Where to trade cryptocurrency: choosing between a broker and a crypto exchange is not an easy task
Cryptocurrency trading has become a daily occurrence for many, and crypto wallets have firmly established themselves in everyday life.
At the same time, every day new investors appear asking the question: “Where to trade cryptocurrency?”
After all, the correct answer to this question often directly affects not only the ease of trading but also its profitability.
Today, there are three main options for exchanging cryptocurrency for fiat currency that are worth considering.
Where is the best place to trade cryptocurrency?
An online exchange is perhaps the simplest and, at the same time, the least profitable option for trading cryptocurrency.
More objectively, this method allows you to exchange real currency for virtual currency and vice versa. You pay for the purchase with your bank card or account, and the purchased virtual currency is deposited into your wallet.
The main, and perhaps only, advantage of this option is its simplicity. On average, exchangers charge at least a 5% commission, so to earn anything, you'll have to wait for the exchange rate to change by at least 8-10%.
Cryptocurrency brokers – trading through brokerage firms – are the best option for those looking to trade cryptocurrency for speculative purposes.
Stock brokers offer all the conditions for speculative trading on short and medium timeframes. Thanks to leverage and low commissions, you can earn money even in just a few minutes.
The main advantages worth noting are a quick start to trading, an intuitive trading platform interface, a wide range of deposit and withdrawal options, leverage, and low commissions.
List of cryptocurrency brokers - https://time-forex.com/kriptovaluty/brokery-kriptovalut
A disadvantage is the limited selection of cryptocurrencies, usually limited to 10-20 of the most popular assets. This means that if you want to buy the latest token, you're unlikely to succeed.
Cryptocurrency exchanges are specialized platforms for trading cryptocurrency, and one of the most prominent examples is Binance :
Here, you can trade hundreds of virtual currencies, which can be purchased with real money or exchanged for one another. Binance charges a 0.1% commission for spot trading, which is very little unless you're scalping.
Overall, the exchange is ideal for those looking to make money on low-priced cryptocurrencies through long-term investments.
The main drawback, in my opinion, is its excessive complexity. If you want to understand the website's capabilities, it will take more than one day, and it's not guaranteed that you'll master all the nuances of the interface.
When choosing where to trade cryptocurrency, I prefer brokerage firms, but if you're focused on investing in less-promoted tokens, a specialized exchange like Binance is a better choice.
