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Home » Do I Need To Use A Cryptocurrency Broker?

Do I Need To Use A Cryptocurrency Broker?

There are a variety of ways to get cryptocurrency – exchanges, mining and brokers, but all has its own pros and disadvantages. This article will discuss the advantages and drawbacks of using a cryptocurrency exchange, as well as your own personalized brokerage. It is important to note that not all the advantages and drawbacks mentioned will be applicable to brokerages or exchanges.


Centralised exchanges are the ideal way to purchase or sell cryptocurrency, be it for an investment over the long term or for trading.

These are platforms that run on software that you can set up an account, meet the Know Your Customer requirements, and, in turn, have access many crypto. In general, sign-up processes are quick if you sign up in a single person, generally happening within the course of a single day.

Some of the most popular centralised exchanges are: Binance, Kraken, Coinbase, Huobi, FTX, KuCoin,, Bitfinex and Bitstamp.

Exchange Benefits:

Choice A major advantages of one of the exchanges is that it offers a wide range of cryptocurrencies available across the various most popular platforms. Binance, for instance, offers over 500 coins with regular listings taking place. Exchanges typically are quick to announce new tokens, eliminate others and keep track of their offerings. The majority of crypto tokens that are listed on major exchanges tend to have more liquidity than the ones that are added to decentralized exchanges, such like UniSwap. If you are trying to gain a wide perspective on the market for crypto An exchange might be an ideal place to begin.

Fees: Many exchanges offer competitive rates for the buying and selling of crypto. The fees will vary in large part based on the volume of transactions and payment methods, regardless of whether you are you are using the premium edition of their platform, or even paying charges for trading with the platform’s own cryptocurrency token (such as the BNB token of Binance). The fees are split into ‘taker’ as well as’maker fees. Taker fees are those that are incurred through drawing liquid from markets, i.e. buying, while maker fees are those that are incurred due to offering liquidity, i.e. selling. The fees for takers and makers generally differ from one another and among different exchanges.

Centralised exchanges generally have advanced trading capabilities. limit and market orders as well as leverage and derivative products are available. Limit orders are particularly advantageous because they allow trading in cryptocurrency at predetermined prices that can be established in advance. With limit orders, it is possible to sell or purchase crypto without having to use their laptop or mobile phone at a set price, which is extremely beneficial since it’s often not feasible to sit and wait for a cryptocurrency to reach a specific price to make an order.

Software Capabilities: Most exchanges possess advanced software capabilities, including the capability to trade using algorithms. KuCoin for instance, provides access to a service called Grid Trading in which pre-defined trading rules are established using limit orders that allow you to purchase and sell at various levels to generate profits. Another benefit of centralised exchanges is the capacity to make use of API connections. APIs work like a bridge between information and data, and can be used to automate trades between an exchange and an outside service provider, or exporting trades to tax software businesses.

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Exchange Drawbacks:

Security risks: While some exchanges are equipped with advanced protocols and systems to guard against hacking but these incidents have been observed on certain exchanges. Some of the biggest exchanges such as Binance and KuCoin have been reported to have been targeted at some time. One of the best methods to minimize the chance of hacks is to secure your private keys, and to keep Bitcoin away from exchanges stored and stored in Cold Storage using devices like Trezors. Furthermore, exchanges are businesses which means they might not be able to pay out in the event of a major hack or other issues arise.

Complexity: Exchanges can be extremely complicated, particularly for new users. However, the downside of being able to use advanced trading software and capabilities is that they could be confusing for novice or new users. Understanding how to make orders, which orders to make, where exchanged crypto is and how to withdraw it and how to calculate the fee structure and even the best crypto to choose could be a challenge for certain.

Fees: Although exchange charges are often competitive, they can also be excessive. CoinBase is one example. They reports that they cost 2.49 percent per transaction for CoinBase transaction using a credit card. Certain exchanges might also include hidden fees in the trade spread (bid and fee for asking). Additionally, it may be the situation that to cut down on fees, it is necessary to purchase and pay for cryptocurrency exchange tokens connected to a platform. The BNB token is a good illustration – but holding other exchange tokens to pay fees can cause losses to the token’s value if the price changes (trading larger volumes as well as other options, may be methods to lower costs for trading).

Drawing or withdrawing money Exchanges are heavily dependent on banks for processing transactions. There are many concerns specific to specific (but not all) transactions involving banking that clients have to deal with. For instance, customers are often charged when they withdraw funds from your bank account. Another possible issue is the inability to pair the local currency of a company or individual’s currency. Binance , for instance, as of the date this article was written are not able to deposit GBP options for corporate entities.

Customer Support and Interaction The biggest exchanges usually offer poor customer service. It could take a long time to locate the best way to contact assistance and then connect with a real person and some even take hours to get expert support. Of course, exchanges won’t offer exactly the level of support you can get from an organization that provides exceptional personalized assistance.


Another option to buy the cryptocurrency you want to sell is to use brokerages. Brokerages are a common feature in many industries and provide a great way to make commerce easier for clients. In the cryptocurrency world custom brokerages are more difficult to locate compared to exchanges. However, crypto brokerages could offer a unique way to expose you to cryptocurrency.

Brokerage Benefits:

Customer Service and Simplicity One of the biggest advantages of using a broker is its simplicity and customer service. In order for crypto to gain mass adoption, all users with technological understanding will need to be properly served.

Brokerages don’t usually have complex dashboards of software with numerous cryptocurrency options and ways to trade. If you are a first-time or less computer-savvy client to sign up to an exchange, go through markets, make an order for a limit or market, locate the cryptocurrency, and transfer it into cold storage might not be practical without extensive research.

Good brokerages can solve this issue by offering an easy solution to this issue of complexity. They are able to help the customer understand the ways in which cryptocurrency can be traded, and where to store the crypto and provide assistance if problems occur. There is a short time frame for people and waiting for customer service to talk to a random individual might not be the best option. The customer service for exchange may not remember the last time you had a similar issue due to the quantity of inquiries, may were they the same person or the department that you have been transferred to might not understand the issue without any explanation.

Brokerages can develop bespoke relationship with their clients to answer any specific questions clients might have, and also provide advice. In the age of complex information, technology and technological advancement, the capability to communicate with an expert crypto enthusiast can be extremely beneficial for many clients.

Fees: The charges charged by a broker may differ, they may also be lower and more standardized than a traditional exchange. Although some brokerages are more expensive than exchanges however, they do offer more freedom in terms of rates. The expression ‘You pay for what you get’ is possibly more applicable to brokerages.

Security: Depending upon how crypto is stored making use of a brokerage the crypto can be considerably more secure as an exchange. SatoshiDeals for instance, collaborates with Trezor to supply clients with the best storage standards available in the industry. Storing your money off your exchange on cold storage are among the most secure ways to protect your cryptocurrency.

Deposit and Withdrawal Pros: A reputable brokerage will offer exceptional ability to withdraw and deposit funds. SatoshiDeals offers, for instance, provides both private and corporate institutions with banking services in GBP and EUR without limits on withdrawal or deposit. They are two major markets that can be serviced in just a few minutes and with excellent customer service.

If an issue arises at the customer’s or the broker’s end, reputable brokerages that offer the best customer service are there to assist. In a period when fraud is a major issue and consumers are worried about withdrawing cash from cryptocurrency, having outstanding banking capabilities is essential.

Brokerage Drawbacks:

Brokerages may have disadvantages.

Fees There are brokerages that charge high charges for processing transactions, with some charging more than exchange. However, it could be worthwhile if the benefits of a broker outweigh the higher charges you could be being charged.

Choice: Some brokerages might not have the same variety of cryptocurrency that an exchange could which could make the process of obtaining the various cryptos more challenging. In this regard”quality over quantity” is a term that has credibility. SatoshiDeals is a firm believer in quality over quantity but they are able to deal with virtually any cryptocurrency offered through an exchange that is centralised.

Accessibility: Many customers prefer accessibility over having a broker handle the transaction on their behalf. The ability to hit on a button, make an order and receive crypto in an exchange wallet could be crucial. When you make an exchange the transaction is seen more clearly in the short-term and brokerages can perform the transaction on your behalf in the background.

Trust: In addition to access, given what is involved in the sign-up procedure and the transaction it is likely that a customer will need to put more trust in an exchange rather than a broker. Scams are a common occurrence in the crypto world and this means that sending money to a business that you don’t have a sign-up interface to and which isn’t directly accessible through the platform could need more confidence.

In the end, having the availability of a platform doesn’t ensure that the company isn’t an enigma or has the capacity to make payments in the event the need arises for a withdrawal. The importance of trust is paramount and this is why it is need to find an agent with an outstanding reputation and has been authorized to run.


Both brokerages and exchanges offer advantages and disadvantages. It is important to clarify that the majority of the benefits and drawbacks associated with exchanges or brokerages depend on the nature of the customer in question and their needs.

A tech-savvy, knowledgeable person who regularly trades crypto might prefer an exchange over an investment broker, however an unexperienced or less skilled client who would like to speak to a person may prefer a broker.