As crypto establishes itself as an independent asset class, driven by institutional and governmental support, investors must understand the crypto trading company landscape. Choosing the right trading platform is a fundamental first step for those entering this evolving market. This guide will clarify what crypto trading companies are, how they operate in the Netherlands, and their key distinctions from traditional stockbrokers.
What is a crypto trading company?
A crypto trading company in the Netherlands is a platform, business, or service that enables users to buy, sell, and hold cryptocurrencies like Bitcoin, Ethereum, or other cryptocurrencies. Such platforms allow users to trade directly by providing the necessary tools. At the same time, they also provide avenues where they only allocate capital and allow the platform or other traders to trade on their behalf. In some cases, they are linked to crypto investment companies as well.
Such companies connect users, traders, and investors to the volatile world of currencies. Similarly, these platforms have simple, beginner-friendly user interfaces as well as complex platforms designed for professionals and experienced traders. Some companies and platforms have also expanded their services to provide additional investment tools such as staking, DeFi, quantitative trading, algorithmic models, or copy trading.
Types of crypto trading companies in the Netherlands
In the Netherlands, crypto trading companies can fall within a few categories.
- Crypto exchanges: These are the most popular and accessible platforms for crypto investors. They are marketplaces where users can buy, sell, and trade cryptocurrencies using other cryptocurrencies or using fiat currency. They offer a wide selection of coins and typically provide advanced trading tools, and are required to register with De Nederlandsche Bank (DNB) as a Virtual Asset Service Provider (VASP).
- Crypto brokers: Trading brokers act as intermediaries between users and the crypto market. They often provide a more simplified user experience, making them a popular choice for beginners. Some brokers offer Cryptocurrency Contracts for Difference (CFDs), which allow you to speculate on price movements without owning the underlying asset.
- Quantitative trading companies: These companies use quantitative trading algorithms to trade the market. They are usually hand-off, where users invest and expect a return, without having to execute (buy/sell/short/long) trades themselves. Companies like Yieldfund fall into this category.
Top crypto trading companies in the Netherlands
Our team of market analysts has evaluated numerous platforms to bring you the best crypto trading companies available to Dutch traders. Here are the top five.
Yieldfund
Yieldfund is a Dutch quantitative trading company that offers a managed approach to crypto investing. Instead of actively trading, investors can access the crypto market with a single investment.
Yieldfund trades the Top 10 cryptocurrencies by market capitalization using high-frequency trading algorithms. Through Yieldfund, investors can generate annual yields of up to 60% depending on the chosen plan, with three available plans for 1,2, or 3 years.
To join Yieldfund, users can start earning yields passively with an initial investment of $10,000, and receive weekly returns paid directly in USDC.
Coinbase
Coinbase is one of the largest and most well-known crypto exchanges globally, making it an excellent starting point for beginners. The platform is known for its simple, intuitive design and provides a wealth of educational resources to help new users get started. It supports over 300 cryptocurrencies, giving investors access to a massive range of assets.
Regarding fees, Coinbase charges a spread of around 0.60% plus a transaction fee, although its Coinbase One subscription offers zero-fee trading. As a publicly traded and regularly audited company, Coinbase operates with a Dutch license and keeps 98% of user funds in cold storage for enhanced security.
ByBit
ByBit is a popular choice for traders interested in crypto derivatives, although its services and features can vary depending on regional regulations. It is well-regarded for its high liquidity and advanced trading tools. Specializing in derivatives such as perpetual contracts, ByBit provides experienced traders with the tools needed for advanced strategies.
The platform’s high trading volumes ensure that traders can execute large orders with minimal price slippage, making it a reliable option for active trading. The user interface is designed specifically for active traders, featuring sophisticated charting tools and a variety of order types to facilitate complex trading strategies.
Kraken
Kraken stands as one of the oldest and most respected crypto exchanges, particularly valued for its robust security features and competitive fees, making it an ideal choice for advanced traders. The platform boasts a strong reputation for security, incorporating advanced verification processes and customizable account permissions to safeguard user assets. Furthermore, Kraken offers some of the lowest fees in the industry, which is particularly beneficial for high-volume traders looking to maximize their returns. With access to a wide range of cryptocurrencies and trading pairs, it provides ample opportunities for diversification. Importantly, Kraken operates as a fully regulated exchange in the Netherlands, offering an additional layer of trust and compliance for Dutch users.
How to select the best crypto trading company in the Netherlands
When choosing a crypto trading platform, a few factors should be considered to ensure you are safe and not risking your capital. Firstly, it’s essential to ensure the companies have the necessary license to operate in the Netherlands. This means being registered or notified with any regulatory body.
It’s also important to look at the security features the platform has to prevent unwanted access to the platform. Two-factor authentication or cold storage are typical security features used by known platforms.
When it comes to trading, users need to understand how they want to use the platform and their level of understanding of the market. If they want to day-trade or buy/sell tokens using fiat actively, they have to opt for a platform, and if they are only looking to invest passively, they should opt for crypto trading companies.
Payment methods highlight how easy it is to deposit and withdraw assets. For example, some companies allow direct credit card or iDeal deposits, while others allow both fiat and USDC deposits and withdrawals.
Finally, users should look at how reliable customer support is, how easy they can get access to information, and whether there is support for new users to get started.
Which crypto company is the best
There is no single “best” crypto company, and the type of crypto company depends on what users intend to use it for. Beginner traders or investors can use exchanges such as Coinbase or ByBit that offer an easy-to-use platform with extensive educational resources.
Users who want to trade both stocks and crypto in a single place can opt for stock borkers, which is similarly user-friendly but acts as a broker. Experienced traders who want to chart, trade, exchange, and use more extensive features can opt for Kraken or similar exchanges.
Finally, if users prefer not to worry about trading themselves and only want a source of passive income with consistent returns, they can opt for Yieldfund, which is a quantitative trading company.
Why you should use Yieldfund
Deciding between actively trading crypto yourself and using a managed investment service can be a tough choice. While self-trading offers unlimited potential, it also requires significant market knowledge, time, and a high tolerance for risk. This is where a quantitative trading company like Yieldfund stands out.Yieldfund offers a way to benefit from the crypto market’s potential without the need to become a trading expert. By leveraging automated, data-driven strategies, it provides a disciplined approach to investing that removes emotion from the decision-making process. With features like weekly payouts in USDC, 100% capital repayment, and no management fees, and up to 60% yearly returns, it presents a transparent and accessible option for everyday investors.
