You can’t deny it: the trading world is buzzing, and the main reason is cryptocurrencies. Trade them, invest for the long-term or simply buy them because you believe in the real-world use of that certain coin. As more and more people rush to cryptocurrencies, new crypto brokers and crypto exchanges are offering Bitcoin and Altcoins to buy or trade.
But just like in the case of other online trading products, not all crypto brokers/exchanges are the best, so you need to research each one before investing with them. Fortunately, the hard work has been done by us already, so we will help you make the difference between them by bringing you top-notch research, statistics, and unbiased opinions, as always. Check out all our reviews of crypto brokers and crypto exchanges below to separate the good ones from the ones That Suck!
Crypto Brokers/Exchanges List 2020
Search For Brokers And Exchanges
If you are a crypto enthusiast, you will want to do more than just read articles about Bitcoin or watch CoinMarketCap for the latest changes. Indeed, you will want to buy and sell a cryptocurrency, to trade it in order to make a profit. But whether you want to buy some Bitcoins and let them linger on your hard drive until their price reaches the Moon or you want to actively trade every day, you need a crypto broker or a crypto exchange. That’s a fact!
What’s also a fact is that there are tens maybe hundreds of brokers and exchanges that offer cryptos, so finding one shouldn’t be a problem. However, finding one that fits all your requirements can prove a bit more difficult.
Learn About Brokers And Exchanges
Before giving them your hard earned money, you need to learn all you can about the crypto brokerage or crypto exchange. Where are they located? Do they actually have a physical address or just a virtual office or a PO Box? More importantly, are they regulated by one of the major regulatory agencies like CySEC (Cyprus), FCA (United Kingdom) or ASIC (Australia)? Or maybe by another, local regulator? These are all things you need to research.
Then there are trading conditions, which are of course a major part of trading. What are the spreads? Are they too high? Because you wouldn’t want to see your trading profits eaten up by spreads or any other trading fees. And of course – withdrawals: how much time does it take, what are the methods, and in case of crypto brokers: do they allow withdrawals to a crypto-wallet?
Another thing to look at is how many cryptocurrencies they offer. Many crypto brokers also offer Forex and CFDs on stocks, indexes and commodities apart from cryptos, so you need to see how big is the crypto offering if you know this is what you will be trading. If they say they are a crypto broker but only offer Bitcoin, Ethereum and Litecoin, well, that’s not really a crypto-oriented broker. With crypto exchanges, things are different of course, because they only offer crypto buying and selling, not FX or CFD.
Everything we talked about so far and more will be compiled into the “That Sucks! score”, which ranges between 0 and 10. Keep in mind that traders just like you are able to add their review and that will count towards the overall score.
Choose The Right Crypto Broker Or Crypto Exchange
Finally, it’s time to choose what brokerage or exchange you will be using. Remember that you will trust them with your initial deposit and potential profits. While this is technically your money, it is in their possession, so it’s needless to say that if you are dealing with a scam company, you will have a very difficult time getting your money out.
Everything from deposits, withdrawals, trading conditions and much more is covered in our unbiased broker reviews. Also, they are constantly updated and we re-visit each relevant broker and exchange from time to time to see what they’ve changed or how they evolved. Keep it safe and stay away from crypto brokers and crypto exchanges That Suck!
Crypto Broker vs Crypto Exchange
So far we’ve been talking a lot about brokers and exchanges and it’s time to explain the difference so we’re all on the same page: when trading on an exchange you buy and sell cryptocurrencies from other traders (or from the exchange itself) and you end up owning the coins that you buy. On the other hand, when dealing with crypto brokers, you only profit from the fluctuations of the price (assuming you get the direction right – Buy or Sell) and will not own the coins.
Another big difference is that you can get your crypto coins out from an exchange and do whatever you want with them. As I’ve said: you own them. With brokers, however, you simply trade a Contract For Difference on cryptocurrencies and have the possibility to make a profit from the price fluctuation but you cannot withdraw the coins that you are trading. You actually buy a contract on price fluctuation, not the coin itself.
To help you properly understand the characteristics and differences between crypto brokers and crypto exchanges, along with pros, cons, and risks associated with each one, we’ve prepared a full article titled Investing vs Trading Cryptocurrencies. Both options are great, you just have to decide which one suits you.
A broker is a general term used for a venue where you can trade Contracts For Difference (CFD) on cryptocurrencies. In other words, the trader decides on the direction of the trade he/she wants to open and then, he/she makes a profit or a loss depending on how the coin behaved. Sells will be in profit if the coin depreciates and Buys will be in profit if the coin appreciates.
Usually, crypto brokers offer easy to use trading platform, a friendly user interface, proper customer support and – maybe the most important feature – leverage, which means that the trader can control (open) a bigger position with just a fraction of its entire value (this also increases risk, so be aware). For a more in-depth view on crypto brokers, check out Trading Cryptos With CFD Brokers.
At exchanges, you Buy and Sell the actual coin, not a contract on its price movement. As said before, this means that you own the coin you buy and you can dispose of it in any way you like. Their trading platforms usually offer a lot of features to help with technical analysis and appeal to a more sophisticated type of trader but with a bit of practice, anyone can understand how to use them. For a complete guide on types of crypto exchanges, how to use them and more, read our article Crypto Exchanges: Everything You Need To Know.