What is best for you?

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When looking for a service for trading BTC, Ether or other altcoin, one has to decide whether to look to an exchange or a broker. At first glance, it may not seem like there is much difference, but in practice each type of service is targeted to the needs of a particular category of merchants.

Let’s first explain the function of crypto brokers. In practice, they work identically with Forex brokers. Specifically, these platforms typically offer access to a full range of assets, including tokens. Thus, they act as intermediaries between an investor and the market and offer crypto trading via CFDs.

To get a clear idea of ​​this option, check its advantages:

in addition to cryptographic CFDs, it gives access to a wide variety of other financial instruments such as Forex, commodities, stocks or metals; a good selection of payment methods, including credit card transactions; copy trading, robots and other additional instruments are often offered; investment projects for passive income; referral programs; these platforms are officially regulated; customer service.

As for the downsides, it is a limited selection of cryptocurrency pairs and the lack of a direct trading function, instead you can win CFDs i.e. differences of rate at the time a transaction is opened and closed.

Speaking of exchanges, these are services designed exclusively for trading crypto / crypto and fiat / crypto pairs. Unlike a crypto broker, such a platform will not offer you access to any additional assets except coins, futures, crypto options, and non-fungible tokens.

Advantages :

direct trading (unlike CFDs); access to hundreds of coins and tokens; diversified related instruments, such as options; service tokens, which reduce trading commissions; lower trading fees than brokers; the rules of the commission are easy to understand; earn referral links; passive income from staking and lending; you can make deposits / withdrawals directly from / to your outside crypto wallet.

Read also: Supply and demand areas: what are they and how to find them?

Disadvantages:

no other assets except cryptocurrencies and derivatives; the majority of these sources are unregulated.

Ultimately, we’ll also name a few proven services so you know which sources are safe to use: brokers – Exness, RoboForex, InstaForex, WorldForex, Forex Club; exchanges – Coinbase, Bybit, Binance, Kraken, XT.com.

To sum up, if you are only interested in crypto investments, we advise you to look to a stock exchange, but, in case you plan to gain other assets as well or are interested in long term investments, a profile on a brokerage platform will be a more comfortable option for you.

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