2019 was a highly volatile year for cryptocurrencies. Despite past bear phases that hit Bitcoin and many altcoins hard, overall prospects remain positive. Institutional interest in cryptocurrencies and blockchain is growing, large players such as Libra and GRAM have emerged, and major firms are engaging with stablecoins. All of this makes 2020 a year full of expectations. When using cryptocurrencies, people typically rely on two types of platforms: brokers and crypto exchanges. How can you get the most out of them? In this article, we present the top three places to buy cryptocurrencies in 2020.
Broker or exchange: which to choose to buy cryptocurrencies in 2020?
Exchanges are the traditional platforms for investing in cryptocurrencies. They offer many advantages, especially for users who want to invest directly while participating in altcoin ecosystems and related projects — for example, Ethereum development or decentralized cloud storage like Siacoin. However, exchanges can present limitations from an investor’s perspective.
This is where brokers come into play. Brokerage platforms are typically regulated by financial authorities and provide more versatile investment options. For cryptocurrencies, brokers usually offer exposure via derivative instruments: futures contracts or Contracts for Difference (CFDs). Soon, Bitcoin options markets will also expand. Through these derivatives, investors gain exposure to the underlying asset’s price movements without necessarily owning the coin.
Beyond regulatory protections, brokers often provide more trading tools. Using derivatives, traders can open short positions that profit when a crypto’s price falls or long positions that profit when it rises. Advanced tools such as leverage, stop-loss orders, and other risk-management features are usually available on broker platforms. This wider toolkit creates many opportunities to capitalize on the intrinsic volatility of crypto markets.
Our ranking of the best brokers to invest in cryptocurrencies in 2020
One of the most capable platforms for investing in cryptocurrencies today is a broker that combines financial-market features with a strong commitment to digital assets. Brokers enable investing in Bitcoin and other cryptocurrencies via derivatives, but some have taken additional steps. For example, a major platform recently introduced a dedicated crypto wallet where users can store their digital assets. Derivative positions can be converted into real cryptocurrencies within moments.
This type of versatility is rare among competitors, with only a few comparable services. The platform’s crypto portfolio is broad and frequently expanded. There are currently more than 16 listed cryptocurrencies that can be traded against the US dollar, along with other notable pairings between cryptocurrencies, fiat currencies, and even gold.
The platform is also positioning itself to support major developments expected in 2020, such as Telegram’s GRAM and Facebook’s Libra. These projects could dominate headlines and market activity, and this broker offers a strong, secure option to participate. Additionally, its social trading features allow less experienced traders to learn from and copy the strategies of more accomplished investors, quickly gaining exposure to specialized crypto portfolios.
StormGain
New year, new places to buy cryptocurrencies in 2020. One newcomer added to this list is StormGain, launched in 2019 and operating across more than 150 countries. Crypto markets are volatile, and traders seeking higher exposure might turn to leverage. Many brokers cap crypto leverage at around 2x, but StormGain targets traders willing to accept greater risk, offering leverage up to 150x.
What does 150x leverage mean? A €10 margin can provide exposure equivalent to €1,500. Profits and losses are both magnified: a 1% gain on the underlying asset would translate to a 150% return on the initial margin. Conversely, a 0.6% adverse move could wipe out the initial investment and trigger liquidation. StormGain focuses exclusively on crypto pairs and bundles several trading tools with 24/7 customer support.
If you don’t yet hold cryptocurrencies, StormGain allows purchases using credit or debit cards via Simplex. The platform also supports mobile trading through Android and iOS apps. Using futures contracts, you can trade several major pairs with low fees, including:
Buy Bitcoin (BTC) – BTCUSDT
Buy Ethereum (ETH) – ETHBTC and ETHUSDT
Buy Litecoin (LTC) – LTCBTC and LTCUSDT
Buy Ripple (XRP) – XRPUSDT
Buy Bitcoin Cash (BCH) – BCHUSDT
iTrader
iTrader is another relatively new broker entering the crypto arena. It ranks among the best places to buy cryptocurrencies in 2020 for several reasons, including its regulation by the Cyprus Securities and Exchange Commission (CySEC), license number 198/13. Operating under a regulated framework helps protect clients’ funds. In 2020, iTrader plans to expand its trading tools further.
Although iTrader supports cryptocurrency trading, it also offers exposure to other markets such as forex, stocks, and commodities — a valuable option for traders who want diversified opportunities. The broker provides daily technical analysis of top trading pairs to help you compare market setups with your own ideas. Currently, iTrader lists eight cryptocurrencies:
Buy Bitcoin (BTC)
Buy Ethereum (ETH)
Buy Bitcoin Cash (BCH)
Buy Litecoin (LTC)
Buy Ripple (XRP)
Buy Monero (XMR)
Buy Dash (DASH)
Buy IOTA (MIOTA)