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Author: Admin | 2025-04-28
Article, where we break down our top picks for traders with different needs if you are in the market and need a first, or additional crypto exchange. It is also worth checking out the Coin Bureau Deals page as we have some great sign-up offers for many of the leading exchanges.Cryptocurrency Exchange vs. Cryptocurrency BrokerWhile many people use the terms “broker” and “exchange” interchangeably, the truth is that there’s some difference between the two that’s important to understand.A broker is not the same as an exchange. Image via YouTube. A broker is a person or company that acts as an intermediary in financial transactions. For their assistance in brokering sales and purchases they receive a commission. The well known Coinbase is a broker, although their Coinbase Pro platform is an exchange. Broker’s fees are typically quite high when compared with an exchange.The upside is that cryptocurrency brokers provide a more suitable environment for those just getting started in the purchase and trading of cryptocurrencies. They offer a means to purchase crypto with fiat currency, and to convert back from crypto to fiat as well. Prices are set by the broker so there’s no slippage involved and buyers know exactly what price they will receive when buying and selling. Brokers can also provide additional services such as cold storage for large amounts of cryptocurrency.In contrast an exchange connects buyers and sellers with one another using an order book that contains the orders of all the users of the exchange, and often from outside sources as well. Because the exchange is simply connecting buyers and sellers they receive a much smaller fee for their services when compared with brokers. The exchange is simply the platform where buyers and sellers get together.The downside to this is that slippage can occur in fast moving markets, which means buyers and sellers might not get the price they expected.Cryptocurrency exchanges are suitable platforms for more advanced holders and traders of cryptocurrencies who want to take advantage of price fluctuations through speculation, hoping to make gains and to avoid losses.Indirect Solutions for Crypto TradingWhile things are getting better in terms of access and removing restrictions on cryptocurrency exchanges, there will likely still be some of you out there who will either have difficulty dealing with a traditional centralized exchange, or simply don’t want to deal with one of these exchanges. Fortunately there are still some options that
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