Cryptocurrency trading can be overwhelming and complicated. Different people have different opinions about it. However, cryptocurrency trading simply means speculating on the price movement of a crypto asset. When you are looking to start cryptocurrency trading, there are different options available to you. You can choose to trade using a cryptocurrency exchange or a cryptocurrency broker.
Nevertheless, the two are not completely the same. If you are new to the world of crypto trading, it is recommended you choose a cryptocurrency broker as it caters more to beginner traders than crypto exchanges. If you are trading from Europe and looking to choose a broker to make your cryptocurrency journey more enjoyable, this post will be of great help to you.
It will show you important factors you need to consider when looking to choose a trustworthy crypto broker in Europe. So, let’s get straight into it. But first, let see what a crypto broker really is.
What is a Crypto Broker?
The primary purpose of a traditional broker is to serve as a financial intermediary for individuals who want to exchange money for a service or product. So, a crypto broker is a platform that offers online financial services for people looking to buy or sell cryptocurrencies. In return, the broker will you for using their services.
Like earlier said, crypto brokers are more preferred to crypto exchanges because they are more tailored to beginners who are just finding their feet in the cryptocurrency trading world. Here, cryptocurrencies are being exchanged for fiat currencies, and vice versa between the buyer or the seller and the broker platform.
Apart from providing a super-simple platform for users, another advantage of using a crypto broker is that you will be buying or selling at prices set by the broker. That means there will be no price variability from one seller to another. With a broker, you also have the chance to buy a small amount of cryptocurrencies. That makes it a perfect choice for people looking to test out the trading world before fully committing themselves to it.
Why Choose a Trustworthy Crypto Broker in Europe?
It is now obvious that cryptocurrency has come to stay. There are now more than 5,000 cryptocurrencies in the market with each of them having its unique potential. More and more people are getting into crypto trading by the day. At the same time, there has also been a high demand for crypto brokers, especially in Europe.
That means there are now several crypto brokers in the market. But not all brokers can be trusted. A number of them have turned out to be scams. Even if they are not, many of them cannot provide their services at the best quality.
For some, it is inadequate security measures. For some, it is credibility and many more. And all these can lead to serious problems for traders down the line. That is why it is important you go for a trustworthy crypto broker. It will save you lots of stress and money down the road.
So, let’s check out some factors or features you need to consider when choosing a crypto broker.
Factors to Consider When Choosing Crypto Broker in Europe
#1: Solid financial backing
This is obviously the first thing you should look out for in a crypto broker. Why? You definitely don’t want to opt for a broker that has the same asset base as your Crypto investment. Such a broker cannot be trusted. You need a broker with a large capital base you can trust that will not go bankrupt and go down with your money.
You don’t want to deal with a broker you are not sure of its experience or credibility. A trustworthy crypto broker will be a registered and licensed firm with a good reputation. It is not difficult to know if a broker is credible or not. Just check online reviews about them and you will be able to tell if they are the right fit for you.
If your crypto broker is not providing the kind of convenience you need, there is no need to choose such a broker. Convenience can be in different forms. First, they should provide a platform that is compatible with a variety of devices. You should have real-time info of your account from anywhere and from any device.
It should provide its features in simple and easy-to-understand language. There is also one thing about trading and being timely. Your broker should provide features that allow you to keep track of the market and make informed decisions at the right time.
You are new to the crypto trading world. You shouldn’t also be using a broker that is also new to the game. You need an experienced crypto broker who has been in operation for a long time. If a broker can be serving traders for several years, chances are that they know what they are doing, and that’s why people still stick around with them.
Does that mean that a broker that hasn’t spent a long year in the industry cannot provide excellent trading services? That’s not what we are saying. However, experience also matters when it comes to cryptocurrency trading. You need someone that can help you make the most out of your investment.
#5: Their fees and commissions
Every crypto broker will charge you for the service they are offering you. But these fees and commissions vary from one broker to the other. So, when choosing a broker you can trust, make sure you take careful consideration of the fees and commissions they charge. If the fees are ridiculously too low or too high, you may need to do some more background checks before you make your decision.
#6: Customer services
There will be some days you will need the help of your crypto broker, especially if you are a complete beginner. When such a time comes, you don’t want to be left out in the cold. That is why you need to choose a broker that has good customer service. Be sure the customer service is available 24/7 since trading activities also happen round the clock.
Your broker should have a support team you can always count on in case you need any technical support. Not all broker offers this. So ask questions and be sure your prospective broker has a support team before going for them.
These are some important features you should look out for in a reliable and trustworthy crypto broker. There are a couple of brokers operating in Europe that has most of these features, which means you can trust them. But do your own research to be sure they are a perfect fit for you before opting for them. Some of these brokers are Anycoin Direct, eToro, Bitpanda, etc.