At its inception, cryptocurrency was traded solely through unique and dedicated cryptocurrency exchanges, or via the OTC market on a peer-to-peer basis, where the willing buyer and willing seller would arrange all the intricacies of the purchase and selling between the two of them. Subsequently, cryptocurrency has emerged out of its nascence as a niche endeavor to accommodate a wider, and indeed global, audience. Along with this flourishing came the role of the crypto broker.
According to BitPanda, a cryptocurrency broker is a corporation or individual who acts as a liaison between the purchaser and the cryptocurrency market. The broker thereby becomes something of an agent to the purchaser, helping them to ensure the best deals on cryptocurrency. Brokers usually charge the client premiums for using their services.
Cointelegraph further reports that as the world turns increasingly to cryptocurrency, traditional financial centres like banks need to accommodate this. Many have thus begun their own crypto brokerage sections.
As one entrusts a broker with many intimate details, including identity documents and capital, one must verify a broker’s trustworthiness. It is integral that a potential user looks out for reputable brokers. One should scour any resources or platforms to find the best brokers. It is safest to use a long-established broker with many positive reviews who has significantly dabbled in the field.
FxStreet further advises that one should make sure a broker’s platform is in sync with the general market movements, so that a potential user is sure of the trustworthiness of the broker. If one notices that a broker is manipulating prices, it is advisable to let go of them immediately.
In this regard, Cryptolydian recently reported on the risks of cryptocurrency trading.