A cryptocurrency broker is an online brokerage platform that allows you to buy and sell popular digital currencies such as Bitcoin, Ethereum, and Ripple. The process works the same as with a traditional stockbroker. You need to open an account, deposit funds and decide which assets you want to invest in. You then need to set the amount you wish to invest and the broker will facilitate the purchase on your behalf. If you are looking for a broker, you have come to the right place. In the following lines, we give you criteria to check before choosing your broker.
The European license is the first discriminating factor between quality brokers and brokers who are rather scrap. All financial intermediaries wishing to operate on the European continent must have an authorization issued by entities such as CONSOB or by their counterparts in other EU countries.
It is not just a bureaucratic procedure: the European license guarantees the broker’s legality and above all compliance with the various rules that have been put in place to protect those who invest. The cryptocurrency trading broker may be non-European, but it must always have a CySEC-type license to be able to offer its services in France and Europe.
If the cryptocurrency broker or intermediary before us is unable to produce licenses and authorizations, it is an illegal broker who has no legal obligation to protect your capital and your orders.
The best cryptocurrency brokers should offer reasonably rich listings. When it comes to cryptocurrencies, it’s not just Bitcoin. There are many altcoins, some of which have been thoroughly reviewed and which can be a good alternative to more well-known cryptocurrencies.
Among the best known are:
For this reason, we believe that brokers that do not only focus on the most well-known cryptocurrencies are absolutely preferable.
The list of assets other than cryptocurrencies also deserves a little note. In fact, we believe that a good portfolio should be balanced. It must also incorporate other types of investments, such as stocks, ETFs or commodity trading.
Quality brokers must also be rich in other asset classes, to allow everyone to create truly diversified portfolios.
The best cryptocurrency brokers offer the possibility of investing both through proprietary platforms and through shared platforms. Whatever the alternatives chosen by the cryptocurrency trading broker, the quality of these must be indisputable.
Trading platforms allow you to place orders and manage them, monitor and modify the portfolio, analyze charts and also perform technical analysis. They are at the center of your life as a trader and of all possible operations.
When it comes to proprietary platforms, it’s always better to touch the situation, possibly with virtual capital, to check the reliability of the platform itself. Here you can test the demo of Ava Trade, one of the brokers that exclusively offers proprietary platforms via the web.
They are very important because the costs directly affect your earning potential. We are not saying that this criterion should be the only discriminator, because between a broker that offers adequate services and a good level of security, and a broker that offers little or nothing and minimal commissions, we would always prefer the first.
What we mean by this criterion is that it is not always necessary to spend more. In fact, many brokers offer the best of services, without charging excessive commissions.