There are countless exchanges and brokers in the crypto industry. It’s easy to lose track of things. We explain what you need to be aware of when choosing the right provider.
1. Stock exchange or broker – costs and what suits me better?
Cryptocurrency exchanges provide a platform for buyers and sellers who want to trade cryptocurrencies at current market prices. A wide variety of cryptocurrencies are often offered. Stock exchanges are more suitable for active and experienced traders, as you manage and control your own trades.
Crypto-brokers, on the other hand, are usually very clean and beginner-friendly. On the other hand, the fees, ie the spread, are significantly higher for a cryptocurrency broker than for a cryptocurrency exchange, as the broker manages and invests the funds or cryptocurrencies. As a rule, the cost for brokers is between 0.75 and 1.5 percent.
Bitvavo has established a particularly interesting model that combines the best of both worlds: the simplicity of a broker combined with the significantly lower fees on a crypto exchange. Fees are based on each dealer’s trading volume. This is how the stock market motivates its society to act. The higher the trading volume, the lower the price. With a trading volume of less than 100,000 euros, the fee is 0.25 percent and is continuously getting cheaper with higher monthly volumes. Payments via the SEPA procedure are completely free, and PayPal will soon be available for even faster and easier transactions
2. Trust, legal regulation and security of the platform
Money laundering, terrorist financing, shady business on the dark web. Cryptocurrencies still have to fight for their reputation. A stock exchange always appears particularly credible once it has registered with the country’s central bank. Stock exchanges based in the EU are usually subject to stricter supervision than in other countries. For the consumer, however, it is positive. Central banks monitor compliance with the law on combating money laundering and the financing of terrorism and sanctions laws. This ensures that the cryptocurrencies are not misused. It is therefore advisable to choose a crypto exchange with European regulation.
Regulatory developments may have a positive impact on the acceptance of cryptocurrencies. For example, the registration of Bitvavo with the Dutch central bank was accompanied by increasing interest from institutional customers. In addition, Bitvavo is a member of a self-regulatory organization. Members of such organizations voluntarily undertake to abide by a code of conduct, on the basis of which Best practice in digital currency must be adhered to. For example, Bitvavo offers additional protection against fraud and your own typing errors, because each external wallet must be verified once before paying for a short video.
On the other hand, crypto enthusiasts are also concerned about excessive government intervention. The subject of decentralization is extremely important for the industry.
German customer support
Despite our globalized world, there are still language barriers. Especially when it comes to complex topics like cryptocurrencies and the technology behind them. That is why crypto exchanges with a support offer in their own mother tongue are particularly suitable for our German-speaking readers.
When choosing a suitable crypto exchange, always check what different communication channels are offered. When support is available and how quickly it responds to requests.
Communication options such as:
- live chat
- telephone hotline
- e-mail support
- Discord server
Support should also be available every day if possible because the crypto markets are not sleeping.
4. What cryptocurrencies are offered?
The broader the portfolio on the respective stock exchange, the better investors can diversify their own portfolio. An old saying goes, “Never put all your eggs in one basket.” If the price of one currency falls, the exchange rate gain of another cryptocurrency may in turn compensate for the loss.
In addition to classics such as Bitcoin, Ethereum, Cardano, Ripple and Co., the Bitvavo exchange has over 170 other cryptocurrencies in its portfolio. All these currencies can be easily purchased in euros, directly via the app or the website. For each of these currencies, there are charts for the analysts among us and comprehensive explanations of the projects behind the respective token.
Ad-hoc messages also appear in the news feed, so you can keep an eye on the market via your smartphone.
5. Additional features
Last but not least, you can check if there are any interesting extra features such as an app or betting options. Traders need to be able to respond quickly to the market. An app makes it possible to keep an eye on prices and trade at lightning speed.
This is especially useful for beginners when providers offer different user interfaces, depending on the level of knowledge. Bitvavo offers a simple interface with reduced information and content so that cryptony beginners are not overwhelmed. For example, the advanced user interface contains different order types, such as the market order (default), the limit order, and the stop-limit order.
In addition, some exchanges, such as Bitvavo, also offer staking. Efforts are based on the sustainable Proof-of-Stake consensus mechanism. With effort, investors can take advantage of passive crypto income by depositing coins to create new blocks of blockchain. There is then a return on the deposited coins. This return is usually much more lucrative than the return from conventional banks.
Crypto fintech solutions from the heart of Amsterdam
Transparent communication, easy access to the crypto world and future-oriented solutions. Bitvavo is currently the most polarizing crypto exchange in Europe and the largest crypto provider in the Netherlands. The young fintech company was founded in Amsterdam in 2018 and combines a classic cryptocurrency exchange with a betting service in one user-friendly app.
Bitvavo offers: The best of both worlds. The simplicity of a broker combined with the significantly lower fees on a crypto exchange.
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