Should I Trade Using Brokers or Crypto Exchanges?

One of the most asked questions that we get from readers is about how to trade cryptocurrencies in the best way possible. Most readers wonder if online brokers or cryptocurrency exchanges are to be preferred.

Now, once and for all, we’re hoping to stop all the speculations and answer the question. To do this, we have tested and reviewed all the top online brokers that offer cryptocurrencies as well as the top 10 biggest cryptocurrency exchanges in the world. And our results might surprise some of you, so let’s get started.

Trading Using a Cryptocurrency Exchange

There are plenty of benefits to using a cryptocurrency exchange for your online trading. To start with, exchanges only offer cryptocurrencies making them experts at all things crypto. Therefore, you can often expect the best services, tools, and most accurate pricing from them.

Moreover, an exchange allows you to purchase and own every crypto that you’re investing in or trading with. Hence, if you would like to cash out, you just sell your assets based on the current market price.

Exchanges are also best suited for those of you that are also investing in cryptocurrencies since you can keep your investments and trading efforts under the same roof, saving you the hassle of constantly changing platforms.

With that being said, exchanges are sometimes quite difficult to understand and they often have complicated pricing that leaves traders confused. Although the biggest issue is safety. As you probably know, cryptocurrency exchanges are not regulated and they are not enforced to follow certain laws about user and fund protection. They can also choose to freeze all or specific accounts whenever they see fit. This has been done quite a lot lately when the cryptocurrency market has experienced unusual fluctuation.

Trading with an Online Broker

As you’ve probably guessed, there are many benefits to trading with cryptocurrency brokers in the UK as well.

To start, every online broker is regulated and licensed in every jurisdiction where they operate, meaning they follow strict laws regarding cybersecurity and consumer protection.

In addition, online brokers provide access to more markets than just the cryptocurrency markets. For example, a broker like eToro can be used to trade forex, stocks, options, indices, and cryptocurrencies, without ever having to change your trading platform. The issue is that a broker like eToro has a much more limited selection of cryptocurrencies on offer compared to any of the top exchanges.

Note – nowadays, eToro also provides long-term investment making it an even more varied broker.

The downside with brokers is that trading is conducted using CFDs which means that you only speculate on the cryptocurrencies without owning the assets. In other words, you’re never trading the actual asset but rather speculating on whether you think a certain asset will increase or decrease in value.

So What Is The Better Option?

To answer the question, cryptocurrency exchanges are better for all of you that are only interested in trading and investing in cryptocurrencies. It’s also the best option for those of you that want the biggest available selection.

Brokers, on the other hand, are the best option for all of you that want to trade more than just cryptocurrencies, for example, stock and forex. However, the best advantage of an online broker is safety. There is no safer way to invest or trade than using a regulated broker with a license from the government of the country in which you reside.

Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. The writer may or may not hold investments in the companies under discussion.


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