The cryptocurrency industry has been on a rollercoaster of a journey since appearing around half a decade ago.
Lacking the regulation, maturity and history of the forex markets, the crypto world is still in its infancy and all the problems that brings.
For someone new to the cryptocurrency trading scene, choosing the right cryptocurrency broker can be a difficult task. Here are the top things to consider when choosing the best cryptocurrency broker:
- Security
The security of the crypto broker is probably one of the key factors that need to be considered. There have been more crypto hacks than we could ever try to remember, so it is imperative that you choose a broker with adequate security like two-factor authentication (2FA)
2. Reputation
This is is difficult as reputations can be manipulated. But with so many newer crypto brokers out there, it is important that you DYOR – Doing your own research. Read the reviews, especially the user ones and not those of the affiliates. Also, check out the company on forums or review sites like Trust Pilot to see what real crypto traders are saying.
A simple but not definitive test is type the name of the cryptocurrency broker into Google with the word ‘scam’ or ‘legit’. You should get a better idea then.
3. Trading Conditions.
This is quite a ‘catch-all’ term, but the trading conditions really encapsulate a crypto broker. It includes:
Leverage – Leverage essentially enables traders to borrow an agreed amount of funds to make trades based on the value of their of funds being held.
Fiat exchange – Some crypto brokers have different fiat options, compatible with specific banks, and some do not. A good crypto broker like this one will have a well-priced fiat exchange too.
Assets – the more assets on offer to trade, the more opportunities there are for profit.
Fees – Fees can vary from crypto broker to crypto broker, so it is important to read the small print, make sure you understand the terms and conditions and know how much each trade will cost.
