The Best Bitcoin Brokers

Welcome. Read on as we explain what a cryptocurrency broker is and what is does. After that, we will show you 6 different brokers that are excellent for different things, such as ease-of-use, security, and social trading.

What is a Cryptocurrency Broker?

In the crypto world, a broker is a platform that either buys/sells your cryptocurrencies directly or acts as a middleman for your deal. When a broker sells you crypto directly, it typically means that they have a huge stock of crypto and they will sell it for the right price, but, in other cases, they have no stock, and so as soon as you place an order, they then move that order to their partners and cash in on the difference. A middleman broker, such as LocalBitcoins, might look like a marketplace, where you see exactly who is selling the crypto and for how much; in return for facilitating the deal, the broker takes a commission.

Now that’s out of the way, let’s show you some of the best brokers.

Best for Social Trading: eToro

eToro is older than cryptocurrency itself, having formed in 2007 and largely been a tool for budding investors looking to build a portfolio in the stock market, however, in recent years they’ve moved more and more into crypto.

One of the reasons we like eToro is that they are really supportive of investors, and this is shown through their Bitcoin brokerage service. Fiat currency deposits are free and the Bitcoin spread is only 0.75%, so for every $1,000 of Bitcoin you buy, your charge is just $7.50, which is extraordinarily low, however, it’s the CopyTrader feature that you really need to know about.

CopyTrader allows those who have purchased crypto to immediately invest it into a social trading scheme, whereby you can choose a successful trader and automatically copy their market moves. This is risky, but it allows beginners to follow in the footsteps of a professional and reap the same rewards.

Best for Legitimacy: Gemini

The best Bitcoin trading brokers will place great importance on legitimacy, and that’s most true with Gemini, which has higher levels of regulation and insurance than any other cryptocurrency exchange or broker in the industry. This is part of the founding mission of the Winklevoss Twins (of Facebook fame), who want to encourage institutional trading on their platform, as well as to welcome both first-timers and advanced traders.

Here are some other reasons that Gemini is a great broker:

• Simplified or advanced user interfaces available to meet the varying needs of their clientele
• 30 different cryptocurrencies for purchase
• Web and mobile wallets are fully insured against theft and hackings
• Purchase fees are just 1.49% when ordering over $200 worth of crypto

Best for New Investors: Coinbase

Coinbase is the go-to broker for first-time buyers in the crypto world, and that shouldn’t come as a big surprise to anyone. Where other companies have focused on low fees or massive options for altcoins, Coinbase has placed convenience as their absolute priority. If you build it, they will come, and if you make it easy enough, they will stay.

Coinbase is like an online shop where you can choose from over 30 cryptocurrencies, and once your account is verified with some ID, you can make a purchase much like doing your online shopping. Later, if you decide to trade those coins, they offer Coinbase Pro, their trading platform…

• Cryptocurrency brokerages are not insured by the Securities Investor Protection Corporation, so Coinbase privately insures its site against theft or hacks
• New investors will not find an easier platform that offers such intuitive designs and a simple customer journey
• Coinbase now has over 43 million verified users!
• Credit Card purchases cost 3.99%
• Bank Account, Fiat Wallet, and Debit Card purchases cost 1.49%

Best for Security: Kraken

Kraken is the industry leader in crypto-security, so you can really trust them to make sure your purchase is completely secure. The exchange has never been hacked and it remains unlikely in future due to their focused approach to cybersecurity.

Using the brokerage service to buy crypto will require you to make an account and get Intermediate or Pro verification, which means you will need to provide your ID and potentially other documents too.

• 24/7 live chat customer support
• 60 cryptocurrencies supported
• Industry-leading security measures, with a world-class security team who have implemented all of these features
• Proof of Reserves audit shows that your funds are kept in cold storage and are protected
• Card purchases are charged at 3.75%, plus a €0.25 flat fee
• The spread on purchases can be as high as 10%, depending on the state of the market and the coin being purchased
• A great mobile app, but the web interface is not very attractive to use

Best for European Customers: Bitstamp

Bitstamp is an unregulated exchange operating out of London and Luxembourg since 2011. It’s one of the oldest and most trustworthy exchanges in the cryptocurrency industry and has been a great place to enter the market for millions of European traders in particular. For Europeans who want to keep their trading in Europe and in Euros, Bitstamp is a great option.

• 5% card purchase fees
• Free cash deposits on SEPA, ACH, and Faster Payments networks
• 13 cryptocurrencies supported
• Instant orders will require ID verification for the KYC checks
• Whilst described as an ‘unregulated exchange’ it does have a payment institution license, issued by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg

Best for Instant Conversions: Changelly

Changelly is a really exciting and innovative company that could honestly become one of the best bitcoin trading brokers in the game, thanks to their willingness to try new things and be versatile. They offer more than 150 cryptocurrencies for instant purchase, far more than anyone else on this list, and with around 60 fiat currencies accepted, they are truly a global broker.

Want to buy Chainlink (LINK) with your Moldovan Leu? You can do it, however, all transactions will be converted to either EUR, GBP, or USD, which can inflict an extra charge.

Card purchases of crypto are very expensive, however, at 8%, with 4% going to Changelly and 4% going to their payment provider, MoonPay. These high fees are only worth paying if the cryptocurrency you want to buy is in low supply or is unavailable on one of the better brokerages. Once they lower these fees, they could win more market share.

Changelly’s primary function is to act as an instant exchange service, which they do by forging partnerships with other exchanges. So, if you want to turn your Cardano into Litecoin, their algorithm finds the best price on all of the exchanges, and brokers the deal for you.

Which broker do you like the sound of?

Let us known in our open and free Telegram group if these recommendations were good for you.