If you have been active in investing, then you must have heard of bitcoin. For those who do not know about bitcoin, know that bitcoin is digital currency. And if you still do not understand what digital currency is, then you should get online and do some more research. Nevertheless, what you should know is that having a bitcoin is like owning a share of a stock. And for people who knew this early and bought some shares, now they are enjoying the increased value of their shares.
What also makes Bitcoin so interesting is that they are decentralized, meaning that, there are no government institutions that is controlling this digital currency. If you are excited about investing in the digital currency, then you should know that you need a broker to execute your transactions. And written here is what you should consider when selecting a broker.
License and Registration
The first and most important thing you should inquire about a bitcoin brokerage company is the license and registration. Bitcoin being a digital currency, it is usually transacted online and most of the companies that can help you purchase bitcoins offer their services online. Therefore, you need to know the registration bodies that have licensed these companies to operate and also research whether these companies are mandated to register trading companies.
People who have traded currencies or stocks before understanding the importance of speed during market execution. An excellent broker should have direct access to liquidity providers, meaning that, they should be able to take your orders as soon as you place them. Note that, some brokers take a while before accepting your order which can be costly during active market times.
The next thing you need to find out about a broker is their execution transparency. Most brokers make money by taking some money from your share purchase also known as spreads. Making sure your broker has the tightest spreads is essential if you plan on making good money from bitcoin. You can read more about broker transparency on the reviews written by their clients.
Deposit and Withdrawal
Once you get ready to invest in bitcoin and have already compared different brokerage firms, the next thing you need to do is know the methods they use for depositing and withdrawing of funds. Most brokers offer visa and credit card deposit while other can allow you to deposit and withdraw using Paypal and other online transacting methods.