Crypto Broker

A crypto broker is defined as a dealer that facilitates the direct exchange of cryptocurrencies for other assets between two parties in over-the-counter trading.

Investors who wish to trade Bitcoin off of an exchange rely on crypto brokers, who are the entities that match you with other traders.

Cryptocurrency brokers are typically involved in high-volume trades.

Crypto brokers have carved out an important niche in the financial industry in recent years.

For example, crypto holders who want to buy, sell, or trade large amounts of Bitcoin may not want to do so on a crypto exchange because of a possible lack of liquidity.

If the exchange doesn’t have access to enough of a certain kind of cryptocurrency, trade orders can take exorbitantly large amounts of time to complete.

This situation is due in part to the fluctuations of cryptocurrency prices that can quickly result in the potential loss of funds.

In extreme cases however, orders can stay locked up for days or even weeks.

Should You Use a Crypto Broker?

Most crypto brokers charge a small fee for their services, however for high-volume trades, brokers’ fees can be less than those charged by cryptocurrency exchanges.

Crypto brokers are commonly referred to as over-the-counter (OTC) trading services, as they offer the exact same type of functionality.

Those that wish to trade Bitcoin and other cryptocurrencies over the counter are afforded several inherent advantages.

This is true for novice users looking to trader cryptos for the first time or are new to trading.

Brokers in other asset classes such as FX require complex verification processes that can often take days, if not weeks to complete. This is a particular draw of crypto brokers.

For these venues, verification is a much quicker process than on an exchange and can be done in just 30 minutes or less, possibly even without immediate verification.

Once an account has been verified and a trading account opened, it is easy to deposit funds and start trading.

Such delays often result in users not purchasing cryptocurrency in the end, as the process takes too long. This is not the case with crypto brokers.