Best Bitcoin Brokers in 2023
With so many brokers now offering Bitcoin you need to be sure you choose the right platform to trade on. We have formulated a complete guide that explores which are the best brokers, what makes a good broker, and how to use them. Find everything you could need below to help make your decision on where to trade Bitcoin in 2023.
There are plenty of platforms to choose from to buy Bitcoin, so we’ve listed the top beginner-friendly platforms below to help you get started right away. Bitcoin is now quite widely accepted by brokers due to its increased popularity, so when choosing which broker is right for you you should look for ease of use, good rates, and a platform with a good reputation.
Here is our list of the best Bitcoin brokers in 2023:
What Is a Broker?
Brokerages are an interface that allows users to trade financial assets. They are available on desktop, web, and mobile devices and provide a trading service, a value storing service and offer help and support to their users. Brokerages are perhaps understood as more trustworthy, especially big institutions like eToro, mainly due to the fact they have been around for many years and are regulated by financial institutions. Traditionally, they were in the business of financial products like CFDs, stocks, and bonds, but nowadays we are seeing the introduction of digital assets like cryptocurrencies. Some brokerages now also offer alternative financial products like CFDs to invest in cryptocurrencies.
How Do Brokerages Work?
When you wish to make a trade there are a few different entities you can interface with. Brokerages are the most centralized option available to you as they set the prices of the assets that you trade and also will charge a fee for a range of different activities. Some other platforms link traders together, whether here a brokerage does all of the work. They execute the trade on behalf of the client and set the rate those trades will be executed at - this is where a broker claims its commission. Equally, this means users can shop around different brokers to find the best rates and model that suits their needs.
What Is the Difference Between a Broker and an Exchange?
Exchange is the next most popular method of trading. Whereas a broker is a centralized individual or business making trades on behalf of its users, an exchange is a mediated arena for users to make trades between themselves via an order book or ledger.
Controlled by one entity, whether that is a business or even an individual
Usually, charge commissions for the trades made on their platform
Trading via prices set by the broker
A more traditional avenue for financial trades
Still a business, but this time with a smaller degree of control over the trades on the platform
Prices are set by the buyers and sellers, with the transactions mediated by the exchange
Usually no commission fees, but instead charge maker/taker fees (these charges a fee for removing liquidity from the platform’s pool)
Usually offer a better range of cryptocurrencies, but perhaps can be less regulated
What Are CFD Brokers?
CFD brokers are a new way in which users can interact with cryptocurrency assets. They are essentially a contract you agree to when you complete your purchase rather than the actual asset itself. The terms of the contract stipulate that it pays you rewards if the asset price rises or you incur losses if it goes down. You do not own or hold the asset with derivative products like CFDs.
Most derivative products are only for the core group of coins, meaning altcoins are often not supported or applicable. You need to check with the relevant brokerage to see if they offer these products. Also, some countries do not allow the sale of cryptocurrency CFD products - for example, this is not allowed in the USA.
Advantages and Disadvantages of Bitcoin Brokers
Find here a complete list of all the advantages and disadvantages of using a broker:
Advantages of a Bitcoin Broker
Reputation and Security:
Cryptocurrencies are a risky asset that is subject to high levels of volatility and contextual change, therefore it can be preferable for traders to choose an established broker with a successful reputation.
Brokerages are well-known for their simplicity and easy-to-use platforms. Usually, you can access these services across a range of devices also, from mobile to desktop.
It is simple and straightforward to make an account with a broker. All you will need is a copy of your ID and some personal information.
Trading with Leverage:
Trading with leverage carries a lot of risk and users should only engage with this if they are confident they understand what they are doing. But for those experienced traders, leverage offers a great way to increase your profit margins.
Not only are these platforms generally more secure to system issues but usually, they are highly regulated by the relevant financial institutions.
Disadvantages of a Bitcoin Broker
One of the biggest issues traders have with brokers is the trading fees. They charge a commission for the trades you make and often have other fees like holding fees.
In addition to fees, the broker is also setting the price of your crypto asset. This means it may be less competitive than some alternative platforms or exchanges.
While brokerages have been around for many years, it has to be said they are not crypto-specialized institutions. Sometimes this can mean they lack educational materials or even applicable advanced trading tools for cryptocurrency products.
If you hold your cryptocurrency asset in CFD form it means you essentially hold a stake in that brokerage. If a brokerage goes bust, your contract could potentially go with it.
How Do I Get Started With a Bitcoin Broker?
More often than not, all brokers will require you to follow the same kind of steps to open an account with them. We have formed a quick and simple 3-step guide to help you get started with any broker you may wish to. Here it is:
Step 1: Create an account
Step 2: Verify your identity
Step 3: Deposit funds
The Best Bitcoin Trading Platforms
Most brokers these days support Bitcoin so there is a wide range to choose from. With so much choice out there we’ve done a breakdown of which are the best for beginners, day traders, and of course the best to earn interest.
Here’s our guide to help you choose:
Not all of you are full-time experienced traders, so it is important to know what is the best platform for you to learn how to trade Bitcoin and one that will offer good features to make it as simple as possible.
One of the biggest players in the crypto space, offering a huge range of coins and great educational material for beginners.
Low fees, paid educational material, and almost 100 coins on offer.
One of the most popular brokers with newcomers. Now offering crypto products as well Robin Hood is a great option for users in the United States.
Easy sign-up, beginner-friendly, and commission-free.
For Day Traders
Day trading will demand a different priority of features as users look to make advanced trades, in high volumes and with a good range of cryptocurrencies.
One of the market leaders in the brokerage space - eToro offers users a social trading network and access to one of the biggest ranges of cryptocurrency CFDs (currently offering over 40).
Low fees, easy sign-up, and beginner-friendly interface.
One of the leading figures in crypto to fiat exchange, Kraken offers advanced tools for a crypto-specialized platform.
Simple interface, high liquidity, and market rates.
NAGA offers an extremely competitive social trading network that comes with a host of advanced trading tools and instruments. NAGA prioritizes balancing simple trading with speed and efficiency. They also support over 40 cryptocurrency products.
Many coins supported, demo account, and advanced charting tools.
Best For Earning Interest
Some platforms now allow users to make money in alternative ways, earning interest is one of these.
BlockFi offers a range of different crypto-based financial products and has good customer support for its users.
Wide range of financial products, good customer support and earn interest rates.
What to Look For in a Bitcoin Broker?
Here is a list of the key things to look out for when you are choosing a Bitcoin broker:
There is a range of charges you can be subject to so you need to do your due diligence to get the best deal possible. For example, some of the fees you may face are commissions, holding fees, deposit/withdrawal fees, and bad spreads.
Variety of Trading Pairs:
While a good broker may offer a wide range of cryptocurrencies to trade with, it is also important they offer a good range of pairs, like with Bitcoin, for example, to give you the most flexibility possible. As many brokers will now accept Bitcoin it can be a good idea to see which are offering the most options with that particular product.
Speed and Ease of Use:
When you are buying Bitcoin you want transactions to be as simple to make as possible, and for them to be executed quickly and efficiently. Popular broker eToro for example has a friendly interface and good transaction speeds.
Trust and Security:
Arguably one of the most important elements of trading, your broker must be trustworthy and have good security measures in place. Look out for features like 2-factor authentication, loss insurance, and KYC regulations to improve your level of protection.
Most platforms now offer services on mobile, web, and desktop. Not only is this convenient for you, but also it is a sign of a good broker. For example, eToro supports all of these devices.
How Else Can I Buy and Trade Bitcoin?
Brokers offer you one of the simplest ways to trade Bitcoin. They are simple to use and do not require you to have an external wallet - which can be confusing to beginners. Here are some of the other options available to you which may be more complicated:
Decentralized Exchange (DEX):
These operate in the same way as a traditional exchange, but are unregulated and are not owned/operated by a singular entity.
Bitcoin P2P Services:
Person-to-person exchanges offer great rates as they have no middle man; it's best to think of this as swapping rather than trading.
Final Thoughts on Bitcoin Brokers
Bitcoin brokers are a great way to trade Bitcoin. They are simple and easy to use and offer a good range of products that other options do not. The best broker for you depends on what you want to use it for, but eToro is a great all-around platform so we would recommend this.
We advise not reusing the same passwords with the same websites and using 2-factor authentication to best protect your account from online hackers.