Those who are new to the world of cryptocurrency trading, it can be a bit overwhelming at first when trying to figure out where to start. Even experienced traders will face a great deal of confusion because there is simply a huge number of cryptocurrency brokers operating in the market. All trading activity begins with a broker and every broker has its own negative and positive qualities. So, what features should you zero in when you have to choose a cryptocurrency broker? Knowing the answer is extremely important because the wrong choice can have long-term consequences for a trader.
Highlighted below are some golden rules that you should follow for choosing a cryptocurrency broker:
Look at their Trading Pairs
It may have started with Bitcoin, but today, it is not the only cryptocurrency in the market. There are more than 5,000 crypto coins that you can find and brokers decide which ones they will offer to their traders. It is necessary for traders to select the trading pair that can generate the highest returns for them. There are numerous crypto pairs that you can explore and make sure you opt for a broker that offers you the ones you wish to trade.
Consider the trading fees
Considering trading fees is extremely important because they will just eat away at your profits. Brokers compete with low trading fees because they want to attract as many traders as possible. Your priority should be to find a broker like RoyalStox, which charges a low trading fee and also provides you with exceptional services in return. Bear in mind that you should not just focus on the spread or commission a broker is charging; there are other forms of fees involved as well like account maintenance fee, inactivity fee, and more.
Check for KYC and Regulations
Verification is an important procedure that traders have to deal with when they are withdrawing funds from a broker. All legitimate brokers have to comply with regulatory guidelines due to which traders are asked to complete Know Your Customer (KYC) protocols for verifying the identities of clients and for preventing money laundering on their platform. For identity verification, most brokers require Proof of Identity (passport, National ID or driver’s license) and Proof of Residence (a utility bill with your name or address or a bank statement).
Look into their Reputation and Security
Basic security features like 2-factor authentication are provided by most brokerages. 2FA can be activated for different activities like fund withdrawal, login, and setting adjustments. Some brokers maintain account segregation for the safety of their client funds. The reputation of a broker is also of the utmost importance and you should study it closely before signing up. Reliable and renowned brokers like RoyalStox will offer topnotch security and will have a strong reputation in the market. If there are any doubts about the broker you are considering, you need to steer clear of them and look for other options.
Take a Look at Account Features
To start trading via a broker, you will first have to open an account with them and brokerages offer several account options to their clients. Every account is different and comes with different features, as the accounts are designed for traders with unique characteristics. Before you choose a broker, you should ensure that they provide you with good and solid account options. Some brokers give very limited options and don’t provide many features, especially in basic accounts, forcing traders to open advanced accounts that require higher deposits.
Don’t Forget Customer Support
A lot of traders don’t pay much attention to this aspect of a broker. They are more focused on their trading platforms, tools, security, features, and crypto offerings. But, not taking into account customer support is a big mistake. There will be times during the trading process that you will encounter some troubles. In that case, you would want assistance immediately and if the broker doesn’t have solid customer support, you could end up stuck. This is extremely frustrating and annoying and the only way to ensure it doesn’t happen is to look for a broker that offers an efficient and prompt customer service to its traders.
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