What are Bitcoin brokers?

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Similar to a traditional online broker, you need to open an account, deposit money, and then decide how much bitcoin you want to buy. With brokers, you can usually use everyday payment methods like debit/credit card, bank account or use e-wallet, which makes the buying process very simple.

In return, bitcoin brokers will charge you a fee. This can come in different shapes and sizes, so your cost will depend on the broker you use. For example, while popular bitcoin brokers like Coinbase charge fees for depositing funds . make a purchase - platforms like Crypto Rocket and eToro do not. Therefore, you need to understand the broker's fee structure before taking the plunge.

That being said - there are two types of Bitcoin brokers active in the online space - the one you choose will depend on your long-term investment goals. Crucially, this is either a broker that requires you to keep your Bitcoin in a private wallet, or a broker that facilitates your investment via a regulated CFD.

Types of Bitcoin Brokers

It is very important that you understand how your choice of broker can have a big impact on the composition of your bitcoin purchase. Therefore, we will explain this in the following sections.

Buy 'Actual' Bitcoin

Bitcoin is a decentralized currency - meaning it is not controlled by any single person or authority. Therefore, those who keep Bitcoin in a private wallet are 100% responsible for its security. In other words, if your Bitcoin wallet was hacked or you transferred money to an invalid address, your Bitcoin is lost forever.

Unlike a traditional investment in https://exnesslatam.com/conversor-de-divisas/, you wouldn't be able to pick up the phone and ask the broker to investigate the loss. On the contrary, this is the risk of buying "actual" Bitcoin, as you have to make sure you keep it safe at all times.

This is not necessarily an issuer if you know how cryptocurrency wallets work. However, if you are a complete newbie entering the Bitcoin space for the first time, the thought of having to store your own coins is downright petrifying - especially if large amounts of capital are involved.

However, if you want to own "actual" bitcoin, the broker in question will facilitate your order via a daily payment method. Once the coins are purchased, you will need to withdraw them into a private wallet. Some platforms allow you to store the coins in the broker's "web wallet" - but this is extremely risky.

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Buying bitcoin CFDs

This brings us to option 2 - buying bitcoin CFDs. For those who don't know, a CFD (Contract-for-Difference) is a financial instrument that allows you to invest in an asset without becoming its owner. Instead, you simply speculate on whether the price of the asset will rise or fall.

This includes not only assets like Bitcoin, but literally any financial instrument traded on traditional markets. Think gold, oil, stocks, indices, gas, wheat, and ETFs. On the one hand, buying a Bitcoin CFD means you don't own the underlying asset.

But does that really matter? Essentially, if you are looking to buy Bitcoin Since you believe its value will rise in the future, CFDs can facilitate this. For example, if you buy a bitcoin CFD worth $6,000 and sell it two years later at a price of $10,000, you'll still make the same profit you would have made owning "actual" bitcoin.

Mario Llobet
Director general

Rosalba Maya
Directora de Exportaciones

Isaac Llobet
Dpto. De Control de Calidad