Top 10 Bitcoin Brokers to Trade Bitcoin Without a Wallet

The Ultimate Guide to

How to Find the Best Brokers for Trading Bitcoin For You

Bitcoin has gone from theory to accepted financial instrument very quickly, with many retailers, businesses and payment processors now accepting bitcoin. However, while bitcoin and other cryptocurrencies can be very attractive to some, they also come with their own unique levels of risk and controversy. In this article we will be providing an overview of what bitcoin is, how it works from generation to valuation, and why it has become a popular financial instrument for traders.

Trading Bitcoin with a Regulated Broker

While bitcoin itself is not yet regulated by the FCA (although there are reports it may be soon), it is possible to use a regulated broker when trading bitcoin. In the past there have been a number of examples of the compromise and collapse of high-profile bitcoin websites, which has led to the loss of considerable amounts of bitcoins. This can mean that the trust and reliability of the broker is arguably more valuable when trading bitcoin than any other currency.

See a list of regulated brokers to trade bitcoin with here.

Popular Bitcoin Broker: AvaTrade

AvaTrade is a regulated broker that allows you to trade bitcoin with the popular MetaTrader 4 platform alongside healthy leverages of up to 1:400. Another benefit of trading with AvaTrade is that a minimum deposit of only $100 dollars is required to open an active trading account.

Advantages of trading with AvaTrade:

Automated trading
Free demo account
Guaranteed stop-loss orders
Real-time charts
News and market analyses
AvaTrade currently allows all members to deposit funds via Bitcoin and PayPal as well as standard options such as wire transfers and credit cards

You can learn more about the pros and cons in our AvaTrade review.

Frequently Asked Questions

What is Bitcoin?

Bitcoin is a decentralised cryptocurrency that, while it can be used to pay for goods and services like any other regular currency, is unique in many ways. For example, there is no central authority governing or regulating bitcoin and, while it is not backed by any precious metal or government, there is a finite supply. Anyone with a computer can mine bitcoin, although that is typically handled by dedicated server farms, with the currency then stored in anonymous and protected digital wallets.

How are Bitcoins Generated?

Bitcoin is generated by being ‘mined’. Rather than having a government or resource backing the currency, bitcoin is defined by an algorithm that has been designed to have both a finite supply and a fixed rate at which it can be mined. This means it is possible to know roughly how much bitcoin there can ever be, and the defined mining rate determines how much bitcoin has been generated and therefore how much bitcoin is in circulation that can be traded.

What is Bitcoin Mining?

Mining bitcoin involves discovering blocks. Blocks are permanently recorded data stores that form one piece of a blockchain, which is a shared record of all transactions that cannot be amended or removed once a block is accepted. The blockchain can only have additional blocks added to it once they are discovered. Mining bitcoin means discovering new blocks, which were developed in such a way that each block requires solving a mathematical puzzle to discover. The puzzle is specifically crafted to take time to solve but, once a solution is found, it is quick to verify. Each time a miner solves a puzzle, they are rewarded with bitcoin and this is how new bitcoins enter circulation.

How are Bitcoins Stored?

Bitcoin are stored in digital bitcoin wallets and it is from your wallet that you can send or receive bitcoin. Unlike a bank account, wallets are completely anonymous and the only proof that someone owns a particular wallet is by knowing the password. If you lose the password, there is no way to recover any bitcoin stored in it. There has been several high profile cases of people losing millions after throwing out hard drives containing their bitcoin wallet passwords. This makes wallet security a high priority for bitcoin owners. Anyone is free to set up their own wallet and you can do this yourself or you can use third party websites and products that offer wallet services; however, you entrust the security of your wallet to their services.

How is Bitcoin’s value determined?

Bitcoin is not a fiat currency, nor is it backed by any precious metal, so determining its value is somewhat different to most other currencies and the very nature of it means it is subject to volatility. Bitcoin can be influenced by factors outside the fundamental influences which impact the forex markets. The value of bitcoin is influenced heavily by speculators, government regulations and its adoption by mainstream corporations as a valid payment option.

What Year was bitcoin created?

Bitcoin was first introduced to the world on October 31, 2008 in a paper entitled ‘Bitcoin: A Peer-to-Peer Electronic Cash System', with the cryptocurrency first made widely available by January 3, 2009.

How Many Bitcoins are Traded per day?

As the blockchain is a permanently accessible record of all bitcoin transactions this is very easy to track. A typical day sees between 250,000-350,000 transactions.

What was the first broker to accept bitcoin for deposit/withdrawals?

One of first brokers to accept Bitcoin for deposits/withdrawals was FX Primus.

What was the first broker to trade bitcoin?

Plus500 was one of the first regulated brokers to offer Bitcoin as a financial instrument.

What are the alternatives to Bitcoin?

Want to trader other cryptocurrencies? You can read more cryptocurrency broker comparisons here:

Compare Brokers For Trading Bitcoin

We found 13 broker accounts (out of 147) that are suitable for Trading Bitcoin.