Since 2017, cryptocurrencies have stepped into the limelight, especially the first crypto Bitcoin, and the internet doesn’t seem to be dying down anytime soon. There are more than 5,000 cryptocurrencies in the market today and each of them has different potential.
Thousands of people all over the world are interested in investing in cryptocurrencies due to which the demand for crypto brokers have gone up. You will come across numerous crypto brokers providing their services in the market, but you will also come across stories of crypto brokerage scams. Not every crypto broker can be trusted as a number of them have turned out to be scams.
Even if they are not, they don’t have appropriate security measures or are lacking in some areas, which can lead to plenty of problems for crypto traders. Therefore, it is essential that you choose a crypto broker wisely. How can you do that? Look for the following features when you are searching for a cryptocurrency broker to get started:
Solid financial backing
When you want to trade, you certainly don’t want to end up with a broker whose asset base is the same as your investment. A good crypto broker is one that has a solid financial backing, which means they need to have a large capital base of their own. This gives you the assurance that your cryptocurrency is safe and the broker will not go bankrupt.
Great trading platform
Similar to forex trading, crypto trading demands that a broker’s trading platform should be easy to use and boasts advanced features. The trading platform should enable crypto traders to manage their accounts easily, perform technical analysis, execute trades in the market, and have access to the latest crypto news. Since cryptocurrency is a lot more volatile than any other market, the trading platform should be able to respond accordingly.
Credibility, reliability and experience
As compared to other markets, the crypto market is new, but this doesn’t mean that every broker you find is inexperienced. There are credible and experienced crypto brokers that you can use. They have the right credentials, which include licenses from renowned and reputable regulatory bodies and they have professionals in their team. You can find reviews on the broker and get insight into their services to determine if they are the right fit for you or not.
Customer service of crypto brokers
Crypto trading can be done 24/7, which means you can have a problem or a question at any time during the day. Therefore, it is best to look for a broker that’s available round the clock. They should have a competent support team that can answer questions and queries in a prompt and professional manner, regardless of what time zone you are in.
Commissions and fees
Last, but not the least, you also need to check the commissions and other fees that are charged by crypto brokers. Make sure the broker clarifies what kind of fees they charge and any other risks that are involved so you can make your decision accordingly.
While you may come across some reliable cryptocurrency brokers who have just started out recently, they are very few and far. In most cases, if a cryptocurrency broker has been operational for a long time, chances are that it has been doing something right and people continue to rely on it after such a long period. Does this mean that every broker who has longevity on their side will be good? Absolutely not! However, being in an industry for a long period definitely helps.
Sign up Process
You may be surprised to find out that sign up processes of crypto brokers tell a lot about how they are. Experienced people in this industry can immediately identify whether a broker is good or not simply by looking at its sign up process.
You may find some difficulty with this in the beginning. However, as time passes, you will have ab easier time separating the good brokers from the bad ones. A clear telltale sign that you will commonly find in some sign-up processes is a large amount of depositing fees. In most cases, cryptocurrency brokers that ask their clients to deposit a large amount of money in order to sign up are most likely scamming them. This becomes clearer when you look at the fact that almost all of the good cryptocurrency brokers these days take little to no money from their potential users. Go for these kinds of brokers instead of crypto brokers that ask you for large sums of money.
Also, look check whether or not the process is secure. You can do this by looking at the top left of your search bar and checking if there is an SSL certificate. This certificate guarantees that a site is safe and will not leak your information to hackers.
While customer service is well and good, technical support is entirely different. Most organizations tend to have technical support teams in order to help customers with problems that require help from professionals in that particular area. A large number of cryptocurrency brokers do not have any kind of technical support team whatsoever. They only rely upon their customer service representatives to get by, thinking that they will be more than enough to do the job.
In reality, however, things are quite different. You simply can run a crypto brokering service without providing people with a top of the line technical support team. More importantly, the team should consist of people with years and years of experience in the crypto industry. They should know all the ins and outs of how things work and are able to provide you with immediate solutions in a matter of minutes. Finding whether or not a crypto broker has a good technical support team can take a fair bit of your time. In most cases, it requires a great deal of trial and error.
No crypto broker is complete without a good online platform for its users. As a matter of fact, it would even be fair to say that brokers that do not have online platforms should not be considered as brokers. These platforms are necessary for a variety of different reasons. First off, they provide users with a great deal of ease when it comes to cryptocurrency trading. How do they do that? Well, a well-designed platform contains a plethora of different options for people to choose from. These options are only there to make things simpler and more convenient for beginners and experienced cryptocurrency traders.
A broker simply cannot do without these platforms, especially if they are starting out in their cryptocurrency journey. Make sure that the trader that you have chosen has an up to date online platform. Quite a lot of times brokers tend to develop these forums and forget them after launching it. They do not even bother to add updates to make sure that the platform has all the features in line with the recent comings and goings of cryptocurrency trading. Ask around and talk to experts to find out which broker provides the most effective platform.
Crypto brokers are not worth your time if they are not offering you any kind of convenience. You might as well trade by yourself rather than use an inconvenient cryptocurrency broker. As the landscape is evolving, things in this industry are changing at a rapid pace. You need to stay updated with a wide variety of things to make the right decisions at the right time. It will only be possible if your broker offers you features that add convenience to your overall experience.
Convenience can come in a variety of different ways. First off, the online platform that your broker offers should be compatible with a variety of different gadgets. You should be able to access your account and look at all of your trade and other crypto-related activities with the help of your phone or tablet. Easy access allows you to trade on the go while making sure that you do not miss out on anything important. Other than that, the broker should use easy to understand language. This will especially help people who do not know crypto trading lingo.
One simply cannot do without a good demo trading option these days. Cryptocurrency trading has quite a lot of complicated scenarios involved in it. If you are just starting out in this field, you will not know how to make decisions at the right time. What will end up because of this is that you will end up losing a considerable amount of money.
Demo trading will save you from these pitfalls, it will teach you real-world trading while making sure that your decisions do not impact your finances. Therefore, you will not earn or lose money with this option. However, you will learn several things about how crypto trading is done.