Choose From The Best Cryptocurrency Brokers UK

Cryptocurrencies are a relatively new asset class, yet they have managed to disrupt the investment world and are now enjoying some notoriety as a legitimate financial product all of their own. 

Here, we look at answering what exactly is cryptocurrency trading and how to choose the best crypto brokers UK that meets an investor’s needs and requirements. In doing so, an investor is far better placed to make the best decision possible with regards to what broker is most suitable for them.  

What is Cryptocurrency Trading?

A cryptocurrency is a form of electronic currency. There are many different types of cryptocurrency now available. For example, Bitcoin, Bitcoin Cash, Litecoin and Ethreum. They are not used as hard cash as currencies like the US dollar or the British pound are. However, they can be used to purchase some goods online with entities that allow this form of payment. 

Trading in cryptocurrencies is a form of betting on the price movements of the cryptocurrency itself. In a way, it is a form of forex trading, however one side of the trade is a cryptocurrency, with the other side a traditional currency. Traders in cryptocurrency make money on the spreads that occur because of price movements and price fluctuations. 

How to Choose a Cryptocurrency Broker?

As with any form of trading, the broker you choose should have high standards when it comes to the trading platform or interface it provides as well as competent processes when it comes to opening an account in addition to depositing or withdrawing from it. Along with some other factors that need considering, here is why these practicalities need to be taken into account when choosing a cryptocurrency broker:

Fees

Fees are one of the main ways that brokers make their money. To do so, they structure their fees in various ways which vary from firm to firm. Choose a firm therefore that you believe offer value for money for those fees as well as simply being fees you can afford. Also, be aware of what those fees give you. Some broker fees will be low due to being a no frills entity, while others will be higher but also provide you with investment research pieces amongst other added extra features. 

Account opening

Despite being a company that provides the majority of its services online, some cryptocurrency brokers do not have an efficient, digital way of opening an account. This can be frustrating if you are dealing with a broker that is taking a long time to set you up with an account. It also means that you are losing out on all that time to invest your funds and make money. 

Trading Platform

A cryptocurrency broker’s trading platform is perhaps where a firm can really set itself apart from its competitors. Always choose a broker that has a well designed trading platform but ensure that your final choice also works with your processes. Some trading portals are well designed, but only suitable for the most advanced of traders. Others are much more intuitive and perfect for novice crypto traders.

Deposits and Withdrawals

Much like account opening, it is essential that your cryptocurrency broker makes depositing and withdrawing cash as easy as possible. Not only is it frustrating if you find the process of doing so is convoluted, it also doesn’t instill the highest amount of confidence as to the abilities of your chosen broker. Being able to deposit cash or withdraw cash is just as important a part of running a portfolio as making the trades themselves, so it is imperative that a cryptocurrency broker firm can get this right. 

Range

There is a growing amount of Cryptocurrency types available. If you want to invest in a wide range of them, ensure that your chosen broker has the capability to do. Some will only offer a small range of cryptocurrencies to trade in, which may not suit your purposes. 

The Best Cryptocurrency Brokers - Key Takeaways

Given the relatively recent introduction of cryptocurrencies to the investment world, it can be difficult to know at first what broker to choose with any definitive satisfaction as to their worth or value. However, despite being a new asset class, brokers still need to provide a competent service delivering what they promise - like any other type of broker. Focus on those basics like a good trading platform as well as robust processes and you will find that you shouldn’t be let down.