Best Cryptocurrency Forex Brokers 2021
Many experts think cryptocurrency will lead the future of finance. Valued at $ 2.13 trillion in 2021, crypto is expected to achieve a $4.94 trillion market by 2025 while it grows at 68.8% from 2020 to 2021. So, it has become a recent trend for traders to focus on cryptos. Hence, the demand for the best cryptocurrency brokers is at its peak. Nevertheless, many forex traders are aiming to give a try on crypto, and they are looking for the best trading platform for crypto as well as forex at the same time. Sometimes, you may not find a forex broker that is also the best crypto broker. You will need to take a look at some factors while looking for the best platform to trade cryptocurrency. What are those? Well, it depends on the trader as well as the location. Hence, we have listed all the factors to look at to choose the best broker for cryptocurrency. We also enlisted every single detail you will need to know for cryptocurrency trading.
Once you determine your mind to leap into crypto, choosing the best forex broker is your first step. Read on to see our top picks for the best broker to trade cryptocurrency.
Best Cryptocurrency Forex Brokers List
|Visit Broker||Rank||Broker Reviews||Location||Minimum Deposit Amount||Deposit Bonus||Payment System||Rating||Create an Account|
|3||Sydney, Australia.||$200||No Bonus||9.98||Real Account Demo Account|
|1||Sydney, Australia.||$100||No Bonus||10.00||Real Account Demo Account|
|2||New Providence, Bahamas.||$100||No Bonus||9.99||Real Account Demo Account|
|6||Sydney, Australia.||$10||No Bonus||9.95||Real Account Demo Account|
|4||Limassol, Cyprus||$5||Up to $5000||9.97||Real Account Demo Account|
|5||Beachmont, Kingstown.||$100||100%||9.96||Real Account Demo Account|
|7||London, UK.||$200||No Bonus||9.94||Real Account Demo Account|
|8||London, UK.||$1.00||No Bonus||9.93||Real Account Demo Account|
|10||Belize, C.A.||$1.00||100%||9.93||Real Account Demo Account|
|9||Limassol, Cyprus.||ECN - $300||No Bonus||5.10||Real Account Demo Account|
|Rank||Broker Reviews||Location||Minimum Deposit Amount||Deposit Bonus||Rating|
Cryptocurrency? What is it?
As of 2021, the trend of crypto is everywhere; even Tesla CEO Elon Musk owns cryptos such as Bitcoin, Dogecoin, and Ethereum. So, you can understand the hype, and globally 106 million users are reposted to use cryptocurrency. So, why is there so much hype about cryptocurrency?
It is basically a virtual currency or digital currency, or you can say a coin that has a trading value and is traded through the top cryptocurrency brokers. For the last few years, it has been used for virtual transactions.
Cryptocurrencies are usually built by the cryptography that makes them secure, while it is also difficult to counterfeit. Most cryptos follow blockchain technology which is a distributed ledger imposed by a different network of computers.
Although cryptocurrency is not centralized, it has millions of users. Further, it is not issued by a type of central authority. Therefore, it does not have any government interference, and that is why it is attractive to the traders. You should keep in mind that it doesn’t exist physically; it is data only.
With the simplified transfer with private and public keys, the transaction methods in crypto are easier than the conventional methods. On top of that, the transfer fees are lower than the traditional transaction methods.
Cryptos are getting well accepted because not only the well-known persons endorsing them but also many large organizations and financial companies buying cryptos in large numbers. Hence, the crypto brokers are also on the rise significantly, and the demand for the best broker to trade cryptocurrency skyrocket. Cryptocurrencies’ The total market cap is $750 billion in 2021 or around £533.13 Billion Pound sterling.
The immense popularity of crypto led to open up opportunities for many trading tools, which also introduced a new way of trade through the contract for differences (CFD).
What was the First Cryptocurrency?
Bitcoin was the first ever launched cryptocurrency that started in 2009 and is based on blockchain technology. Although there are now thousands of multiple cryptos available in the market, Bitcoin is still considered as a benchmark. It is also the most valuable crypto to this day.
Apart from Bitcoin, other popular cryptos are Litecoin, Ethereum, EOS, Ripple, and other derived currencies such as Bitcoin Gold and Bitcoin Cash. Nevertheless, most of the new cryptos are just direct clones of Bitcoin, but all the currencies are separate. So, according to the cryptocurrency terms, all the currencies will stay separate even though they use the same technology.
What is Blockchain Technology?
Blockchain is a secured way to record information that is difficult or impossible to hack, change or even cheat the system. It is a continuously growing transaction record made with bitcoin or cryptocurrencies, which is maintained through a series of computers with peer-to-peer network linking.
The record list is called blocks which are linked with one another using cryptography. The design structure of blockchain prohibits any sort of modification of the data.
Nevertheless, blockchain is open to anyone and at the same time grows continuously. Additionally, it is a distributed ledger to record the transaction between two parties. Each time a new block is created, it is then sent to all the users in the network. After that individual user verifies the block and adds it to the blockchain. Each of the blockchains has:
- Sender and receiver details along with the e-coin amount.
- A hash is used as a unique fingerprint.
- A hash from the prior block in the network.
Why Should you Trade Crypto?
Cryptos are considered a unique asset class with numerous factors that make them unique while comparing to other markets. Moreover, it runs 24 hours and seven days a week, while other CFDs, forex broker crypto, and stocks operate 24/5. In addition to that, cryptocurrencies are open to everyone, and anyone can trade. Usually, the regular investor can trade USD for the desired cryptocurrency avoiding the mining complexities.
As you already know that cryptocurrencies are not authorized by any government or authority. So, the overall world economy doesn’t depend on crypto prices. However, crypto has reacted to some past events such as the Trumps election and Brexit. During these times, cryptos fluctuated due to uncertainties in traditional currencies.
Unlike other markets such as FX, commodities, indices, etc., cryptos are dominated significantly by retail speculators. Usually, the crypto trading forex broker lets the traders diversify their investment portfolio as the price is initially based on the market demand, supply, and sentiment.
Cryptos, especially Bitcoin, are very volatile, which may create the opportunity for the traders to make money from quick and frequent movements in the price.
The great thing about cryptocurrency is that traders don’t need to rely on banks or even any financial organization. Hence, anyone with an account with top cryptocurrency brokers can trade cryptocurrency.
Do you Need a Broker for Cryptocurrency Trading?
Although cryptocurrency is independent and doesn’t rely on any organization or assets, you still need a medium to trade this. Hence, you must need cryptocurrency brokers to trade any crypto. However, signing up with the best cryptocurrency brokers will help you out.
Ways to Trade Cryptocurrencies
So, you already know that you must need the best crypto broker to have the desired outcomes. But, how would you imitate the trade?
Well, it is similar to other trading such as forex or CFDs. You can buy them at your convenience and sell them whenever you want. So, you will make a profit or loss from the price difference. Many traders take the chances of volatility; that is why this type of currency is getting huge popularity.
But don’t forget that you must need a broker, perhaps the best crypto broker. However, finding the best broker to trade cryptocurrency is not an easy task. You will need to consider some criteria while choosing the right crypto broker with lowest fees. Alternatively, if you don’t want to go through the hassle of researching and choosing the forex brokers that accept crypto, you may sign up with any of the recommended brokers we have listed on this page. But still, we will give a detailed overview on finding the best cryptocurrency trading platform.
How to Choose Best Cryptocurrency Brokers?
There are some important factors that make the best crypto broker. While searching for the top crypto brokers, you may come across many best forex broker for cryptocurrency. However, you may not know how good the broker is unless you are trading with it. Hence, there is a good chance that you might get scammed too. That is why we have sorted out some top criteria to choose the best trading platform for crypto.
Read on to know what to look for while searching for the forex crypto broker. However, it is not mandatory that you must need forex brokers that trade cryptocurrency. But almost all the best cryptocurrency brokers offer forex trading too. So, we have combined both markets and found out the top criteria to find the best broker crypto.
Forex Crypto Broker Regulation
Although the cryptocurrency itself is not regulated, trading with the regulated broker will give you peace of mind. Your money will not be at risk. Hence, you should look for a broker that is regulated by a relevant authority. For example, the broker can be regulated by “Australian Securities and Investment Commission (ASIC), the Financial Conduct Authority (FCA) or Cyprus Securities and Exchange Commission (CySEC).”
A regulated broker ensures the ultimate protection than the unregulated broker. So, it is mandatory to check the regulations while searching for the best brokers for crypto trading.
Forex Crypto Broker Trading Hours
Usually, the broker forex crypto remains open 24/7, so if you find any broker that offers 24/5 crypto trading, you should avoid it. The best cryptocurrency brokers provide services 24 hours a day and seven days a week. So, make sure you know the timing of the desired broker.
Despite the 24/7 market some brokers tend to shut down on weekends, which may incur a loss to you if you aim to day trading. So, there is no alternative to find the best crypto day trading platform if you prefer cryptocurrency trading to forex trading.
Leverage in crypto is normally lower than the forex and CFDs, which can be a good thing and a bad thing at the same time. The good thing about the crypto leverage is that you must have to trade within the limited position size.
So, closely check if the offered leverage by the best forex crypto broker suits you. Further, also make sure that you have proper understanding about the relevant leverage as well as the associated risk with it.
Top Cryptocurrency Brokers Minimum Investment
Since cryptos are a new asset in the world, you may want to check with a small investment. So, the low minimum investment will be helpful for you. Check the minimum required deposit by your intended broker.
If your goal is to check the crypto with the best cryptocurrency brokers, you may pick the lowest minimum deposit. Otherwise, for regular trading, the amount of deposit should not be a problem. You will just need to find the best free crypto trading platform. However, you can try any of the best crypto brokers listed here on this page.
If you don’t want to deposit money at all to check the broker, you may look for the demo account. Usually, the demo account lets you trade like a real account, but with the virtual money given by the broker and you cannot withdraw the money from your demo account.
So, you may target finding the best platform to trade cryptocurrency that offers a demo account. If you are satisfied trading with the demo account, you may go for further investment with the real account. But, you should always keep in mind that, whether you check with a demo account or open a real account, you should always pick the best broker crypto.
Best Trading Platform Crypto
Since the best cryptocurrency brokers use the forex trading platform, you will find several platform options for your crypto trading. For example, you may come across the MT4 cryptocurrency brokers or even MT5 crypto brokers. Besides, you may also find some other the best cryptocurrency trading platform.
So, which one should you go for?
The best MT4 crypto brokers and MetaTrader 5 cryptocurrency brokers have quite a good reputation in the market. Furthermore, the best cryptocurrency brokers use either the MT4 crypto forex trading platform or the MT5 FX crypto trade.
So, if the intended best crypto broker comes with the MT4 or MT5 crypto forex trading platform, you can definitely choose that. Additionally, the best platform for trading cryptocurrency is free of cost with the broker. Hence, you can consider it as the best free crypto trading platform.
If you want to get the most from the MetaTrader cryptocurrency brokers, you must need the best crypto broker for mt4, which you can get by following our guidelines in this article. Further, the broker crypto mt4 will let you use different tools to ease your trading.
While choosing the best cryptocurrency brokers, it is also necessary to consider the liquidity providers the brokers offer. Basically, the liquidity provider or market maker offers quotes for both buying and selling crypto or any currency.
The liquidity providers work with the broker and send the feed of buying and selling price, which is sent to the trader by the broker. However, in this process, the best crypto broker always picks the best buying and selling price. Therefore, it can get them the best available spread.
So, it would be great if the best broker for crypto offers a wide range of liquidity providers. As a result, the traders will have several options for their trading. So, who are these liquidity providers?
Any financial organization can be a liquidity provider who has enough liquid money to offer, for example, financial institutions, global banks, and market makers.
So, it will be a good idea to choose the best crypto trading platform for beginners that has a vast range of liquidity providers.
Customer support becomes essential in case you face any trouble during trading. So, prompt customer support from the crypto CFD broker is expected. Usually, the best cryptocurrency brokers offer 24/7 customer support.
Nevertheless, the customer support can be through phone calls, live chat, email, and more. Moreover, you may also consider the language of customer support and select the best crypto broker that offers support in your local language.
Although Bitcoin was the pioneer in the cryptocurrency industry, many other cryptos have also emerged. Therefore, traders get confused about which one to trade among the hundreds. With that note, we have listed the top cryptocurrencies you may consider trading.
Bitcoin or BTC is the most liquid and older among all the cryptocurrencies. It was introduced in 2009, but the original founder is unknown. Satoshi Nakamoto name was used as the payment mechanism. Usually, BTC is paired with regular currencies such as USD or EUR.
As the pioneer and the top crypto, you can trade Bitcoin for your convenience. Normally, all the top cryptocurrency brokers offer Bitcoin on their list.
Ethereum is another top currency that uses blockchain technology. This particular currency is highly liquid and volatile. So, the trader can choose this crypto with the f forex brokers that trade cryptocurrency. However, Ethereum is not very old, and they started the journey on July 30, 2015, with 72 million coins.
Litecoin also uses blockchain tech and also follows the Bitcoin structure but has a different license which makes the currency more flexible. Initially, it was referred to as the alternative coin or altcoin. Litecoin came to the market in October 2011. It is a good option to trade with the best broker to trade cryptocurrency.
Founded by Ripple Labs Inc, Ripple was initially a payment system initially. Established in 2012, it can be traded against the popular fiat currencies as well as against other coins via the best trading platform crypto.
EOS is basically a smart contract platform that runs via a decentralized operating system. The system can “execute millions of transactions in seconds.” Hence, you can understand how fast the system is. Like the Ripple, you can trade EOS with other regular currencies and available coins through the best cryptocurrency brokers.
Cryptocurrencies vs Regular Currencies
Through the last decade, the money supply has increased exponentially, and this period is significant in history in terms of the money supply. Usually, the central bank of each country controls the money system along with the currencies, and the government approves regular currencies.
If the supply of fiat currencies is increased, inflation will also increase. As a result, the underlying value of the currency falls.
However, in the case of cryptocurrencies, supply is finite, and this is the main difference with regular currencies.
While the regular currencies have an unlimited supply, the cryptocurrencies have a limited supply. That is why cryptos values don’t fall too much.
The Number of Cryptocurrencies
As of January 2021, there are 4000+ cryptocurrencies in the market. However, not all cryptos have immense trading volume or followers. While some currencies have tremendous popularity, the rest have little or no following at all. So, the popular currencies have demand in the best cryptocurrency brokers.
Top Characteristics of Cryptocurrencies
Many people think cryptocurrencies can save the world economy as this asset can offer some opportunities which are unavailable in the banks of financial organizations. What are the other characteristics of the cryptos?
We have listed some top characteristics of cryptos that are not available in conventional currencies.
Third Part is Not Involved
No third parties such as governments, regulatory bodies, financial organizations, or any institutions are involved with cryptocurrencies. Therefore, no third party will interfere with your crypto transaction with the best platform to day trade crypto.
Hence, it resembles a win-win situation through the peer-to-peer network. You may send the crypto via the P2P network to other people’s crypto wallets, and you can also receive the crypto in your wallet.
The transaction with regular currencies allows the sender to ask for a refund, which eventually incurs a loss for the receiver. For example, if someone buys something from you, he sends the payment to you, and you deliver the goods. But, before the product reaches the delivery address, the buyer canceled the transaction, and you will not get the money. But the goods reached the buyer. So, the buyer has your goods while he reverses the transaction. So, the total process is a loss for you.
If you made the transaction with cryptocurrencies, the buyer could not reverse it, and you would not have a loss. Since the cryptos don’t have any third-party intervention, no one can alter the transaction. Therefore, you can experience a transparent transaction than the regular currencies. And same goes for trading with the best cryptocurrency brokers.
As we have mentioned earlier that the cryptocurrencies don’t have any centralized system, you don’t need to pay the high fees like the regular currencies. Furthermore, a crypto broker with lowest fees can give you the best benefits.
Nonetheless, the cryptos maintain a ledger technology that prevents any changes in the data. No one can alter the system while you make any transaction. Therefore, your transaction remains safe and secure. That is why many traders prefer FX crypto trade with the forex crypto broker MT4.
The system contains the historical transaction data, which ensures the ultimate transparency.
Cryptocurrency Wallets Types
Wallets in cryptocurrencies are considered as digital wallets through which the traders or the users deposit, hold, store, receive and send cryptos or digital currencies.
However, don’t mix it up with PayPal, Payza, or other online transaction systems. The wallets don’t store the currency, actually. Instead, it holds the data of a currency. The crypto wallets basically hold the data as public and private keys.
Nevertheless, crypto remains inside the blockchain. So, the users don’t need to store the currencies in the wallet technically. So, you can say that the crypto wallet stores the information related to the currency, which later can be used to access the crypto assets.
Usually, there are three types of crypto wallets available in the market.
The Hardware Wallet
It is considered the most secure crypto wallet as you can store the data offline too. Some examples of the hardware wallet are Keepkey, Trezor, and Ledger Nano S.
The Paper Wallet
Among all the crypto wallets, the paper system is popular yet secured too. But, it is not highly convenient, like the hardware wallet and other wallets.
The Software Wallet
The software wallet is considered the most convenient of the three-wallet systems. The good thing about this wallet type is that you can manage it through the desktop or even mobile devices. Some of the popular software wallets are Electrum, Exodus, and Jaxx.
Buying the Crypto via the Best Cryptocurrency Brokers
While some people prefer mining crypto, many people go for trading with the top crypto brokers. With the help of the broker, you can buy crypto CFDs, underlying crypto assets, crypto ETB, or even exchange-traded notes.
Following the details to buy the cryptos.
Buying the Underlying Crypto Assets
Most traders buy and sell cryptos using the best forex and crypto brokers without actually owning any physical crypto assets. Instead, the traders buy the currency and store it in the wallet. But the best cryptocurrency brokers offer wallets for the traders to hold the crypto assets.
Cryptocurrency CFD Trading
Some traders initiate crypto trading via the CFDs. Usually, the crypto CFDs are a contract through the crypto CFD broker on a specific crypto price movement. In this way, you don’t need to own a cryptocurrency. In the crypto CFD trading, you are actually trading CFDs against the forex prices, which represent the normal fiat currencies, including the USD, British Pound, and EUR.
The good thing about the CFD crypto broker is that traders can trade with the leverage. For instance, if the best CFD crypto broker provides a 1:10 leverage on a $500 deposit, you can trade up to $5000 worth of value. So, if your trading with the crypto CFD broker favor the price and you make the profit, you can keep the profit. On the other hand, if the price movement goes against it, you will owe the broker the extra amount than the deposited money.
Nevertheless, crypto investment is a short-term investment, and it has a high amount of risk. Therefore, many countries don’t allow forex brokers offering cryptocurrency. For instance, the FCA regulatory body in the UK doesn’t allow the brokers to offer CFD trading for cryptos. So, before jumping for the best crypto forex broker, make sure you know the associated risks of cryptocurrency.
Cryptocurrency ETN Trading
Forex brokers trading cryptocurrency ETN resembles the unsecured debt security, which determines the value of tracking a crypto index. Usually, the crypto ETN investors can generate profit on buy and sell differences. But the traders need to wait for the cryptos’ maturity to cash the traded amounts.
Nevertheless, an ETN is not a secured trade, and it resembles unsecured trade. So, you don’t actually own any assent in crypto.
Buying from ATM
Although buying cryptocurrency from ATM machines is cool, it is not available all over the world. For example, if you are in the UK, you can buy crypto from the 16,000 ATMs from cryptos. Those ATMs offer all the major cryptocurrencies such as “Bitcoin, Ethereum, Bitcoin Cash, Zcash, Ripple, Dogecoin, Dash, Tether, Monero, Ripple, and Litecoin.”
Nevertheless, the cryptocurrency ATM can be found in 71 countries that also accept cash or bank cards. The ATMs will be available in more countries soon. Apart from buying through the banks, traders can buy the crypto via the best cryptocurrency brokers.
The crypto ATMs are not monitored. Hence, some scammers take advantage of it and ask people to transfer money to ATMs. That is why we don’t recommend buying crypto through ATMs. Instead, it is safer to buy through the best platform to trade crypto online. We will also suggest you stick with the regulated best brokers for crypto trading.
Since the private crypto wallets are available in hardware form, you can sell and buy crypto privately. But, we don’t recommend this as you will be trading outside of the regulated environment. It is because once you send out the crypto, you can no longer reverse it. So, trading with the best broker for cryptocurrency can give you maximum security.
Task of a Cryptocurrency Broker
A forex cryptocurrency broker usually stays involved with the buy and sell of the major cryptocurrencies with the help of a liquidity provider. Brokers allow the traders to deposit the fiat currencies and buy crypto. After that, the crypto forex trading platform lets the traders use their wallets and store the currency. Later the broker can help the trader to sell that stored currency.
For a smooth transaction process, make sure you register with the best crypto broker.
The cryptocurrency exchange represents a place where sellers, as well as the buyers, meet to buy or sell cryptos or virtual coins. However, in this method, a broker will facilitate the transaction for the sake of transparency.
If you have any crypto assets, you may need to cash them by selling them to other users. Alternatively, you may need to buy cryptos. Here comes the necessity of a cryptocurrency exchange or broker.
The cryptocurrency exchange is a platform where users sell, buy, or trade cryptos. While some exchange services offer crypto-to-crypto trades, others may provide regular currencies to crypto or crypto to regular.
You will find many cryptocurrencies exchanges on the internet. While some of the exchanges offer commonly traded crypto such as BTC, BNB, ETH, USDT, and more, others offer a wide range of currencies.
Coinbase is also popular with its thousands of virtual currency offerings such as Bitcoin, Litecoin, Ethereum Classic, and more.
On the other hand, Local Bitcoin provides over the counter trading of different virtual coins. Usually, traders post the selling of a currency on the website by mentioning the asking rate and the process to make the payment.
Cryptocurrency Brokers vs Exchange
Though the tasks of crypto broker and exchange are similar, there are some significant differences. Let’s see the differences.
- The broker is an organization or firm that works as the middleman between the crypto market and the investors. On the other hand, cryptocurrency exchanges work as a middleman to exchange the coin between two or more parties.
- Crypto brokers allow the traders to buy or sell at a price defined by the broker. Exchange provides an online best trading platform cryptocurrency to facilitate the buyer and seller at the current market price.
- While you don’t need to have the perfect knowledge to trade with the best crypto broker, trading via exchange needs in-depth knowledge.
ICO and Token
ICO is a sort of fundraiser for different startups. It sells the underlying tokens against Bitcoin and Ethereum.
ICO has similarities with the IPO through which the trader can buy the company shares. Usually, the investors invest during the early stage and make a profit when the company gets successful.
But, the difference between the ICO and IPO is that anyone from anywhere can take part in ICO.
Token, on the other hand, is a type of cryptocurrency but resembles some specific assets. Sometimes, it can also be used as loyalty points to redeem against discounts.
If you are somewhat familiar with cryptocurrency, you must have heard the word cryptocurrency mining. It is basically a process to solve mathematical problems using powerful computers and hardware. Nevertheless, these problem-solving methods can get rewarded as a partial unit of cryptocurrency. Some users do the mining instead of trading with the forex crypto broker.
Further, these mathematical problems use a cryptographic hash, which is connected with the blocks that have transaction information.
So, multiple miners solve those mathematical problems, and when it is solved, miners get in on the competition, and whoever wins gets a tiny amount of cryptocurrency.
The rewards are usually coming from the fees generated from the transaction. This is the way cryptocurrencies are mined. Sometimes miners get the reward from a new release of cryptocurrencies as well as the splits of the currency.
Best Cryptocurrency Brokers Checklist
We have already discussed the criteria for choosing the best crypto broker. Here is the checklist at a glance you may want to look at for the best broker crypto.
- Try to select the best platform to trade crypto that has more than 2 years of history in the industry.
- Make sure the broker has a good size of customer support. For example, if the broker is reputable and experienced, it should have more than 20 people for customer support. Also, don’t forget to check the local language availability.
- Must have permission from the proper regulatory body.
- Check if the forex broker with crypto deposit and withdrawal methods. Usually, the best cryptocurrency brokers offer 2-3 business days transactions. This comes in handy during the fund withdrawal.
- Get to know if the broker has an international presence. This includes local and international seminars, training, and presentations.
Advantages of Trading Cryptocurrency
Although crypto trading has a considerable amount of risk, it also comes with some benefits too that can attract traders.
The advancement of technology usually leads to breaking our privacy and security. So, people stay conscious and try to stay safe while making an online transaction. So, crypto trading gained trust as it is done through the secured blocks that protect the user’s data. But there is also some risk of cyber-attack or hacking.
The lack of governmental or central exchange overseeing, many traders think it as pros. Therefore, the currency doesn’t rely on any other things, and the price stays more or less upward.
Small Transaction Fees
Since there are not any intermediaries such as financial organizations or banks, the crypto transaction fees remain low. So, the traders don’t need to spend extra money other than the speculation.
If you observe the Bitcoin price chart for the long term, you will understand the return out of that currency. The crypto market is still on the rise and developing. Therefore, the traders can expect a high return in the future if they hold the currencies now.
Disadvantages of Trading Cryptocurrency
FX crypto trade has some considerable drawbacks too. Read on to know them:
While the volatility can gain you profit, it can also destroy your portfolio too. So, if you have a huge investment and the price movements go against it, you can face a huge loss. This can happen due to extreme volatility.
Since crypto is not widely accepted all over the world, most businesses don’t accept them as a payment method. So, holding crypto will not let you pay for your daily needs. However, it will be changed over time, and soon people will be able to use the crypto balance. For example, PayPal allows the users to hold Bitcoin, and they will soon introduce paying through Bitcoin.
Though the cryptocurrencies are online-based, it is subject to tax by the law. Some countries have rules for cryptocurrency taxation. For example, the IRS in the USA said that any gaining from the virtual currency is taxable by law.
Since cryptos don’t have any regulations, many illegal activities are done through cryptocurrencies. For example, dark web transactions are done by the crypto involving drugs, human trafficking, and more.
Factor to Consider to Avoid a Broker
We have already discussed the factors to look at while choosing the broker. But there are some tricks you can follow to eliminate scam brokers. You can check the following list to understand the ways to eliminate a broker from your list.
Some Services don’t Exist
If a broker enlists certain services in the website or marketing, they should offer them practically. So, if you find a broker that lists some services on the website but doesn’t provide them in the real world, you should avoid such a broker. In this case, you can check the forex and crypto trading review of that broker. If the reviews are not satisfactory, you can avoid that broker and report to the regulatory authority.
Sometimes brokers approach unrealistic methods while they promote their services. And if you find something that is not real, you should avoid the broker. Brokers usually promote this way on social media to attain more customers. Furthermore, if you don’t find a good crypto trade FX review about that broker, you can be sure that broker is a scam. By any chance, if you signed up with them, stop depositing money immediately and observe their operation before you go for any further transaction.
Sometimes, forex crypto broker make unrealistic promises to make the investor rich. You have to keep in mind that no one can ensure your profitability. So, if any broker promises you to bring profit for you, you should avoid trading with the broker. Besides, they might also make unrealistic predictions. If you come across any broker like this, even if it is one of the best cryptocurrency brokers, you should check the forex and crypto trading review and determine whether it is good or bad.
When you look for a broker, you should be able to know the identity such as registration number, physical address, country, etc. The best cryptocurrency brokers should be transparent. If any broker denies revealing the identity, you should avoid that broker. Brokers usually hide if they have any intention to scam the investors.
So, if the intended broker has any of this stuff, you can avoid that broker.
Safest Place to Keep the Cryptocurrency
Keeping the crypto in a hardware wallet is the safest place, which is also called cold storage. It is vastly used by investors as well as the best cryptocurrency brokers. Usually, the security experts back this system by maintaining your private keys offline. Therefore, your cryptocurrency will be inaccessible to anyone except the specific access code holders.
How do the Best Cryptocurrency Brokers Earn Money?
Usually, cryptocurrency brokers make money from fees and commissions. Whenever a trader makes any transaction, they are subject to get charged. Nevertheless, the fees and commission depending on the amount you trader. Sometimes it is charged as some percentage.
That is why investors look for the crypto broker with lowest fees so that they can maximize the profit or minimize the loss.
Is FX Crypto Trade Legal?
Cryptocurrency trading is banned in some countries, while it is totally legal in most of the first world countries. For example, people in the UK and USA can trade crypto legally. However, the UK has recently put a ban on bitcoin CFDs. So, before you want to step into the crypto world, make sure it is legal in your country. Otherwise, you may face a problem if you conduct the trading from a banned location.
How have we Picked the Best Brokers for Crypto Trading?
You have already seen that; we have featured some of the top crypto brokers on this page. We have listed them after considering a number of factors we have mentioned in this article. Our research team handpicked each broker by investing money in them. When they had found satisfactory results, they picked that broker after going through several steps.
So, you can pick any of the best cryptocurrency brokers from our list.
There is no reasonable doubt that cryptocurrency is the most volatile trading market. While it comes with high opportunity, it can also lead to a loss for the investors. That is why the traders need to have proper knowledge alongside the help from the best cryptocurrency brokers or the cryptocurrency forex brokers.
Now that you need the best crypto broker, it is normal to get confused while searching for brokers. With that note, we have recommended top crypto brokers articles to get rid of all your confusion.
Furthermore, if you don’t want to trade with any of these brokers, you can follow our broker choosing method and pick the best broker for cryptocurrency outside of this list. Additionally, if you prefer to trade with any specific platform, you can look for the best mt4 broker for cryptocurrency as well as the mt5 cryptocurrency broker, which is also available in our brokers list.
Last but not least, all the brokers we have mentioned here, you can consider them as the best broker for forex and crypto.
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