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Bitcoin Brokers – What to Look for When Selecting a Broker

Bitcoin Brokers - What to Look for When Selecting a Broker

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Looking to invest in bitcoin? Bitcoin broker platforms are what you need!

Now, the beauty of bitcoin lies in the fact that relatively small investments can have huge returns. On the other hand, because bitcoin is weakly regulated, fraud and scams are highly likely if you are dealing with the wrong broker.

Aside from that, even if we are talking about legit brokers, their terms may vary significantly.

What to Look for When Selecting a Broker

With all that in mind, choosing the right broker is crucial for a high-return investment. Below, let’s talk about the key features to consider when looking for a great bitcoin broker.

What To Look For When Selecting A Broker


First up, determine whether the broker platform is regulated by bodies like the FCA (Financial Conduct Authority, the UK), or another local financial conduct commission.
Cryptocurrency scams are quite common these days because some investors, inspired by the success of bitcoin, are willing to invest large sums of money in seemingly sketchy platforms.

To be safeguarded from fraud, you should deal with legit platforms that are regulated by a financial conduct body in your area.

You should also understand the differences between three major cryptocurrency exchange types – brokers, trading platforms, and P2P exchanges. This will help you choose the right platform for your needs.

  • Trading platform. These allow users to buy or sell cryptocurrency orders. The key distinction of trading platforms is that the buyer and seller don’t interact with each other directly, which allows for added protection and anonymity.
  • P2P exchange. P2P exchanges connect buyers and sellers just like trading platforms, but the parties are interacting directly with each other.
  • Brokers set prices on bitcoins and other cryptocurrencies, allowing users to buy them.

The difference between brokers and other cryptocurrency exchanges

Choose the right platform based on your expectations and investment needs.

Supported cryptocurrencies

Aside from bitcoin, you may be interested in other cryptocurrencies as well. Bitcoin is supported by most brokers due to its high popularity, but it would also be a very good idea to have some alternatives to diversify your investment portfolio. This is especially important considering how volatile the cryptocurrency market is.

A really nice cryptocurrency is TrueUSD, which is a cryptocurrency backed by USD. TrueUSD uses custodial accounts, so token-holders have legal protection and can avoid directly touching the funds. Backed by USD, TrueUSD is stable as well, so although it doesn’t offer opportunities for as rapid money-making as bitcoin, it’s much more reliable and secure.

Payment methods & fees

Some people may underestimate the importance of payment methods, especially in countries where there is limited access to platforms like PayPal. You need a way to get funds in and out of the broker platform, so you should find out what kind of payment methods they work with first.

Typically, bitcoin brokers support the following payment methods:

  • Mastercard or Visa credit/debit cards.
  • Local bank transfer.
  • Wire transfers.
  • Paypal
  • Skrill
  • Neteller
  • Western Union.

Needless to say, your preferred payment method should be supported by the platform. And at the very least, the platform should support a payment method that is available in your area.

Aside from the supported payment methods, also have a look at the deposit and withdrawal fees. Most typically, brokers charge nothing on deposits and charge a small fee on withdrawals.

Pay attention to the fee structure – are the fees flat or percentage-based? Flat fees are really nice when you are depositing or withdrawing large sums of money, while percentage-based fees are optimal if your investments will be small in sum.

Commissions & spreads

Aside from deposit and withdrawal fees, brokers also charge trading fees. Ideally, your bitcoin broker should let you trade bitcoins without any commissions. If you want to withdraw bitcoins, you are most likely going to pay fees for withdrawal anyway, so it would be nice if the broker doesn’t try to rip you off by charging fees for your every action.

The spreads on the platform should be tight as well.

Customer support

Customer support is crucial as well because things don’t always go smoothly.

Pay attention to the support channels provided by the broker – ideally, there should be phone support, live chat, and email. Since broker platforms deal with huge sums of money, it’s super-important for you to be able to get in touch with them quickly should any issues arise.

Final Words

So in the end, the most important thing to consider in bitcoin brokers is security

Pay attention to things like the fee structure, commissions, payment methods, and customer support as well. The fees & commissions are perhaps the most important – when investing large sums of money, some platforms may be more cost-effective than others.

But most importantly, try to understand cryptocurrencies first – brokers are of no use if you don’t understand how they work.

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