It would be difficult to think of a way to talk about CRYPTOCURRENCY BROKER without talking about exchanges offering buyers and sellers a way to connect with each other for a fee. This alone can give you a glimpse of what a broker is. To understand what a broker means, let us consider the context in which the term is used. In the financial market brokers are mostly trained persons that facilitate buying and selling of financial securities. Brokers exist to provide a convenient way for buyers and sellers to exchange assets and other valuables at fair fixed prices. Some brokers provide services like research and financial advice for transactions for their clients. It is a common mistake to confuse brokers with agents. Agents are different from brokers by the way they operate. While agents represent persons in a transaction working like a proxy, brokers only ensure that the seller sells and the buyer buys.
Cryptocurrency exchanges are the major providers of brokerage service in the cryptocurrency space. The activities of these exchanges centers on making the exchange of any kind of cryptocurrency or assets possible by removing or minimizing all barriers to such transactions like geography and time. Three kinds of exchange exist out there with these. We can understand these exchanges by the kind of services they provide although some exchanges overlap in the services they provide. Trading exchanges provide a platform for buyers meet and take a fee for transactions. Direct trading platforms leave users to set ask and bid price. Brokers allow users buy cryptocurrency at a fixed price. Most cryptocurrency exchanges provide services not limited exclusively to anyone mentioned above. In this article, we would consider cryptocurrency exchanges as providers of brokerage services.
If you decide to start trading cryptocurrencies, it is important to keep some things in mind, as these would help you make the best decisions. First, you would have to look at what other users have to say about the exchange on specific forums like Bitcointalk and the cryptocurrency forum on Reddit. You would not like to spend your hard-earned money buying somewhere that doesn’t offer you the best. This is why you have to understand fees. The payment methods supported by the exchange. Consider exchanges that provide multiple payment options. This kind of exchanges gives a more user-friendly experience. One of the most important things to note about cryptocurrencies is that they are often the target of hackers and other attackers. This is why most exchanges require identity information. Some do not require these but use factor authentication to verify transactions. It is important to look at how secured an exchange is to minimize the possible risks. Coinbase is available in nearly 26 countries worldwide, countries not listed may be able to store coins and use the platform as a secure wallet.
Social trading giant Etoro and Avatrade have appeared at the top of the list of cryptocurrency brokers. Other cryptocurrency exchanges include Kraken, Binance, Bitfinix, Localbitcoins, and Bitstamp. The number of cryptocurrency brokerage services would grow in the near future as the crypto-related activities continue to increase.