Skip to main content

Over the last 18 months, the cryptocurrency market has developed from a decently small-scale market to an enormous, global phenomenon that few people haven’t heard about. Despite that, there are still some interesting and quite important differences in the ways people are allowed to trade cryptocurrencies in different regions of the world.

cryptocurrency

Some of the biggest differences can be found between the European and American market.

Cryptocurrency Trading in the US

The United States currently has some of the strictest trading regulations in the Western world which has limited cryptocurrency trading in many ways.

The United States currently has some of the strictest trading regulations in the Western world which has limited cryptocurrency trading in many ways. However, being the fact that the United States is also home to some of the most innovative trading and fintech companies, the country also hosts a range of trading opportunities not found elsewhere.

So let’s break down the trading options available for cryptocurrency traders in the US.

Firstly, all the major cryptocurrency exchanges such as Binance and Kraken are available in the US. In addition, you can use similar services such as Coinbase to buy and sell cryptocurrencies and Coinbase Pro if you want to trade in a more typical exchange. Being the fact, that Coinbase is an American company, they also offer unique features for American traders.

Speaking of unique features, one of the leading stock and cryptocurrency trading apps in the world, Robinhood, is only available on the American market, marking one of the biggest opportunities presented to Americans but not Europeans.

As mentioned, the American cryptocurrency market also has a set of limitations not found elsewhere. For example, derivatives such as CFD trading is completely banned in the country which means none of the regulated crypto brokers are allowed to offer their services there.

Scroll to Continue

Recommended Articles

Cryptocurrency Trading in Europe

Compared to the United States, the cryptocurrency trading environment in Europe is much more relaxed. In fact, the environment is so relaxed that Binance decided to leave Asia for Malta earlier this year.

This is also where BullMarketz has their headquarters, together with many other forex and cryptocurrency companies. Malta is simply a great place to centralize investing business like these.

Make no mistake though as the EU market is a very safe market to trade on.

The European market is far from being under-regulated, and there are very strict regulations in place to protect investors and traders alike. The UK market, where the FCA license is required, is particularly known for being though to get a license on.

Just like in the US, all the major cryptocurrency exchanges are available to European traders including Binance, Kraken, Coinbase, etc.

By now you’ve probably guessed that the biggest benefit of trading cryptocurrencies in Europe compared to the US is that you can use CFDs and other derivatives. In fact, one of the most popular ways to trade cryptocurrencies, especially during weak market conditions, are CFDs.

Naturally, this means that most of the major CFD and forex brokers in the world all have the licenses needed to offer their services across the European Union (with the exception of Belgium). And during the last year, we have seen brokers like IQ Option and eToro work hard to create innovative solutions for day traders that prefer derivatives.

Final Thoughts

Even though there are some major differences between trading cryptocurrencies in Europe and the US, both markets are thriving with great options for anyone looking to trade digital assets.

At the same time, both markets also provide unique opportunities which have helped create two fairly different but equally as exciting markets.

Landon Domenico