More and more people are investing in cryptocurrencies. They are enticed by high rates of return and increasing popularity of virtual coins. What is more, there are many stores, shops and companies, especially those operating online, which accept specific online currencies as a method of payment.
The market of digital coins is growing and the fact that it is unregulated constitutes another
advantage for many investors. But what a newbie trader has to start with?
The first thing to do is to select a broker. The choice has to be preceded by a careful analysis of available brokers, because it may have a significant impact on the success of trades. What factors have to be taking into consideration when choosing the right broker? Below you’ll find some tips that will help you in taking the decision.
Of course, it is very important to learn about trading conditions, transaction fees, and brokerage fees. All brokers have some margins and commissions, which raises the costs of trading, so this issue should
be taken into account. But the charges are not the only thing that has to be considered. We should
also get to know what spreads are available during standard market conditions and if there is a big change in volatile periods. The issue of crypto liquidity for brokers is also important. Not many cooperate with providers ensuring enough liquidity which may result in brokers becoming suddenly untradable. Another issue that should be taken into account is weekend trading hours since cryptocurrency market does not close on non-working days, thus it is good to examine whether we will be able to buy e.g. bitcoin or get market data on Saturdays and Sundays. What’s more, many brokers only offer long trades due to the fact that there are not many hedging options for opening a
short trade, and therefore it is worth to check if the broker we are interested in has short sales in their offer. Another issue we have to investigate is whether a broker hedges. There are a lot of risks and volatility associated with cryptocurrency trading, and traders want to be sure they will be able to hedge their positions to cut down losses. The brokers who are unhedged can be exposed to
significant losses.
The selection of the broker is a very important issue and we have to take into account all the issues described above.


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