There is a lot being said about cryptocurrencies in the last months. It has caught the public eye and there is a lot of curiosity around it. Few people really know what are cryptocurrencies and even fewer know how to invest safely.
A cryptocoin is a medium of exchange, like money. They are called like that because they use cryptography to make secure transactions and also to control the creation of additional units.
Bitcoin is the first and more famous of the cryptocoins, but it is far from being the only one. There are many other cryptocurrencies being traded in the market. Some of the most famous are: Bitcoin, Ethereum, Litecoin, Lisk, Golem, Ripple and so on.
With the rise of the cryptocurrency, many digital exchanges appeared. Those kind of platforms allow the user to trade currencies by himself. You can trade crypto for crypto or you can use the regular physical types of currencies (Dollar, Euro) to get cryptocurrencies.
A registration is needed so that you are able to use the platform for trading. Some exchanges don’t ask for you to register, but that is an exception.
This option is more suited for people that have at least a basic understanding of finance and the cryptocurrency market. You will have to make decisions for yourself and be always aware of what is going on. If you don’t take the time to look out for your investmenst, you are at risk of losing money.
Much like a normal stock market, the digital market of cryptocoin has created space for the action of brokers. Brokers are people or companies that assist their clients in making better decisions on the trade market.
If you don’t have a lot of experience with trading or with cryptocurrencies, using crypto brokers might be the best option for you to start investing on digital money.
You need to make an initial investment. The minimum value varies from broker to broker and you should look for the one that suits you best. The broker will then use that money you invested to make trades that seem more prone to give profit, based on his expert opinion.
Of course that can be losses too. The cryptocurrency market is very volatile. Even experienced traders suffer losses sometimes. But with the help of a good broker, you can be assured that the chances of suffering heavy losses are very small.
If you should choose to give your money to a crypto broker, what do you have to know about him? It is important to choose the best one for your needs.
What makes a good broker
As in any other competitive market, where there is a lot of money to be made, crypto brokers have a lot of competition. It can be hard choosing from the large list of brokers, so you need to pay attention to some features. Here are the main ones to look for:
• Regulation: The main thing you have to worry about is making sure you’re putting your money in safe hands. Trust only the brokers and platforms that are licensed and regulated properly. That may vary according to your country’s rules, so check that out properly.
• Practicality: Cryptocurrency only exists online and there is where you are able to trade it. The broker platform must be easy an accessible to use and do trading. If you are not comfortable with the platform, best to look for another.
• Encouragement: There are a few bonuses or incentives that the brokers can offer. Like a little bonus to start investing or a prize when achieve a certain volume. Look out for the best incentives, it can make you profit more.
• Good Service: You are the client. It is your money they are investing. Great brokers will offer a great service and treat their clients very well. Be sure they are always available (24/7) to help you with your doubts or problems.
Best rated Brokers
Changelly is one of the best rated brokers around. Its platform is easy to use and their costumer service is very good. They allow you to exchange cryptocoins easily and fast, also looking for the best fees for you. They even accept credit or debit cards to make purchases.
AvaTrade is another very well rated broker. Its platform is very complimented, especially for allowing beginners to easily trade. It offers the option of many different cryptocoins to trade and the account minimum is not high.
Other than those two, there are many other great brokers with different qualities. Plus500, Etoro, UFX and ETX are some of those.
If you want to face the exchanges on your own, or if you want the help of brokers, it is your decision. Brokers do offer a large variety of services that can be very useful. Especially if you are a beginner at the cryptocurrency market, the brokers are a good solution for making investing easier.
They can save your time and make your money grow. Be careful to choose the right one, though. It needs to fulfill your needs the best way possible. Also, always go for the safe option. Check if all licenses and regulations are in order. After that, you can start safely investing your money on cryptocurrency.