Trade Bitcoin Trading

Choosing/Selecting a Online Broker

With hundreds of online brokers to choose from traders might not know which crypto broker to choose. One may not know which factors to look for when selecting their broker, this tutorial will illustrate to traders more about brokers and what factors & aspects traders should consider before deciding which crypto broker to open an account with.

Bitcoin trading lacks a centralized marketplace for trade settlement: instead, transactions occur within the Over The Counter (OTC) environment. Since no single exchange exists, settlements happen across the online interbank market, which comprises a network of major banks. To access this system, traders must engage through an online broker, who executes the trades in the interbank market on behalf of BTCUSD participants.

Traders are not able to directly make trades on the inter bank market because they don't have the money to set up the needed technology for doing this, and they also don't have the smallest amount of money needed by the big banks to let them trade directly in the bitcoin market. Because of this, retail brokers are there to connect regular traders to the online inter bank market. Retail brokers let traders who don't have a lot of money trade in the bitcoin market.

Cryptocurrency brokers also extend the option of Bitcoin leverage to facilitate traders in opening positions using borrowed capital. Since crypto lots are transacted in fixed units and the cost is often prohibitive for many retail traders, brokers supply this Bitcoin leverage so that individuals with minimal investable capital can still participate in the BTCUSD market by trading with borrowed assets. These borrowed sums are obtained from the online brokerage: a broker offering a cryptocurrency leverage ratio of 5:1 effectively permits traders to borrow up to five times their deposited capital. Consequently, a trader possessing just $1,000 could borrow up to five times that amount, totaling $5,000 ($1,000 multiplied by 5). This $5,000 then becomes the trader's accessible capital after leveraging, enabling the retail trader with only $1,000 to trade standard lot sizes.

Aspects To Consider When Selecting Your Crypto Broker

Use these factors to pick which crypto broker to trade with.

Regulation - The first thing to consider is broker regulation license. You should only sign up an account with a broker that's regulated. In bitcoin trading the most reliable and most transparent brokers are the ones which are regulated. This is the reason why this is the first thing that many traders will look for before they even start & begin considering if if to open an account with a particular crypto broker or not.

Withdraw Policy - Try to find out the withdraw policy of a online broker before opening a trading account with them. Best withdraw policy is one where you as a BTCUSD trader can withdraw your money any time you as the trader want without any questions asked. This policy should also provide that the withdraw should be instant if you are using a credit/debit card to withdraw or should take one business day if you withdraw using bank wire transfer method

Execution Policy - the best execution policy is a no re-quotes execution policy where orders are executed within 1 second or less. This means that as a trader you as a bitcoin trader can open and close out trade positions quickly & your positions should be requoted. A requote means that you will have to place a trade again once the BTCUSD trade is requoted. A requote will happen if the execution of your crypto broker is not fast enough which means that the bitcoin quote will change before you've completed putting your trade position and hence you have to make another trade.

For Bitcoin, traders should pick an online broker that has many different trading options they can pick from. Besides bitcoin, traders might want to pick a broker that also lets them trade things like commodities, CFDs, Futures, metals like silver and bitcoin, and indexes.

For Bitcoin software, choose a broker with MetaTrader 4. Most online brokers offer it. Make sure the platform supports auto trading, especially for bot users.

An individual might incorporate additional criteria when selecting a brokerage firm for account opening, based on personal preferences. Furthermore, this website provides access to a curated selection of the top one hundred cryptocurrency brokers, categorized within the 'broker ranking' section of the site, which traders can leverage to identify their preferred service provider.

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Bitcoin Broker