What Are Brokers Crypto and Which Ones Should You Trust to Invest?
Brokers crypto are companies that provide services to buy and sell cryptocurrencies. They are platforms that act as intermediaries between markets and people and can be easily managed by anyone.
In addition to buying and selling, brokers crypto often offer other services. Such as cryptocurrency storage, interest generation, and some more sophisticated investment instruments.
Unlike other financial assets like stocks, cryptocurrencies allow us to store our own currencies without relying on a broker. However, self-sufficiency comes with certain complexities, and means taking responsibility for the management and security of our cryptocurrencies.
Advantages of using Brokers Crypto
Brokers crypto manage to make it easy to access cryptocurrencies through their platforms, removing a lot of complexities. They are especially important for beginners: a few clicks are enough to buy and sell cryptocurrency.
- Low commission
Commissions vary from platform to platform. But there are many trades that are cheaper for a broker than for a self-service wallet. Converting one currency to another within a broker is quick and usually a commission fee.
If we want to do it on a decentralized exchange, we have to pay network fees in addition to platform fees. In this case, the amount to be paid is fixed. Regardless of the amount of the transaction. This makes small transactions very expensive.
In addition to this, brokers allow us to arbitrarily trade assets from any blockchain. If we want to make it decentralized, we will have to use a bridge. These dApps (decentralized apps) allow us to move assets between different blockchains. It’s important to note that bridges are difficult to use and often have security issues.
- Additional service
Brokers crypto often have platforms that offer multiple services in one place. In addition to the sales and storage of our tokens, they can also integrate external products. Such as the lending of a DeFi protocol to generate interest.
They can also offer services that combine the traditional financial system with the crypto ecosystem. Such as debit cards that allow us to use our currencies in any business.
- Easy conversion to fiat currency
The easy conversion to fiat currency is the main point of success of the broker. This feature makes them attractive to beginners. As they do not need to be familiar with cryptocurrencies to make their first trades.
How to choose the best Brokers Crypto?
Not all brokers offer cryptocurrency trading. There are several reasons for this, including regulatory issues. For example, the Financial Conduct Authority (FCA) has banned all UK brokers from offering cryptocurrency CFD trading services.
For other brokers, it is a business decision not to offer cryptocurrency trading, while for some it is due to platform limitations.
- Is the broker well regulated?
Regulation, especially for cryptocurrency exchanges, is very important. Many illegal international (offshore) brokers specialize in cryptocurrency trading, so be sure to check the broker’s terms and conditions before making a deposit.
- Does the broker offer a demo account?
This type of free demo account should always be the starting point for any trader starting cryptocurrency trading. Cryptocurrencies are extremely volatile and price patterns are even more difficult to predict due to the limited fundamental data available, and all trading is done by looking at charts.
- What level of leverage is offered?
Cryptocurrencies are generally much less leveraged than other assets, around 2:1. Although using too much leverage in a highly volatile market can destroy a trading account, traders still want to get some leverage. Check that your leverage is within your risk tolerance.
- Transaction fee
In addition to spreads, brokers may also charge fees for trading cryptocurrencies. Cryptocurrency spreads can be much wider than fiat currency pairs, which means that traders need to see big price movements to make money.
Eightcap: Most Cryptocurrency Pairs
As a well-regulated broker, Eightcap appeals to traders looking for a wide range of cryptocurrency pairs on the MT4 and MT5 platforms.
Eightap has over 250 cryptocurrencies and currently has the largest collection of cryptocurrency pairs in the industry, including cryptocurrency crosses and cryptocurrency indices.
Furthermore, the leverage is higher than most other cryptocurrency brokers, up to 20:1, and clients can open trading accounts with a minimum deposit of $100.
Avatrade: The Best Brokers Crypto Mobile Experiences
As a well-regulated market maker, AvaTrade offers a reliable and easy-to-use trading environment across multiple platforms, including its innovative mobile app: AvaTradeGO. AvatradeGO allows traders to view their trades, create watch lists, and view real-time prices and charts.
It also allows you to trade more than 250 instruments including 8 cryptocurrencies, on its mobile app. AvaTrade supports 24/7 cryptocurrency trading, which means traders can trade on weekends.
Unlike many other brokers crypto that restrict clients to only allow cryptocurrency trading, AvaTrade clients can trade cryptocurrencies with fiat currencies (USD, EUR, and JPY).
Finally, AvaTrade offers some of the best cryptocurrency trading conditions, but leverage is limited to 20:1 due to market volatility.
Capital.com: 100:1 Cryptocurrency Leverage
Capital.com is one of the best cryptocurrency brokers available to traders. With 220 cryptocurrency pairs available to trade, capital.com has one of the largest cryptocurrency options in the industry and offers higher cryptocurrency trading leverage than most other brokers, up to a maximum available ratio of 100:1.
In addition to standard cryptocurrency pairs like BTC/USD and ETH/USD, capital.com offers dozens of lesser-known pairs like Dogecoin, Orchid, and Loopring. Please note that transaction costs vary by cryptocurrency pair, especially when compared to forex trading.
Admiral: Among the Best Metatrader Brokers Crypto
Admirals, formerly known as Admiral Markets, is an Australian broker that offers multi-asset trading, including CFDs on 32 cryptocurrencies. Trading is available on both MT4 and MT5 platforms. But traders can only choose between four cryptocurrency pairs on MT4 and 32 cryptocurrency pairs on MT5, including 22 fiat cross crypt currency pairs and 10 cryptocurrency pairs.
The trading account has a minimum deposit of $100, leverages up to 1:10 BTC, ETH, LTC and BCH, and trading is open 24/7 including EUR and digital crosses. No commission is charged.
Etoro: Social Trading Between Brokers and 96 Cryptocurrencies
eToro was the creator of the first social trading system and is still the world’s leading broker in this regard. Its unique social trading platform gives traders access to a wide range of currency pairs, stocks, commodities, cryptocurrencies, ETFs, and indices.
Its selection of cryptocurrencies is particularly diverse, with 96 cryptocurrency pairs available for trading, including 14 cryptocurrency crosses such as ETH/BTC and EOS/XLM.
With eToro CopyTrader, clients can automatically copy the best cryptocurrency traders and instantly copy their trades to their portfolio.
Also available as a mobile app, eToro’s web-based trading platform is easy to use, making it easy to trade socially and copy trades from other eToro clients.
IC Markets: One of the Best for Beginners
IC Markets is a beginner-friendly, ASIC-regulated CFD broker offering trading on a wide range of instruments, including Forex, Commodities, Indices, Bonds and 12 cryptocurrency pairs. Additionally, IC Markets offers 24/7 cryptocurrency trading and customer support, perfect for weekend traders and beginners trying to find their footing.
Additionally, IC Markets offers several trading platforms including MT4, MT5 and cTrader, as well as many copy trading platforms such as ZuluTrade and Myfxbook AutoTrade that are attractive to new traders.
IC Markets also offers an impressive array of educational material, including video tutorials, articles, frequent webinars, and IC Markets WebTV. It also has an extensive archive of market analysis materials, including fundamental analysis, technical analysis, and the latest market news section.
Bdswiss: Best Market Research Service Provider for Cryptocurrency Traders
BDSwiss is a well-regulated market maker offering trading in a wide range of tradable assets through three online accounts. Also, BDSwiss offers full support for MT4, MT5 and its custom BDSwiss WebTrader application, which offers a range of advanced charting and analysis tools.
BDSwiss offers 20 cryptocurrency pairs to trade, including Bitcoin, Litecoin, Ripple and Ethereum, with zero commission and up to 5:1 leverage.
BDSwiss Trading Academy and market analysis materials are the best in the business. The academy is run by a team of renowned market analysts and professional traders who provide 24/5 market updates.
The Academy is widely recognized in the global industry and its research team is regularly featured in world’s leading publications.
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