Altcoins Trading Platforms

Written by Naylyan Nazifova

Naylyan Nazifova

Naylyan Nazifova is a recognised expert in the online trading field. She has many publications and analysis covering forex trading, stock investing and personal finance. 

, | Updated: December 3, 2024

A lot has changed since Bitcoin launched in 2009, as over 9,000 altcoins are currently available in the ever-evolving cryptocurrency market. Altcoins are becoming an increasingly popular investment vehicle for traders worldwide, attracting them with their high volatility and potential for substantial gains. From Ether and Solana to Ripple and Pepe, there is no shortage of altcoins for those looking to sink their teeth into cryptocurrency trading. The number of trading platforms catering to crypto enthusiasts is almost as impressive.

Our team researched dozens of online brokerages and crypto exchanges to identify the best platforms for altcoin trading. We relied on multiple criteria to arrive at our final ranking, including transaction costs, range of tradable altcoins, leverage rates, regulation, and overall reputation. Our hands-on analysis indicates eToro is the best online broker for speculative altcoin trading, while Binance places first among crypto exchanges. Dive into our shortlist to learn more about our top picks and why we have chosen them.

1Fusion Markets

Rating: 4.9 ⭐

74-89% of retail CFD accounts lose money

Top Rated

2FP Markets

Rating: 4.7 ⭐

73.85% of retail investor accounts lose money

3IC Markets

Rating: 4.5 ⭐

70.64% of retail investor accounts lose money

4eToro

Rating: 4.2 ⭐

51% of retail investor accounts lose money

5Admirals

Rating: 3.9 ⭐

73% of retail investor accounts lose money

Best Platforms for Speculating on Altcoin Prices

1. TRADE NOW READ REVIEW
   1. eToro

   Founded in 2007, eToro delivers an accessible trading experience to over 35 million customers from more than 100 countries. Clients can conveniently buy, sell, transfer, and hold altcoins in eToro Money, a secure custodial crypto wallet. Over 100 coins are tradable on the platform, including XRP, ETH, LTC, ETC, EOS, and XLM. Customers can increase their market exposure by trading crypto, commodity, and currency crosses.

   As for storage, the eToro Money wallet presently facilitates holding large-cap altcoins like ADA, Bitcoin Cash, Stellar, Tron, Ripple, Ethereum, and Litecoin. The maximum sending limits for all supported cryptocurrencies are $50,000 per single transaction and $200,000 per day. Altcoin owners are eligible for generous staking rewards when holding their cryptocurrencies, but the rates vary based on your coins and your loyalty tier in the eToro Club.

   If holding digital assets is not your thing, you can gain exposure to the volatile crypto markets by speculating on rising and falling altcoin prices with contracts for difference. Clients of eToro Seychelles can amplify their crypto positions with leverage of up to 1:5. Traders from Europe and Australia can use maximum leverage of 1:2. Novices who are just sinking their teeth into altcoin trading will benefit from eToro’s copy trading service whereby they can follow seasoned crypto investors and replicate their positions.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
2. TRADE NOW READ REVIEW
   2. IC Markets

   IC Markets positions itself as a leading crypto trading broker that offers a choice from 20+ popular altcoins, including Dash, Ethereum, Litecoin, Ripple, Avalanche, and Stellar. Having a cryptocurrency wallet is no prerequisite to trading crypto with IC Markets since all available altcoins are tradable via contracts for difference. Small-cap options like Moonbeam and Kazuma are also available to crypto traders at IC Markets.

   Customers of the leading brokerage will benefit from competitive spreads, starting from 4.560 for ETH/USD, 1.050 for LTC/USD, and 0.008 for XRP/USD. Traders can go long or short without paying additional commission on top of the spread. Another benefit of trading crypto with IC Market is the access to high leverage. Retail clients registered through the Seychelles-regulated entity can leverage their positions at maximum rates of 1:200 for MT4 and MT5 and 1:5 for TradingView and cTrader.

   IC Markets offers two main account types, Standard and Raw, and both require depositing at least $200 to get started. The broker delivers seamless execution whose speed averages 40 milliseconds, ensuring all traders have their orders filled with minimal risk of slippage or requotes. IC Markets boasts an impressive regulatory background, having procured licenses from the FSA, CySEC, and ASIC.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
3. TRADE NOW READ REVIEW
   3. Fusion Markets

   Fusion Markets emerged on the retail trading scene in 2019 and immediately made waves with its narrow spreads, low-latency execution, and competitive commissions. The discount broker offers speculative trading with over a dozen altcoins, including Solana, Ethereum, Binance Coin, Polygon, and Stellar. Minimum spreads for some of these coins start from zero pips, rendering Fusion a highly appealing option for retail traders across the board.

   The broker facilitates altcoin trading through contracts for difference, eliminating the necessity of setting up a crypto wallet. Altcoin traders from Australia can use maximum leverage of 1:2. Those registering via Fusion’s Vanuatu-licensed entity have access to 1:10 maximum leverage rates. Customers incur no commissions on their altcoin trades as all trading costs are built into the spread.

   Fusion Markets offers cryptocurrency trading through popular platforms like MT4, MT5, and TradingView. All available altcoins are traded in pairs against the US dollar, with customers having round-the-clock access to the volatile crypto markets. The broker charges no deposit fees and has waived its minimum account requirements, allowing altcoin traders to start with any amount they can afford.

   Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.
4. TRADE NOW READ REVIEW
   4. Admirals

   Formerly Admiral Markets, Admirals attracts traders the world over with narrow spreads, flawless execution, and a rich portfolio of over 8,000 financial instruments, including 24 altcoins tradable against fiat currencies like the euro and the US dollar. Cardano, Ethereum, Chainlink, Solana, Stellar, Ripple, and Monero are all available through CFDs, alongside mid-cap coins like Algorand and Polygon. Customers seeking greater market exposure can trade the XRP/BTC cryptocurrency cross.

   Newcomers can start their crypto trading journey at Admirals by depositing as little as $/€100, although testing the waters with a free demo account is also an option. The broker collects no commissions on altcoin trades as all trading costs come from the spreads. Spreads for liquid altcoin pairs like ETH/USD, ETH/EUR, BCH/USD, and BCH/EUR generally start from 0.3%.

   EU retail customers have access to maximum leverage of 1:2 on cryptocurrency trades, but the leverage ratio increases to 1:10 for professional traders. Contract size is also coin-specific, with minimum trades starting from 0.1 for BCH, 0.01 for ETH, and 1 for SOL. Most supported cryptocurrencies are tradable via long positions only on the MetaTrader 5 platform.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
5. TRADE NOW READ REVIEW
   5. FP Markets

   FP Markets is an industry-leading broker that enables customers to effortlessly trade over 10,000 markets through robust platforms like cTrader, MT4, and MT5. In addition to conventional assets, FP Markets provides quality cryptocurrency trading through competitively priced CFDs for Litecoin, Ethereum, Cardano, Ripple, Solana, Polkadot, and more. The brokerage charges no commissions on altcoin orders executed through the MT4 and MT5 platforms.

   All trading costs are built into the spreads, ranging from an average of 0.0035 pips for ADA/USD to 4.72 pips for ETH/USD on average. Altcoin traders can enhance their performance with various technical indicators, an economic calendar, and tools for automated trading. The multi-regulated broker provides maximum crypto leverage of 1:2 to customers registered through its ASIC and CySEC entities.

   Traders joining FP Markets from other jurisdictions can bolster their crypto positions with leverage of up to 1:50. The broker safeguards customers from the sharp price movements inherent to the volatile crypto markets by offering negative balance protection. Initial deposits at FP Markets are $50 only, making altcoin price speculation accessible to traders from all walks of life.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.92% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Comprehensive Comparison of the Top 5 Altcoin Trading Platforms

Best Platforms for Buying and Exchanging Altcoins

1. Binance

   Binance is one of the largest cryptocurrency exchanges in the world, handling daily transactions valued at over 15 billion US dollars. Committed to regulatory compliance, this trusted exchange has gained approval in multiple jurisdictions, including Dubai, France, Canada, Australia, Mexico, and New Zealand. Customers favor Binance over rival exchanges for its comparatively low transaction fees, robust security, and massive range of supported cryptocurrencies.

   Over 500 large, mid, and small-cap altcoins are available for buying, selling, and swapping at Binance. Customers can safely hold their purchased cryptocurrencies in the Binance self-custody wallet, retaining full control over their private keys and digital transactions. The exchange is generous towards clients holding onto their altcoins and offers APRs of 1.63% for Ether, 0.64%~5.6% for Solana, and 0.05%~0.3% for Binance Coin.

   The reputable exchange enables customers to tap into crypto derivatives via options and futures contracts. Spot and margin trading are available as well, with leverage ratios of up to 1:10 on individual crypto crosses. The platform is predominantly geared toward the needs of intermediate and experienced crypto traders as beginners may find the user interface slightly overwhelming.

2. Bybit

   Bybit is a reputable spot and derivatives crypto exchange that can easily compete with other top-tier exchange platforms. With 1,300+ tokens listed on Bybit’s exchange platform, more than 50 million users across 195+ countries can easily trade popular and more niche altcoins. Thanks to its Unified Trading Account option, Bybit ensures top-tier liquidity on trading products like spot, futures, perpetual futures, options, and margin trading.

   To further elevate crypto investors’ trading experience, Bybit offers advanced features available only through its VIP program. Those who upgrade to a VIP account will enjoy lower trading fees, discounts, and the chance to earn exclusive APR while trading their favorite altcoins.

   Competitively low trading costs are one of Bybit’s strongest features, with spot maker and taker fees starting at 0.1000% each for regular customers and reducing to 0.0100% (maker) and 0.0200% (taker) for Pro 5 traders. Trading cost applied to options and perpetuals can also be reduced whenever bigger monthly trading volume helps you advance to the Pro 5 level, with the lowest possible maker fees being 0%.

3. Coinbase

   Crypto investors can dive into a top-notch trading experience if they choose to join Coinbase – one of the most prominent crypto exchanges online. Focusing on both traders’ security and accessibility of trading options, Coinbase offers smooth trading of more than 260 altcoins. To be able to operate in different jurisdictions, the exchange is authorized by regulators like the FCA in the UK and the CFTC in the US.

   The good reputation of Coinbase and its user-friendly interfaces make this crypto exchange a preferred platform for altcoin trading. What is more, the cost of trading is rather competitive, allowing crypto investors to buy and sell various altcoins and pay rather low fees that can be further reduced if traders tend to handle bigger monthly trading volumes.

   If your order gets fulfilled immediately, you will be charged a taker fee, which starts from 0.60% for regular customers and can be reduced way down to 0.05% if you reach the highest trading tier at Coinbase. If your order gets partially matched immediately, you will still be charged a taker fee. However, if there is an existing order that immediately matches yours, you will be charged a maker fee, which is 0.40% for regular traders and 0.00% for traders who have upgraded to the highest tier. The tier you belong to depends on your monthly trading volume, with the highest level being reserved for Coinbase members who trade more than $400 million over a period of 30 days.

4. Kraken

   Kraken is a long-standing exchange that has been premium trading to crypto enthusiasts since 2013. The exchange upholds high-security standards, which is unsurprising considering it has obtained regulatory approval in multiple jurisdictions, including the US (FinCEN) and the UK (FCA). Over 260 altcoins are available for trading at Kraken, with customers enjoying low-cost spot, margin, and futures trading.

   Clients can buy, sell, and swap their crypto directly through the platform or hold onto their altcoins by storing them in the Kraken’s self-custody wallet. The wallet is free and accessible via all iOS and Android devices, allowing users to manage their digital assets from all locations. Funding your Kraken account is possible via various fiat payment methods, including credit and debit cards, wire transfers, Google Pay, and Apple Pay.

   Kraken enables altcoin owners to earn passive income through its staking rewards program but annual percentage rates vary wildly across crypto tokens. Some of the highest yearly rewards are awarded for staking DOT (6%-11%), KSM (7%-13%), MINA (8%-14%), and ATOM (6%-10%). Over 100 markets are available for margin trading at Kraken, with a leverage of up to 1:5 for many supported cryptocurrencies. Leverage on futures reaches a whopping 1:50.

5. Gate.io

   Gate.io had its start in 2013, bringing investors from all over the world the chance to buy, store, and sell a large number of cryptocurrencies. When it comes to diversity, this crypto exchange has outdone itself, allowing its customers the chance to trade over 2,100 altcoins. One can use the Gate.io dedicated wallet to store their altcoins, with the exchange platform adopting the latest security technology and tools to keep its customers’ investments safe.

   Gate.io allows its members to trade altcoins in various ways, including spot, margin trading, futures, options, and even copy trading. Traders will have access to a wide range of instruments to customize their trading experience to fit their preference, with trade bots also being available to investors who seek ways to accumulate profits automatically.

   Trading altcoins on Gate.io’s platform is extremely budget-friendly as the exchange applies competitively low standard maker and taker fees that start from 0.2% for regular traders and can reduce to 0.55% maker and 0.65% taker rates. Trading fees reduce by increasing your monthly trading volume but you can also obtain Gatechain’s native token and further decrease the maker and taker fees charged whenever you trade altcoins.

Top 5 Altcoins with Highest Daily Trading Volume

While there are thousands of altcoins to trade, some cryptocurrencies offer more promising outcomes than others. We believe daily trading volume is a proper indicator of which altcoins are good investment options, which is why we have covered the top five altcoins enjoying the highest daily trading volume regularly.

1. Ethereum

   Ethereum is a decentralized platform that enables using Ether (abbreviated as ETH) for transaction fees. Developers can run decentralized apps via Ethereum but the main goal of the open-source blockchain is to allow users worldwide to create and run software that cannot be censored or compromised due to fraudulent activities.

   Ethereum ranks as one of the altcoins with the highest daily trading volume, estimated at US$39.76 billion at the time of writing this article. Historically, ETH saw almost double the trading volume increase on May 19, 2021, just one day after China introduced a ban on crypto services within the country. That day, ETH also saw one of its biggest single-day price declines, which in turn, boosted investors’ interest in the crypto coin, increasing its trading volume significantly.

   After its solid price increase in 2021, ETH quickly became one of the most sought-after altcoins, prompting a large number of investors to buy ETH instead of BTC. By 2023, ETH had already reached massive trading volumes, becoming the second-largest cryptocurrency in the world. At the time of writing this article, Ethereum’s market cap is estimated to be US$438.55 billion.

2. Solana

   Another popular altcoin that manages to accumulate a significant daily trading volume on a regular basis is Solana, abbreviated as SOL. This blockchain platform enables the creation of scalable crypto apps that are resistant to censorship and fraudulent activities. Solana’s network facilitates a proof-of-stake consensus mechanism, which is an algorithm that utilizes timestamps to determine the next block in Solana’s blockchain.

   Historically, Solana has achieved a massive price surge from around $9 to more than $200, taking about 18 months for the altcoin to reach this record-high growth. The rise of Solana to one of the top altcoin positions was a result of the growing interest in DeFi, NFTs, and the further adoption of cryptocurrencies by major institutions. The increased adoption rate by developers and crypto investors was one of the driving forces that have made SOL one of the altcoins enjoying some of the highest daily trading volumes.

   At the moment of writing this article, SOL’s daily trading volume has reached US$6.13 billion, with the crypto asset’s market cap estimated at $107.63 billion. With many significant milestones, numerous investors continue trading SOL, which explains why this altcoin continues to be one of the top cryptocurrencies with the highest daily trading volume on a regular basis.

3. Binance Coin

   The next altcoin on our list is Binance Coin, which is a component of the Binance ecosystem, often unlocking exclusive perks on Binance’s exchange platform. As of December 2024, Binance ranks as the sixth-largest cryptocurrency by value, with a market cap of US$92.26 billion. At the moment of writing this article, BNB Coin’s daily trading volume is estimated to be US$2.43 billion.

   The distinctive feature of BNB Coin is its steady growth, with the cryptocurrency rarely being in the news despite being one of the top altcoins in the world. BNB has a supply cap of 200 million, with the coin’s circulating supply currently standing at 144 million. The rather limited supply is a result of the buy-backs of the crypto coin, which in turn, has contributed to the price increase of BNB.

   With Binance being one of the biggest crypto exchanges in the world, it enjoys a large number of clients trading numerous altcoins in several different ways. Many traders have obtained some BNB to unlock exclusive perks like lower trading fees, exclusive access to token sales, and other favorable trading conditions.

4. Ripple

   Another altcoin that has gained a lot of popularity, making it one of the most traded cryptocurrencies is Ripple (XRP). While the whole crypto market is going through many turbulent changes, Ripple has managed to stay somewhat stable, with plenty of traders recognizing the potential of the crypto coin and investing in Ripple.

   At the time of writing, Ripple’s current market cap is estimated to be US$138.22 billion and the daily trading volume stands at US$37.46 billion. Due to the high number of circulating XRP coins, the price of a single XRP coin is extremely low, making it very appealing to a wide range of crypto investors.

   The main purpose of Ripple is to provide an open payment system that will allow people to break free from standard financial institutions like banks and credit card companies. That way payments can be processed faster, without incurring numerous large fees. Many investors appreciate the idea behind the creation of Ripple, making it one of the altcoins that enjoy the highest trading volume daily.

5. Pepe

   While released as a meme coin, Pepe demonstrated a significant price surge since its inception in April 2023. Like many other meme coins, PEPE does not hold any inherent value or have any specific purpose. Instead, it operates as an ERC token built on the Ethereum blockchain. Despite being introduced as a joke, using PEPE the Frog as the logo of the crypto coin, PEPE’s price had gained almost 7,000% by the summer of 2024 since its launch.

   Just two weeks after PEPE was launched, its market cap surged to rank the meme coin among the top 100 cryptocurrencies. Currently, this altcoin has a market cap of US$8.46 billion and its 24-hour trading volume is US$4.94 billion. While there is no formal team behind PEPE and the coin’s website claims it has “no intrinsic value”, we could conclude that it has enjoyed success similar to meme coins like Dogecoin and Shiba Inu.

   One factor that plays a role in the increasing value of PEPE is its deflationary mechanism, meaning a small portion of tokens gets burnt on every transaction. As this leads to bigger scarcity, the value of the tokens that still exist increases over time.

Verifying the Regulatory Status of Altcoin Trading Platforms

The aforementioned altcoins, as well as a wide range of other cryptocurrencies, can be traded at a wide range of crypto brokers and exchanges. While traders tend to base their choice of trading platform on factors like altcoin coverage, trading fees, and ways to trade crypto, the regulatory framework adopted by the entity is also a factor to keep in mind.

Crypto trading has become more regulated across multiple jurisdictions, providing a set of guidelines brokers and exchange platforms are required to follow in order to operate. There are several authorities considered as the most trustworthy regulators in the crypto market. If you are trading altcoins using a broker’s trading platform, you may come across entities regulated by authorities like FCA, ASIC, CySEC, CFTC, and other prominent regulators across Europe and North America.

To verify the regulatory status of a retail broker, you can check for any licensing information published on the official website of the entity. Additionally, you can visit the website of any of the regulators mentioned on the broker’s page, checking registries to confirm the validity of the broker’s licenses.

Crypto exchanges tend to have more difficulties with obtaining licenses for the financial services they typically offer. Nevertheless, top-tier crypto exchanges, including those we have covered above, are operating following strict guidelines imposed by authorities like AUSTRAC (Australia), FinCen (US), FCA (United Kingdom), BaFin (Germany), FMA (Austria), and more. Typically, crypto exchanges are required to be registered as a Virtual Asset Service Provider or receive permission to offer digital asset services to residents of specific jurisdictions. The validity of these authorization documents can still be done on the official website of the authority that has issued the permission/license.

Criteria for Selecting Altcoins to Trade

While crypto individuals might not share the same sentiment on many cryptocurrencies, most of them agree on the importance of portfolio diversification. Investing a portion of your crypto budget into altcoins can bring you a nice wave of profits when popular cryptocurrencies are on the low. However, choosing an altcoin to trade can be tricky as the crypto market hosts tens of thousands of altcoins. To help you pick crypto coins to diversify your portfolio, we have listed several criteria that can help you select altcoins to trade.

Altcoin’s Purpose

Before you start investing in an altcoin, you are advised to get familiar with its project as well as the purpose behind building that crypto coin. Most proper altcoins are built with the goal of providing easier, more secure, and cost-effective payments to users. To get familiar with a crypto project, you can check the whitepaper of an altcoin and see how its developers plan to integrate it into the broader blockchain and the overall crypto ecosystem. While it is recommended to invest in altcoins with a precise purpose, there are several cases of meme coins surging to massive price points, bringing their followers quite the return. We advise traders to check the projects of the altcoins they are interested in and assess the potential of the crypto coins as long-term investments.

Development Team Behind the Coin’s Creation

Knowing the developers responsible for the launch of an altcoin gives you a sense of trustworthiness and transparency. If the team of developers is experienced in the crypto scene, this could indicate that their new project might also be successful, showing signs of a good altcoin investment. Despite that, it is also worth noting that there are plenty of examples of altcoins with huge trading volumes and no proper development team handling the project. For example, Dogecoin’s creators stepped down from the project just before it started gaining huge attention, generating higher price value after they left. PEPE, which is another popular meme coin, does not have a specific team responsible for its creation, with the altcoin being released simply as a joke.

Trading Volume and Liquidity of Altcoins

To be able to determine how easy it is to purchase an altcoin without having a serious impact on its price, you should consider factors like trading volume and liquidity. If an altcoin enjoys high trading volume, that indicates a surge in traders’ interest in the coin, which may ensure more stability, decreasing the risk of high volatility and market manipulation. Meanwhile, high liquidity guarantees faster conversion of the altcoin to cash or another cryptocurrency. We recommend checking the trading volume and liquidity of an altcoin on several platforms before you invest in it.

Ways to Trade Altcoins Online

Let us assume that you have chosen an altcoin to trade and you are looking for ways you can invest in the cryptocurrency. Depending on whether you decide to trade with a retail broker or a crypto exchange, you will have access to different forms of crypto trading. Based on your investment goals and preferences, you might enjoy some forms of crypto trading more.

While this is not exclusively the case for every broker, the majority of brokerage platforms will allow you to trade CFDs on various altcoins juxtaposed to the US dollar or other fiat currencies. If you choose this form of trading, you will not actually own the asset you trade but rather place money on the price fluctuation of the underlying digital asset.

Spot trading is the most straightforward way to trade altcoins, with this form being available at some brokers and any reputable crypto exchange. You simply place a buy or sell order, with this type of crypto investment actually enabling ownership of the digital asset. Spot trading is suitable for short-term investments, allowing traders to gain profits from small price fluctuations.

While extremely beginner-friendly, spot trading is not everyone’s cup of tea as it does not allow traders to make use of leverage. That is why, many exchanges will allow traders to engage in margin trading that will allow them to make a deposit and use that amount as collateral to purchase a bigger amount of the altcoin and hopefully increase the return. Using leverage is also often available on futures and options, which are the other popular types of crypto trading.

Futures are contracts between two counterparties agreeing on a particular buy/sell price at a certain time in the future. With futures, you simply speculate on the price of the crypto coin without having to own it. The most common derivatives type of trading offered by exchanges is called Perpetual futures, which is very similar to standard futures but in the case of perpetuals, contracts have no expiration dates.

Options simply give traders the right but not the obligation to buy or sell a crypto token at a specific price point set in the future. Yet again, traders are speculating about the cryptocurrency’s price movements without actually owning the crypto asset. It should be noted, however, that options have expiration dates beyond which traders cannot make any profit from their options trades.

Trading Altcoins with Leverage

One perk available to crypto traders is trading altcoins with leverage. Simply put, this allows traders to place bigger orders using borrowed capital. Leverage can be used when trading cryptocurrencies in a few different ways – margin trading, futures, and options. Leveraged crypto trading is enjoyed by many, allowing them to significantly boost their returns by staking a small portion of their deposits.

No matter the way you choose to trade altcoins, using leverage involves pretty much the same process. Based on the leverage ratio traders are allowed to use, they are required to make a deposit (margin) which is used as collateral to borrow a more substantial amount of the cryptocurrency. That can allow you to increase your profit by simply wagering a portion of your deposited funds.

While trading with leverage can be extremely advantageous, it also exposes traders to a higher risk of accumulating big losses. Due to the high liquidity which is a typical characteristic of the crypto market, the maximum leverage that retail brokers will often allow to their customers is capped at 1:2. Some jurisdictions may allow higher maximum leverage of 1:5, which is also available to institutional traders. Crypto exchanges tend to be more generous when it comes to leverage, allowing margin or perpetual trading with a leverage of up to 1:50, 1:100, or even higher.

What Moves Altcoin Prices

While you are exploring the altcoin crypto market, we suggest you stay alert and pay close attention to several factors. Below, we have listed key elements that may have a significant effect on price fluctuations in the crypto market. Knowing how an altcoin’s price can be influenced will help you spot trends and make profits from a wide range of trading options available to crypto investors.

• Supply and Demand
• Traders’ Actions
• Altcoin Adoption
• General Crypto Market Movements
• Financial news and FUD (fear, uncertainty, and doubt)

Supply and demand are factors we would like to highlight as they often determine the value of an altcoin. The scarcer the supply, the higher the value of the remaining tokens in an altcoin ecosystem. That often leads to an increased interest in said cryptocurrency, moving the trading volume up and affecting the coin’s price and market cap.

Of course, the way other traders are acting is also important when it comes to the price of altcoins. As we have already mentioned, there are many examples of meme coins that have no particular value gaining massive price increases, with speculations and influential traders being major contributors to such unexpected price gains. The general sentiment will often show you which way the altcoin’s price can move.

As already covered, it is important to check altcoins’ projects and the way they are supposed to be integrated into the blockchain. The adoption of crypto coins by major financial entities is also an important indicator of potential price increases, making many altcoins much more valuable.

Altcoins are often developed as alternatives to Bitcoin and traditional payment systems or they are simply launched for fun. Despite that, most cryptocurrencies are somewhat connected, often being influenced by the same factors that may decrease the price of Bitcoin or stablecoins. This is why it is important to keep track of the overall crypto market instead of simply focusing on altcoins included in your portfolio.

Any financial, political, or other piece of news related to the crypto market may help you stay abreast of any sharp price movements in the altcoins sector. That said, trades must also be aware of FUD (fear, uncertainty, doubt), which is the abbreviation used to describe so-called fake news, especially of the negative sort. Such information can easily influence the altcoin market and lead to an artificial price increase that is then be followed by a sharp decline. We advise altcoin investors to apply critical thinking whenever they are browsing through the latest news in the crypto market.

Costs Associated with Altcoin Trading

Altcoin traders should be aware of different surcharges they might end up paying whenever they trade cryptocurrencies on broker or exchange platforms. While trading entities compete to offer the lowest trading fees, it is crucial to know how to draw a comparison and choose the brand that offers the most valuable crypto trading experience.

When trading CFDs on altcoins, you will trade the cryptocurrency either against the US dollar or another major fiat currency. In this case, retail brokers tend to include a small fee that is built into the spread. Simply put, the spread is the difference between the buy and sell price of the crypto/fiat pair, with different brokers offering ranging spreads. More often than not, brokers will not impose a commission on your crypto trades but if you leave a position open overnight, you may be charged overnight fees.

Spot trading as well as trading crypto in the form of futures, perpetuals, and options will also result in trading fees known as maker and taker fees. If you place an order, which is instantly processed as it gets matched by another trade in the exchange’s order book, you will be charged a taker fee. Meanwhile, if your order is registered in the order book and needs time to be matched by another trader’s order, you will be charged a maker fee. Typically, as non-instant orders are considered to be contributing to the creation of the market, maker fees are lower than taker fees.

Most exchanges will offer traders to reduce taker and maker fees by increasing their monthly trading volume. The tiers for each trading amount and the corresponding trading fees will vary across different exchanges.

Traders who make use of margin will also be charged an interest rate, typically calculated on every hour your margin positions are opened. In addition to hourly interest rates, exchanges also tend to charge a yearly interest rate on margin trades.

If you are depositing into your broker or exchange wallet, you will most likely have several payment options to choose from. Usually, most supported deposit methods do not impose any surcharges, with withdrawals also being fee-free at a large number of retail brokers. Meanwhile, crypto traders are often allowed to resort to various fiat methods or external crypto wallets to purchase altcoins directly on exchange platforms. Depending on the amount of their purchase and various market conditions, fees attached to the purchase may vary.

Reasons For and Against Altcoin Trading

If you are still uncertain about the value of trading altcoins, you may compare the pros and cons of diversifying your portfolio by investing in altcoins. To help you with that, below, we have listed the most popular pros and cons of trading altcoins:

Written by N. Nazifova