Interestingly enough, out of all the cryptocurrencies that are available for trading on the market, Bitcoin has perhaps evolved the most, and is perhaps one of the most popular forex trading investments available.
In recent years, investing in various cryptos, including Bitcoin, Litecoin and Ripple has become very popular- even with those people who know not much about cryptos but are keen to see if they can cash in on the trend.
This craze for trading in cryptos has seen many brokers listing various currencies such as Litecoin, and Ripple.
An exchange and broker may sound similar but they are in fact very different from each other. Let's take a look at why.
It’s a question which often gets asked by crypto traders. Indeed, while there is no real inherent value in any of the cryptocurrencies, it may be worth noting that cryptocurrencies were designed as a unit of exchange and as a safe place to store assets without being a burden on any central bank.
1. Only use a cryptocurrency exchange / broker
It is important to note that a cryptocurrency exchange is not part of or similar to any regular stock exchange. It is suggested that you use an exchange/broker that purely specialises in cryptocurrencies, such as Coinbase, Binance, Bitpanda, Coinmama etc. (there are lots). There are also options for you to choose others such as GDAX, which is the advanced version of Coinbase but with lower fees. It cannot be stressed more than enough that none of these is the same as Wall Street and its exchanges. Effectively, the mechanics are similar, but different specifics and entities.
Bitcoin and other cryptocurrencies (known in short as cryptos) are virtual currencies that typically use a decentralised network and allow secure financial transactions. At LeoPrime, you can trade crypto by speculating on their price movements, without actually owning the cryptocurrencies. Like the US dollar, cryptocurrency has no fundamental value in that it is not redeemable for another commodity, such as gold.
In addition, its supply is not determined by a central bank and the network is completely decentralised, with all transactions performed by the users of the system. LeoPrime offers competitive spreads, with zero or minimal commissions charged on any transactions and making it more profitable.
In this section, we will showcase four popular cryptocurrencies which you can start trading with on LeoPrime.
It goes without saying that trading with various cryptocurrencies has become increasingly popular worldwide. This has been largely thanks to the myriad of advantages the industry offers to investors, such as providing safe and secure transactions.
As a result, now there are many available crypto brokers and “crypto robots platforms”, as they are sometimes known, who offer different services to traders. It is worth nothing that when it comes to Bitcoin – and mostly it is just Bitcoin and not any other cryptocurrency - is how not everyone uses a regular exchange to trade with cryptocurrencies. So, most recently, despite nearly every country having its own Bitcoin and cryptocurrency exchange, crypto brokers have become very popular. Why? There are a number of valid reasons.
Brokers Provide More Access
Crypto brokers provide more convenient access to Bitcoin and other cryptocurrencies and their services can be quite invaluable and personalised. Let’s a step back and see why this is.
When it comes to buying Bitcoin and other cryptocurrencies, the first thing that the vast majority of people do is sign up for an exchange – it’s just second nature for traders. Exchanges serve customers globally, and often support multiple trading currencies. But by providing a more personalised service, crypto brokers can be a convenient and trustworthy source of access to your cryptos.
Get Honest Prices
Perhaps most importantly, a crypto broker provides prices that are less subject to price volatility. This helps a lot because when a trader is using an exchange, they have to wait for other traders to match their buy or sell orders. This can cause a lot of time.
A crypto broker, however, will sell or buy crypto at a fixed price – especially if the traders are looking to buy a small amount of crypto. This may not necessarily be a cheaper option, but you get what you pay for, and quality is an aspect of trading in cryptos (broker commissions are often between 5% and 10%).
Crypto brokers save a hell of a lot of time as opposed to an exchange. It is no wonder why crypto brokers are often referred to as over the counter (OTC) trading services because they provide instant services.
This can be very useful for new traders that are looking to enter the world of crypto and want to trade quickly rather than go through the long verification processes which can be quite frustrating, and can often take days, if not weeks to complete. Such unnecessary delays can often result in traders giving up and not purchasing cryptocurrency in the end. So, in those respects, using a crypto trader is very helpful.
In the end, traders who want to buy cryptocurrencies quickly and in a convenient manner are often better off using a broker compared to an exchange.
Brokers Accept Global Payments
It would be somewhat of a welcome news that the vast majority of crypto brokers support additional payment methods, including credit and debit cards.
So, go ahead and try using a crypto broker and see the difference it makes to your crypto trading!