Best Cryptocurrency Brokers

Cryptocurrency Brokers

Cryptocurrency brokerages are the go-to way for engaging in cryptocurrency purchases or trading for the very first time.

Finding the best cryptocurrency broker to buy Bitcoin, Ethereum, etc is essential. There are several reasons for this, all of which will be explored in this article.

If you are planning to invest in cryptocurrency or you are just getting started with cryptocurrency trading, knowing which brokerage to pick can be an essential part of your overall experience within the industry. Keep reading to find out more about the best cryptocurrency brokers.

Best Cryptocurrency Brokers in 2023

There are several factors to consider when picking a cryptocurrency brokerage so to make things a bit easier on you, we've hand-picked some of the best exchanges where you can get started with cryptocurrency trading.

	Partner Name Label	Label	CTA	Disclaimer
	1. eToro	4.8	Visit Websiteetoro.com					This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC) which is highly volatile, unregulated in most EU countries, does not fall under EU protections & is not supervised by the EU regulatory framework. Investments are subject to market risks, including the loss of principal.
	2. Pepperstone	4.5	Visit Websitepepperstone.com					Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.9% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
	3. Eightcap	4.4	Visit Websiteeightcap.com					CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.04% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
	4. Coinbase	4.2	Visit Websitecoinbase.com
	5. Changelly	3.7	Visit WebsiteChangelly.com
	6. Trading 212	4.0	Visit Websitetrading212.com					CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What Is a Cryptocurrency Broker?

A cryptocurrency broker otherwise referred to as a cryptocurrency brokerage, is a company that connects you with the cryptocurrency market. Brokerages are essentially middlemen standing between you and the cryptocurrency exchange. The broker buys up a large number of specific cryptocurrency tokens and offers them on its platform.

• Bitcoin Brokers

• Ethereum Brokers

How Do Cryptocurrency Brokerages Work?

You can think of brokerages as intermediaries that are on the opposite side of any trade. The brokerages can be a lot more flexible with regards to the settlement of assets, a possible reason why they might be preferred over exchanges. Cryptocurrency Brokers, allow traders to lock in a trade at a specific price point, even if they are unable to pay for the asset at that point in time. This would appeal to traders who want to trade an asset instantly. Unlike in exchanges, liquidity is determined by the brokerage and not the traders within the market, meaning that as long as a brokerage accepts an order, the trader can execute a transaction.

What’s the Difference Between a Broker and an Exchange?

There are several key differences between cryptocurrency brokerages and cryptocurrency exchanges.

Here’s what you need to know about brokerages:

• To purchase a cryptocurrency token from a brokerage, you will not require back-end knowledge of how the blockchain actually works, as the process is simple.

• In a cryptocurrency brokerage, you can pay through convenient payment methods, including credit cards, debit cards, and PayPal.

• Brokerages can also provide you with a higher level of customer support relative to exchanges.

Here’s what you need to know about exchanges:

• The market determines the price of the cryptocurrency assets on exchanges.

• Exchanges match orders, meaning there has to be at least two traders to execute a trade.

• The exchange makes money by charging fees for the traders once they are matched.

What Are CFD Brokers?

CFD trading or a CFD contract is where you agree to exchange the difference in the price of a cryptocurrency. This price is calculated from when you first open the position to when you close it. You are speculating on the price of the market rather than buying the cryptocurrency token outright.

• Bitcoin CFD Brokers

• Ethereum CFD Brokers

Advantages and Disadvantages of Cryptocurrency Brokers

When you compare cryptocurrency brokers with exchanges or other platforms, you will notice certain other characteristics.

How Do I Get Started with a Cryptocurrency Broker?

Getting started with a cryptocurrency brokerage is a straightforward process.

The Best Cryptocurrency Trading Platforms

There are many cryptocurrency brokerages and other platforms out there. Many of them will provide you with a cryptocurrency wallet, multiple methods of depositing FIAT currency, as well as a multitude of cryptocurrencies to invest in or buy. Let’s go over some cryptocurrency brokers below.

For Beginners

When it comes to beginners, the cryptocurrency brokerages would ideally provide a simple user interface as well as educational content.

Coinbase

Coinbase is by far one of the largest cryptocurrency brokerages out there. It provides users with a variety of different cryptocurrency tokens and offers a service known as Coinbase Pro, which tries to list new cryptocurrency altcoins. Also, it has a low minimum deposit and is simple to use.

Robinhood

Robinhood has an account minimum of $0 which makes it extremely easy to get into, where it also provides free cryptocurrency trades. Its user interface is also streamlined, and anyone can get started easily.

For Day Traders (eToro, Kraken, Bittrex)

There are cryptocurrency brokerages specifically tailored towards day traders. Here are the best ones out there:

eToro

eToro is a cryptocurrency brokerage with a reputation for its low trading minimum, which starts at just $50 and has an innovative copy feature that lets you mirror other people's trades. The fees are between 0.75% and 2.9% and it offers a wide array of cryptocurrency tokens.

Kraken

Kraken offers a large number of crypto tokens as well as relevant educational content. It has a customizable ordering platform and a solid dedicated mobile application.

Bittrex

Bittrex has one of the quickest verification processes out there and offers features such as financial chart comparison tools alongside research-based analysis on financial markets.

Best for Earning Interest (BlockFi)

If you want to earn interest on your cryptocurrency tokens, you need to utilize platforms such as BlockFi. This is a brokerage that specializes in allowing you to earn interest on your cryptocurrency balance.

BlockFi

BlockFi offers you the ability to make commission-free trades at low spread rates.

It has no minimum account size requirement and offers instant trades as well as recurring trades. It is available in many countries, and users earn up to 7.5% per year.

What To Look For in a Cryptocurrency Broker?

Here are some features to look for in a brokerage:

Design and Ease of Use

Ideally, you need to find a cryptocurrency brokerage that has a simple user interface.

Fees & Commissions

Each cryptocurrency brokerage will have its own set of fees and commissions, and you will need to find one that suits your needs.

Reputation

Reputation can also play a major role. Ideally, seek a well-established brokerage with no concerns over security.

Cryptocurrency Pairs

You might be trading through cryptocurrency pairs, so ensure that the brokerage offers a wide variety of pairs.

Trading Options

Ensure that you find a brokerage that allows you access to as many different trading options as possible.

Should I Use Brokers to Buy and Sell Cryptocurrency?

The main advantage that you have whenever you use cryptocurrency brokerages to buy and sell cryptocurrencies is that they will almost always be available for you. This allows you the convenience of always having crypto to buy and having a location to sell them in an instant.

Final Thoughts on Cryptocurrency Brokers

Cryptocurrency brokerages will provide you with a higher level of convenience relative to other avenues. While this translates to higher fees, brokerages are well regulated, and secure.

FAQs

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