Crypto investing has become very popular recently, especially since many brokers are listing Bitcoin, Litecoin, Dash and Ripple as available assets.
Although every broker you find, will give you the opportunity to trade bitcoin contracts, many brokers have ridiculously wide spreads. A recent comparison of brokers, found spreads ranging as wide as $150, to as narrow as $10, with the price of a BTCUSD at $16,240.
Reminder: Only invest with a Licensed and Regulated broker!
How To Compare Bitcoin Brokers
Here is a quick checklist of items to compare between bitcoin brokers.
- Verify the Bitcoin broker is licensed and regulated.
- Signup for their Free demo account.
- Check minimum trade size
- Check minimum deposit requirement.
- See how tight the spread is on Bitcoin.
Regulated Crypto Brokers
If Your Broker is Not Regulated… You Will Get Scammed!
How To Avoid Crypto Scams
There are two types of scams that are now very common with Crypto Currency investors.
The first one being “trading robots” which are suppose to make you a lot of money by automatically trading on your behalf. You should read about real trading software, see here.
The second are the brokers who are not licensed or regulated. Every financial company must be licensed by the government. Popular brokers are licensed in Australia by ASIC or in Cyprus by CySEC. The FCA in the United Kingdom recently banned brokers from offering CFD’s on Crypto Currency to U.K. residents.
If you go with a broker who promises to make you rich, and they are not licensed, you can read the complaints page now, so you understand what you will be dealing with.