Should You Buy Bitcoin on Plus500

Plus500 is a popular Australian trading app. You’ve probably seen one of the the ads that it runs across the internet. But is it really a good place to buy Bitcoin?

Here is why I don’t think you should buy Bitcoin on Plus500:

Why you shouldn’t Buy bitcoin on Plus500

It’s important to understand what you’re actually trading on Plus500. Plus500 is a CFD trading platform. This means that you’re trading a derivative (contract) not the underlying asset. The contract will be priced to match the underlying asset, but there are some key differences:

  • CFDs can Expire – When you buy Bitcoin on an exchange like CoinSpot, you can hold it for as long as you want. A Bitcoin CFD on Plus500 has an expiration date. When the expiration date rolls around your position will close. So if the price has dropped and you’re currently sitting on a loss, you won’t have a chance to recover that loss. My biggest profits from crypto have occurred by holding onto Bitcoin for the long term. You just can’t do that on Plus500.
  • Leverage – On Plus500 you can’t trade without leverage. Bitcoin is a super volatile asset. Trading with leverage is not a good idea for most people. With leverage, if your position drops by a certain amount, it will automatically close unless you deposit more funds to cover the margin. Again, this isn’t ideal for holding Bitcoin over the long term.
  • Funding Fees – Because you can’t trade without leverage on Plus500, you have to pay funding or interest fees. These fees are charged everyday and are a small percentage of your position. The longer you leave your trade open, the more these fees will eat into your profits (if any).

Best Plus500 Alternatives

Here are the best alternatives to Plus500 I recommend for buying and investing in Bitcoin:

Best Plus500 Alternative for Buying Bitcoin – CoinSpot

If you just want to Buy and hold Bitcoin and profit when the price of Bitcoin goes up then I would recommend CoinSpot.

Here is why it’s currently my top pick:

  • Excellent Fees – CoinSpot has the best fees of any Australian exchange. When you buy and sell Bitcoin using the markets feature, the fee is just 0.1%.
  • Trusted Brand – CoinSpot has been one of the most reliable and trusted crypto exchanges in Australia. While there are a lot of different exchanges in Australia, I definitely don’t trust them all.
  • Easy to Use Interface – Compared to exchanges like Binance, CoinSpot is much easier to use. The interface is clean and even if you have no technical skills you’ll be able to buy Bitcoin.
  • Fast Deposits – CoinSpot supports PayID so you can deposit funds near instantly from your bank account. They also support a number of other local Australian payment methods.

Find out more about CoinSpot here

Best CFD Alternative – eToro

If you do want to trade Bitcoin as a CFD (which can have some pros), then I would recommend eToro over Plus500. For starters you can trade Bitcoin on eToro without leverage or margin. When you Buy bitcoin without leverage on eToro you are charged no commissions and there are no overnight or weekly fees.

Best Trading Platform with Leverage – FTX

If you’re looking to trade Bitcoin with leverage or margin then my current platform of choice is FTX. The FTX platform is fast and reliable. They also offer a huge range of trading products including futures and options. You’ll save money on fees compared to Plus500 an have access to much tighter spreads.

Find out more about FTX here

Note – Trading Bitcoin using leverage is risky. You can lose more than you invest.

In Conclusion – There are better options

If you’re looking to start investing in Bitcoin, there are better options. Most people end up losing money trying to invest in Bitcoin through Plus500. Your best option is to just buy and hold Bitcoin through an exchange like CoinSpot.

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