It has been 12 years since the launch of the first cryptocurrency – Bitcoin. Today, hundreds of cryptocurrency enthusiasts look for top-rated Bitcoin brokers that offer the best services.
The work of cryptocurrency brokers is to provide several cryptocurrency derivative contracts for the users. The users don’t own these contracts but rather speculate on them. The speculation is usually on the rise or fall of the prices of different cryptocurrencies.
There are different ways to choose the best Bitcoin brokers for cryptocurrency price speculation.
In this article, you will learn about the five (5) important features. It wouldn’t be hard for you to trade with suitable cryptocurrency brokers having the following factors in mind.
1. The Brokers Should Offer a Demo Trading Account
Cryptocurrency trading may have been around for over a decade, but the experience level of most enthusiasts is zero.
This is usually the case when these cryptocurrency or Bitcoin enthusiasts started to consider trading late.
In that case, it is expected of the Bitcoin brokers to offer a demo trading account. With the account, new traders will find it easier to master Bitcoin trading.
The demo trading account offered by Bitcoin brokers should also have:
- Resource materials for the traders to consult when they need help.
- A walk-through video to guide them on how to trade.
The world has greatly evolved. Today, a greater percentage of cryptocurrency traders prefer to use their smartphones instead of desktops.
Thus, the Bitcoin brokers should have convenience as one of its features. Here, we are looking at the ease of use of the Bitcoin CFD platform offered by the brokers.
First, the website of the Bitcoin brokers should be easily accessed both from PCs and smartphones.
Second and most important, the interface should be user-friendly. The trading tools and all other important tools should be easily accessible.
Also, ensure that the Bitcoin brokers have multi-lingual support. This way, traders from different parts of the world can use the services offered.
3. The Brokers Must Have a Large Capital Base
The financial standing of the Bitcoin brokers is another important factor to consider. Vitalik Buterin (the founder of Ethereum), has something similar to say about this. According to him, “in order to have a decentralized database, you need to have security. In order to have security, you need to have incentives.”
Let us now apply this to the issue of capital base. In this case, it means that the Bitcoin brokers should have a large capital base.
There are many reasons why this is important, and some of them are discussed below:
- Having a large capital base means that the Bitcoin brokers are not struggling, financially.
- The idea of having sufficient capital is to protect against possible losses.
- Good financial backing also means that the Bitcoin brokers wouldn’t go bankrupt or insolvent.
Finding out the solid financial backing of the Bitcoin brokers might be hard. However, you can always contact the brokers’ “Help section” or make research online to be sure.
4. Credibility and Reliability is Important
Bitcoin was launched as a response to the centralized control of finances. The idea is to create a global payment system that is free of intermediary influence. This is why Bitcoin and other cryptocurrencies are mostly traded on a peer-to-peer basis.
Therefore, choosing trusted Bitcoin brokers should be based on reliability and credibility. Your focus here is to find reliable Bitcoin brokers.
Checking the reviews of other cryptocurrency traders is excellent. However, there are other ways to be sure of the Bitcoin brokers you want to use its service.
Years of Experience
You are either a newbie or a professional in cryptocurrency trading. Either way, it is always important to use the services of experienced Bitcoin brokers.
The experience also includes the number of years the brokers have been in the business. Bitcoin brokers that started the business ten years ago tend to offer more than another that is starting.
A Professional Team
The Bitcoin brokers you want to use should have a team of experts. These individuals should be experts in different areas of cryptocurrency trading.
Bitcoin and indeed cryptocurrencies, in general, are peer-based, but they are regulated in some cases.
Already, some countries are kicking against the adoption of cryptocurrencies. The few that see the prospects of Bitcoin come up with tough regulatory measures.
So, ensure that the Bitcoin brokers you are choosing have the relevant licenses. These licenses are meant to confer legal backing to the brokers to offer their services in the jurisdiction.
5. Understand the Commissions
Bitcoin brokers tend to charge commissions. These commissions usually include the cost of the transaction and the fee for trading.
Ensure that the Bitcoin brokers you want to use specifies the type of fees it charges. Also, the brokers should mention the percentage or amount it charges as fees.
Using the services of Bitcoin brokers is an excellent way to bet or speculate on the price of cryptocurrencies.
While at it, ensure that the brokers are reliable and efficient. Using the features on the list above, you will find the best Bitcoin brokers to use.