Ethan from Minneapolis

Signed up at Goat Casino 45 minutes ago.

» Try Goat Casino too
Do not show again

The crypto craze is generating interest from all circles, including financial institutions. It’s no longer only of interest to crypto enthusiasts due to its massive impact and potential on the global economy. More often than not, users require to access cryptocurrencies through a crypto exchange or broker. But how do you find the right one?

A more direct way of getting into crypto is through crypto brokers as it does not require much technical know-how such as crypto wallets. These include Contracts for Difference (CFDs) and a cryptocurrency Exchange Traded Fund (ETF). Crypto Lists explores what to look for when evaluating the best crypto broker.

Understanding CFDs and ETFs for Crypto

A Contract for Difference (or CFD) is a legally binding agreement of a futures contract between a buyer and a broker. It indicates that a broker will pay a buyer the difference between the current value of an asset and its end-of-the-contract value. The contract’s beneficiary relies on whether the price of an asset increases or decreases.

For example, if the value of the asset increases, the broker pays the buyer the difference, and if the value decreases the buyer incurs losses and pays the broker. CFD traders do not actually own the underlying asset but only speculate on its price movements to profit. The CFD system is effective for all assets, including cryptocurrencies.

Traders seek CFD crypto brokers with favorable trading conditions to engage. Several trading companies have heeded the growing interest in CFDs for digital assets to be part of their trading instruments. Users can sign a CFD with a crypto broker and speculate on future price movements of a token within the validity of the CFD. The system is convenient as neither the trader nor the broker has to own any cryptocurrency to benefit from the future price movements of the token.

Advantages of CFDs

CFDs have several advantages, especially their easy setup without the technical knowledge of direct trading as with crypto exchanges. Users opting for CFDs also benefit from leverage trading where they can trade with more funds than they have. Brokers are not limited to the leverage they offer traders with digital asset regulation. CFDs offer greater margins on future contracts on crypto.

CFDs also offer advanced technical instruments, including stop, loss, and take profit which is critical in the volatile crypto industry. Charts and analysis reports enable traders to have informed speculation when trading with CFDs. These trades are instant which allows traders to take advantage of market movements.

In addition, several are regulated by reputable financial institutions such as FCA and CySec, which builds trust with its users. An Exchange Traded Fund shields beginners from investing in crypto by themselves by issuing yield from a basket of cryptos. It operates similarly to an investment stock fund. They are relatively a new concept, especially in crypto due to the high volatility.

What to Consider when Selecting a Crypto Broker

There are multiple thing to look out for when choosing which path to go down. And, many of the top brokers such as Skilling and eToro have a demo account for you to practice trading on. Below we look at some of the biggest factors to take into consideration.

Regulation and Trading Conditions

Traders must seek crypto brokers that have regulation from the FCA, CySec, NFA, or any other financial institution. This is essential as it protects traders from fraudulent brokers. Regulation by government agencies with enforcement powers like in the UK, USA, EU, and Gilbatar are more reputable than of Singapore and the Caribbean region such as the Bahamas. Crypto brokers with a reputable regulation jurisdiction are often financially stable and liquid.

Traders must be wary of the trading conditions offered by various crypto brokers. For starters, the price provided by the brokers must be similar to the current market rate. The critical trading condition is the spread between the buying and selling price it offers. Cryptocurrencies with less liquidity and risk often have a wider spread hence you must compare various brokers’ spread fees. There are also fees based on the number of days you hold a CFD position. Ensure you are aware of all potential fees before entering the trade. These charges must not be so high that it potentially takes up most of your profit.

Leverage Trading Offerings

One of the main reasons for seeking crypto brokers such as CFDs is access to leverage trading. Traders seeking to acquire CFDs must seek crypto brokers with reasonable leverages to evaluate the possible earnings and losses as the CFD can go either way. Traders must understand the effect of high leverage and not just focus on its potential earnings. Understand the risks of losing significant funds as well.

Number of Crypto Pairings

Crypto platforms that cater to beginners often have a limited number of cryptocurrencies on offer. Whereas with brokers and exchanges there are an enormous number. Usually decentralized exchanges have the most, but they don’t have the regulation and security you gain from using a broker.

Longevity and Reputation

The longevity of a crypto broker builds confidence in users. A crypto broker that has stood the test time is more likely to offer reliable services. A longstanding crypto broker more often has gained a good reputation from its users. You can research the existence of any scams and related customer issues via various reviews.

Crypto brokers associated with scams must be avoided as the risk of re-occurrence is often high. Some brokers have fund withdrawal delays that frustrate users despite claiming instant withdrawals. In your research, it is critical you identify genuine reviews as some manufactured reviews do not portray the actual reputation of the crypto broker.

Foundation and Management Team

One of the bases for judging the soundness of a company or project is its team. Crypto brokers are no different as the founding and management team influences the confidence in its traders. Crypto brokers should showcase their team and include verifiable information. Executives with a strong financial background tend to have a higher probability of running the firm more efficiently. Though nothing is for certain, of course.

A strong team is more likely to be transparent in their dealings and offer excellent support. Efficient customer support is often detailed in live chats and provides emails and phone support for quick and responsive feedback.

Summing it up

As you can see, there are a variety of factors to take into consideration when going the broker route. For beginners, we tend to recommend signing up with a platform like Coinbase or Wirex. For intermediate crypto enthusiasts that want to trade, an exchange is preferred. For the experts, a broker is most suitable. You can also learn how to find the most trustworthy crypto exchange in the linked post.

Disclaimer:  Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.

by Our Certified Author
    €1,000,000 insurance when trading crypto with Skilling€1,000,000 insurance when trading crypto with Skilling
    Wednesday, 8 Feb 2023 12:27 pm
    As of February 01 the Scandinavian crypto broker Skilling have covered all account with up to €1m per account. This is great news for anyone looking for additional peace of mind when thinking about their funds. Already a highly regarded broker, Skilling's move has solidified their reputation as a truly premiere destination for all-things trading. Sign up for Skilling now!...
    Read the full newsflash

    Get Black Friday freebies from Skilling!Get Black Friday freebies from Skilling!
    Friday, 25 Nov 2022 2:48 pm
    It's Black Friday ladies and gentlemen, and that means one thing: discounts and freebies! Skilling is offering specific trading options without spread and brokerage fees for the next three days. Want to get your hands on these exciting goodies? Sign up for Skilling now and get started with crypto trading through...
    Read the full newsflash

    Skilling add Credit Suisse CFDs after market turmoilSkilling add Credit Suisse CFDs after market turmoil
    Thursday, 6 Oct 2022 6:20 pm
    The Scandinavian CFD broker Skilling is adding the heavily discussed bank, Credit Suisse, to their list of CFDs. The entire stock- and crypto market was in free fall after worries that both Credit Suisse and Deutsche Bank could collapse last week. Al Jazeera reported that while it mostly could be rumours, the need for a restructuring of the business is clear. Credit Suisse shares in Switzerland is trading at 88.75 CHF in 2007 and stood at 4.44 CHF when writing this. That is a drop of over 80% since the top. So, are you long or short? Trade Credit Suisse with Skilling today!

    Breaking: Skilling lower spread to Zero for DogecoinBreaking: Skilling lower spread to Zero for Dogecoin
    Friday, 30 Sep 2022 1:27 pm
    One of Scandinavia's favourite cryptocurrency brokers that offer Dogecoin CFDs, just gone out with a new announcement. They are lowering the spread to zero for all Dogecoin CFD transactions, making competing crypto CFD brokers angry. The only crypto pair with Dogecoin that Skilling (see review) got is DOGE/USD, tradable as a CFD. While many cryptocurrencies are going down in lately, Dogecoin is one of few that has been showing signs that a upward price breakout is possible. In the beginning of the week, DOGE increased 18%, following a long period of declining prices. Still, many crypto pessimists believe that this top rated meme coin should continue down. What do you think will happen with DOGE? Register to go either long or short with Skilling here!...
    Read the full newsflash

New Casino Reviews
New Crypto Casinos
Best Crypto Casinos
Recent Crypto Sites
Recent Crypto Coins
Keep up to date with

Our Newsletter

Sign up to our newsletter to get the
latest crypto news, new casinos,
bonus offers and other exciting
* indicates required
Copyright © 2019-2022, by Crypto Lists Ltd (CryptoLists.com). Company name: Crypto Lists Limited. Address: 5 Upper Montagu Street, LONDON W1H 2AG, England.
Jump to top