Best Bitcoin Brokers

Cryptocurrencies are definitely growing fast, and that is why it is very important to choose a good broker. Since more people are investing in digital currencies there is the need for easy to use and reliable platforms. Bitcoin is the most popular cryptocurrency, and it is an asset that is valuable for trading. Its price above USD 20 000 in January 2018 has made it known around the world. Although, trading Bitcoin BTC is quite a complex thing.

Below, we will try to cover the most important things that you should know about Bitcoin brokers before you begin trading.

What is Bitcoin?

First things first, let’s quickly learn about Bitcoin before we talk about Bitcoin brokers. Bitcoin (BTC) is a digital currency that nobody can seize or control, to which anyone can send or receive payments instantly around the world. It is decentralized, having no single body that governs it.

Payments are processed and verified using public key cryptography and a proof of work system in Bitcoin. There is however, other cryptocurrency. Bitcoin Cash, Litecoin, Monero and Zcash are other digital currencies. Bitcoin Cash (BCH) is a fork of the Bitcoin network (occurred through hard fork) creating a separate version of Bitcoin.

Bitcoin trading has its good and bad points. The risk is high because of volatile assets. Never invest more cryptocurrency than you can afford to lose. It makes no sense to do so. Yet online trading is now easier done than ever. Therefore, you need to know both the advantages and disadvantages of the market.

How to Choose the Best Bitcoin Broker

Choosing the right Bitcoin broker requires careful research. There are plenty of Bitcoin brokers in the market that is why one has to spend much time and effort to find the best one. And, of course, in order to make a smart choice for yourself, you need to take several important factors into account.

1. Location Matters

It is also important to select the Bitcoin broker according to your location. Trading in some countries such as Japan is restricted, and so you have to check if a broker operates in the region you belong to. A broker even with best features and advanced tools will be useless if it does not cater to your country.

Check also if the broker allows you to to buy Bitcoin using your local currency. If this is not the case, you will probably have to convert your money, thus incurring additional trading fees. Moreover, before signing up, review the broker’s verification process to prevent such delays in the future.

2. Trading Fees

All Bitcoin brokers provide fees for trading. Granted you will be buying and selling Bitcoin often, it is good you choose to buy and sell with a broker that will not charge you high and unreasonable fees. Check the fees against industry standards to avoid overpaying.

3. Order Book Volume

Since a Bitcoin broker is supposed to be good, it must have many buyers and sellers on its platform. The more people use the platform for trading, the easier it is to purchase or sell Bitcoin without delays. Your orders get executed quickly at fair market price due to high order book volume.

4. Transparency

The operation of a Bitcoin broker should be open. Ensure that the broker publishes audit reports routinely and provides information on how Bitcoin is being stored by them. Moreover, a trusted broker should promote investor security while also facilitating the customer access to important financial data.

5. Deposit and Withdrawal Limits

Check the broker’s deposit and withdrawal options before making your choice. There are also some brokers that impose a maximum limit on the amount of money you can deposit or withdraw per time. They should also check the available payment methods, withdrawal fees, as well as other charges. These details allow you to avoid exceeding unnecessary costs.

The education resources provided by many top brokers are also for beginners. If you are a newcomer in the trading sector then you must go for the broker who can offer you a trading guide like tutorials to start it.

6. Security Measures

When you are looking for a Bitcoin broker, security is one of the most significant factors. Make sure that strong security measures are used to shroud your funds when using the broker. Top Bitcoin brokers often hold Bitcoin in cold wallets and therefore promote a secure place for investing.

Moreover, ensure that the broker provides security features such as two factor authentication (2FA), identity verification, and risk warnings. These are additional safeguards to the trading account.

Cryptocurrency scams and thefts are very common, therefore always do proper research before selecting the broker. If you take some time to verify that security measures of company reputation are in place, you won’t lose money.

However, selecting the right Bitcoin broker is a time consuming job. Check the location and fees associated with it, trading volume, transparency, deposit and withdrawal limits, and security features. You can surely do proper research to get the safe and reliable platform where you can easily trade your Bitcoin.

Advantages of Trading Bitcoin

1. Diversify Your Investments

This may be a good thing to diversify your portfolio investment in Bitcoin. It’s volatile at the market, but it can also bring quick gain opportunities. Volatility even gives a chance for recovery during the price drops. Though, you ought to always assess risks and only spend what you can afford to lose.

2. Growing Popularity

More demand results from the popularity of Bitcoin. Because supply is finite, prices might increase as demand for it rises. In Switzerland, people can purchase Bitcoin at railway stations and there are over 4,000 international Bitcoin ATMs. Cryptocurrency can also be bought in France at tobacco shops.

3. Institutional Interest

The crypto market is still coming but institutions are beginning to invest into it. The owner of the New York Stock Exchange just launched a Bitcoin solution called Bakkt with the support of major companies including Starbucks and Microsoft. Experts said this could entice more institutional investors.

4. Consider the Risks

Potential risk and losses are involved in Bitcoin trading. A detailed guide or professional help comes in handy before trading. You can use trading signals which are from different platforms, by use of expert advice or algorithms.

Disadvantages of Bitcoin Trading

1. Limited Historical Data

Most other cryptocurrencies have only little historical data, while Bitcoin has been there for some time. It’s hard to track trends, support and resistance levels, and hence this makes technical analysis difficult. As there is not much of a past history, retail investors trying to make different trades may not be entirely successful even with different kinds of trading tools.

2. High Volatility

Due to the fact that Bitcoin’s price changes rapidly, high risks occur especially when it comes to margin trading. It’s a real possibility that you’ll lose money. Due to this, some countries, such as Japan, wish to outlaw margin trading to safeguard investors.

3. Lack of Regulation

Cryptocurrencies have still not been yet regulated by governments. Due to this uncertainty, big investors do not know how Bitcoin and other digital assets will be treated legally and so do not want to come any closer to it.

How to Buy Bitcoin

First of all, buying Bitcoin is easy and many options are at your disposal. For more information, you can refer to our detailed guide. Here are some common ways to buy and sell Bitcoin:

Online payment platforms like PayPal and Skrill
Bank transfer or credit/debit card cryptocurrency exchanges.
Cash transactions

How to Day Trade Bitcoin

Buying and selling Bitcoin within the same day is day trading. This appears on other trading platforms and demands some skills and some knowledge.

Technical analysis, as well as more advanced strategies, are used by experienced traders for timing their trades. There are many famous fashion brands, so even beginners will find it difficult without proper experience.

Key Traits of a Day Trader:

Sufficient Capital: With sufficient funds deals can be taken on the price movements.
Knowledge & Experience: Technical analysis and the use of trading tools is something that has to be fully grasped.
Strong Strategy: Arbitrage and swing trading are methods traders use to gain an edge.

Conclusion

So, when choosing a Bitcoin broker, you should choose what suits you best. Prior to deciding, read the detailed and unbiased review of trading platforms. You should also consider the important things like whether the platform has everything you need for a smooth, secure, and efficient Bitcoin trading.

FAQs

Can I get rich by trading Bitcoin?

Bitcoin prices change a lot. You can make or lose big profits. Only invest money that you can afford to lose and don’t expect to get rich overnight.

How do I pick a Bitcoin broker?

It is worth looking at the fees, cryptocurrencies available, the security, its ease of use, and the copy trading or advanced chart features. Select what you feel is best for you.

Are Bitcoin brokers safe?

Some are safe, but not all. Avoid little known brokers and go for a well known, regulated broker such as Coinbase or eToro. Before you trust a broker with your money, always check out the security and the legal status of the broker.