Cryptocurrency is moving sporadically and staking its claim in the finance sector, even if some people still see it as a fluke. One of the reasons why the adoption rate has skyrocketed over the last few years is the ability of traders to earn massive amounts of returns on their investments. A typical example was Bitcoin’s huge move to clock $20,000 at the end of 2017, despite the relatively unknown coin starting the year trading around $1,000. In this article, we will be looking at factors to consider before choosing a crypto broker.
What are crypto brokers?
As sweet as holding and trading cryptocurrency is, traders have often employed the services of various brokers to actualize their dreams of making profits in the market. Crypto brokers or exchanges are usually platforms or websites that allow traders to buy or sell crypto for trading or storing. Crypto brokers vary in the services they offer to their clients in aspects such as deposits, withdrawals, and fees charged for transactions carried out on their platforms.
Factors to consider before choosing a crypto broker
One of the most important decisions every budding trader has undergone is choosing the right crypto platform to carry out their activities on. Making a wrong decision might eventually discourage a trader, leading to dire consequences and ugly incidents. To pick out a perfect crypto broker, a trader would need to know what kind of service they want and if the said crypto broker offers the said services. To pick out the best crypto brokers, below are some of the most important factors to consider:
Security
Every crypto broker has one form of security that distinguishes it from the other, and this is the first basis of choosing the right crypto broker to trade with. One crucial aspect traders need to look out for is if the broker allows them to secure their accounts with 2 Factor Authentication settings. Asides from the usage of 2FA, most crypto brokers store their client’s assets in cold storage against theft and hacks, while others choose to use custodial services.
User Interface
Trading digital assets have never been easy as most traders need to undergo various training before entering into a platform to trade. New traders would need a good crypto broker with a friendly user interface to kickstart their careers. Aside from having an attractive user interface, a crypto broker would ensure that its platform is devoid of any shortcomings in terms of stability. Most often than not, crypto platforms crumble under pressure during intense periods of market volatility as traders rush in to buy and sell their holdings.
Customer support
Every trader at a point in their career has needed help while trading. Be it the most trivial things or the most complex things, they have at one point, or another called on the customer support of their crypto broker for help. Customer support is the life wire of every crypto broker as their speed in meeting their trader’s complaints would determine the number of traders that will continue to use their services. Good Customer support would be accessible to complaints on a 24/7 basis while opening lines for support via various means and in multiple languages.
Transparent Commission and Charges
This is another major factor to consider before choosing a broker in the crypto sector. A lot of upcoming brokers, under the guise of good services, charge some hidden fees for transactions and commissions, thereby robbing most of their users in the process. A good broker would spell out its fees and make them competitive with that of popular and highly rated brokers.
Deposit and Withdrawal methods
It is imperative to note that even a good broker would seek ways to satisfy its clients regarding deposits and withdrawals. Having an easy and navigable deposit and withdrawal method is the first step to making their client’s trading process smoother. A good broker should allow users to use diverse options such as bank transfer, Paypal, Skrill, and other methods to deposit and withdraw funds on its platform.
In conclusion, Even though the factors mentioned above are some of the most critical factors to look out for in choosing a crypto broker, it is safe for anyone who wants to choose a broker to carry out intense research. This is because the market is evolving, and new technologies are making their way into the market.
