If you’re looking to buy Bitcoin (BTC) or other cryptocurrencies, there are several methods to do so. One of the most popular options is using a cryptocurrency broker.
What exactly is a cryptocurrency broker? What are the advantages and disadvantages of buying crypto through a broker? How do you choose the right one?
Definition of a Cryptocurrency Broker
When you want to buy cryptocurrencies, you can use the services of a broker. These platforms act as intermediaries between you and the crypto market. They apply a markup to their prices as compensation for their services.
Typically, a cryptocurrency broker places buy orders on exchanges once payment is confirmed. For example, Coinhouse is a broker that purchases Bitcoin from Kraken and then offers it on its platform.
👉 Buy crypto effortlessly with trusted brokers
Why Use a Cryptocurrency Broker?
Depending on your trading experience, market knowledge, and financial goals, a crypto broker may suit your needs. Below are the pros and cons to help you decide.
Advantages
- Ideal for beginners with limited crypto knowledge.
- Provides customer support—often more accessible than exchanges.
- Suitable for purchasing small amounts of crypto.
- Supports multiple fiat currencies.
- Offers traditional payment methods (bank transfers, cards, etc.).
- Includes additional services (trading tools, custody solutions).
- Access to other financial products (stocks, commodities).
Disadvantages
- Higher fees compared to exchanges.
- Limited selection of cryptocurrencies.
- Geographical restrictions may apply.
Before choosing a broker, research whether it meets your needs. Key factors include:
- Security & reputation
- Fee structure
- Deposit/withdrawal methods
- Supported fiat/crypto assets
- Customer service quality
What About CFD Brokers?
If you want to trade crypto price movements without owning the assets, consider Contract for Difference (CFD) brokers.
CFDs Explained
- Speculate on price volatility without holding coins/tokens.
- Leverage trading amplifies exposure (high risk/reward).
- Profit from rising (long) or falling (short) markets.
Types of CFD Brokers
Market Makers (Dealing Desk)
- Set their own prices.
- Act as counterparties to clients.
ECN/STP Brokers (No Dealing Desk)
- Direct market access.
- Transparent pricing via liquidity providers.
👉 Learn more about CFD trading strategies
Choosing a CFD Broker
Select a broker based on your trading strategy. Consider:
- Regulation & compliance
- Spreads & commissions
- Trading platforms & tools
- Execution speed
- Available assets
Conclusion
A cryptocurrency broker simplifies buying/selling crypto for beginners. For advanced traders, CFDs offer leveraged exposure without asset ownership. Always opt for regulated, transparent brokers.
FAQ
What does a cryptocurrency broker do?
They facilitate crypto trades, charging fees for their services.
Can I buy crypto from any broker?
No—choose a specialized crypto broker or a multi-asset platform.
Where should I store my crypto after buying?
Transfer coins to a private wallet for security.
Can I trade crypto without owning it?
Yes—via CFDs or other derivatives.
How do I pick the best CFD broker?
Prioritize regulation, fees, and platform reliability.