While the first cryptocurrency was introduced in 2009, cryptocurrencies truly stepped into the limelight in 2017 when Bitcoin reached its first peak. Since then, they don’t seem to be showing any signs of slowing down. Today, you will be able to find more than 5,000 cryptocurrencies in the market with each having its own potential. There are thousands of people all across the world who want to trade these digital assets in order to tap into their benefits and this has pushed up the demand for brokers. This is because they are responsible for facilitating crypto trading.
However, one thing to bear in mind is that even though the number of these brokers has also increased exponentially, not all of them are equal. They may not offer you the same quality of services, or the same tools and offerings. Therefore, when you decide to start crypto trading, you first need to select a broker wisely. This is also because a broker plays a very important role in your overall trading experience as well as performance. So, how do you make the right choice? Some of the features to look for in a good broker are:
Solid financial backing
First things first, when you decide to start crypto trading, you don’t want a brokerage that has the same asset base as your investment. A good cryptocurrency broker is one that has solid financial backing, which means their capital should be large enough. This is an assurance that the brokerage will not go bankrupt and your investment will stay safe.
Excellent trading platform
Just like forex trading, you need a trading platform to trade cryptocurrencies and it is the responsibility of a brokerage to provide you one. Not only should this platform connect you to the crypto market, but should also boast advanced features and have a user-friendly interface. Traders should be able to manage their trading accounts easily via the platform, perform technical analysis, monitor their positions, execute their trades and also have access to the latest crypto news. As cryptocurrencies tend to be a lot more volatile than other instruments, the trading platform should also be responsive enough and not have any problems in keeping up.
Reliability, credibility, and experience
As opposed to other financial markets, the cryptocurrency market is a relatively new one, but this doesn’t mean that every crypto broker is inexperienced. You can find experienced and reliable crypto brokers who have been around from the beginning and you can trust their services. They boast the right credentials, which means that they have licenses from reputable and renowned regulatory bodies and they also have professionals that are part of their team. Before choosing a brokerage, you can check out their reviews to get insight into their services and determine if they are a suitable option for you or not.
The crypto market operates round-the-clock, which means that you can have a question or problem at any time during the day. Therefore, you need a brokerage that can provide you customer support 24/7. They should have a qualified and competent customer support team that’s able to answer your queries and questions in a professional and prompt manner, no matter what time zone you may be in.
Fees and commissions
It is also essential for you to check out the commissions and other trading fees that you will be charged by a broker. No, you cannot make your decision without taking into account this element because this will have a big impact on your bottom line. You don’t want to be hit by any surprises later on, so you should ensure that the broker is transparent about what fees they charge and any other risks that may be involved, so you will be able to make your decision accordingly.
Another feature to look for in a crypto trading broker is the option of opening a demo trading account. Beginners need it for practicing their trades and getting acquainted with the trading environment, whereas experts usually use it for testing the platform and features offered by the broker. Every reliable and professional broker will give you this feature to help you in making the right decision.