Finding the best broker for cryptocurrency

It seems like cryptocurrency went from obscurity to the darling of the trading world overnight. Essentially cryptocurrency is a digital form of currency that is decentralized. Therefore no one bank, government, or country has control over it. Bitcoin was one of the first cryptocurrencies to hit the market.

Cryptocurrency is a true peer-to-peer payment system where entries are kept in a digital ledger that is completely private and secure. Some of the reasons for the popularity in this form of currency is that it is impervious to fraud, there are no fees, the transaction is settled immediately, and the funds are not subject to any exchange rates, interest rates or charges; it is universal.

Lack of regulation is a massive draw for many brokers and investors. Now that Bitcoin has set the pace, other cryptos are also on the rise. However, there is a limited supply, which makes them even more desirable and valuable. Cryptocurrency trading is a very hot trend, and the time to get on board is now.

It Started With Bitcoin

Bitcoin was one of the first cryptocurrencies to emerge back in 2007. Sometime during 2019, experts expect that more than 5 billion people will be using Bitcoin. Of those, more than half live outside the U.S. Experts predict that Bitcoin could end up being the global currency of choice.

Researchers at the New Jersey Institute of Technology predict that Bitcoin will be the sixth largest currency by 2030. The cost per transaction in 2016 was $7.22, with 147 bitcoin blocks and 3675 bitcoins mined. Bitcoin accounts for 33 percent of all cryptocurrency trading. According to Satis Group, cryptocurrency trading is expected to increase by 50 percent this year.

Investment brokers fit into the equation by helping you invest in the blockchain. Bitcoin, for example, rose 740 percent during 2018. The potential to make a significant return is possible by investing in cryptocurrency. There are two ways to invest in cryptocurrency. The first is to purchase the actual currency based on current exchange rates. The other way is to invest in a CFA, which is an umbrella vehicle that moves with the actual asset. Investors gain profits and losses based on how the asset performs.

Things to Consider Before Investing

A few questions to ask yourself before jumping into cryptocurrency investment:

  • How much risk are you willing to accept?
  • What are your objectives?
  • How experienced are you trading in the market?

You should never gamble with money you cannot afford to lose. Cryptocurrency carries risks just like any other investment. The volatility of the market is often difficult to predict with a specific level of accuracy. If investing in cryptocurrency is new to you, a seasoned broker with years of experience is probably a good fit.

Cryptocurrency trading is currently valued at about U.S. $7.3 trillion. It is easy to see why anyone would want a piece of that pie. However, before investing, you will want to research your options and find a broker or platform that works best for you. There are new offerings all the time. Some of the top cryptos available right now are Binance, Bitfinex, Bithumb, Bitmex, Coinbase Pro, HitBTC, Huobi, and OKex.

Tips for Finding the Right Cryptocurrency Broker

With the incredible expected growth in this industry, now is the time to jump in and invest. However, before you go shelling out your hard-earned cash, you will need an excellent broker to help you invest wisely. Only certain forex firms handle cryptocurrency transactions. Product availability may also help to drive your decision.

When selecting the best broker for you, it is essential to consider a few factors. What is their pricing model and how will that affect you? Does their execution model line up with your trading style? You also need to think about platform and mobile offerings. Cryptocurrency is different than traditional investment assets, and knowing all the ins and outs is essential.

The top choices for cryptocurrency brokers right now are Swissquote, Coinbase, AvaTrade, UFX, and eToro. Another option is Millennium Blockchain, who recently invested in ChoiceTrade. The reasons cited are exceptional customer service, security, insurance, and protection. Those brokers that offer mobile apps so you can check on your investments, and initiate transactions are favored as well.

Other Considerations When Choosing

Some brokers offer more affordable minimum buy-ins and competitive swap rates. Plus500, eToro, and AvaTrade offer a variety of platforms to choose from allowing you versatility in managing your assets. Compare fees; not all brokers charge using the same price structure.

Companies like Swissquote offer excellent customer service and a wallet, but they do not allow wallet withdrawals. They do this to protect their system against hacking. Looking for a stable, fully regulated firm that is trustworthy and has established a presence in the industry is vital when selecting who you want trading your cryptocurrency.

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