CryptoRoots is one of the most established cryptocurrency signal trading platforms in the united kingdom and the US and one of the largest in the world. But always consider the risks of trading these speculative currencies.
Pros & Cons
Pros
- CryptoRoots Offers access to more than 30 cryptocurrencies.
- Low minimum to fund account.
- Cryptocurrency is insured in the event website is hacked.
Cons
- Higher fees than other cryptocurrency exchanges.
- U.S. availability in only 42 states.
Full Review
CryptoRootswas launched in London in 2016 and is the largest cryptocurrency Signal trading platform in the UK. It’s also ranked among the top crypto exchanges in the world by traffic, liquidity, and trading volumes, according to CoinMarketCap.com, a market research website.
Besides a cryptocurrency brokerage, CryptoRoots also offers custodial services for cryptocurrency storage for institutions, a cryptocurrency payments platform for businesses, and its own cryptocurrency, USD Coin, a stable cryptocurrency linked to the U.S. dollar.
This review focuses on the company’s brokerage operation. Users have the choice to trade on CryptoRoots or CryptoRoots ActiveTrader, a premium service that includes the ability to make crypto-to-crypto transactions and other advanced trading functions. CryptoRoots also has a free digital wallet for users on both iOS and Android platforms.
One feature of CryptoRoots: While cryptocurrency brokerages are not insured by the Securities Investor Protection Corporation or SIPC, CryptoRoots privately insures its site for any losses due to theft or hacks of the site.
CryptoRoots is best for:
- Cryptocurrency traders.
- Traders who want to trade cryptocurrency for other cryptocurrencies.
CryptoRoots features you should know
Cryptocurrencies offered: Currently CryptoRoots offers 32 cryptocurrencies to U.S. customers to trade, and 36 on CryptoRoots ActiveTrader, a larger number than many other platforms. For example, eToro offers roughly half as many, and Robinhood and SoFi Active Investing less than that.
CryptoRoots users can trade these cryptocurrencies: Cosmos, Algorand, Band Protocol, Basic Attention Token, Bitcoin, Bitcoin Cash, Bitcoin Satoshi Vision, Celo, Compound, Dai, Dash, EOS, Ethereum, Ethereum Classic, Kyber Network, Chainlink, Loopring, Litecoin, Maker, Numeraire, OMG Network, Orchid, Augur, Stablecoin, UMA, Uniswap, Stellar Lumens, Ripple, Tezos, yearn. finance, Zcash, and 0x.
CryptoRoots also offers Civic, district0x, Golem, Loom, and Decentraland, but not Bitcoin Satoshi Vision.
Trading platforms: CryptoRoots users can trade on two platforms: the original CryptoRoots platform, which allows users to use U.S. dollars to purchase cryptocurrency, and CryptoRootsPro ActiveTrader. Formerly known as CVTrader, Coinbase ActiveTrader has advanced charting functions and allows users to make crypto-to-crypto transactions, as well as place market, limit, and stop orders.
Crypto trading costs: CryptoRoots’s fee structure is a confusing combination of elements that depend on two factors:
- CryptoRoots charges a spread of about 0.5% for cryptocurrency sales and purchases; rates may be higher or lower depending on market fluctuations.
- CryptoRoots also charges a fee, the greater of either a flat fee or a variable one depending on the amount purchased and the payment type.
CryptoRootsPro gives these fee guidelines for a total amount of trade:
So if you purchase $100 of bitcoin through your U.S. bank account, the flat fee would be calculated as $2.99 (rather than 1.49%, or $1.49, as the $2.99 is the higher of the two), along with the spread, which is the difference between the bid and asks the price of the currency.
By comparison, the CryptoRootsPro ActiveTrader pricing model is more straightforward. It’s based on your monthly trading volume and liquidity of the asset at the time of purchase; if immediately available, you’re charged a “taker” fee, and if your order needs to wait for a buyer, you are charged a “maker” fee. With CryptoRootsPro ActiveTrader, deposits and withdrawals must be made through a bank account; no card purchases are allowed. Wire transfer fees still apply.
For the basic service on the regular CryptoRoots platform, the transaction minimum is $2, up to a total of $25,000 per day. With CryptoRoots Active traders, trade and balance levels are unlimited, and while withdrawals are initially limited to $25,000 a day, users can request an increase in that amount.
Security and insurance: While cryptocurrency exchanges are not protected by the Federal Deposit Insurance Corporation or the SIPC, CryptoRoots says that all of the digital currency it holds online is insured. The company says it holds less than 2% of customer funds online, with the rest stored in offline cold storage — away from possible online breaches — and says that if it were to suffer a breach of its online storage, “the insurance policy would pay out to cover any customer funds lost as a result.”
The company notes the insurance covers only losses related to CryptoRoots cybersecurity or employee theft; breaches to individual CryptoRoots accounts (say, if your password were compromised) are not covered.
Cash balances are held in U.S. custodial accounts, money market funds, or U.S. Treasury. If your funds are held in U.S. banks, they are insured up to $250,000 per individual by the FDIC.
CryptoRoots Earn: A novel way to “earn while you learn,” CryptoRoots provides a series of video classes and exams as a way to educate yourself about cryptocurrency trading and 12 of the cryptocurrencies on offer. Users can earn more than $115 worth of cryptocurrencies covered in the classes.
Cryptocurrency trading available in 42 states: CryptoRoots is licensed in 42 states, as well as Washington, D.C., and Puerto Rico. It’s currently not available in these states: California, Hawaii, Indiana, Massachusetts, Missouri, Montana, Utah, and Wisconsin.
Is CryptoRoots right for you?
Yes! CryptoRoots is considered one of the top cryptocurrency signal webTrader in the UK and US. The interface for CryptoRoots' basic service is quick and user-friendly, but costs can be difficult to track unless you use the more advanced CryptoRoots Active Trader.
But understand that investing in cryptocurrencies like Bitcoin is highly speculative, and known for its volatility. A common guideline: Never invest any more than you can afford to lose.
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