The phenomenal rage in the markets right now – Cryptocurrency have changed the finance market for most! It is not just a form of modern day investment, but a new way of looking at regular transactions. The instrument is drawing the attention of the world, from all corners of the world. Speculations have arisen, everyday regarding cryptocurrencies soon to become the “futuristic money”. The impressive technology has taken the world by storm when everyone is looking to invest in the same!
But how do you do that?
How can you trade in cryptocurrencies?
There are two options for trading in cryptocurrencies –
- Cryptocurrency Exchange Platform
At the level of a cryptocurrency exchange platform, you can buy and sell cryptocurrencies in their actuality while through a broker you are going to deal in cryptos on the basis of a contract for difference.
Here are a few differences between a cryptocurrency exchange platform and a cryptocurrency broker –
A few cryptocurrency exchange platforms are known to not be regulated with rules and regulations. This is not the case with crypto brokers though. The brokers are somewhat responsible and ethical in their dealings as they are regulated better. The exchange platforms might not be regulated by law and hence have the risk of shutting down and dusting away.
If you are looking to deal in bitcoins and ethers, setting up your own profile on a cryptocurrency exchange platform might seem like a good idea, but its not. The basic difference here falls on the complications involved. An exchange platform requires you to undertake certain difficulties before you can actually open an account to invest in the same. When a broker gets involved things tend to get simpler for you, as they are already aware of all the legal compliances.
Cryptocurrency Exchange Platforms usually trade in accordance with a particular currency of the area they are based in, or they are universally trading in US Dollars. However, when you are dealing with Cryptocurrency Brokers, you could prefer your choice of currency and settle it with the help of your Broker in terms of cryptocurrencies you are investing in.
Along with exchanges and trading come the fee. This is a significant point when it comes to deciding what medium are you going to choose for your crypto investment. If you are thinking of opting a Cryptocurrency Broker for your Bitcoin needs, you are going to be able to open a free account, deposit or withdraw in your account for free, and would not have to pay other hidden costs and fees. The only amount in case of a broker you would be paying is the spread. Spread makes it very easy for traders to manage the money and also keep track of all different expenses.
In case of a Cryptocurrency exchange platform, fee is involved at every step. You are going to pay some amount when you are making a deposit to your account, withdrawing from your account, exchanging the currencies and transferring cryptos. There is going to be a commission at every step. This might make the process lengthy and time-consuming.
Trading in cryptos with the help of a cryptocurrency broker is going to give you professional access to various tools and platforms to allow you to look at all kinds of data and analysis in order to enhance your purchase decision. You are going to have physical help present with you. You are going to have these charts and analytics and data with your through other sources with you, if you are trading with the help of an exchange platform. But the only difference there is going to be is that there would be no physical help regarding the same.
Most cryptocurrency exchange platforms do not provide similar opportunities of earning more profits. You might encounter different exchanges with different policies and leverages. In the case of cryptocurrency brokers this is not going to be the case. You will be able to trade in your desired choice of size and volume, both in the long run and in the short run to tap maximum opportunities.
Looking at the trends today, one can only conclude bitcoins are sure to rise ahead in future. The eventful journey of Cryptocurrency, though in its infancy right now, is surely going to rise further. If you are looking to invest in cryptocurrencies, you are going to witness a different situation every single minute of the day. The volatile market can operate through an exchange platform and through a broker, it depends on you, who you choose to be your anchor during this volatility.