Best Cryptocurrency Brokers 2023

Cryptocurrency brokerages are the go-to way for engaging in cryptocurrency purchases or trading for the very first time. Finding the best cryptocurrency broker to buy Bitcoin, Ethereum, and other cryptocurrencies is essential. There are several reasons for this, all of which will be explored in this article. If you are planning to invest in cryptocurrency or you are just getting started with cryptocurrency trading, knowing which brokerage to pick can be an essential part of your overall experience within the industry. Keep reading to find out more about the best cryptocurrency brokers.

Best Cryptocurrency Brokers in 2023

There are several factors to consider when picking a cryptocurrency brokerage so to make things a bit easier on you, we've hand-picked some of the best brokers where you can get started with cryptocurrency trading.

What Is a Cryptocurrency Broker?

A cryptocurrency broker, otherwise referred to as a cryptocurrency brokerage, is a company that connects you with the cryptocurrency market. Brokerages are essentially middlemen standing between you and the cryptocurrency exchange. The broker buys up a large number of specific cryptocurrency tokens and offers them on its platform.

How Do Cryptocurrency Brokerages Work?

You can think of brokerages as intermediaries that are on the opposite side of any trade. The brokerages can be a lot more flexible with regard to the settlement of assets, a possible reason why they might be preferred over exchanges. Bitcoin brokers, allow traders to lock in a trade at a specific price point, even if they are unable to pay for the asset at that point in time. This would appeal to traders who want to trade an asset instantly. Unlike in exchanges, liquidity is determined by the brokerage and not the traders within the market, meaning that as long as a brokerage accepts an order, the trader can execute a transaction.

What’s the Difference Between a Broker and an Exchange?

There are several key differences between cryptocurrency brokerages and cryptocurrency exchanges. Whereas a broker is a centralized individual or business making trades on behalf of its users, an exchange is a mediated arena for users to make trades between themselves via an order book or ledger.

Broker

• Controlled by one entity, whether that is a business or even an individual

• Usually, charge commissions for the trades made on their platform

• Trading via prices set by the broker

• A more traditional avenue for financial trades

Exchange

• Still a business, but this time with a smaller degree of control over the trades on the platform

• Prices are set by the buyers and sellers, with the transactions mediated by the exchange

• Usually no commission fees, but instead charge maker/taker fees (these charges a fee for removing liquidity from the platform’s pool)

• Usually offer a better range of cryptocurrencies, but perhaps can be less regulated

How Do I Get Started with a Cryptocurrency Broker?

Getting started with a cryptocurrency brokerage is a straightforward process.

Step 1: Open a Cryptocurrency Brokerage Account

Step 2: Open the WebApp or Download the Mobile Application

Step 3: Make Your Initial Deposit

Step 4: Buy or Trade Cryptocurrencies

The Best Cryptocurrency Trading Platforms

There are many cryptocurrency brokerages and other platforms out there. Many of them will provide you with a cryptocurrency wallet, multiple methods of depositing FIAT currency, as well as a multitude of cryptocurrencies to invest in or buy. Let’s go over some cryptocurrency brokers below.

For Beginners

When it comes to beginners, cryptocurrency brokerages would ideally provide a simple user interface as well as educational content.

For Day Traders (eToro, Kraken, Bittrex)

There are cryptocurrency brokerages specifically tailored towards day traders. Here are the best ones out there:

What To Look For in a Cryptocurrency Broker?

Here are some features to look for in a brokerage:

Fee Charges:

• There is a range of charges you can be subject to so you need to do your due diligence to get the best deal possible. For example, some of the fees you may face are commissions, holding fees, deposit/withdrawal fees, and bad spreads.

Variety of Trading Pairs:

• While a good broker may offer a wide range of cryptocurrencies to trade with, it is also important they offer a good range of pairs to give you the most flexibility possible. More trading pairs mean you could trade directly between more cryptocurrencies, instead of needing to make additional transactions (incurring extra fees) to get from one coin to another.

Speed and Ease of Use:

• When you are buying crypto you want transactions to be as simple to make as possible, and for them to be executed quickly and efficiently. Popular broker eToro for example has a friendly interface and good transaction speeds.

Trust and Security:

• Arguably one of the most important elements of trading, your broker must be trustworthy and have good security measures in place. Look out for features like 2-factor authentication, loss insurance, and KYC regulations to improve your level of protection.

Cross-device Compatibility:

• Most platforms now offer services on mobile, web, and desktop. Not only is this convenient for you, but also it is a sign of a good broker. For example, eToro supports all of these devices.

Should I Use Brokers to Buy and Sell Cryptocurrency?

The main advantage that you have whenever you use cryptocurrency brokerages to buy and sell cryptocurrencies is that they will almost always be available for you. This allows you the convenience of always having crypto to buy and having a location to sell them in an instant.

How Else Can I Buy and Trade Cryptocurrency?

Brokers offer you one of the simplest ways to trade Bitcoin. They are simple to use and do not require you to have an external wallet – which can be confusing to beginners. Here are some of the other options available to you:

Crypto Exchange:

• Crypto exchanges provide slightly lower fees than most brokerages but can be more complicated for beginners. Some of the top, beginner-friendly exchanges are Binance and Coinbase.

Decentralized Exchange (DEX):

• These operate in the same way as a traditional exchange, but are unregulated and are not owned/operated by a singular entity.

P2P Services:

• Peer-to-peer exchanges don't tend to charge fees as they have no middle man; it's best to think of this as swapping rather than trading.

Final Thoughts on Cryptocurrency Brokers

Crypto brokers are a great way to trade Bitcoin and other cryptocurrencies. They are simple and easy to use and offer a good range of products that other options do not. The best broker for you depends on what you want to use it for, but eToro is a great all-around platform so we would recommend this. We advise not reusing the same passwords with the same websites and using 2-factor authentication to best protect your account from online hackers.

What profi say about Best Cryptocurrency Brokers and crypto investing: