To trade crypto from the comfort of your home, you first need to find a trustworthy broker. As you know by now, your broker executes all your trading orders on your behalf. Therefore, it is important that you find the right one to handle your trades.
We have compiled a list of important factors that you need to consider when choosing an online crypto broker.
Legal
The best way to make sure that a broker is reliable is to check if it has a license from a financial authority. The trading space is regulated by bodies that ensure that broker platforms with Exness minimum deposit, here to strict guidelines - to protect traders' interests.
For example, regulated brokers must keep clients' funds in segregated bank accounts and undergo regular audits. The most well-known regulatory bodies are ASIC in Australia, FINRA in the US, FCA in the UK, CySEC in Cyprus and MAS in Singapore.
The first item on your checklist is to verify that the broker you choose has a license from at least one of these authorities.
Trading fees and commissions
To facilitate your trades, brokers charge fees. Here is an overview of the different types of fees you will encounter.
Commissions
Commissions are direct fees that are calculated as a percentage of the size of your trade. Let's say your broker sets a commission of 1.2% for cryptocurrency trades. This means that you will have to pay 1.2% when you enter the market and again when you leave it.
But don't worry, there are numerous online brokers you can trade with without commission. One such well-known brokerage platform is eToro, where you can trade 16 cryptocurrencies without commission.
Spreads
Spreads are an indirect fee that represents the difference between the ask and bid price of a crypto pair. Unlike commission, it is not a fixed rate, but depends on the price of the asset.
Suppose the purchase price of EOS / USD is 4.3000 USD and the sale price is 4.3002 USD. This corresponds to a spread of 2 PIPS.
When you place a trade on EOS, it means that you start your trade with a loss of 2 pips. You need to gain more than 2 pips on this crypto trade to make profits. Consequently, look for a tight spread from your broker.
Payment methods
For trading, you need to trust your broker with large amounts of capital. Therefore, you need to consider what deposit and withdrawal options are available on the platform.
The best brokers on the internet have a few options for you. These include bank transfers, credit / debit cards, and third-party e-wallets like Paypal.
Learn how to trade crypto - The Verdict
In our guide on how to trade crypto, we covered everything you need to know about this digital asset class. By now, you should have a clear understanding of what cryptocurrencies are and what you need to know before you enter the market. It's always a good idea to continue learning about trading even as you gain experience. Make sure you have a firm grasp on the market sentiment of your chosen cryptocurrency, and practice with a demo account before taking the plunge.
In conclusion: you need to find a regulated and reputable online broker that can make cryptocurrency trading fast and convenient for you. If in doubt, you can always go to Capital.com - where you can trade crypto without commission.
