How a Crypto Broker and Crypto Exchange Differ

A cryptocurrency broker is a company or person who acts as an intermediary in the market to enable the purchase and sale of cryptocurrencies.

Cryptocurrency brokers allow the purchase and sale of cryptocurrencies at a price determined by the broker himself.

A cryptocurrency exchange provides an online platform for buyers and sellers to trade with each other based on current market prices.

Cryptocurrency exchanges act as intermediaries and charge trading fees

In-depth knowledge and careful handling of cryptocurrencies are essential for trading on an exchange.

Trading with cryptocurrencies

Trading, trading cryptocurrencies, seems complicated at first glance. Everyone seems to have a different view of how trading cryptocurrencies works. Trading in the broadest and most fundamental sense means that investors speculate about the price movement of cryptocurrencies.

What does a broker do for cryptocurrencies?

In the broadest sense, a broker is a company or individual with a cryptocurrency exchange license who acts as a financial intermediary between people who want to exchange money for products or services.

Suitable for beginners

Broker services offered for cryptocurrencies are best suited for beginners in crypto markets and users who want to buy Bitcoin, Litecoin, Ethereum or other cryptocurrencies easily and easily.

Buying and selling cryptocurrencies through a broker offers users a number of advantages. Cryptocurrencies can be bought and sold here at the prices set by the broker. Using a cryptocurrency broker is also suitable if you want to buy a small amount of cryptocurrencies.

Extensive range of services

Cryptocurrency brokers not only allow the purchase of cryptocurrencies. Many also offer the possibility to store their own cryptocurrencies there. Bitpanda also supports users who prefer to store their cryptocurrencies in Trezor and Ledger Hardware Wallets if they do not want to keep their cryptocurrencies in third-party wallets.

If you are looking for a broker suitable for your purposes, you should verify that he has good references. Your broker should have state-of-the-art security systems and work in accordance with the applicable national regulations for financial service providers. You should also make sure that you can access the crypto broker platform of your choice around the clock via desktop and mobile apps.

What is a cryptocurrency exchange?

If you are interested in trading cryptocurrencies directly with other buyers and sellers, you should consider using a cryptocurrency exchange.

Unlike a crypto broker, a cryptocurrency exchange provides an online platform for buyers and sellers who want to trade cryptocurrencies in other digital currencies or fiat currencies with each other – and not with a broker – at current market prices.

Therefore, the exchange of fiat currencies and/or cryptocurrencies takes place directly between buyers and sellers, whereby the operator of the exchange provides the platform.

Cryptocurrency exchanges are suitable platforms for users who may already own cryptocurrencies, as well as for crypto users who are already advanced traders and want to benefit from price fluctuations by speculating by making profits and avoiding losses.