How to Choose a Reliable Crypto Broker in 5 Easy Steps

Let’s be serious; the choice of crypto broker can make or break your crypto investment journey. By choosing the right one, you can have a helping hand every step of the way, take advantage of crucial trading tools, and be part of a thriving community of other crypto investors and enthusiasts.

But if you choose the wrong one, you can be put on a dark and time-consuming path full of stress that will likely end with losing all of your investment. Naturally, this is something you must avoid at all costs.

But there are countless crypto brokers out there offering their services. So how do you even begin to sift through the pile and find the right one? Don’t worry, because that’s where we come in. This super simple guide will guide you through the most crucial things to know when finding a crypto broker in five easy steps. 

Short on time and looking for a fast route to finding a crypto broker? Opt for a popular name like eToro or, even better, utilise one of the cutting-edge platforms that partner their users with crypto brokers best suited to their individual investing needs, such as

Step 1 – Make Sure Your Chosen Broker is Regulated

Cryptocurrency, in general, is unregulated. This comes with its own form of risk. For example, you will struggle to recover lost funds in the event of a hack or a mistaken transaction. However, it doesn’t have to be this way with the right broker.

Whichever broker you choose, ensure they fully adhere to global financial regulations. This means that your funds are protected and insured. If you opt for an unregulated broker, all your investments are at risk, and you could lose them at any second.

Don’t do it, despite what unregulated brokers may promise new members. Try to familiarize yourself with potential scams that you could encounter from brokers, and do research by asking yourself questions like what is account churning? Stay sharp. Stay safe. Stay regulated.

Step 2 – Evaluate The Tools On Offer

Any reputable broker will have a wide portfolio of crucial trading tools to help new investors in every aspect of their investing journey. From stop loss tools to demo trading accounts, let’s look at three crucial tools that any reputable brokerage should have.

  • Demo account – Crypto investing is a learning curve you shouldn’t undertake with your hard-earned cash. Instead, you should find your feet with the advantages of a demo account. This practice tool lets you get the hang of the crypto market and figure out how it works using dummy cash.
  • Stop Loss and Take Profit tools – Staring at the crypto market all day and waiting to spring into action isn’t ideal. Thankfully, with stop loss and take profit tools, you don’t have to. These tools let you set your trading goals and automatically execute them when a crypto asset reaches a certain price. Any reputable broker will have them.
  • Fast payouts – When you’ve made a profit on the crypto market, it’s only natural that you’ll want access to your funds. Any good crypto broker will always have a fast payout system so its users can access their profits as quickly as possible.

Step 3 – Ensure The Broker Has a Good Security Reputation

Since 2021, over $1 billion has been lost to scams, thefts, and hacks across the cryptocurrency industry, and that’s just the incidents that have been reported. Don’t become a statistic; ensure you find a crypto broker with a solid reputation for providing a secure online service.

You can easily check if a broker has been the victim of repeated hacks or other insecure incidents. If you notice a pattern, stay clear, it’s likely the brokerage has a poor handle on their online security, and your crypto may be at risk as a result.

Step 4 – Figure Out if it’s Suitable For Beginners 

One of the biggest mistakes that many new investors make is signing up for a platform that isn’t beginner-friendly. In doing so, they can become overwhelmed by the advanced tools, charts, and trading methods they face. 

This can lead to poor investment choices or the lack of motivation to get involved with cryptocurrency altogether. So, when considering a brokerage, ensure that it is made with beginners in mind and easy to navigate.

In addition, some of the more advanced crypto brokers will come with significantly high fees compared to the more beginner-friendly options. These fees can cripple your investment journey from the start and be immensely disheartening to a new trader.

Another beginner-friendly brokerage worth its salt will include everything from dedicated account managers to demo trading accounts to provide a welcoming atmosphere for newcomers to the crypto market and allow them to find their feet. 

Step 5 – Use a Broker-Pairing Tool

And last but not least is one of the most important steps in finding a reliable crypto broker: Using a broker-pairing tool. This can save you countless hours and unnecessary stress by taking away the task of searching high and low for a brokerage that is right for you.

Instead, a broker pairing tool, such as Bitcoin Profit, uses a unique system that takes your submitted data and pairs you with a trusted, reliable, and highly-recommended brokerage that perfectly fits your investment needs and goals. 

To summarise

It’s no secret that the journey to finding a reliable broker can be daunting for beginners in the cryptocurrency market. Thanks to the advent of broker-pairing platforms, however, it doesn’t always have to be a hassle. These platforms do the hard work for you and connect you to one of the many reliable platforms in their portfolio of broker partners.

We hope this guide was useful in aiding you in your journey to finding your perfect brokerage. But above all, remember: the cryptocurrency market is highly volatile, and losses are just as common as profits. Never invest more capital than you can afford to lose, and always seek out the advice of a licensed financial professional before investing.