What is the difference between a crypto-broker and a crypto exchange?

Agenda

What is the difference between a crypto-broker and a crypto exchange?Thanks to the blockchain technology, cryptocurrencies have become a real financial breakthrough, which has contributed to the creation of a wholly new and super-protected format of money movement in the world. That is why Maxitrade states it is so essential to understand precisely how digital currency is created.

If it comes to creating a cryptocurrency, then the leading role in this process is assigned to miners. Miners are mainly people who use the power of computers or even farms of computer equipment generating digital currency. In fact, according to Maxitrade official site, it is miners who are the unofficial creators of the value of a cryptocurrency.

Besides, cryptocurrency developers use the most secure and modern protocols based on mathematical models and computer engineering, which guarantee the impossibility of breaking digital currencies. This is also the reason why digital currency cannot be falsified or scammed. But this is not all! The same protocols are used in order not to disclose personal information about each specific user. According to Maxi Trade, thanks to similar technologies, all transactions among individual users or groups remain closed and cannot be identified.

Now that the basics of creating digital currency have become more understandable, we should pay attention to the fundamentals and tips for managing and trading such modern and powerful financial instruments as the cryptocurrency that can be compared with forex trading strategies that work for 100%.

The basics of day trading the cryptocurrencies

As a matter of fact, trading in digital currency has high volatility indicators. However, such risks are fully justified and, accordingly, rewarded. This is mainly due to the fact that 2017 showed an incredible increase in the cost of Bitcoin, which doubled. At the same time, other currencies, like Ethereum, showed very positive growth figures.

Among a vast number of cryptocurrencies, and there are more than 300 of them, the following coins continue to occupy the highest positions in terms of trading and profitability:

  • BTC
  • ETH
  • XRP
  • BCH
  • LTC
  • EOS
  • BNB
  • XLM
  • USDT
  • ADA

Today, more and more people are starting to try cryptocurrency trading strategies as the most competitive against stock trading. Also, one of the facts of the popularity of cryptocurrency trading is the low threshold for entering the market, because, unlike the stock market indicators, this does not require high initial investments and a sophisticated knowledge base.

It is clear that not high saturation of the digital currency market also plays into the hands of cryptocurrency account holders. Nevertheless, before you begin the basics of day trading, it will first be necessary to see what factors influence the volatility and profitability of the digital currency.

The main advantages of cryptocurrency trading

Maxi Trade brokers believe that cryptocurrency in the modern world has already become a convenient investment tool. The constant development of technology has really positively played into the hands of the highly popular digital currency. And before proceeding directly to considering the difference in cryptocurrency trading using a crypto broker or a cryptocurrency exchange, it is necessary to highlight the main advantages of this investment tool. And so among the main benefits of the cryptocurrency trade are the following:

  • Fast transactions
  • Modern blockchain technology
  • Full transaction confidentiality
  • Low operating costs
  • Availability
  • Simplified international transactions
  • Personal asset management
  • Variability

Fast transactions 

Maxi Trade official site reports that the whole world has long been accustomed to the fact that in all financial processes, there is an entire army of servants, such as brokers, agents, banks, and various legal representatives. Due to this accumulation of so-called third-party representatives, not only the process itself becomes somewhat confusing, but also looks very costly. Nevertheless, many people think that in the modern world, financial calculations and strategies could look much more straightforward. But in the end, we get a whole pile of documents, an incredible number of commissions and even more regulatory indicators that only complicate the seemingly straightforward transaction process.

After Maxi Trade brokers have shown us how complicated and long the traditional transaction process can become, you can fully experience the benefits of cryptocurrency transactions between individual holders or a group of holders. The most important advantage is that in the case of cryptocurrency, the transaction is equally easy for both participants because in this case, there are no intermediaries. For example, in Maxi Trade platform, the structure is entirely transparent and does not require any additional external interventions. Moreover, information on such transactions is available only for two parties involved in it. It is this settlement procedure on the cryptocurrency market that is an excellent demonstration of blockchain technology that supports crypto trade strategies.

Modern Blockchain technology

Among Maxitrade site financial analytics, it is often believed that blockchain technology in a cryptocurrency market can be viewed as a large-scale and at the same time independent database of various transactions, which in turn reflect the strategies of implementation and enforcement of various bilateral contractual relations. In other words, blockchain sections contain information about both the transactions themselves between cryptocurrency holders and possible future contracts, which will have to be executed in a certain period of time and when certain conditions are reached.

Full transaction confidentiality 

According to Maxi Trade review, there is an extensive system of control and analysis of financial transactions in the traditional financial system. In essence, all of your finances that you have on your account or the credit history of your account is nothing more than a financial reference document for a bank, credit agency, or government.

In fact, all this is necessary only to control the financial markets indicators and for checking the balance of your account and all your commercial operations for any period of time. It would seem that nothing terrible happens and this is quite acceptable, however, in the case of a business, financial transactions almost always require additional time to check or agree on economic conditions on the part of the bank. 

And here another convincing argument in favor of cryptocurrency transactions comes to the rescue, and it lies in the fact that every transaction that is carried out by the holder of the digital currency is absolutely confidential. Moreover, all transactions occur in real time! Maxitrade analytics believe that this does not only reduce the time spent on sending finance but also completely restricts the access of third parties to information about this transaction.

Low operating costs

If you pay attention to the percentage and what is equally important to the amount for commissions that you pay monthly, then this can be a shock. Each bank transaction, whether it is withdrawing credit money, reissuing a credit card, transferring funds to relatives or friends, regularly require additional commission expenses. Needless to say, if you carry out such transactions quite often within a month, then this may significantly affect your financial results.

However, in the world of cryptocurrency, everything looks much more attractive. For miners, that is, those who are using a PC or computer farms are engaged in generating cryptocurrency, get a payment for the created coins without any commissions. According to Maxi Trade official site the usual holders of cryptocurrency, the commission they pay is charged by some services of electronic wallets, but even here it is incredibly small and could not be compared with the traditional commissions of banks.

Availability

Using cryptocurrency as a tool for mutual settlement in financial matters is very convenient since all that is needed for this is access to the Internet. Thus, almost any person on earth who is connected to the Internet and has access to the relevant specialized online sites or an electronic wallet can perform an unlimited number of transactions daily. It is typically the same situation as with forex trading.

According to Maxi Trade review, more than 2.2 billion people in the world have access to the Internet. Both mobile phones, tablets, and personal computers are used for this, and not all of these people have bank accounts, and sometimes do not have access to the banking system. Accordingly, banks do not serve a sufficiently large number of people, but such an essential tool as financial calculations is vital in the life of almost every person. 

Therefore, Maxi Trade official site draw the following conclusion that as soon as the cryptocurrency market becomes more stable and the blockchain will be used more and more all over the world, the army of its users will start to increase sharply.

Simplified international transactions

To date, cryptocurrencies are not officially recognized tools of financial transactions. According to Maxi Trade, this is due primarily to the fact that states and absolutely all financial institutions are not interested in people paying off fees for the exchange rate, interest for bank services, transaction rates, and other fees.

Cryptocurrency transactions use blockchain’s peer-to-peer technology to conduct international transfers from anywhere in the world. And the most important thing is that all these transactions are carried out without any expectations and complications.

Personal asset management

If we consider the modern banking system, then, in fact, all account holders, holders of debit or credit cards are in the so-called financial dependence on the regulatory policies of a financial institution. In other words, if tomorrow the bank for any reason decides to freeze your account, stop the operation of the credit card, then your hands will be tied until the situation is resolved. At the same time, the bank does not always notify its customers of such actions and their causes.

This is where one more important advantage of cryptocurrency becomes obvious, namely, that if you did not provide access to your cryptocurrency wallet, then no one will be able to point you and manage your financial state except yourself. According to Maxi Trade, only you will have complete access to your account, and it will be protected by a special encryption key that will identify you.

Variability

Maxitrade official site reports that today, there are more than 1000 different cryptocurrencies worldwide, and they are also called Altcoins (all cryptocurrencies except Bitcoin). Some of these cryptocurrencies are based on technologies that do not yet exist and are still being developed. Nevertheless, there are also some digital currencies that use specific technologies, and these technologies make up the value embedded in a particular coin.

Maxitrade gives us a clear example. Some currencies are based on privacy technologies; that is, they help not to disclose either you as a user or your transactions. There are also cryptocurrencies that, with the help of the blockchain, can automatically conclude contracts between different people or companies while achieving the necessary conditions in the future.

Crypto broker VS Crypto exchange

There are several strategies to trade a cryptocurrency, namely using the services of a personal crypto broker or a cryptocurrency exchange. Today we will try to uncover the question of the difference between these two strategies to the cryptocurrency trade, as well as learn about the features of their functioning.

According to Maxi Trade, both brokers and exchanges can trade in cryptocurrency, and there is a confusion for many users. And so the main difference between a broker and the exchange is that if you use broker’s services and forecasts, the company in which the broker works sets their prices and commissions for which they are ready to trade cryptocurrency. In order to carry out trade operations in the required volume, such companies can use both their own funds and unite with other brokers to create a more profitable offer based on a large number of digital currencies.

Often, brokers set prices that are almost equal to those that exist on the online market, to maintain interest in using their services among holders of digital currencies. One example of such a digital currency broker is Maxi trade.

In turn, the crypto exchange can most easily be represented as a platform where a large number of individual or group buyers offer different amounts of various currencies for both buying and selling. Prices for cryptocurrency are set different and more often depend either on the volume of the offer or on the price that the seller can set at its discretion. If the buyer wants to buy a particular coin, in real time he sends his request to the seller, and if the seller agrees, he confirms the transaction in the requested amount.

Also, the format is very convenient when, for example, a buyer can create an offer to buy at a price that interests him, and when the cost of the desired coin reaches the mark set by the buyer earlier, it is bought automatically. The same rule applies to the seller. Maxi trade specialists say that such a format is especially convenient since it does not provide for the constant presence of the cryptocurrency holder on the website and at the same time automatically trades according to the set parameters.

Next, we compare the processes necessary for conducting trade from the perspective of a crypto broker like Maxitrade and a crypto exchange.

Account Registration and Verification

Crypto Exchange

There is a certain number of very well-known crypto exchanges, access for registration on which is completely closed. However, a significant amount of exchanges still offer registration to users for conducting trading activities. The process of registration itself is incredibly simple and is similar to the standard registration on the site. In other words, you will need to go through the following steps:

  • enter your email address
  • create a strong password
  • confirm your email address

According to Maxi Trade brokers, after completing the main registration procedure, you will also need to go through a verification process to deposit or withdraw funds in your account. Most often for this, you will need to upload a color photo of the ID card indicated on the site. However, there is a further nuance here, along with a photo of your ID, you will also need to take a picture of your ID right next to your face in order to confirm that you are loading your document personally.

Usually, the verification process takes from several hours to a few days, but some exchanges do not consider it necessary to go through this process for their clients at all. For example, the popular Binance exchange allows newly registered users to conduct trading operations immediately, but their volume should not exceed 2 BTC per day. In order to increase this limit, the user will still have to verify himself and confirm all the data.

Crypto broker

For example, the process of registering with Maxi Trade broker is also a relatively uncomplicated one. It is practically the same as registration on the exchange. However, before you can credit and use your funds, you will need to go through the short process of verifying your identity and confirm the details entered in your account. It is worth noting that some features of the registration process occur sometimes, and they depend solely on your country or jurisdiction where the broker is registered.

At the same time, the period required for the verification procedure in Maxi Trade is often much shorter than in the case of the crypto exchange and usually takes about 30 minutes, although for some brokers such as Maxi trade it is even faster. Further, after passing all the necessary steps through registering and verifying your account, you need to deposit funds, and you can start trading.

Deposit and withdrawal

Crypto Exchange

Depositing so-called fiat money on a crypto exchange sometimes has some difficulties. The fact is that often top-rated crypto exchanges such as Binance do not accept dollars or euros into accounts directly from users. The truth is that the policy of this exchange implies depositing into the account of the already purchased cryptocurrency. 

Therefore, before you bring a cryptocurrency to your account, you will need to buy it at other specialized websites, and then transfer it to your account on the crypto exchange. At first glance, there is nothing complicated, however, when moving coins, you will be charged a commission, and if there are several such transactions, this will noticeably affect the amount of your money. Of course, this is not a critical factor, but it exists and should be taken into account.

According to Maxi trade, typical withdrawing of money from exchange also has several features. If you have a registered wallet for cryptocurrency, then for transferring funds to it you will need to pay a commission. If you want to withdraw funds to your bank account, be sure to consult with a representative of your bank or look for information on the Internet, since today not all banks willingly allow such transactions. This is mainly due to the fact that in this way, the bank cannot trace the origin of the funds you receive.

Crypto broker

The process of depositing funds to a crypto broker like Maxi trade looks much more comfortable than the same process on the exchange. The fact is that a Maxi trade often accepts completely different currencies, including dollars or euros, but also can directly accept cryptocurrency from popular e-wallets. The main advantage is the simplicity of the transaction, as well as the absence of any additional fees for depositing funds.

Withdrawing funds also requires no additional effort on the part of the user. For example, in the Maxi trade company, the conditions for withdrawing funds look much more profitable than those of cryptocurrency exchanges. The fact is that cryptocurrency brokers often set a reasonably low commission on withdrawal of funds, and it mainly depends on the withdrawal method itself, which will be more convenient for the client.

Today we also want you to show the typical reviews that a crypto broker like Maxi trade has.

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Me personally initially studied the issue of trading for about two months and only then decided to find a professional broker and start trading. I chose Maxitrade and found that among all the brokers on the cryptocurrency market, this is the most competent company and my personal broker for the fourth month in a row shows only growth on my account!

The conditions offered by Maxitrade were very attractive, so I called them and consulted on what strategies they use when trading cryptocurrency and what their minimum deposit is. For me personally, the amount turned out to be quite acceptable, but other brokers often answered me that I needed at least $ 500, so I didn’t even consider them.

After the very first consultations with Maxitrade experts, I already knew exactly how the cryptocurrency is trading on Forex. That is why I no longer doubt that it is the cryptocurrency that is for many years will be considered one of the best investment tools. Moreover, I was very pleased with the spreads that were offered at Maxitrade.

Beginners usually know the names of TOP cryptocurrencies, such as Bitcoin or ether. They want to invest in these familiar coins.

But when newbies learn that the number of cryptocurrencies is already in the thousands, and promising, hundreds often change their opinions. For example, our blog shows a daily cryptocurrency, which today has grown the most in value. It happens that cryptocurrency in 24 hours will increase in price by 20%, and sometimes by 150%.

That is, buying bitcoin or ether is good, but you need to understand that there are more attractive options. The crypto-topic has opened and continues to open a considerable number of useful projects in which people are happy to invest their money. A startup or ICO is a somewhat risky investment, but the profit here can amount to hundreds and even thousands of percent. 

First, it is necessary to determine on the basis of which platform transactions will be made. You can work through a cryptocurrency exchange or a regulated broker. The first option was used earlier when the sphere was in its infancy, and in the process of work, several unpleasant incidents occurred that questioned the reputation of the exchanges. 

Also, each trader should pay attention to the spread, that is, the difference between the purchase and sale prices. This is the first trading condition, which is different for different brokers. There are companies in which the spread on BTCUSD reaches $ 100. Good luck, everyone! 

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I won’t buy that! I opened a deposit at Maxitrade half year ago and my money are only growing! Long hesitated, because the cheapest package they have is already 250 bucks, but a friend convinced him that he has already had a six-month account there. A big plus is that even with a minimum deposit you can use the service of a broker, if you don’t want to follow yourself and delve into the nuances. 

According to his advice, you carry out transactions, while I’m on a couple of light/bitcoins, well, on average 30-40% a month goes by without straining. Several times the money on the card until there were no problems. Perhaps I would have earned more if I had traded myself, but at the same time I would have killed a lot of my time. And so I go several times a day to scroll through messages from the broker and put orders and that’s it. I do not know what will happen next, maybe it will scum, but so far everything is fine.

Anyone who still doubts, I advise you not to wait and start trading as soon as possible. I doubted a little, but now I understand that I just lost time in vain. At the primary job, a friend (works as an accountant) was able to earn great money last year with this company. Now I will continue to trade with Maxitrade and really hope that the conditions of the withdrawal of money and such a low commission will remain with them further!

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I’ve been trading with Maxitrade for over a year now! Starting from registration, ending with the withdrawal of all at a decent level. My deposit was 1,400 Euros, and I did not regret that I had invested so much. Authorization takes precisely as long as it takes to enter an email address. Even if you couldn’t figure it out (I can hardly imagine this case, since their website has an intuitive interface), then you can call the round-the-clock technical support service or write a message again.

I have already withdrawn money from the account dozens of times, and each time it took only a few hours! Therefore, I do not believe that this broker may have problems with the withdrawal of money!

If you decide to trade the cryptocurrency yourself, choose a reliable broker with feasible commissions and decent technical conditions. In general, I believe that the main thing for a good trader is the speed of trading and a large selection of tools. Everything else is secondary. In general, I think that the sooner you start trading with a professional broker, the sooner you will begin to understand how to make money in the cryptocurrency market yourself!

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The simplicity of the Maxirtade site always pleases me. The interface is convenient — minimum buttons and bookmarks. To enter your personal account, you need to log in. They offer round-the-clock technical support service — appeal like everyone else: through mail or by phone. But I have never used it yet, so how quickly they react, I will not say. In terms of speed, everything is fine.

Such a precise organization of processes that there are no questions left. Register and trade! The benefit of the cryptocurrency selection is very extensive. The software works smoothly, without failures and delays. I have been working with them for the 3rd month and very successfully!

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I think that leaving such a review without solid arguments is not entirely correct and looks more like a lie. I’ll tell you about my experience with Maxi trade. Last year, my brother advised me this company to trade with cryptocurrency. It seemed to be a good idea, and I turned to his broker, so that he, too, would justify me in transactions. To earn decent money, you must do it with a broker. 

Trade

Crypto Exchange

Maxi trade specialists pay attention that trading on a crypto exchange does not require any special skills or knowledge. Of course, for your own confidence, you can watch several instructional videos on YouTube, but often everything is intuitively clear from the first sight.

To begin with, you will need to select the trading instrument you are interested in, evaluate the chart and price history of a particular cryptocurrency, and open your position on buying or selling digital currency. 

We have previously written about the so-called orders to buy or sell a cryptocurrency, but it should be added that, according to users, this is one of the most convenient tools that allow you to conduct trading strategies without the constant online presence. Naturally, the functionality and mechanisms of a crypto exchange trade are more limited than that of a crypto broker. 

However, the main advantage of the crypto exchange is a wide choice among the cryptocurrencies offered. For example, the already familiar to us Binance trading exchange offers more than 100 cryptocurrencies for which it is possible to conduct trading operations with digital coins.

In turn, this is a great option, which implies competent risk diversification strategies. In other words, you can spread the risks of a possible stagnation of one of the coins and cover it with the growth of the rate of another cryptocurrency.

Crypto broker

In the case of trading with a crypto broker like Maxi trade, the user can use an incredibly extensive arsenal and a set of tools, indicators, signals, and forecasts that can be used to build more accurate trading strategies and reduce risks. In practice, this may look like this: you place on the chart the indicators you need, which show the dynamics of the changes you are interested in, which can then be taken into account in technical analysis.

Besides, brokers among its main advantages provide with very narrow spreads. Actually, crypto brokers like Maxi trade will be able to offer you are such spreads that users of the crypto exchange will never see. Also, trading platforms of brokers such as Maxitrade are always more functional than stock exchanges. Using their capabilities, you can, for example, simultaneously open several windows with information charts and monitor the entire indicators of market changes in real time. 

Moreover, some brokers additionally use such a useful tool as trading strategies designer and trading robots. It is trading robots that are today one of the most advanced tools in the arsenal of every client of a crypto broker.

However, it will be fair to note an insignificant minus of trade with a crypto broker, namely, the fact that a broker’s sales proposal does not contain the same broad supply of currencies like that of the crypto exchange. Moreover, it should be borne in mind that every broker has a certain set of cryptocurrencies for trading. However, one should not worry more often such brokers as Maxi trade use a collection of the most popular cryptocurrencies.

Security

Crypto Exchange

Of course, the information about transactions between cryptocurrency holders is absolutely confidential, and hacking or taking over is practically reduced to zero. However, it is not always possible to say about such a degree of invulnerability, if your money (in the form of cryptocurrency) is stored on one of the crypto exchanges. We believe that practically everyone has heard numerous hacks of various crypto exchanges and theft of customer funds.

It is in vain to think that the little-known and poorly organized exchanges were subject to hacking. For example, last year, such crypto stock giants were hacked like:

  • BitGrail
  • Coincheck

In total, the customers of these two exchanges lost more than 700 million dollars. There are also cases where the management of the exchange was found to be embezzling clients. Of course, one cannot say that all exchanges are very poorly protected, but these signals should also be taken into account when investing and choosing between a crypto exchange and a broker. 

Crypto broker

Trading operations conducted with a crypto broker like Maxi trade guarantee the client a significant degree of security of its assets. Firstly, the activities of professional and responsible brokers are regulated by substantial bodies, such as:

  • CySEC
  • FCA
  • SEC and so on

And this, in turn, implies that you cooperate with a reliable company and you will not be scammed one day. Secondly, the activities of brokers that are regulated by the bodies as mentioned earlier are, and the client has the opportunity to protect their assets in case of any violations.

Thirdly, brokers, whose activities are systematically checked by various financial authorities, are often obliged to compensate the investor for assets in case of any problems. In other words, in the case of any force majeure or even bankruptcy, clients can always count on full compensation.

Well, perhaps an essential difference is that cryptocurrency brokers like Maxi trade store funds that the client trusts them in bank accounts, which in itself is more reliable than in the case of online servers that can be hacked. 

Conclusion

Summing up the comparison of crypto brokers and crypto exchanges, we would like to draw your attention to the fact that such an investment tool as a cryptocurrency is a somewhat risky asset. According to Maxi trade official site, sometimes the volatility of digital currencies is just incredibly high compared to other forms of investment, such as forex or the stock market.

At that moment when you make decisions for yourself with whom you prefer to trade, carefully examine all the pros and cons of which we have told you today, and also be sure to read reviews about the activities of whether it is a crypto exchange or a financial broker. However, keep in mind that sometimes competitors can leave bad reviews about different sites and brokers. Therefore, try to take into account at least several sources of information.

In any case, whatever you will decide, both options have positive and negative sides in the trade of such a modern tool as a cryptocurrency. Therefore, the most important thing is to determine the objectives, weigh all the associated risks, and start trading! We can also advise you not to strive for super-profits from the very first day, but to deposit the minimum amount necessary to try to increase it, and most importantly, to understand the basics of cryptocurrency trading.