What is a Crypto Broker (And Why You Need One)?
Cryptocurrency exchanges can appear daunting at first glance. Lists upon lists of ticker symbols. Page after page of graphs measuring prices, volume, market caps and more.
It’s a lot to take in even for the seasoned investor. And if you’re looking for a way to simplify the investment process, look no further than a cryptocurrency broker. Keep scrolling to find out what brokers do, and how they can help you invest.
A cryptocurrency brokerage is often referred to as an over-the-counter (OTC) trading intermediary. Unlike the automatic trades done on an exchange, brokerages often take a manual approach to executing trades across a variety of exchanges. A broker can refer to one individual, or a team of brokers enacting trades through a brokerage.
There are two main ways that a broker executes trades: matching buyers with sellers at similar price points, or completing orders instantaneously from the brokerage’s own liquidity pool. Both methods are done to help investors avoid slippage during a transaction.
For newer investors, there are often unseen barriers to market entry. Exchanges will often charge high fees when investors use a credit/debit card to make a crypto purchase. Sometimes banks will block the transaction from happening. It’s also not uncommon to hear of banks putting a hold on an account that tries to buy cryptocurrency.
If turning fiat into crypto via bank transfer, your funds may be tied up for days by your bank as they seek further information about the transaction. By the time the transaction is approved, the price of your original purchase could have changed drastically, causing you to shell out even more for fees.
For investors who have experienced these problems in the past, a crypto brokerage like Caleb & Brown can be a welcoming alternative. Transfers to a brokerage are harder for banks to cancel, as the money is going to a registered and regulated institution.
Brokerages also confirm receipt of orders instantly and will use their liquidity pool to back your trade. This means that delays in bank transfers won’t affect the price you pay for your investment. What’s decided on the day your trade is executed is what you pay.
One huge key difference that sets crypto brokerages apart from other forms of investing is their exceptional level of customer service. For example at Caleb & Brown, you have 24/7 access to your own broker. They are there to help you understand the market, find the most optimal way to secure your assets and push you to become a confident, independent investor.
Having someone in your corner is crucial in navigating the often volatile world of cryptocurrency.
Brokerages like Caleb & Brown offer a level of service that you may not get through an exchange. No matter where you are in your investing journey, they offer a personalised solution that can be a game-changer in a market that’s always evolving. Not to mention key features such as:
- Unlimited pairing with no limits on trading volume
- Custody on all stored assets
- 0$ deposit or withdrawal fees
Trusted by over 20,000 clients in over 100 countries, Caleb & Brown has the experience needed to help you execute a swift and simple market entry.
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