If you are presently mulling your foray into the world of cryptocurrencies or bitcoin then you
should go through this post. Your introduction might as well convince you that you can easily
sign up for an exchange since they are virtual gatekeepers that are capable of converting Bitcoin
and flat currency. In such a scenario, apparently, you will not be able to estimate the true
significance of a broker. In fact, you might as well even end up thinking that the very existence
of brokers in the world of cryptocurrency is pointless. However, let us tell you that the brokers
do have a very meaningful presence in the world – it’s simply because of the fact that they offer
you a way more expedient access to it. Though the brokers are less popular than the Exchanges,
yet their services remain invaluable today.
Trading Bitcoin or Cryptocurrencies: The Significant Role Played by the Broker
Considering the aforementioned fact, now you might as well want to initiate the journey under
the able guidance of a broker. However, before taking the plunge, do know for a fact that it is the
easiest to trade bitcoins or other cryptocurrencies with brokers – provided you are taking help
from a credentialed broker.
Documented below are the advantages of trading with the help of leading brokers like eToro, Avatrade and Plus500. Your choice of the broker should be factored on several considerations. You should select a name which is duly regulated by the concerned authority. It should offer you flexible leverage amount and be backed by an easy to use platform. You should also have sufficient timeframe at your disposal to practice with the help of a demo account – so that when you are actually trading with real money, you know that you have had sufficient practice backing your exposure to the market.
Qualities of Reliable Brokers
At the very onset it must be clarified that a flashy website does in no way guarantee that a particular broker is a member of the concerned regulatory body. The primary responsibility of the regulatory body is to protect the traders from fraud and eventually safeguard their interests in the best possible fashion. Traders should be prudent enough to open accounts only after ascertaining whether the broker is duly regulated or not.
Traders should also be duly aware of both the advantage and the flipside of high leverage. Based on the broker you have hired, traders can enjoy several leverage amounts including 50:1 and 200:1. If the trader is enjoying winning positions, then the high leverage can work in his favor but it has the potential to destroy your chances if the moves don’t go in your favor. Both the chances of making profit and registering losses are equally high.
The three brokers mentioned above (eToro, AVATRADE and Plus500) have all the aforementioned qualities going for them. We will document the advantages offered by each of these brokers so that you can make an informed decision regarding the choice.
etoro – to start off with, helps you trade bitcoin without you having to take the ownership of the asset. You are– in other words– trading CFDs. You are trading this derivative and are not required to hold the real bitcoin – instead you can trade the crypto using fiat currency. This one has been around for years and is duly regulated. etoro takes special care to store the funds in traditional banks that are duly shielded against cyber attacks
etoro’s copy trading functionality is a huge plus for beginners. If you are just starting off and are unsure of your capability of making the right moves you can just go on to copy the trades of the most experienced and successful traders out there. The platform offers you access to both Bitcoin and Etherum. It also allows you to trade both long and short positions. This adds a lot of flexibility to your trading chances- with long positions you can end up making profits when the price rises. With short positions you can end up making profits when the price falls. You are able to strategize your moves in a way more sagacious fashion than what would have been the case if you had restricted trading options.
What more? The platform also gives you an opportunity to trade 7 days a week and practice with a demo account for a considerable period of time.
Plus500 offers you a feasible leverage to start off with. It is something around 30:1 (ethereum and bitcoin) and 10:1 (Ripple and Litecoin). They offer narrow spreads but you should be on your guard against overnight premiums.
Avatrade also has almost all the qualities of a good broker. The leverage is something around 20:1. It is fully regulated. (AVA Trade EU Limited) is regulated by the Central Bank of Ireland. You can trade 24/7 with access to closing positions on weekend.
Whaleclub – the best platform for advanced traders