Bitcoin Trading for Beginners: How and Where You Can Trade It

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In this article, we'll cover how and where you can trade Bitcoin.

There are several ways you can trade Bitcoin:

  • Bitcoin exchanges – Buy, sell, trade, or convert Bitcoin into another cryptocurrency or fiat currency.
  • Bitcoin forex – Buy CFDs that predict how the value of Bitcoin will move versus other currencies.
  • Bitcoin futures – Buy or sell Bitcoin at a later date for a fixed price.

We'll even show you how to get started trading Bitcoin today with our step-by-step guide and provide a list of regulated Bitcoin brokers and exchanges.

Ready to get started? If you're in a hurry to trade Bitcoin, consider these top regulated brokers:

  1. Forex.com: Trade Bitcoin CFDs, forex, and other derivatives.
  2. eToro: Buy, sell, and trade Bitcoin plus an e-wallet.
  3. Plus500: Offers Bitcoin trading via CFDs (note: CFDs are not available in the USA).

Where Can I Trade Bitcoin? The Top Trading Platforms

Interested in trading commodities like Bitcoin?

Start your research with reviews of these regulated brokers available in .

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 73.0%-89.0% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

IMPORTANT: CFDs are not available in the USA due to local regulation, and regulated brokers do not accept US citizens or US residents as clients.

There are brokers and Bitcoin exchanges around the world, but because the various regulating authorities have differing opinions on what and how Bitcoin should be regulated, you should be careful choosing a trading platform for cryptocurrencies.

  • European Union and the United Kingdom – Cryptocurrency trading is legal in most cases.
  • United States – Bitcoin isn't considered legal tender, but you can exchange crypto assets (including Bitcoin) on cryptocurrency exchanges.
Countries that ban cryptocurrencies
Source: Library of Congress

Which Countries Allow or Ban Bitcoin?

Over 170 countries allow cryptocurrency trading.

See the countries that allow cryptocurrency trading.

  • Afghanistan
  • Albania
  • Andorra
  • Angola
  • Antigua and Barbuda
  • Argentina
  • Armenia
  • Australia
  • Austria
  • Azerbaijan
  • Bahamas
  • Barbados
  • Belarus
  • Belgium
  • Belize
  • Benin
  • Bhutan
  • Bosnia and Herzegovina
  • Botswana
  • Brazil
  • Brunei
  • Bulgaria
  • Burkina Faso
  • Burundi
  • CΓ΄te d'Ivoire
  • Cabo Verde
  • Cambodia
  • Cameroon
  • Canada
  • Central African Republic
  • Chad
  • Chile
  • Comoros
  • Congo (Congo-Brazzaville)
  • Costa Rica
  • Croatia
  • Cuba
  • Cyprus
  • Czechia (Czech Republic)
  • The Democratic Republic of the Congo
  • Denmark
  • Djibouti
  • Dominica
  • Ecuador
  • El Salvador
  • Equatorial Guinea
  • Eritrea
  • Estonia
  • Eswatini (fmr. “Swaziland”)
  • Ethiopia
  • Fiji
  • Finland
  • France
  • Gabon
  • Gambia
  • Georgia
  • Germany
  • Ghana
  • Greece
  • Grenada
  • Guatemala
  • Guinea
  • Guinea-Bissau
  • Guyana
  • Haiti
  • Holy See
  • Honduras
  • Hungary
  • Iceland
  • India
  • Ireland
  • Israel
  • Italy
  • Jamaica
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Kiribati
  • Kyrgyzstan
  • Laos
  • Latvia
  • Lebanon
  • Liberia
  • Libya
  • Liechtenstein
  • Luxembourg
  • Madagascar
  • Malawi
  • Malaysia
  • Maldives
  • Mali
  • Malta
  • Marshall Islands
  • Mauritania
  • Mauritius
  • Mexico
  • Micronesia
  • Moldova
  • Monaco
  • Mongolia
  • Montenegro
  • Mozambique
  • Myanmar (formerly Burma)
  • Namibia
  • Nauru
  • Netherlands
  • New Zealand
  • Nicaragua
  • Niger
  • Nigeria
  • North Korea
  • North Macedonia
  • Norway
  • Palau
  • Palestine State
  • Panama
  • Papua New Guinea
  • Paraguay
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Russia
  • Rwanda
  • Saint Kitts and Nevis
  • Saint Lucia
  • Saint Vincent and the Grenadines
  • Samoa
  • San Marino
  • Sao Tome and Principe
  • Senegal
  • Serbia
  • Seychelles
  • Sierra Leone
  • Singapore
  • Slovakia
  • Slovenia
  • Solomon Islands
  • Somalia
  • South Africa
  • South Korea
  • South Sudan
  • Spain
  • Sri Lanka
  • Sudan
  • Suriname
  • Sweden
  • Switzerland
  • Syria
  • Tajikistan
  • Tanzania
  • Timor-Leste
  • Togo
  • Tonga
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turkmenistan
  • Tuvalu
  • Uganda
  • Ukraine
  • United Kingdom
  • United States of America*
  • Uruguay
  • Uzbekistan
  • Vanuatu
  • Venezuela
  • Yemen
  • Zambia
  • Zimbabwe

*Some US states ban cryptocurrencies. (See below.)

On the other hand, 25 countries ban crypto trading.

See the countries that ban cryptocurrency trading.

  • Algeria
  • Bahrain
  • Bangladesh
  • Bolivia
  • China
  • Colombia
  • Dominican Republic
  • Egypt
  • Indonesia
  • Iran
  • Iraq
  • Kuwait
  • Lesotho
  • Lithuania
  • Macau
  • Morocco
  • Nepal
  • Oman
  • Pakistan
  • Qatar
  • Saudi Arabia
  • Taiwan
  • Thailand
  • United Arab Emirates
  • Vietnam

Which US States Allow Bitcoin Trading?

Cryptocurrency regulations vary from state to state and are currently in flux. So, we've created a map showing where eToro allows crypto trading.

See the list of US states, districts, and territories where eToro allows cryptocurrency trading.

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • District of Columbia
  • Florida
  • Georgia
  • Idaho
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Mississippi
  • Missouri
  • Montana
  • New Jersey
  • New Mexico
  • North Dakota
  • Northern Mariana Islands
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Texas
  • United States Minor Outlying Islands
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

Regulators

The following bodies regulate the trading of cryptocurrency:

CountryRegulator(s)
AustraliaAustralian Securities and Investments Commission (ASIC)
European UnionCyprus Securities and Exchange Commission (CySEC), Markets in Financial Instruments Directive (MiFID), European Securities and Markets Authority (ESMA)
GermanyFederal Financial Supervisory Authority (BaFiN)
JapanFinancial Services Agency (FSA)
New ZealandFinancial Markets Authority (FMA)
SwitzerlandFinancial Markets Supervisory Authority (FINMA)
United KingdomFinancial Conduct Authority (FCA)
United StatesFinancial Crimes Enforcement Network (FinCEN), Securities and Exchange Commission (SEC)

Jump to our Step-by-Step Guide to Trading Bitcoin.

Bitcoin Exchanges

You can think of Bitcoin exchanges as platforms that facilitate the meeting of buyers and sellers.

On exchanges, you can buy and sell Bitcoin outright, but in some cases, you can also convert Bitcoin into fiat currencies or other cryptocurrencies (and vice versa).

There are many exchanges on the market, but we've reviewed eToro extensively and we use it in our Step-by-Step Guide.

In the meantime, here's a list of popular Bitcoin exchanges:

ExchangeDescription
BinanceExchange hundreds of coins, buy futures and leveraged tokens, crypto loans
BitfinexCrypto exchange, margin trading, crypto derivatives πŸ‘œ πŸ”Ή
BitmexCrypto exchange, futures, perpetuals, 100x leverage on some derivatives πŸ”Ή
CoinbaseCrypto exchange, get paid to learn about crypto, offers USD Coin πŸ‘œ
HuobiCrypto exchange, 5x leverage for spot trading, futures, swap, C2C lending πŸ‘œ
KrakenCrypto exchange for traders at all levels, many crypto derivatives πŸ”Ή
OKExCrypto exchange, spot, futures, perpetual swap, and derivatives trading, cold and hot wallets πŸ‘œ
StormgainCrypto exchange, low fees and 200x multiplier on crypto futures πŸ‘œ πŸ”Ή
πŸ‘œ = Built-in cryptocurrency wallet

πŸ”Ή = Demo available

Bitcoin Trading Strategies

We've gathered some strategies to keep in mind when trading or exchanging Bitcoin.

  • Buy low and sell high. It can be tempting to offload Bitcoin during crashes, but there are times when you may wish to hold onto your coins and sell when prices recover.
  • Keep an eye on current trends in the Bitcoin world. Considering how ongoing events may impact the market will help you make more informed decisions.
  • Test your strategies with a demo account, if possible. When learning a new strategy, take advantage of your broker's practice account to see if they might be wise to try with real coins.

Avoid Common Bitcoin Trading Mistakes

  • Back up your e-wallet. Even if your broker doesn't offer an integrated wallet, make sure you back up your Bitcoin crypto assets on a regular basis to avoid losing your coins. Security breaches and other issues can easily wipe out what you own. You might also consider setting up cold storage for your Bitcoin.
  • Never trade more than you can afford to lose. It's a cardinal rule of trading, but it also applies to Bitcoin, particularly with CFDs. Most CFD customers lose money. Although leverage can mean big rewards, it can also mean astronomical losses that you'll have to cover.
  • Don't assume that Bitcoin is forever. The story of the internet — as well as trading — is often rags-to-riches-to-rags again. If you trade cutting-edge crypto assets, keep yourself informed about the marketplace daily.

How to Start Trading Bitcoin: A Step-by-Step Guide

This guide will walk you through setting up an account with eToro, which is a broker that has a crypto exchange you can trade Bitcoin on and offers CFDs in countries that allow them.

eToro US crypto signup page

The eToro website will detect your country of residence and direct you to the appropriate products on its website.

  1. Click Join Now to create an account with your email address at eToro.com. You'll also need to provide a username and a password. Agree to the requested conditions and click Create Account to proceed.
eToro account creation
  1. Check your email for a verification message. Click Verify my email and then click Sign in. Click Continue on the Welcome Aboard pop-up to begin filling out your profile.
  1. Provide your first, middle, and last names, as well as your gender and birthday. The information you provide must match the information on your ID or passport. You'll also need to provide your address and social security number and confirm whether your country of residence is the same as your birthplace and country of citizenship.
  1. Fill out your trading profile: Explain what you want to do with any money you earn, your trading timeframe, risk tolerance, conflicts of interest, and financial status (including income and occupation).
  1. Provide and verify your phone number.
  1. Agree to the required tax forms. [This step differs by country.]
  1. Once you've completed your profile, you can deposit funds into your account. You'll need to link your bank account to do so.
etoro Bitcoin dashboard
This screenshot is only an illustration. Current market prices can be found on the broker website.

Now you're ready to begin trading! In the left-hand navigation bar, click Trade Markets to see the markets and crypto coins that are available for purchase.

Start trading Bitcoin at eToro today.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 73.0%-89.0% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

FAQs

Here are a couple of common queries about Bitcoin trading.

Why trade Bitcoin?

Some traders use Bitcoin as a method of diversifying their portfolios. Others like that the cryptocurrency market runs 24/7, since fiat currencies typically run on weekdays only. Be sure you understand all the risks involved before trading Bitcoin.

When can I trade Bitcoin?

You can trade Bitcoin 24/7. No matter where you are in the world, there are crypto exchanges that are active and can facilitate transactions. However, there are certain times of the day when prices are more volatile and some brokers charge overnight fees, so do your research to ensure that you're making trades at the optimum times.

Further Reading

See our other crypto guides like:

You might find these altcoin guides interesting, too:

Credits: Original article written by Katie Horne. Updates and additions in Sep 2020 by Marko Csokasi with contributions from the Commodity.com editorial team.

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