Do You Need a Broker to Trade Crypto?

Share Story

Did you know that, according to Markets and Markets, experts predict the cryptocurrency market will have a compounded annual growth rate of 7.1% between 2021 and 2026? According to this prediction, this market will have a value of $2.2 billion by 2026.

Given how booming the cryptocurrency market is, you might consider getting into trading crypto. First, however, you may wonder whether you need a broker to trade crypto.

After all, it can be stressful to trade crypto if you’re new to the game, or investing a large amount of money.


Fortunately, this article will review whether you need a broker to trade crypto. Then, finally, you can figure out if working with a broker is right for you , or if you would like to give cryptocurrency investing a go on your own. Read on to learn more.

What Does A Crypto Broker Do?

Before we go into why you might prefer a crypto broker to trade crypto, we’ll review what a crypto broker does. Basically, they help you sell and purchase cryptocurrency. Ideally, in addition to helping you make more sound trades, a cryptocurrency broker will also help you avoid scams when dealing with cryptocurrency exchanges.


As a result, they’ll also provide you (and your money) with the protection you would otherwise not have.

Reasons To Hire A Cryptocurrency Broker

There are several reasons to hire a cryptocurrency broker. These include having a larger liquidity pool, low slippage and spread costs, increased crypto trade pairs, and more. We’ll review each of these in detail now so you can decide if this is the right choice for you.

A Larger Liquidity Pool

Whether you plan to invest in Bitcoin or another cryptocurrency, a broker could offer benefits like a larger liquidity pool. So how does this work?

For any asset bought or sold, it’s necessary to have both a buyer and a seller. So when there are more sellers and buyers, the cryptocurrency exchange you’re trading in is more liquid.

When a new cryptocurrency exchange appears, it must first populate with orders of all the trading pair books with those who want to sell and buy. Then, this populated exchange can provide users with a trading market-thus, distributing the liquidity for trading from crypto exchanges that already exist. The effect of this can be adverse on smaller trading exchanges.

Cryptocurrency brokers can avoid this. By monitoring the cryptocurrency market, they can follow the instruction of the trader to sell or purchase based on an estimate or the quoted price.

The global sales and purchases distribution across cryptocurrency liquidity exchanges allows brokers to increase an asset’s order book liquidity. Ultimately, this allows users to trade cryptocurrency with maximum liquidity.

Low Slippage & Spread Costs

You’ll also benefit from low slippage and spread costs when you work with a Bitcoin or cryptocurrency broker. What does this mean, exactly? Well, you must first think that many people utilize low trading to decide which crypto exchange to use. However, this isn’t a smart move. Even though it may look like an attractive position and a logical decision for maximizing your fiat deposit, this can lead to high spread and slippage fees.

A reputable broker will sell across liquid exchanges and distribute purchases. This way, they can identify the highest liquidity for the specific assets and split the orders across platforms. Therefore, by working with a reputable broker, you’ll be more able to get the best rate on the market, minimal slippage, and the lowest spread. These perks can increase your profitability in the long term.

An Increase In Crypto Trade Pairs

do you need a broker to trade cryptocurrency, cryptocurrency trading, byte federal bitcoin atm

The crypto pairs on a cryptocurrency exchange have order books based on the trade volume against the fiat money for every asset. Therefore, a platform with higher spread and slippage charges will have less liquidity.

Without significant losses in liquidity, Cryptocurrency brokers can provide assets—Consequently equating to lower spread and slippage fees. Users can depend on one cryptocurrency broker trade for managing their portfolios and storing assets. Therefore, the trader won’t need to register with various exchanges.

Good For Beginners

Working with a cryptocurrency broker can be a good idea if you’re new to trading cryptocurrency. They’ll be able to set the prices and make it easier for you to sell and buy cryptocurrencies. It’s also a good idea to work with a broker if you want to buy small cryptocurrency amounts.

A Large Number Of Services

Some cryptocurrency brokers will also offer services that make it easier for those using them to trade crypto. For example, some brokers will allow clients to store their cryptocurrency in a cryptocurrency wallet.

Holding their coins offers an extra layer of security for those who choose to trade with a broker but prefer not to store their cryptocurrency using third-party wallet solutions. Additionally, it builds trust in the broker they choose. 

Factors To Consider If You Want To Trade Crypto, Yourself

Suppose you want to avoid working with a cryptocurrency broker and wish to complete your trades yourself on an exchange. In that case, certain factors must be considered to ensure you trade crypto well. These include basic knowledge of cryptocurrencies, fiat markets, and more.

Basic Knowledge Of Cryptocurrencies

cryptocurrency broker, do i need a cryptocurrency broker to trade crypto?

Before you start to trade cryptocurrencies, it’s essential that you understand crypto and how trading them works. Unfortunately, inexperienced traders often see a more significant number of losses than they should because they don’t know how cryptocurrency exchanges or trading works.

If you begin trading without a cryptocurrency broker’s help, you should learn about crypto trading. You can start by researching which cryptocurrency exchange or Bitcoin ATM is the right fit for you.

Additionally, it would help to research which cryptocurrency strategies will work best for you.

If you’re a beginner, choose a cryptocurrency exchange that provides support. This support could come in the form of blog articles and news, and educational lessons.

Fiat Markets

In addition to figuring out which payment methods a crypto exchange accepts, finding out which cryptocurrency exchange or Bitcoin ATM you can use in your location is crucial. Find out which providers support trading in your country and ensure they work with the fiat where you’re based.

An Intuitive User Interface

Because trading occurs at all hours, you must ensure you choose an exchange to which you’ll always have access. Look for an exchange or 24-hour Bitcoin ATM operator with an intuitive user interface. If choosing to work within an online exchange, verify that it works on different devices, such as your tablet, smartphone, desktop, notebook, etc.

The crypto exchange or BATM provider should also have extensive user support.

State-Of-The-Art Trading APIs

To maximize their trading success, savvy traders utilize trading bots and API trading technology to facilitate automated trading. Look for an exchange that makes it easy to do this so you can complete your trades with success.

Compliance & Regulation

Protecting yourself from money laundering and scams is imperative in the crypto world. For this reason, you should choose to trade on an exchange or with a Bitcoin ATM operator that is compliant and has high transparency.

Additionally, choose one that has state-of-the-art safety features.

Choosing The Right Cryptocurrency Broker

Suppose you decide that going with a cryptocurrency broker is right for you. In that case, there are several considerations you should take into account. We’ll review each of these now so you can find an exceptional cryptocurrency broker, if you so choose.

A Secure Trading Platform

When working with cryptocurrency brokers, be sure they use a good trading platform. Then, it will be easy for them to complete the trades and make you more money without additional risks. Features to look for include making it easy to access the most recent cryptocurrency trades and executing trades within the market.

Other features you should look for include facilitating the ability to perform technical analysis and manage accounts efficiently.

A cryptocurrency broker who uses a solid trading platform is more likely to trade successfully for you.

Strong Financial Backing

The cryptocurrency broker you choose should have an asset base different from what you’re investing in. You need to ensure that they have strong financial backing. To clarify, they must have a large capital base that they own.

This security measure will assure you that the broker won’t go bankrupt and that your cryptocurrency will be safe.

Experience, Reliability, & Credibility

do i need a broker to trade crypto

Even though the cryptocurrency market is newer than more traditional markets, this doesn’t mean that all crypto brokers are inexperienced. There are brokers out there who have experience and credibility, which means they’ll be more effective at making trades.


When researching these brokers, look for those with the necessary credentials, including licenses from reputable and renowned regulatory bodies.

If you need more time to decide after researching whether a broker is right for you, look at reviews online. First-hand reviews from experienced clients give you a better idea of whom you are working with.

Customer Service

Because cryptocurrency trading occurs 24/7, you might have a question or issue any day and at any time. For this reason, it’s essential to find a cryptocurrency broker with an open schedule, someone who is potentially available all day.


Of course, no one can be available constantly. Still, your broker could, and arguably should have a team that works for them and is open to answering any of your questions or queries professionally and promptly. Ideally, your broker would be available no matter the time or time zone.


On a related note, your cryptocurrency broker must have good communication skills. This way, they can be transparent about their different strategies and why these are best for getting the most out of trading.

When figuring out how good their communication skills are, pay attention to their professionalism when communicating with you.

Additionally, notice how quickly they answer your emails and calls and how thorough and thoughtful their replies to your questions are.

Fees & Commisions

You should also check what fees and commissions the cryptocurrency broker charges. When reviewing these costs, make sure that the brokers you speak with have a clear-cut explanation of how you’ll be paying for their services. This way, you can make sure that you can compare rates correctly to make your final decision.

Need More Information?

Now that you’ve learned whether you need a broker to trade crypto and what to consider if you’ve decided to work with one, you might need more information. Maybe you want to learn, for example, about which types of cryptocurrency are best for beginners engaging in trading.

Whatever information you need, we at Byte Federal can help. We’re experts when it comes to cryptocurrency.

Additionally, we have Bitcoin ATMs all over the country. To learn more about these ATMs, find a crypto ATM near you!

How To Find A Bitcoin ATM Near Me

Share Article

Jennifer Lawrence, the effervescent Creative Director of New Bytes, brings a fresh and innovative perspective to the crypto-focused publication. Hailing from the vibrant city of Austin, Texas, Jenny's intrigue in the intersection of design, technology, and finance was sparked during her time studying at the Rhode Island School of Design (RISD).

Jenny's commitment to clarity through design, her comprehensive understanding of the crypto universe, and her passion for making information aesthetically accessible contribute immensely to Cryptosphere's appeal and its engagement with a broad audience.