2022 has many things to offer, even in the world of finance. Last year, we witnessed a growth in the crypto space even as more dealers entered the market. While many experts have raised their concerns about how unpredictable crypto assets turn out to be, people still see a lot of potential for using crypto to engage in online transactions and make passive income.
Therefore, as a prospective investor, there would be a need for you to choose the best crypto broker that would allow you to make returns on your investment. If you are one of those that believe in the prospects of cryptocurrency in this new year, this is the time for you to watch out for the top five brokers in 2022. Hopefully, this post will guide you in making the best crypto investment decision that guarantees success.
What Does a Cryptocurrency Broker Do?
A broker is an individual or a firm that serves as an intermediary between an investor and a security exchange in the market. As an agent to the investor, it accepts commission for any investor’s deals.
Therefore, a crypto broker provides a platform for buying and selling crypto assets via mobile devices or desktops, and they operate under a particular regulation.
How Can You Know a Good Crypto Broker?
You can identify a suitable broker by the list of available crypto selections. A crypto broker with a wide range of crypto options does not limit your choice. However, it creates more opportunities for you.
Secondly, the higher the standard of the crypto trading platform, the more reliable it is. It guarantees transparency and better professional services like the provision of crypto wallets. Here are the top brokers to look out for in 2022.
Top Five Crypto Brokers in 2022
eToro
eToro was founded in 2007 as an Israeli fintech company and cryptocurrency broker, and over 13 million crypto dealers trade on this eToro. This platform rates high among new crypto dealers because of its easy-to-use trading features and an increased number of crypto assets.
Trading on eToro is commission-free, but it is pricier than most brokers. In addition, it offers copy trading, which allows new dealers to trade easily by choosing the best deals. Trading fees start from $10 to $200. eToro also has a mobile app that is user friendly and secure.
Coinbase
Coinbase is one of the oldest brokers in the business after its establishment in 2012. It currently has over 43 million users scattered across over 100 countries. One of its unique selling points is the extensive educational materials that are easy to understand, especially for beginners.
Furthermore, Coinbase provides users with crypto wallets and excellent customer support. The platform is ideal for new investors, and they are not short of options with access to over a hundred types of crypto coins on the forum.
Coinbase charges a spread markup of 0.5 per cent and includes a transaction fee depending on the size of the deal and the funding source.
Robinhood
Robinhood is another crypto broker that new dealers will find easy to use. It has a simple layout, and beginners can quickly understand the platform and make better deals. However, its trading options are limited.
The platform is also an excellent choice for the direct purchase of cryptocurrency. One of its significant advantages is the commission-free feature, though you still have to pay a spread markup on any deals. If you are not looking for a full-featured trading system, the Robinhood app is for you.
Interactive Brokers
With one of the lowest commissions in the crypto market, the platform allows you to directly deal with four crypto coins, including Bitcoin and Ethereum. The commission stands at 0.12-0.18 per cent per trade value and $10.02 per futures contract, and all you need is $0 in your account.
Professional traders prefer Interactive Brokers because of their influential collections of tools and global access to a broader range of assets, including stocks, options, futures, and bonds. However, it may be a challenging platform for new and inactive traders to use. Lastly, Interactive Brokers is one of the few spread-free platforms, so you do not have to pay any hidden fees.
BlockFi
BlockFi is also another platform that is favourable for experienced crypto traders. It has over 1 million registered users and $10 billion in assets. The platform allows you to maximise your interests and encourages traders with low-interest loans.
BlockFi also offers free trading fees, but withdrawals come with a cost, and it is limited. In addition, users register with their government-issued ID to prevent fraudulent activities on the platform. BlockFi is available on all devices with easy to use features to encourage new traders.
Final Note
The broker you choose can influence your success in cryptocurrency trading in 2022. When selecting a broker to assist your investment, look for the features that suit your needs and experiences. This post has shown you what a crypto broker is and how you can know a good broker that can increase your returns.
Cryptocurrency is here to stay, and it is time for you to take a step this 2022.
