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Finding the best broker for cryptocurrency
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Finding the best broker for cryptocurrency

News Desk
News Desk
January 31st, 2023
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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 paymentsystem where entries are kept in a digital ledger that is completely privateand secure. Some of the reasons for the popularity in this form of currency isthat it is impervious to fraud, there are no fees, the transaction is settledimmediately, and the funds are not subject to any exchange rates, interestrates or charges; it is universal.

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

It Started With Bitcoin

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

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

Investment brokers fit into the equation byhelping you invest in the blockchain. Bitcoin, for example, rose 740 percentduring 2018. The potential to make a significant return is possible byinvesting 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 moveswith the actual asset. Investors gain profits and losses based on how the assetperforms.

Things to Consider BeforeInvesting

A few questions to ask yourself before jumpinginto cryptocurrency investment:

  • How much risk are you willing toaccept?
  • What are your objectives?
  • How experienced are you trading inthe market?

You should never gamble with money you cannotafford to lose. Cryptocurrency carries risks just like any other investment.The volatility of the market is often difficult to predict with a specificlevel of accuracy. If investing in cryptocurrency is new to you, a seasonedbroker 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 anyonewould want a piece of that pie. However, before investing, you will want toresearch your options and find a broker or platform that works best for you. Thereare new offerings all the time. Some of the top cryptos available right now areBinance, Bitfinex, Bithumb, Bitmex, Coinbase Pro, HitBTC, Huobi, and OKex.

Tips for Finding the RightCryptocurrency Broker

With the incredible expected growth in thisindustry, now is the time to jump in and invest. However, before you goshelling out your hard-earned cash, you will need an excellent broker to help you investwisely. Only certain forex firms handle cryptocurrency transactions. Productavailability may also help to drive your decision.

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

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

Companies like Swissquote offer excellentcustomer service and a wallet, but they do not allow wallet withdrawals. Theydo this to protect their system against hacking. Looking for a stable, fullyregulated firm that is trustworthy and has established a presence in theindustry is vital when selecting who you want trading your cryptocurrency.

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