Over the years, cryptocurrency has been widely accepted by countries around the world. Although the power of cryptocurrency is still in its nascent stages, as of 2021, there are more than a 300million crypto users worldwide.
Crypto trading is complicated, and various experts seem to have different opinions on how to trade. Crypto trading requires investors to speculate on the market before buying or selling cryptocurrencies. Usually, crypto exchange platforms allow investors to buy, hold, and trade cryptocurrencies. PayBito is a globally acclaimed exchange platform that is popular among investors.
PayBito offers its white label crypto broker platform and an exchange platform for institutional investors. While crypto brokers are usually availed by new investors in the market, the exchange platform is best for experienced professional traders.
Who is a Cryptocurrency Broker?
In traditional terms, a broker is a firm or an individual who acts as a mediator for traders who want to exchange a product or service for money and vice-versa. A crypto broker is similar to a traditional broker. Crypto brokers offer financial services to traders who want to speculate in the market, buy cryptocurrencies, and sell them with profit margins. All these services are provided in exchange for broker fees or commissions.
Do You Require a Crypto Broker to Start Your Trading Journey?
If you are just getting started with the crypto trading industry, availing crypto brokers is a wise choice to understand the market conditions of Bitcoins, Ethereum, Dogecoins, and other cryptocurrencies. Moreover, the exchange of fiat money to cryptocurrency and vice-versa is also conducted between the buyer, seller, and the crypto broker platform.
It is important to understand that technically traders do not require brokers to make a trade. The decentralized nature of cryptocurrencies eliminates any use of third parties. Now the confusion is, why involve a crypto broker? There are several advantages of crypto brokers as they provide great deals and a huge range of services for traders.
Crypto Trading is Risky
Cryptocurrency is a volatile market, hence trading in crypto is a risky business. Although it can be a highly profitable investment market, the recent crash of the crypto market in the first quarter of 2022 has disappointed many traders. Since the market is volatile, the chances of an increase in prices are still a possibility, which is why many brave-hearted traders are still holding their currencies to reap the benefits.
Another risk in the crypto trading industry is cybercrime. Since cryptocurrency is not backed by the government, there are no proper regulations or authorities to look for fraud. Moreover, the trading is not conducted through a bank, nor will the SEC return your money in case of fraud. Therefore, it is crucial to check the authority and license of any exchange platform or crypto broker, before signing up.
How to Know if Your Crypto Broker is Regulated?
Only a few countries like the United Kingdom, and its Financial Conduct Authority require crypto brokers to be regulated. In the inordinate market of the crypto community, it may be a tedious job to stay away from frauds, and untrustworthy crypto brokers. However, we have come up with a few signs that may signal a ‘red flag’.
When you look for a broker service, always look for the services they claim to provide that are authentic, and provided in reality. If a broker claims that its services include ‘Data and Research’, the broker platform must include data and research in it. In simple terms, the services they claim to provide must be listed on their site. If you found them to be dishonest, move on and look for another provider.
Promises That Are ‘Too Good to be True
If a crypto broker claims to make you rich in less time, it’s too good to be true. Crypto is a volatile market, and a prediction like becoming rich is questionable. A good crypto broker will never promise something that may not be possible, especially in such market volatility. A broker can only promise to be genuine and share a promising platform.
If a crypto broker markets his services that are too good to be true, or; lies about their services, it can be a red flag. Today, social media plays a huge role in marketing. Many crypto brokers create fake accounts and market unrealistic expectations claiming 100% customer satisfaction, they are crypto scammers.
Anonymous Broker Identity
It is important that the crypto broker you hire has a genuine account. Although cryptocurrency allows anonymous users and traders, trading with crypto using a broker is like a business. Therefore, a broker must be transparent about his identity and services. Any broker who resists sharing his identity might be a scammer.
When you hire a broker for crypto trading, he or she will charge fees and commissions on every transaction. If you are looking for a regulated crypto broker, PayBito’s crypto broker platform may find you a genuine broker for your trading business.
Cryptocurrency is a volatile market, and involves high risk, especially for new investors in the market. To speculate and analyze the market before buying is important. If you are looking for a crypto broker, make sure he is regulated, transparent, and honest about his services, prices, and identity. Often large platforms like PayBito or other crypto broker platforms help to ease the process.