www.banklesstimes.com

Best Bitcoin Brokers in 2022

Last updated 19th Jan 2022

Bitcoin (BTC) is the biggest and most popular cryptocurrency token that many people lean towards, especially if it is their first time buying a cryptocurrency token.

Today, purchasing Bitcoin is as simple as opening an account at any brokerage, even outside the cryptocurrency industry.

This article will teach you everything that you need to know about the best Bitcoin brokers to make an educated decision on how and wehre to buy your BTC.

Best Bitcoin Brokers in 2022

We have created a list of the best Bitcoin brokers out there based on several factors. These include the level of Bitcoin availability, plus fees and liquidity. Below, you'll find the entire table.

1
eToro
Minimum Deposit
$200
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
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, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
2
Binance
Minimum Deposit
$50
Exclusive Promotion
User Score
7
Over 500 cryptocurrencies for trade
Low fees, comprehensive charting options
Wide selection of transaction types
3
Coinbase
Minimum Deposit
$50
Exclusive Promotion
User Score
6
Trade and invest in over 25 cryptocurrencies
Extremely simple user interface
Over 68 million customers
4
Gemini
Minimum Deposit
$50
Exclusive Promotion
User Score
6
Hot wallets include insurance to protect your assets from theft and hacking attempts
5
Paybis
Minimum Deposit
$50
Exclusive Promotion
User Score
5
First transaction fee free
24/7 customer service
Instant payouts

What Is a Bitcoin Broker?

A cryptocurrency broker (sometimes referred to as a Bitcoin broker) is a firm that serves the role of an intermediary between the cryptocurrency markets. It is intended to facilitate the purchasing and sales of cryptocurrency tokens.

Bitcoin broker is the middleman between you and the Bitcoin exchange, and at times, the broker even buys up large amounts of cryptocurrencies and offers them on their own platform.

How do Bitcoin brokers work?

A brokerage takes the opposite side of the trade. They can be a lot more flexible with the settlement of assets as a result. They allow traders to lock in a trade at a specific price point even if they cannot pay for the assets at that time. This can be handy for traders that want to trade an asset instantly.

Liquidity is determined by the brokerage and not the traders on the market. As long as the brokerage accepts an order, the trader can execute the transaction. A brokerage then sets its own asset price, influenced by the asset's price in other markets.

The brokerage itself makes money by charging a spread which means that the price they are willing to sell is higher than the price they want to buy Bitcoin.

If you want to bet on the Bitcoin spread, read our guide covering cryptocurrency spread betting sites.

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

These are the main differences between a cryptocurrency brokerage and a cryptocurrency exchange.

  • When you decide to purchase cryptocurrency at a broker, you are not required to have any prior knowledge of how to do so as the process is simplified.

  • At a broker, you will be provided with the opportunity to pay for Bitcoin with easy payment methods such as:

  • Cryptocurrency brokerages including top Bitcoin brokers will typically also provide you with a high level of support in the form of email support, phone support, and live chat support.

When it comes to the exchange:

  • On a cryptocurrency exchange (sometimes referred to as Bitcoin exchange), the asset price is determined by the market and not by the brokerage.

  • Exchanges are matching traders, and as such, there have to be at least two traders willing to take opposite sides of the same deal to execute an order.

  • The exchange makes money by charging a fee to the traders once they are matched, and the order executes.

What Are CFD Brokers?

Contract for difference (CFD) trading is where you agree to exchange the difference in the price of a cryptocurrency from when you first opened the position to when you closed it.

You are speculating on the price of the market rather than taking ownership of the cryptocurrency itself. CFDs for Bitcoin, as well as other cryptocurrencies, are derivative financial products. They enable traders to speculate on the rise and the fall in the price of the digital currency in question without needing to own it directly.

Moreover, there are cryptocurrency brokerages out there that have this as a feature for example eToro and plus500.

Advantages and Disadvantages of Bitcoin Brokers

There are several reasons why some specific traders might jump into Bitcoin trading on a brokerage, though some drawbacks also exist. Let's look at both sides.

Advantages of Bitcoin Brokers

  • An easy setup process and a simple user-interface

  • A high level of technical support in the case something goes wrong

  • A higher level of regulations when it comes to who can create an account and use the brokerage

  • Quicker trading of cryptocurrencies

Disadvantages of Bitcoin Brokers

  • You are required to complete know-your-customer (KYC) verification and hand in your documents in most cases.

  • Higher fees when compared to exchanges where you are trading directly with other parties.

How Do I Get Started with a Bitcoin Broker?

When it comes to getting started with a Bitcoin brokerage, things are a lot simpler than you might think. While this process will be a bit different, depending on the brokerage you decide to sign up for, you should have an easy time just about anywhere. This process will be similar just about everywhere when it comes to the few main steps that you need to take, and as such, let's dive in and see what you have to do.

Step 1: Open a Bitcoin Brokerage Account

The first step you need to take to purchase Bitcoin at an online brokerage is to go to the brokerage website that you want to sign up for and try to find a "Sign Up" or "Join Now" button that you can activate or click on. Once you visit the account creation screen, you will be asked various questions about your information, such as your contact details, email address, password, and things of that nature. However, while you will initially only need to enter some basic information, you will have to go through a know-your-customer (KYC) procedure if you want to withdraw large amounts. Brokerages have strict security measures and will request documentation from your end.

Step 2: Open the WebApp or Download the Mobile Application

Once the account creation process is completed, there are two ways through which you can navigate the brokerage in question. For one, you can easily open up the web application through your web browser such as Chrome, Firefox, Opera, Microsoft Edge, Safari, or others, type in the URL, log into your account and start using the brokerage like that. Additionally, some brokerages even have their own native applications available on Google Play Store or the App Store. Keep in mind that some of these pages are available on mobile web browsers as well, but most of the time, the native applications will provide you with much better functionality in that regard.

Step 3: Make your Initial Deposit

Once you have created an account and downloaded the application or have decided to go through the web-based route, the next thing you need to do is fund your account. Now, the beauty with most cryptocurrency brokerages is that they provide you with multiple ways of funding your account. If you already have cryptocurrencies, you can connect your crypto wallet and sign a transaction to the brokerage's address. Additionally, if you do not have any cryptocurrencies and this is your first time buying Bitcoin, you can use a credit card or a debit card, or even PayPal if that is your preferred payment method.

Remember that many cryptocurrency brokerages will have a minimum amount of money that you need to deposit.

Step 4: Buy Bitcoin

Once you have successfully funded your account, the next thing you need to do is purchase the Bitcoin (BTC) cryptocurrency on the brokerage.

Typically, you will need to find an option on the brokerage itself that will allow you to buy or trade the token, so try finding a search bar on the page or click on some button that says "Trade" located on the page.

Once you do so, you need to ensure that the leverage is set to X1 and enter the amount of cryptocurrency you would like to buy in the currency you will be used to buy it with. Typically, you will get an on-the-spot calculation as to exactly how much BTC you can buy with your entered USD based on the price at the time of your deposit and purchase. Click on buy, and you will see the Bitcoin (BTC) cryptocurrency be added to your wallet.

The Best Bitcoin Brokers

There are multiple Bitcoin trading platforms out there; in fact, just about any brokerage or exchange will allow you to trade Bitcoin as it is one of the largest and most popular cryptocurrency tokens out there. However, some are better than others, and Today we will be exploring your best options.

Top Bitcoin Brokers For Beginners

There are specific brokerages that have been developed to live up to the expectations of beginner traders. They do this by providing a simple user interface, where a new user can quickly adapt to the world of trading and purchase and sell cryptocurrencies with ease.

Coinbase

Coinbase is one of the largest U.S.-based cryptocurrency brokerages, allowing users to trade many cryptocurrency tokens. Its fees are a bit hard to get into and are higher when compared to other brokerages. However, it does have fascinating features, such as Coinbase Pro. There is a low minimum for funding your account, and your cryptocurrency is insured in the event of a hack.

Robinhood

Robinhood provides free cryptocurrency trades, and the account minimum is $0. There are no fees, and the interface is streamlined as well. The web platform is simple. However, it meets the standards when it comes to basic investor needs.

Top Bitcoin Brokers For Day Traders

There are also cryptocurrency brokerages that are specifically tailored towards day traders. These are the best options out there if you are looking towards getting into day trading.

eToro

eToro allows users to engage in cryptocurrency trades starting at $50, and it has an innovative feature that lets investors mirror specific trades of traders with successful track records. The fees range from 0.75% to 2.9%. However, cryptocurrency choices are limited.

1
eToro
Minimum Deposit
$200
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
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, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

Kraken

Kraken is a cryptocurrency brokerage that supports a wide range of cryptocurrency tokens. It has a customizable ordering platform and a dedicated mobile application. Additionally, it offers a variable maker-taker fee structure.

Bittrex

Bittrex is known for its fast sign-up and verification process and its better support and security compared to other cryptocurrency brokerages. In terms of day trading, it offers advanced financial chart comparison tools and research-backed analysis on financial markets and investments from top analysts.

Best Bitcoin Brokers for Earning Interest

There are specific brokerages that allow you to earn interest on your cryptocurrency, and one such option is BlockFi.

BlockFi

BlockFi offers trades that are commission-free but include low spread rates, it has no minimum account size requirement, it provides instant trades and a recurring trades feature, and it is available in many countries. Users can earn up to 7.5% in interest by simply storing certain cryptocurrency assets with interest accounts. This account pays you monthly compounding interest, where BlockFi distributes these payments on the first business day of the month.

What to Look for in a Bitcoin Broker?

When it comes to picking the perfect Bitcoin broker, what you need to know right out of the way is that each of them has its own set of advantages and disadvantages. If you want to pick the best one on the list, here are some things you need to look out for.

  • Design and ease of use – Ideally, you want to ensure that the Bitcoin brokerage in question will provide you with an easy navigational experience, as the last thing you want to experience is getting lost in all of it.

  • Fees & commissions – Brokerages by default have higher prices when compared to exchanges. However, some have lower fees than others, and you need to ensure that you find the right brokerages that charge you fair fees.

  • Reputation – Reputation can go a long way, and you need to ensure that the BTC brokerage that you end up choosing has a long history and reputation towards its security, or in other words, has never been compromised.

  • Cryptocurrency pairs available – You will get to a point in time when you will want to trade a bit more than just Bitcoin. You need to ensure that the cryptocurrency brokerage in question is prepared to provide you with many trading pairs.

  • Trading options – When it comes to the trading options, these need to be varied. While you might initially be okay with just buying Bitcoin, this may change over time—and you need to ensure that the cryptocurrency brokerage will provide you with what you need.

  • Customer Support – Things rarely go wrong in a cryptocurrency brokerage. However, when they do, you need to ensure that there is a solid support team that has your back and can assist you if an issue ever occurs.

Should I Use Brokers to Buy and Sell Bitcoin?

The main benefit of a cryptocurrency brokerage is that it sets the price of Bitcoin and always has a trading option available for you, as it does not have to wait for another party that is selling the token for you to have the ability to buy it.

However, there are additional options out there, as you have Bitcoin exchanges, Bitcoin CFD brokers, peer-to-peer (P2P) marketplaces, and so on.

Final Thoughts on Bitcoin Brokers

When it comes to picking the best Bitcoin broker out there, it all boils down to what kind of person you are and your expectations from the broker in question.

If you are a newcomer, you should seek a broker that will give you simplistic tools and even guides or a copy feature that lets you at least see what other traders are doing so you can get a more in-depth look at how all of it works.

If you are a day trader, you want a brokerage that will provide you with valuable tools, charts, low fees or no fees at all and a low barrier of entry.

Ultimately, the best Bitcoin broker is the one you feel comfortable using and the one that gives you the features you need.

FAQs

Do I have to verify my identity to use a Bitcoin Broker?
Can I buy cryptocurrencies other than Bitcoin?
Do I need a wallet to use a Bitcoin broker?
How do you safely store Bitcoin?
Are Bitcoin brokers anonymous?
Can I deposit and withdraw money to PayPal using a Bitcoin broker?
Are Bitcoin tokens available 24/7?
Can I use multiple Bitcoin brokers?
Are Bitcoin brokers legal?
Are Bitcoin brokers regulated?