Bitcoin (BTC) is no longer the mysterious digital currency it was ten years ago. It has gained recognition and acceptance as a crypto asset. Bitcoin brokers have been at the heart of Bitcoin's growing popularity, helping people trade various BTC derivative products by speculating on its price. BTC brokers provide a good opportunity for traders to benefit from the price volatility offered by Bitcoin.
Choosing the right trading platform to trade Bitcoin is crucial but can be difficult for new traders. This article will discuss some of the best Bitcoin brokers in 2021.
Our Top Picks of the Best Bitcoin Brokers
The cost of trading Bitcoin, the kind of customer support offered, and Bitcoin trading products are some of the factors to be considered when selecting a trading platform. Our selection of the best Bitcoin brokers is provided below along with their features and benefits that will help new traders to select the best option for trading.
What Is the Purpose of a Bitcoin Broker?
A Bitcoin broker is a financial services provider that offers traders a platform for trading BTC products. These platforms provide various products that allow traders to speculate on BTC price. The products include Bitcoin options, Bitcoin futures and Bitcoin CFDs. Bitcoin brokers act as mediators allowing traders to speculate on price movements. They usually undergo stricter scrutiny and regulation as they also handle other FIAT trading products.
To be able to trade the Bitcoin derivatives on a broker platform, traders are required to open a trading account. The registration process is quite simple.
Some of the documents needed as part of a proof of identity requirement include a national ID or passport or utility bills that show proof of residency. Bitcoin brokers are required to collect the proof of identity documents as part of the Know Your Customer (KYC) standard. Once proof of identity documents are approved, and an account opened, a trader must deposit some money in the trading account.
It is crucial to only trade with regulated online platforms to ensure the security of shared data, bank account details and invested capital. Similarly, traders should always refrain from trading Bitcoin with unregulated brokers even if they purport to offer the best deals.
Benefits of Trading With a Broker
Trading with the best Bitcoin brokers is a sure way of enjoying the benefits of high liquidity. High liquidity ensures buying and selling is done at the desired price points. Likewise, it guarantees low spreads, thus ensuring optimum profits on trades.
While the Bitcoin derivatives products' prices might look the same on all Bitcoin broker platforms, it is important to settle on a trading platform offering lower spreads for optimum returns on trades.
Access to leverage is another reason to trade with Bitcoin brokers. With leverage, traders only have to deposit a small amount to be able to buy and sell the various BTC products on offer. With a leverage of as much as 1:10, a trader can buy ten times more than the actual capital could buy or sell.
Some platforms are highly reputable in the business when it comes to offering financial services. Such brokers enjoy the trust of millions of users on being in operation for more than a decade. Similarly, people continue to leverage their services, given the secure trading environment, they always guarantee.
Customer support is another important aspect to consider, as you never know when something unexpected will happen. The best Bitcoin brokers are known for swift customer support, 24/7, which ensures that traders are always taking advantage of opportunities that crop up in the burgeoning cryptocurrency marketplace.
Access to trading tools, research and education materials is another reason to consider brokers. Such tools come in handy when carrying out market analysis in pursuit of trading opportunities. In addition to trading tools, some platforms support social trading, whereby traders can interact with one another on the platform. In some cases, copy trading prevails, whereby traders can copy other traders' trades and execute them in their accounts.
How to Find the Best Bitcoin Brokers
Check Regulations and Security of Bitcoin Brokers
Not becoming a victim of the several crypto scams should be the driving force to trading with a regulated and secure Bitcoin broker. The idea is to ensure that the broker is regulated by a reputable body and leverages advanced security features to protect customers' data and invested capital.
Check Fees of Bitcoin Brokers
The trading fees for buying and selling bitcoins should be within reason and not exorbitant. While fees can change over time, the best Bitcoin brokers are known to charge competitive fees. It is essential to ensure that the selected platform clarifies the entire fee structure in advance and all the other risks involved.
Additional Features of Bitcoin Brokers
Reputed Bitcoin brokers offer the best trading environment supported by user-friendly platforms that are compatible with various gadgets. The trading platform should be equipped to perform technical analysis and fundamental analysis as well as execute trades and access bitcoin-related news. A demo account for trading risk-free and 24/7 customer support should come in handy.
Is a Bitcoin Broker Trustworthy?
Reputable and regulated brokers are known for their outstanding trading experience. Such trading platforms are trustworthy and guarantee traders' peace of mind and ensure traders' capital and holdings are protected all the time.
The best Bitcoin brokers operate under the regulatory umbrella of different financial authorities. For instance, brokers domiciled in Cyprus are regulated by CYSEC, the FCA regulates the UK Bitcoin brokers and ASIC is the regulatory body for Australia's brokers.
A broker that has been operational for a long-time would often translate to good financial service; which is the reason why people continue using it.
In addition to regulation and longevity, security is paramount. A trustworthy broker should leverage advanced security features to protect the client's data and holdings. A reputed trading platform should boast of a secure protocol to ensure web traffic is encrypted and secured. Two-Factor Authentication (2FA) should also come in handy to ensure secure logins.
Reputed brokers are known for robust security designed to protect people's data and invested capital. Likewise, they offer two-factor authentications to safeguard traders' trading accounts in addition to providing a variety of Bitcoin trading pairs.
In a field where one is likely to be spoilt for choice, reputed Bitcoin brokers will always be regulated by the biggest regulatory agencies, leverage advanced security technologies, charge the lowest fees and offer round the clock customer support. A Bitcoin broker that has been in business for more than ten years would speak volumes on trust.
Frequently Asked Questions
Bitcoin brokers offer derivative products that traders use to speculate on BTC price. These include Bitcoin options, Bitcoin futures and Bitcoin CFDs.
A BTC exchange offers a platform to buy and own Bitcoin. On the other hand, Bitcoin brokers act as mediators providing a platform for speculating on Bitcoin price movements.
Bitcoin brokers offer a variety of options such as debit, credit or even direct bank transfers. Similarly, withdrawals requests can also be placed at any time.
The best Bitcoin broker is one that adheres to the best industry practices. It should ensure that traders data and capital is protected at all costs.
Yes. Most brokers allow a user to practise trading using a demo account.
Bitcoin brokers make money by charging commissions whenever traders buy or sell Bitcoin products in the market. Some brokers also charge fees on deposits and withdrawals.
Bitcoin brokers support bank transfers, electronic payments, credit card payments etc.
A trustworthy Bitcoin broker will usually have a certification from some of the biggest regulatory bodies and financial agencies validating the kind of service they offer.