navigate, and due to the platform’s heavy traffic load, transaction fees are lower than many other exchanges.
Users only pay fees on given spreads, and there are no hidden broker charges or admin fees on top.
CEX.io
CEX.io was one of the first cryptocurrency exchanges to emerge and has since established a presence in 99% of the globe.
Trusted by millions it has one of the biggest userbases and enables investors to purchase cryptocurrencies with fiat currencies; credit cards, debit cards and bank transfers.
Despite its perceived authority in the crypto space, CEX.io is often subject to the complaint in cryptocurrency forums.
This is expected in an industry that is still finding its feet and needing to implementing systems to manage large volumes of customers. Being slow is a common complaint.
The exchange also carries one of the highest fee charges, typically around 3.5% plus $0.25 commission. Although CEX.io is geared towards new investors entering the cryptocurrency market, there are better options in this list for buying Ethereum.
Read more in our CEX.io Review.
Kraken
Kraken was founded in 2011 in an attempt to help MtGox, and its customers overcome the hacking scandal.
That gesture didn’t quite work out, but since then, the exchange has become hugely popular in the European market thanks to its high liquidity of Euro.
The company is now in the process of exerting its influence in other countries around the world, and its reputation is growing by the week. The user-friendly website helps and is a good starting point for newcomers.
From the outset, Kraken has had an authentic verification procedure which falls in line with standard banking procedures throughout the regulated financial sector. As a consequence, the exchange platform has earned a reputation for honesty and trustworthiness.
However, the verification process for Kraken has three tiers, so check out what each tier allows you to do. For example, tier one customers cannot deposit or withdraw fiat currencies and have a withdrawal limit of $20,000 a month.
Read more in our Kraken Review.
IQ Option
For investors that are looking for a comprehensive trading platform with a reliable store of altcoins, IQ Option is a good option.
The platform was only founded in 2013 but is making an impression quickly. With over 20 million account holders already signed up, IQ Option is one of the fastest cryptocurrency growing trading platform online.
IQ Option is also one of the available online exchanges.
Investors only need a minimum $10 investment and can pay by any of the major credit cards or some digital wallets including Web Money, Skrill, Cash U and Neteller or bank transfer.
If you like straightforward, no-nonsense trading, IQ Option is an excellent place to be.
Read more in our IQ Option Review.
Poloniex
Poloniex is the world’s largest Ethereum exchange and with over 70 digital assets is the go-to platform for serious cryptocurrency investors.
However, they only trade in digital currencies, so this is not the exchange to get hold of your first ETH, BTC or altcoin.
One of the main advantages for Poloniex customers is the low deposit and withdrawal fees, detailed charts and data-analysis tools that enable you to check out the market and an extensive community that is active on social media.
This transparency, together with the refunds the company returned to customers following a minor security breach makes Poloniex one of the most trusted cryptocurrency exchanges in the world.
Read more in our Poloniex Review.
Overall
Whether you’re a cryptocurrency veteran or a newcomer to the crypto space, investing in ETH from one of the eight best Ethereum trading platforms mentioned above promises to be a safe investment with an excellent ROI.
Our top choice is eToro due to its robust security features and stellar reputation. The platform is also planning to include a cryptocurrency exchange and wallet for its services, making it a perfect crypto all-rounder.
If you want to give it a go, read our How To Get Started With eToro, and if you need more generic information, check The Beginner’s Guide To Cryptocurrency Trading.
