What are cryptocurrency Brokers?
What are cryptocurrency Brokers?
If you look at the market and industry today you see that cryptocurrencies are as hot as ever, thou they lost a bit of the hype that was soaring in the end of 2017, they are still the most exciting industry today.
The development and maturing of this industry will affect everyone and people that understand this will benefit more then those that do not, it is just that simple.
This said there are so many IO’s coming out and so many new cryptocurrencies launched that it can become a bit daunting to try to follow all.
There I actually no need for that as with most thing the best ones will stay, and many others will just slowly disappear.
People tend today to trade these cryptocurrencies before that actually invest in them.
The reason for this is clear as when you are trading you are able to make money on the rise but also on the fall of a crypto.
You don’t actually buy or sell any real cryptocurrency and do not need a wallet, what you in fact are doing is trading on the price changes of this cryptocurrency.
As we have seen with bitcoin that dropped after it was at a rate close to the $20,000 back to below $10,000, this move makes many people say that this is a bad investment but they tend to forget that at the beginning of last year Bitcoin did not even pass the level of the $1,000.
What are cryptocurrency Brokers?
Traders today have for trading currencies , indices and commodities always turned to the numerous forex brokers that offering trading services for this , companies, etoro, avatrade and GKFX to just name a few. There literally hundreds of such companies and some are good others are bad.
These companies are often regulated through regulations like Cysec, FSA and other regulatory entities. The regulation required the brokers to work in a certain format to avoid money laundering and at the same time protect the traders from scam brokers.
After this the Binary options Broker came along.
These brokers offered a different kind of trading which also required most of the time a different trading platform. Where forex brokered in general offered metatrader 4 or metatrader 5 from metaquaotes. Or had their own trading platform like etoro binary option brokers used other providers like the trading platform like spotoption .
Now with the new market of Cryptocurrencies there is a new type of broker.
What are cryptocurrency Brokers?The cryptocurrency brokers.
These brokers also have their own trading platform that is dedicated to trading cryptocurrencies, you will be able to trade these currencies against the main valuate like the USdollar British pounds, euro and other majors. Or you will be able to trade one cryptocurrency against the others, the last one is in general not offered by the forex brokers and might actually be even more interesting to trade then for example Bitcoin against the Dollar.
The Platform is very easy to use and fully mobile compatible because there are still not a huge number of cryptocurrencies that one can trade the platform looks simple and not over crowded.
Trading in MT4 one does for the charting and I have to admit that some of the charts and EA’s that you have in MT4 could benefit the crypto trader. s there is room for improvement in this matter.
Now there are new brokers that are not offering the standard trading platfor
m the Forex industry offers but are going only for thee dedicated cryptocurrency trading platform for example AirsoftLTD. These brokers like WeberFinance and Xcoinbroker are not regulated but full-service brokers that look to make a name for themselves and establish a broker for the long term.
They offer leverage and margin like the forex brokers but you are in general also able to fund your account with the cryptocurrencies.
Should you Use a Crytobroker instead of a Forex Broker?
This depends on what you look to trade. The Forex industry will never make cryptocurrencies it is main tradable assets , this you will notice in the daily analysis and market pates as they are more stock, commodities and regular currencies related . same for the market view.
The cryptocurrency broker focusses only one thing and that is cryptocurrencies. So, this is their bread and butter and this you will feel.
Xcoinbroker for example has a very thorough market analysis for its main cryptocurrencies and weberfinance offers a crypto news section on this trading platform.
So yes, if I plan to trade only crypto I rather do this with a broker that is only offering crypto trading.