Bitcoin Trading: How does BTC trading work in 2021?

Nowadays, it is almost normal for an ordinary trader to also trade cryptocurrencies. This is quite remarkable when you consider that this type of trading is still quite young. Nevertheless, crypto trading is now one of the most popular forms of trading.

But because crypto trading is not yet particularly established, more and more investors are asking themselves how they can trade in cryptocurrencies. 

Trade cryptocurrencies: What to look out for

Trade cryptocurrencies: What to look out for
You should pay particular attention to the following things when trading cryptocurrencies:


Where is the best place to trade cryptocurrencies? We recommend our test winner eToro. Here you can trade cryptocurrencies at the best conditions. eToro is fully regulated and licensed (so it also has deposit protection) and the fees for trading cryptocurrencies are far lower than the competition.


How to trade cryptocurrencies successfully? That depends on your own strategy. First of all, determine your trading style: day trading, swing trading or even long-term holding. Then decide on a suitable risk strategy and the type of trades you want to take. In this article, we will further discuss how to become a successful crypto trader.


Is trading cryptocurrencies more lucrative than trading stocks or forex? Cryptocurrencies are subject to higher volatility than stocks or currency pairs. Therefore, crypto trading can be far more lucrative than trading other trading pairs, but the risk of loss is also higher with cryptocurrencies.

Where to trade cryptocurrencies? Our broker and exchange comparison:


Trade real cryptos and crypto CFDs
Licensed broker with deposit protection
Integrated wallet

skilling logo

Low fees
Algo trading available
Very friendly user interface


Broker fully regulated
Numerous awards
Libertex experience for more than twenty years

User-friendly platform
0% commissions
Deposit from 20€
avatrade logo

Good selection of cryptocurrencies
Regulated by CBI and MiFID in Europe
No commissions and low spreads

How does crypto trading work? Our guide

Here we explain how crypto trading works and which providers are suitable for this. This guide is packed with information for both trading beginners and experienced traders, which should give you valuable tips on your personal crypto trading strategy.

After reading the following, you should be able to consistently expand your personal portfolio with Bitcoin and other cryptocurrencies.

First step: The choice of platform

As already described, there are quite different ways to participate in crypto trading. The choice of platform should therefore not be underestimated. It is best to use the existing comparisons to discover a suitable partner for regular crypto trading.

We recommend our test winner broker eToro, because here you can trade cryptocurrencies with the best conditions - read more in the fee comparison in this article.

Second step: Registering on the platform

In order to get started with cryptocurrency trading, you first have to register, of course. The platforms are very keen to offer far-reaching securities. A balanced registration procedure contributes to this.

As a rule, first and last names are required, as well as an email address and other personal information. If you use special brokers, you will probably also have to provide various background information on your own financial situation. Finally, regulated crypto brokers must comply with the guidelines of the European Union.

Third step: Verification

Once the registration is completed, you will probably have to go through a verification process. The verification ensures that one can really confirm the identity of the traders. This prevents international money laundering and the verification thus ensures higher security on the platform.

As a rule, you will have to upload a verification of your address via an invoice or a copy of a photo ID. Under certain circumstances, you can also set up a 2-factor authentication in this context, which can provide a further protective barrier against fraud.

Fourth step: The deposit

After verifying all the information, you can make your deposit. It depends on the chosen platform which options you have in the end. PayPal is particularly popular at this point, but it is by no means certain that you will find this payment option on every site.

Alternatively, you can usually use your credit card or other service providers such as Sofortüberweisung. In many cases, it will also still be possible to use the conventional bank transfer.

Incidentally, deposits are often possible even before the complete verification of the account has been completed. Only for withdrawals, however, will all data really have to be confirmed.

In many cases, you will also find a minimum deposit amount.

Our test winner eToro offers the following deposit methods:

Payment method


Buy Trade cryptocurrencies with bank transfer


Buy Trade cryptocurrencies with a credit card 


Buy Trade cryptocurrencies with Neteller


Buy Trade cryptocurrencies with Skrill


Buy Trade cryptocurrencies with PayPal


Buy Trade cryptocurrencies with online banking


Buy Trade cryptocurrencies with Rapid Transfer


Buy Trade cryptocurrencies with Sofort


Buy Trade cryptocurrencies with a debit card


Fifth step: Crypto trading

Once the first money has been placed on the platform, you can finally devote yourself to crypto trading. You will have to decide whether you expect prices to rise over a certain period of time or whether you rather suspect that the value of the coin will fall.

For longer-term investments, however, such short-term mind games are probably rather marginal.

Due to the peculiarities of cryptocurrency trading, you can execute both sell and buy orders and thus profit from different price developments.

For this type of Bitcoin trading, it does not matter whether you use a CFD broker or a real Bitcoin trading platform.

In both cases, you will be able to initiate buy and sell orders. The best way to do this is to follow cryptocurrency signals.

The best Bitcoin trading platforms in comparison:

Anyone who has already been able to gain Bitcoin trading experience will certainly have already taken a closer look at one or the other platform.

Accordingly, it is clear what is important when choosing the right Bitcoin trading platform:

  • Low fees
  • Wide range of offers
  • Interesting trading options
  • User-friendly trading environment
  • Reputable providers

We have taken a detailed look at two of the most promising Bitcoin trading platforms: eToro and Of course, there are several other recommendable providers that also have a rich trading concept to offer.

However, eToro and are our recommended brokers.

Bitcoin Trading at eToro

eToro is much more than "just" a place for crypto trading with the most popular cryptocurrency. Because the multi-asset platform has a lot more to offer. Here, it is all about extended trading with very different assets.

These include commodities, shares, ETFs and, of course, cryptocurrencies. Bitcoin is right at the forefront. Interestingly, there is not only a dedicated wallet for users, but also a mobile app that takes the Bitcoin trading experience to the next level.

As far as deposits are concerned, you first have to raise the minimum deposit amount of 200 euros. Then you can access various payment providers such as Wire Transfer, PayPal, Neteller and Skrill.

But credit card payment and instant bank transfer are also part of the offer. The fees here are rather low compared to similar platforms, but there is a rather high inactivity fee for longer trading breaks.

Bitcoin Trading at

Bitcoin Trading at takes our second place when it comes to Bitcoin trading. The reason for this is that is a pure CFD broker. You can't buy real coins on the platform, but only bet on their price trend. Of course, also offers CFDs of cryptocurrencies. In addition, offers different account types for every investor: Standard, Plus or Premium. However, the higher the account type, the higher the deposits and the possible profits. already has over 2.5 million registered users and around 88 billion US dollars are traded annually on the platform. Of course, there is also an in-house app for iOS and Android, which makes trading on the go very easy. There is also a low minimum deposit of 20 euros. With a bank transfer, however, you have to deposit at least 250 euros.

We also particularly like the fact that is regulated and licensed by the FCA and CySEC. In general, the provider offers very low spreads on over 3000 CFDs, including 35 cryptocurrencies. In addition to Bitcoin, you can also access some other interesting cryptocurrencies here: Ethereum, Litecoin and Bitcoin Cash.

Bitcoin Trading Apps Comparison:

Of course, there is also a wide range of Bitcoin trading apps. After all, every major Bitcoin trading platform has a "to go" version of the desktop version to make crypto trading as effective and easy as possible.

It is important that all the functions that the desktop version also offers are actually available via the Bitcoin trading apps. Trading on the move has now become firmly established, so there are many traders who run all their trading via the apps.

And why not, because most mobile trading apps have interesting features to offer. So let's take a detailed look at the best Bitcoin trading apps 2021.

Bitcoin Trading with the Skilling App

The Skilling app is available for mobile devices with Android as well as for iOS devices. It is practical that this Bitcoin trading app is available, so that access is greatly simplified.

But what does Skilling offer us? Skilling has a wide range of very different trading and investment options to offer. Besides the popular virtual currencies, there are also shares, forex and CFDs.

What more could you want? Possibly security, but here the European provider fulfils all the necessary requirements.

Those who want to test the offer for themselves do not have to dig too deep into their pockets when opening an account. The minimum deposit is only 100 euros.

skilling logo

Bitcoin Trading at the App naturally also offers an in-house app for iOS and Android devices. The Android version has already been downloaded over 1,300,000 times and rated with 4.4 out of 5 possible stars.

You need Android 5.0 or higher, the programme is 21 megabytes in size and would be rated over 1800 times. Customer service goes to great lengths to respond to all queries.

The iOS app is a bit larger at 44.6 MB and requires iOS 9.0, but according to the operators, you should be able to do everything via both programmes in the same way as via the trading platform on the PC.

The app itself works excellently on both operating systems and offers a variety of interesting and useful features, such as financial analysis and risk management functions. There is also a learning section and an AI that analyses your trading behaviour. logod

Which Cryptocurrencies to Trade? The Best Bitcoin Trading Alternatives 2021

Bitcoin is on everyone's lips at pretty much all times anyway. But what else is there in crypto trading? But the digital currency market has many more exciting investment assets to offer. In fact, a diversification of the portfolio is part of every comprehensive Bitcoin trading strategy.

Has summarised the most promising coins in 2021 on a separate page. Especially in the recent past, more and more attractive cryptocurrencies have come onto the market. And so, in the course of one's Bitcoin trading, one will also want to look at alternative forms of investment in the market.

The IOTA Trading

For the editorial team, IOTA stands out above all. The online currency refers to a completely new technology that wants to be a few steps ahead of the blockchain through the tangle process.

In fact, it should be possible to see in the near future whether IOTA has answers ready for the Internet of Things.

The crypto network already has partnerships with Fujitsu and Volkswagen. This could indeed mean great potential for the future.

Ripple Trading

Ripple is targeting the international financial world.

In an increasingly globalised world, the Ripple developers believe that it is hardly acceptable that the exchange of currencies is so slow and expensive.

The XRP coin is therefore supposed to provide the answer and enable very cheap international transfers. The currency pair BTC/XRP could therefore be traded much more often in the future.

Ethereum Trading

But perhaps the time of Ethereum trading has finally arrived. Until now, it has always had to settle for second place behind Bitcoin in the crypto rankings.

But the further developments in the network's smart contracts could help the BTC/ETH currency pair gain new strength.

It remains to be seen whether we can expect more Ether performance.

Pros & Cons Crypto Trading


  • Great technological potential
  • Decentralised digital currencies that eliminate intermediaries (financial institutions such as banks)
  • Promising applications in business and finance
  • Accessibility: investors from all over the world can trade cryptocurrency
  • Enormous growth possible
  • Volatility allows traders to make higher profits


  • High volatility can lead to big losses
  • Questionable companies harm the market
  • Too little regulation and protection by financial regulators

Cryptocurrencies CFD trading or real crypto trading?

CFD Trading


  • Fee advantage when trading
  • Regulated by the state and subject to deposit protection: you are protected from hacks and attacks
  • No complicated wallet setup required
  • Trading with leverage


  • No "real" cryptocurrencies
  • Fee disadvantage for long-term investors
  • Risky investment: The obligation to make additional contributions (margin call) exists in the case of leveraged (leveraged) trading

"Real" crypto trading


  • Owning real cryptocurrencies that you can manage yourself
  • Steep learning curve
  • Those who want to hold cryptocurrencies for the long term have an advantage here in terms of fees


  • Vulnerable to hacks and cyber attacks
  • You are responsible for managing the wallet keys - if the passwords are lost, the cryptocurrencies cannot be recovered.
  • A wallet (paper or hardware) is required for truly secure storage.


Do you want to trade cryptocurrencies with CFDs or actually buy them? Certainly, one would be well advised to take a closer look at this question for one's personal cryptocurrency trading strategy. After all, there is a considerable difference between the available options in the digital currency market.

The decision as to whether you intend to fill your crypto wallet with tokens or whether you want to trade with CFDs will lead you to completely different providers.

Our test winner eToro offers both real crypto trading and CFD trading.

Our recommendation: Buy cryptos with eToro

  • Incl. wallet
  • Buy and sell cryptocurrencies directly in the wallet
  • Paypal, credit card and instant bank transfer
  • Regulated provider
  • Real cryptos or CFD trades

CFD Trading with Crypto Brokers

Furthermore, one must also consider the motivations for entering the crypto world. Those who really want to profit primarily from returns will probably not even have to consider registering with crypto exchanges and wallet providers.

In such a case, it actually makes more sense to devote oneself primarily to crypto trading with CFD brokers. These programmes enable various payment methods and offer very easy access to the world of digital currencies. However, you also have to know how to interpret the numerous cryptocurrency signals.

You will often have to live with a somewhat limited crypto repertoire, as not all digital currencies are so easily available as assets. If one attaches importance to acquiring the real coins, then one will probably have to actually buy them.

This can be done either on a crypto exchange by trading cryptocurrencies or by using special crypto platforms, such as the already mentioned eToro.

Buying cryptocurrencies

The advantage of buying is obvious. You will be able to dispose of the coin directly. For example, if one expects a benefit from the tokens themselves, then one will probably be pleased if one can stow them firmly in the portfolio.

In addition, you could theoretically wait all the time in the world before you actually do something with the coin and finally sell it again.

When trading with derivatives, it is often not very easy to choose arbitrary maturities. After all, you have to stick to the specifications of your cryptocurrency trading platform. Those who have already dealt with various brokers will also notice that there is a certain diversity here.

If you are aiming for exotic coins, then you will probably prefer to go via an exchange. Buying and selling cryptocurrencies on these exchanges is nothing other than regular crypto trading like in a forex market. After all, the price will change constantly.

Bitcoin Trading Strategies: How does bitcoin trading work?

Now we have looked at the different Bitcoin trading platforms, apps and bots. But what is still necessary for successful trading is the know-how.

If you don't even have a rudimentary knowledge of trading, you won't get very far despite having a serious foundation. So now let's look at some Bitcoin trading strategies to complete the trading adventure.

1. bitcoin trading and diversification

Even if at first you can't imagine how to diversify your investment in bitcoin, you shouldn't completely switch off.

Because making the portfolio as colourful as possible is an excellent way to reduce the risk of losses and at the same time increase the chance of profits.

And you can do this if you don't just focus on the coins themselves. After all, there are other Bitcoin investment opportunities.

Bitcoin shares, for example! How about mining shares, shares in blockchain companies or shares in blockchain investment companies?

The Bitcoin Group shares are among the best-known Bitcoin shares. Behind the Bitcoin share is none other than the company of the online exchange is one of the largest providers for trading Ethereum and Bitcoin.

Another Bitcoin share is that of Digital X. Digital X is a public company from Australia that offers Bitcoin services. Here, the focus is on consulting around blockchain technology for companies that want to become more successful in this sector. Furthermore, Digital X also conducts ICOs.Bitcoin shares, for example! How about mining shares, shares in blockchain companies or shares in blockchain investment companies?

Media: senators demand US Treasury study cryptocurrency regulation in other countries

The Bitcoin Group shares are among the best-known Bitcoin shares. Behind the Bitcoin share is none other than the company of the online exchange is one of the largest providers for trading Ethereum and Bitcoin.

2. bitcoin trading countercyclical

Media: investeerders waarderen bitcoin-uitwisselaar Upbit op 10 miljard dollar

Countercyclical? Sure, because that is the opposite of cyclical trading, which inexperienced traders usually prefer.

If the price of bitcoin is high, interest increases and inexperienced investors invest at horrendous prices.

However, it is smarter to invest in Bitcoin when prices are low.

Since the Bitcoin has its own individual, but high fluctuations, the next buying opportunity is usually around the corner.

In this way, you can secure the sought-after coins at a relatively low price and then - again anti-cyclically - sell them at a profit as soon as the price soars.

3. bitcoin trading on a personal level

The best Bitcoin trading strategy involves being clear about your own personal strengths and weaknesses.

Before jumping into the deep end, you should clarify how much money you actually have at your disposal and whether you are more of a short-term or long-term trader.

Is it about investing the coins in the wallet for the long term with a view to a future increase in value or is it more about actively day trading?

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Either way, you should acquire a certain trader mentality so that you can remain calm and relaxed even in turbulent market situations.

Because bitcoin brings its own volatility, which also gives this investment a certain thrill.

Cryptocurrencies Trading Fees Comparison

Let's take the following example to compare fees when buying Bitcoin:

  • We buy Bitcoin for €1,000.
  • We keep our Bitcoin for 30 days and then sell it again
  • We assume that the exchange rate does not change during the 30 days.
  • This is how the following fees compile at eToro, Coinbase, and Plus500:






for free


for free

Purchase fees




Holding fees

for free

for free


Sales charges






$ 0.15


Total fees

€ 19.20

€ 68.24

€ 92.32


Crypto Trading Conclusion

In the meantime, crypto trading is also accessible to beginners. Gone are the days when the industry of digital currencies was reserved for computer experts.

With the help of suitable providers such as eToro, it is very easy to trade cryptocurrencies yourself.

You only have to decide whether you want to do this with an exchange or a cryptocurrency broker.

If you want to have the possibility to trade real cryptocurrencies as well as CFDs, you will be satisfied with eToro. In our comprehensive comparison, the broker comes off as the test winner.

Our recommendation: Buy cryptos with eToro

  • Incl. wallet
  • Buy and sell cryptocurrencies directly in the wallet
  • Paypal, credit card and instant bank transfer
  • Regulated provider
  • Real cryptos or CFD trades


Which platform is the right one for me?

This depends not only on your own trading personality, but also on whether you value actually owning the coins. Furthermore, the special functions of each platform play a role and the level of fees.

Do I necessarily need a wallet to trade cryptocurrencies?

No, you can also trade cryptocurrencies indirectly today. For example, by means of CFDs, or via online wallets provided free of charge by some providers.

Is trading with cryptocurrencies legal?

It is not illegal to trade with cryptocurrencies. On the contrary, major banks are now also entering the world of coins. However, it should be noted that trading profits are taxable.

Can I simply change my chosen trading platform?

Yes. If you trade directly with the coins, then your own wallet is sufficient to store the coins. Now you can simply change the provider and trade your coins there.

About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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