Essential criteria for picking the best bitcoin brokers

Essential criteria for picking the best bitcoin brokers

If you are planning to invest in cryptocurrencies such as Bitcoin and Etherium, then the first step toward investing in the cryptocurrency world is to find the best Bitcoin brokers. If you are new into the world of cryptocurrency trading, then there are many queries that need to be answered to make a good choice.

Following are some factors on the basis of which an investor can choose an exchange that will suit their requirements.

Supported currencies
Before choosing the best Bitcoins brokers, it is important to check if the brokers support trading pairs that suit the user’s needs. This comes in handy in case of altcoins that are offered only for more than one trading platforms. Bitcoins brokers such as Binance, Livecoin, and Bitfinex are some popular exchanges that offer the highest number of trading pairs. Once you find the right platform, you need to check the liquidity of the exchange for that particular trading pair. High trading volume indicates that the trading pair has a good liquidity and that the trades will be faster and easier to complete. This also means that the traders will be able to sell the Bitcoins without significantly affecting their price. The exchanges that offer a good liquidity include Coinbase and Kraken.

Trading fees
Trading Bitcoins and other cryptocurrencies incurs a trading fee. This is one of the main reasons that exchanges thrive in business. This is because exchanges usually charge a small percentage on the total trading amount. However, the percentage charged is always lower than 1%. As the monthly trading volume of the investment rises, the fee percentage decreases. Whaleclub, Binance, and Bitfinex are some exchanges with the lowest fees.

Information about the brokers
Information such as the name of the founder, location of the exchange, and the market they focus on can be the first step toward selecting the best Bitcoin brokers. Cryptocurrencies are still unregulated and illegal in many countries. Hence, governments of various countries are trying to monitor and control the Blockchain network to keep a vigil on money laundering, drug smuggling, and terrorism. Owing to these factors, it is necessary to know the geographical location of the best Bitcoin brokers. The location of the brokers will dictate the laws that comply with it. For instance, it is not a good idea for western traders to deal with brokers from third-world countries simply because of the language barrier and legitimacy issues.

Security concerns
As there are no fixed regulations for dealing with cryptocurrencies, even the best Bitcoin brokers are at a constant risk of a cyber attack. Cryptocurrencies are highly volatile, and any attack on their trading can cause a massive dip in their prices. This might result in huge losses for investors and bring exponential profits to malicious users. The best bitcoin brokers should be secure and have two-factor authentication. They should also provide cold storage for a majority of funds and have Pretty Good Privacy encryption for emails, SMS and email alerts, proof of reserve, and round-the-clock wallet monitoring.

The brokers are probably safe for Bitcoin trading if all these conditions are met. Still, it is advised to keep only the amount in the account that is required for trading. Based on these factors, the best bitcoin trading brokers include BitMEX, Binance, and ItBit.

Customer support
This can be one of the most crucial factors for the new traders of cryptocurrency. As discussed before, cryptocurrency is a fairly new concept in the trading world, and many brokers might have legitimacy issues due to lack of regulation. Thus, many things could go wrong, which is why the best bitcoins should have the best support team

Ease of use
The best Bitcoin brokers present online have a simple interface that is easy to use and is quick loading, which shows real-time changes in cryptocurrency value. Investors who are planning to trade on the move should make sure that bitcoin brokers on the internet have responsive websites on both Android and iOS devices. Coinbase, Kraken, and Binance are some brokers with the best interface and mobile support.

User experience
It is good to know what the most common complaints about the best bitcoin brokers are. Thus, when selecting the same, make sure to check cryptocurrency forums for different trading platforms or brokers. Binance, BitQuick, and Bitstamp are some of the best Bitcoin brokers with the lowest number of complaints.

Bitcoins can be purchased with a wire transfer, cash, credit cards etc. It is up to the investor’s or trader’s discretion of which mode of transaction works best for them. It is absolutely necessary to consider the privacy levels of the mode of the transaction before making a purchase. Credit cards are usually the least secure mode of the transaction when compared with cash and other wire transactions. So, while selecting a good exchange, high liquidity, low fees, a variety of trading options, device support, security and user excellence are the key factors that one should look into.

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