How to select Crypto Broker?

Over the years the cryptocurrency trading changed from a niche thing limited only for the initiated into the globally popular asset. With its growing popularity came the need for divergent tools and trading options. And that’s where CFDs (contracts for difference) turn out to be practical. For decades the CfDs were the favourite trading instruments no matter the product: from soybeans to gold and cryptocurrencies as we see today.

How CFDs fit cryptocurrency trading

CFDs are the type of future contracts where you don’t need to deal with the asset you want to trade with. You don’t need to go out and search to buy coins in a crypto exchange. It would be time-consuming.  You don’t need to purchase bitcoin with your fiat money to start trading. Contracts for difference enable you to predict the value of the cryptocurrency, and if your prediction turns out to be right, you make profits. With an exponential interest in crypto assets, these days many brokerage companies are offering CDFs to trade digital assets. This implies that if you intend to trade crypto assets, you will easily find the crypto broker with good trading terms and many opportunities.

How to find a good crypto broker?

There are many websites and trading platforms to choose from. The competition is enormous, and they are giving their best to enhance the trading experience on their platforms and to offer the most trading instruments as possible. Going for the excellent and reliable crypto broker at the beginning of your trading adventure is a critical point. So when picking the right one, follow the criteria we are writing about within the next lines.

Always choose a regulated crypto broker

The concurrence is significant, and among all those trading companies and brokers, there are many those without the license. Before you go for a particular crypto broker, be sure if it complies with the regulations. If you are in Europe, the CySEC licence is required from the broker to be regulated. In Australia, it operates the ASIC, and when it comes to the UK, it’s FCA. When the broker is working under the license, it shields you from any kinds of unethical activity that may occur during the trading.

Look for the best transaction fees

Yes, fees and commission are annoying, but there is no way to escape them since that’s the way all these brokerage companies make money. Every crypto broker has to have at least two types of fees. The first is called the spread, which is the difference between the bid and the asking price. The second fee is an overnight fee, and it is charged when you hold an overnight position. Therefore, if you intend to keep the position over several days or even months, the best option is to find a crypto broker that doesn’t charge overnight fees. Crypto broker lists are good sources of information about brokers and their offerings. Be sure to check them out as well as broker reviews prior to choosing the broker.

Trading platforms

For the optimal trading experience, the trading platform your crypto broker offers you need to be user-friendly, simple to navigate and to have tools for fundamental and technical analysis. Some platforms even enable you to access social trading. This type of trading is also called copy trading, where you can get the most prominent trading insights from the experienced and the most successful crypto traders.

Training resources and demo account

Go for a crypto broker that would give you the opportunity of trading without risking real money. This is viable through a crypto trading platform that offers to trade on a demo account. With a crypto trading demo account you can simulate the trading and to check out if the trading at the specific trader suits you or you will trade cryptocurrency elsewhere. Trading in this way is excellent for understanding the CFDs trading. It’s also good for seeing its perks and drawbacks and finally to see if this kind of trading fits you.

Customer support

Before choosing the platform as a broker, check out their customer support to see if they are agile and efficient and if they respond to your queries in your native language. The right answer at the right moment can spare you a lot of adversities.

Final Thoughts

When you are just entering the crypto market, it may seem to you that it’s too overwhelming and that it’s like big muddy water full of crocodiles. The truth is somewhere in the middle. A bunch of scammers are operating in today’s crypto market, but there are still more good crypto brokers that will offer you trading experience with excellent trading conditions and opportunities to make a profit from crypto trading.

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