Cryptocurrencies are trending now more than ever.

At this point, there are over 6,000 different digital currencies compared to just a handful in 2013.

Still, a large portion of this number is not significant or popular. One of the trending currencies is Ethereum, which is enjoying high interest on a global level.

Why Ethereum?

Throughout April 2021, the price in USD kept rising in value for the ETH. At one point, it reached an amazing number of over $2,500. Standing right beside Bitcoin in terms of popularity, this coin grew for entirely different reasons.

For starters, it hit the news when an art piece was sold for over 38,000 ETH, which equals $69.3 million. This was, to this day, the world’s most expensive NFT.

Compared to Bitcoin which price growth is fuelled by the biggest trader Coinbase’s IPO, Ethereum’s fame comes from technological developments and traders’ preference.

Best tools and software for trading Ethereum

If you’re thinking of trading Ethereum or looking to buy and sell cryptocurrencies, you’re in a promising, yet big challenge. With that in mind, here are the top tools to help you achieve the best results.

1. Best overall: WealthSimple

WealthSimple really started simple, but they grew into the best source you have for investing in cryptocurrencies. They have low fees and amazing experts.

At WealthSimple, experts invest your money in a diversified portfolio of index funds at a low cost. Thanks to their advanced technology, users have a great shot at earning a high return and optimizing their tax bills.

What does this company do?

They do everything from dividend reinvestment, automatic rebalancing, and harvesting of tax losses. Many people find these to be the most tedious tasks, and the company is more than happy to assist them with it.

Not only does this company allow you to trade cryptocurrency at any moment, but they have amazing financial advisors to provide you with insight and help when needed.

In their Ethereum guide, you can find insightful tips on how to buy and sell this currency. In addition to Ethereum, you can use them to buy and sell Bitcoin, CHainlink, Uniswap, and Aave instantly.

Some of the best features of this tool are:

· You can sign up almost instantly with $0 minimums

· No fees for deposits and withdrawals

· An easy-to-use app to trade on mobile

· Great desktop version

· Simple, very transparent pricing

If you’re worried about your safety and security, you shouldn’t with this brand. The coins are held by a regulated crypto custodian with cold storage of $200M called Gemini Trust Company LLC, offering you huge insurance coverage.

2. Best for beginners: Coinbase

Coinbase is not a preferred option by many traders, but it’s a good solution if you are just beginning in this field. It’s the simplest app to use, offering some nice features and affordable pricing.

Even so, its options are far more limited than those of copy trading bots and platforms and other tools.

This app has been one of the best-rated for a long time. Even though it has a much fiercer competition at this point, it's still used by many people. You can use it to buy and sell many cryptocurrencies, including Ethereum.

When you purchase them, you retain full ownership and can withdraw them to your private wallet. All you need to do is download the mobile app, create an account, and provide personal information and documentation to verify your identity. After that, you can start trading straight away.

One big downside is that the costs for trading are high on this platform – 3.99% for debit card transfers. Bank transfers are cheaper and even free for some locations, but you need to wait for a couple of days for the transfer to settle.

In terms of safety, Coinbase is considered very secure. It has a great reputation with US regulators and is registered with FinCen as a Money Service Business. Outside of the US, it’s registered with the FCA, making its security level top-notch.

3. Best for copy trading: eToro

If you have little experience or your methods don’t work so far, you can use eToro’s copy trading feature to browse the platform looking for a successful trader and mirror their portfolio.

Not just this, but eToro also allows you to copy all of their future trades. This way, you won’t have to do anything and the platform will do your investments.

However, this can be really tricky since your success is dependent on some else’s choices, and it can be very costly if they decide to make big investments.

As a platform, eToro was first launched in 2007. Ever since, it’s been used by over 12 million traders, making it one of the more popular options.

It has a mobile-optimised app and desktop access to a variety of features. Some of the best things about this tool include:

· 100% ownership when you invest in cryptocurrencies (keep in mind that if you use eToro, you cannot withdraw Ethereum to your wallet)

· You can apply leverage on short-sell cryptocurrencies

· Trading of crypto-cross pairs (for example, you can trade cryptocurrencies against USD and EUR)

In terms of fees, there are versatile options on this platform. There’s a 0.5% currency conversion charge for non-USD deposits, but no charges for other deposits. Also, there isn’t a commission for buying cryptocurrencies.

Finally, there’s the matter of safety, which should be your priority. eToro is highly regulated in this sense – by the FCA, CySEC, and the ASIC, making it a highly secure platform.

4. Best for tradable pairs - Binance

Binance is a popular tool for trading cryptocurrency, a brand responsible for some of the largest trading volumes so far. In only 24 hours, this platform has been known to facilitate billions in trading volume.

The majority of Binance users use the website to trade, but there’s also an app (though not as optimized as those of other tools). To use Binance, you have a single central account across all devices.

One of the best features of Binance is that there are plenty of cryptocurrency pairs to trade. It has over 600 pairs at this point, giving you access to almost every digital currency available on the market.

With this platform, you can make pairs between Ethereum and Bitcoin or choose to pair it with less liquid choices like Polymath and Troy. The choice is yours – but the options are definitely wide.

Keep in mind that, if you pick this tool, you don’t have access to CFD products. You’ll be purchasing cryptocurrencies in the most traditional sense.

On top of trading pairs, Binance gives you access to Perpetual Futures Contracts, which allow users to apply leverage.

In terms of cost, there are some amazing things to know about Binance. First, the highest trading commission they charge is only 0.1%, charged at both ends of the trade.

If you use their native cryptocurrency BNB, you can get these fees to lower down. However, if you wish to choose your credit card, the fees are around 3.5%.

Now, the only tricky part, and a very important one, is that Binance is not regulated by national or government regulators and entities. This puts you at risk since you can't know for sure how safe your investments are.

Even though the company has an amazing reputation, they juggle billions of dollars every day.

5. Best for trading practice and novice traders - CEX

Since this market is showing an increase in interest with every passing month, many new platforms and tools are popping up. CEX is one of them, but this platform has managed to do a lot in only eight years.

Even though it still doesn't have a huge range of digital coins, it offers the main ones, including Ethereum.

Compared to the greatly popular and versatile tools above, CEX has a lot to do to reach that point.

However, it’s a promising platform with a big range of tools that can be perfect for novice traders. Their demo account allows you to test the tool and your skills before using real money.

This is primarily a crypto exchange platform, but they also have features like:

· Staking

· Instant buy

· Crypto loans

Even in terms of safety, CEX has achieved a lot. It is already a Money Service Business registered with FinCEN, and it holds several other licenses from regulatory bodies worldwide.

6. Best for automated trading - TradeSanta

TradeSanta is a very simple, yet amazing tool for novice traders. It is an automated platform with many tools that you can use to set up trading bots.

Once you choose an exchange to trade on, connect it, and pick a pair to trade, you can set up the parameters of the bot and get started.

It is then the job of the bot to do your trading.

TradeSanta connects to exchanges via API, while its withdrawal option is disabled by default. They cannot access your funds, and bots can only cancel and place trades.

Wrapping up

If you decided to jump into the cryptocurrency pool, you are in for an amazing experience. Thanks to tools, companies, and platforms like these 6, this is made easier – and more effective. So, make your choice and start trading.

Good luck!

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