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Compare the Best Crypto Brokers of 2021

Learn more about the role of a crypto broker and how they can help you make smart and safe investments into bitcoins and other virtual currencies. Get started.

Learn more about buying and selling cryptocurrency through a broker today. We make it easy to compare the top crypto brokers in the industry so that you can get the most out of your investment.  

Investing in Cryptocurrency

Cryptocurrencies, such as Bitcoin, emerged in the wake of the collapse of the international financial market in 2008. They were developed as an alternative to currency controlled by national central banks. Since then, the value of these currencies has soared. More and more vendors accept them as valid forms of payment, and concerns about the legality of virtual currency have eased. 

This exciting new investment opportunity has taken the financial industry by storm. It has incredible upside potential, and more and more people feel comfortable investing in digital currency. But purchasing any financial asset can be risky, especially if you are new to investing. That’s where a quality crypto broker can help. We’ve made it easy to compare all of the most popular brokers in the industry so that you can buy crypto with confidence. If you are looking for the best Bitcoin brokers or other virtual currency dealers, check out our in-depth comparisons and reviews. 

Why Use a Crypto Broker? 

You might be wondering if now is the time to jump into the thrilling world of virtual currency, but you might not be sure how to get started. If you are new to the world of cryptocurrency investing, you might be concerned about the volatility in this particular market.

Overall, the cryptocurrency value has trended rapidly upward over the past decade. But the value of each currency has fluctuated wildly. This makes it potentially risky as a short-term investment. Additionally, there are many forms of virtual currency, and some are much safer than others. Bitcoin remains the most popular, but alternatives like Litecoin and Ethereum are becoming important players in virtual currency. 

The right crypto broker can help you navigate cryptocurrency investing. They may also reduce your risk and make smarter investments. We’ve taken a look at the industry’s best and most popular online cryptocurrency brokers. Make an informed choice for your broker.

The Role of a Crypto Broker 

A cryptocurrency broker might be the right choice for you if you are just getting started. Crypto brokers help investors buy and sell cryptocurrencies and derivative products. They can also help you identify solid investment opportunities that meet your risk profile at a fair price. 

They may act as a facilitator between the buyer and the cryptocurrency exchange or you may buy cryptocurrencies directly from the broker at a set price. It is always important to do your due diligence before making any investment. Still, a crypto broker can provide you with the support you need to get started with cryptocurrency investing. 

What Is the Difference Between a Cryptocurrency Broker and a Cryptocurrency Exchange?

If you are unfamiliar with cryptocurrency investing, it can be easy to confuse the two, especially since many online investing platforms offer both broker services and their own exchange. But these terms refer to very different parts of cryptocurrency investing.  

A cryptocurrency exchange is similar to a stock exchange in that it is a trading platform where investors buy and sell directly from other investors. 

A crypto broker is more similar to a stockbroker in that brokers help investors buy and sell crypto. Investors can buy directly from the broker at a set price, or the crypto broker can help the investor buy from an exchange. 

Crypto brokers are ideal for people who are getting started in crypto investing or prefer a more convenient way to invest. They may also provide more liquidity than cryptocurrency exchanges with a low trading volume or a small pool of buyers. 

However, crypto brokers generally charge higher fees for their services, making them less attractive to experienced and active investors. 

How Do Crypto Brokers Make a Profit? 

Crypto brokers make money by charging fees and commissions on each trade. These fees are generally higher than the fees that the exchange themselves charge. However, that cost may be mitigated if you choose to make a larger investment through one broker instead of many smaller investments through multiple exchanges. Spread prices may also be tighter. 

Benefits of Using a Crypto Broker 

There are many advantages to using a cryptocurrency broker when you are considering investing. Crypto brokers can provide more support than the exchanges. If something goes wrong with your purchase, you have someone to reach out to help you troubleshoot the issue. They also tend to be more secure and less vulnerable to hackers. 

Crypto brokers also make the process of purchasing cryptocurrency much easier. They may offer a range of payment options that the exchanges aren’t able to. They may have developed a user-friendly trading interface to make it easy to order your cryptocurrency.

They may also be able to help you identify legitimate and high-quality investments, so you don’t have to worry about being falling victim to a scam. Though cryptocurrency is still a relatively new investment opportunity, popular names like Robinhood and TD Ameritrade have entered the market. 

Cons of Using a Crypto Broker

Cryptocurrency brokers need to charge for their services. These fees and commissions can be quite costly, even cost-prohibitive, depending on your investment and short-term goals. However, some brokers like Robinhood, charge minimal or no fees at all. It is important to be aware of potential fees before you invest. 

Who Should Use a Crypto Broker?

There are many reasons you may decide to use a crypto broker to invest in cryptocurrencies. If you are new to cryptocurrency, you may choose a broker to help you get started. Or you may choose a broker for the convenience of paying for your digital currency, any way you choose. This can take the hassle out of investing in bitcoins and other currencies. 

Crypto brokers are also great for people who are interested in making a smaller investment into digital currency, especially as prices rise. As Bitcoins prices soar into the tens of thousands, you might wish to invest in a smaller product. 

They also give less risk-averse investors access to a wide range of derivative investment products. These products have the potential to provide even greater returns. No matter how you choose to invest in cryptocurrency, a crypto broker can make it more accessible and convenient. 

Crypto Brokers and Security 

Cryptocurrency is a relatively new investment, and exchanges are not subject to stringent federal regulations as other financial assets. Even the largest platforms may be vulnerable to hackers. BitGrail, Coincheck, and many others have fallen victim to hackers. Some of the money was never recovered. Using a broker as a third-party intermediary can minimize that risk substantially, allowing you to invest in Bitcoin and altcoins safely. 

Crypto Brokers and Cryptocurrency Futures

Some Bitcoin brokers and other virtual currency brokers only allow you to trade Bitcoin futures. Futures allow you to speculate on the direction crypto prices are headed, but these companies may not allow you to hold any actual cryptocurrencies. This is why it is essential to thoroughly research all of your options and understand the investments you are making. 

How to Choose the Right Crypto Broker 

When you are choosing a Bitcoin broker, there are several things to keep in mind. First, take the time to research the company you are interested in working with—scammers take advantage of the fact that this investment is not as thoroughly regulated as others. That is why it is important to make sure you are working with a company regulated by a trusted authority. This could be the SEC or other government organization.

Second, make sure you understand what you are purchasing. Some brokers, such as Coinbase allow you to buy cryptocurrency directly. Others only offer futures contracts. Either one may be the right choice for you, but it is important to understand your investment.

Third, learn more about the fees associated with each trade, so you know you are getting the best service at the best price. Some brokers, such as Robinhood, offer trade without fees, while others may be quite expensive. 

Fourth, learn more about their trading platform and customer service platform. You want to be able to buy and sell your Bitcoin investment quickly and easily.  

Get Started with the Right Crypto Broker Today

As with any financial investment, it is important to understand how your investment works to choose the best strategy for you. We make it easy for you to compare the more popular brokers in the industry, so you can quickly identify the best one for you. 

If you are interested in learning more about your options regarding choosing the best broker, check out our in-depth comparisons. We reviewed the most popular online cryptocurrency brokers, so you have the information you need to make a smart choice. Learn more about the pros and cons of each company so you can find one that fits your investing needs.

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