Best Ethereum Brokers
Unlike before, there are now plenty of brokerages to choose from when it comes to buying Ethereum. Picking the right one can be a difficult task given all the options.
In this guide, we look at what brokerages are as well as all the important factors to consider when making a decision. Read on to find out more.
Best Ethereum Brokers in 2023
We have listed the top beginner-friendly platforms below to help you get started right away.
What Is a Broker?
A broker is a firm that acts as an intermediary between an individual and the cryptocurrency markets. Put simply, brokers provide financial services for users who want to buy or sell digital assets. In turn, brokers charge a fee on top of the price for this convenience.
How Do Brokerages Work?
Brokerages help their clients by finding a match for the other side of the trade and extracting a fee for this service.
For example, if someone wants to buy Ethereum, a broker will find someone who wants to sell Ethereum and they will settle the trade and charge a fee on top of the price for facilitating the transaction.
Unlike exchanges, brokers determine the liquidity and not the market itself.
What Is the Difference Between a Broker and an Exchange?
There are a number of differences between cryptocurrency brokers and exchanges. Here are some of the main ones:
Brokerages tend to be more beginner-friendly as the buying and selling process is simplified.
Brokerages accept more payment methods than exchanges. On top of credit/debit cards and bank transfers, brokerages also tend to offer support for PayPal, Skrill, and Neteller.
Brokerages set the price of the assets offered on their platforms whereas the price is determined by the market on exchanges.
What are CFD brokers?
Contract for Difference (CFD) trading is where you agree to exchange the price difference of a cryptocurrency from when you first opened the position to when you closed it. In essence, CFDs are derivative products that allow users to speculate on the price of an asset, without owning the underlying asset. This enables traders to make money in both directions of price movement.
If you believe the price is going to go up, you will open a long position. If you think the price will go down, you can short the market and get paid if the price falls.
Advantages and Disadvantages of Using a Broker?
Here are some factors to consider when deciding on a platform to use:
How Do I Get Started with an Ethereum Broker?
Here’s a step-by-step guide on how to get started using a cryptocurrency broker:
Step 1: Create an Account
Step 2: Verify Your Identity
Step 3: Fund Your Account
Step 4: Use the Search Bar
Step 5: Confirm the Transaction
Step 6: Close the Open Position Any Time
The Best Ethereum Trading Platforms
There are many crypto brokers to choose from. Here’s our guide to help you choose:
eToro is a brokerage platform that offers trading services for numerous financial markets including stocks, crypto, forex, and more.
What to Look For in an Ethereum Broker?
In this section, we have listed a number of different factors to take into consideration when deciding on a platform to use.
Design and Ease of Use:
Make sure the platform is easy to navigate and user-friendly. You can use YouTube and Google to help you make up your mind.
Fees and Commissions:
It is worth doing some research to find the platform that offers the best rates for the services you require. Through this, you can get better value for your money.
Read online reviews of the website to gauge whether or not it has a good reputation. This can help you avoid wasting your time.
Cryptocurrency Pairs Available:
Before signing up, make sure the platform offers the coin you want. Fortunately, Ethereum is a very popular coin and will likely be offered on all platforms.
Check to see whether 2-factor authentication is offered by the website. This is a crucial feature that can boost the security of your account.
Stick to regulated platforms. These platforms will have to adhere to strict safety features that can protect your money.
What Are the Alternatives to Ethereum Brokers?
Apart from brokerages, you can buy Ethereum on a number of other platform types.
Peer-to-peer (P2P) exchanges
Final Thoughts on Ethereum Brokers
All in all, cryptocurrency brokerages offer a great way for newcomers to buy cryptocurrencies such as Ethereum. They offer an easy sign-up process, straightforward buying, and selling as well as many charting tools to help users make more informed decisions.
Remember not to reuse the same passwords from other websites when signing up and to activate 2-factor authentication as soon as you register. As always, only invest with money you can afford to lose.