Crypto trading platforms in 2020 — current market state

Cryptocurrencies have come a long way, and the way that they are exchanged has come even further. When you think back on the stages we went through, starting with the first official exchange (the now defunct bitcoinmarket.com) and moving eventually to the diverse market we have today, it is fair to say that the current market shadows that of the already existing forex and stock markets around the world.

A huge achievement for a type of currency that many people still know little to nothing about. With each passing year, crypto markets see even more growth and development — which is why 2020  is set to be far more different than 2019.

As we enter a new year we should remember what has brought us here, and how important each step along the way was to help us build the current platforms we stand on. The ability for cryptocurrencies to be bought with an app in your pocket while you’re on the train heading to work, often in the same app where traditional stocks are offered, is fantastic. When Coinbase first launched in 2012 it worked long and hard to not only bring awareness of cryptocurrencies to the average user but also brought accessibility unheard of in the past.The trail that Coinbase worked so hard to blaze  has been taken up by many other contenders, oftentimes by companies who realized that adapting quickly to changing circumstances is crucial in the ever-shifting cryptoasset landscape. Let’s take a look at some of the top market players (they are all similar, so we will rank them alphabetically) to get an idea of where the market currently is:

eToro Just as cryptocurrencies have been influenced by traditional markets, it makes sense for traditional market companies to diversify their services into the world of cryptocurrencies. As the two markets grow more similar, companies like eToro continue to excel at providing customers seamless trading experiences in both markets. eToro combines a social experience with trading, allowing you to copy individual traders while you learn more about trading yourself through the eToro Copy Trader feature and their Education section. Additionally, trading on eToro is a breeze with nearly 2,000 stocks, commodities, currencies and EFTs and crypto assets available. Overall, eToro has been around since 2007, is demonstrably safe, and is definitely upping the ante for 2020 with new tools and markets.

MarketsX Markets.com’s new platform to engage more users, MarketX offers a clean design and is easy to use — even for beginners. This platform has a lot to offer in regards to features, including webinars, educational videos, and extensive market analysis tools all within the platform itself. New users will also be put at ease while using MarketX knowing that the company was founded in 1999 and has multiple licenses across Tier-1, Tier-2, and Tier-3. Additionally, more than 2,000 CFDs make this a great platform to use for veteran and amateur traders alike.

Plus500 Using Plus500 requires that you know everything about trading already. Considering that more than 76% of users who trade CFDs on the website report losing money, chances are those users could do with a bit of reeducation on the topic. Additionally, Plus500 has anti-scalping protocols that may trigger when positions are opened and closed within 2 minutes — a big flag for day traders to avoid. On the flip side, though, Plus500 has low trading fees and is licensed and available in more than 50 countries around the world.

XTB When it comes to XTB, it is apparent to anyone who has used the site that CFD trading is where the brand’s major focus is. Fast and mostly free deposits and withdrawals, combined with easy and quick account opening, means you can be trading CFDs in little to no time at all. Additionally, the combined low forex and low stock index CFD fees (not to mention a lack of inactivity fees) make XTB a great place to get your feet wet. Just be aware that high fees do exist on the site, primarily for stock CFDs, and some customers complain that customer support can be a bit lacking when problems arise.Without a doubt, modern crypto traders have their pick of the litter when it comes to selecting the trading platform that best fits their needs. As those needs grow and change, a platform that grows alongside them is crucial for both the traders and the success of the platform. One exciting tool that we are seeing in these platforms, especially eToro, is the ability to copy traders that are already having success on the market.

Remember all those times you’ve seen articles by traders claiming they made X% over the years while trading crypto, and then they list their top 5 trading tips for you to use on your own? But what if you have a full-time job, or you get too emotional while trading, or you don’t want to monitor the markets 24/7? That’s where copy trading comes into play.In short, copy trading is exactly how it sounds, you literally copy a trader, trade-for-trade, in real time as they are making their trades. This is done through a trading platform that these traders sign up for, opting in to make a tiny percent of your profits if you choose to copy them in their trades. Imagine, for example, you want to trade in LTC and ETH, but don’t have time to keep up on all the news surrounding these two popular currencies. Instead of learning all about it yourself, you can pick a trader that specializes in these currencies and copy their trading patterns. Here are some of the basic pros and cons of copying a trader:When compared to regular trading, copy trading is a more hands off approach. Instead of researching and keeping track of the markets, you instead research and keep track of the traders you are choosing to follow. Considering that this will be more social than clerical, a lot of casual traders may feel more comfortable trusting their ability to pick successful traders instead of picking successful traders themselves. At the end of the day, though, a copy trader can only succeed as much as the market will allow them — if the entire market takes a hit, don’t expect the trader you are copying to be a miracle worker and still make money for you.

With more trading platforms offering cryptoassets and other financial instruments, 2020 is setting up to be a big year for cryptoasset traders. As we move into 2020 in earnest, let’s not forget the mistakes we made in 2019, and most importantly, let’s remember to educate ourselves on all of our options before making any risky trades. eToro, MarketX, Plus500, and XTB are some of the many market leaders in trading platforms— keep your eyes peeled on the advancements they are making to help you trade more securely in the coming year.

The author is not associated with any of the projects mentioned.