What does a Crypto Broker do? What Do You Need to Become One?

Susan woke up at 7 am. She may not be an early riser, but her daily routine prioritizes health and well-being. Freshening herself up, she picked up her accessories and started off for the gym. She was excited- her instincts indicated her newest gym buddy, the one who joined earlier this month, might be interested in capital market investments. The cards have been aligning themselves for a solid conversion. After all, the best time to invest is when there is “blood on the streets”. She is a professional crypto broker- a career choice she would not have dreamed of even a year earlier. Her earnings contribute significantly to the family income while helping her clients maximize profits by facilitating legal crypto transactions. The earnings feature trade commissions as well as rewards for achieving milestones in terms of client acquisition or revenues generated. Her distinct career choice is quickly soaring as an attractive profession, fuelled by the growing global relevance of cryptocurrencies. 

Also Read: Difference Between Developing a Crypto Exchange From Scratch and Being a Part of PayBito’s Crypto Broker Ecosystem

What Do You Mean By a “Crypto Broker”?

A crypto broker is a person, an enterprise, or an institution that allows investors to participate in crypto trading. The broker charges a small commission as an intermediary, much lesser than a conventional stockbroker. Traditional stockbrokers may initially find the crypto marketplace a bit. It takes some time to get used to the basics, but herein lies an enormous opportunity, evident from the estimated average annual income of $181,609.

A crypto broker facilitates the trade across his own network, as opposed to a central exchange. Trading through a crypto broker is also known as OTC(Over the Counter). Investors and traders prefer brokers because of certain advantages, which will be discussed later in this article. 

What Should You Learn to Become a Crypto Broker?

As crypto brokers deal primarily with digital assets, a fundamental understanding of how cryptocurrencies work and the associated terminologies is the obvious first step. Fortunately, the internet endows knowledge on all things necessary. Look out for educational resources, links, videos, news articles, and blog posts. Insights from market leaders help in aligning the right perspective and understanding market trends. And yes, learning to view crypto trading charts in the right direction is also essential.

Upping your Crypto Vocabulary

Similar to stock markets, the crypto marketplace has a different set of terms, including:

a) Bitcoin

The first cryptocurrency ever, Bitcoin was created in 2009 and still has a predominant market share. The total number of Bitcoins is capped at 21 million, which leads to its extremely high value. Bitcoin is the most expensive of all cryptocurrencies and is accepted across the highest number of nations and organizations.

b) Ether

Ether is the second most popular digital asset. The underlying Ethereum blockchain protocol exceeds Bitcoin in terms of practical applications, primarily due to its smart contract functionality. Ethereum switched from the PoW mechanism to a PoS mechanism, leading to a 99% decrease in energy consumption.

c) Altcoin

Any type of cryptocurrency other than Bitcoin is known as Altcoin.

d) NFT

Non-Fungible tokens(NFTs) are different and distinct. An NFT reflects the ownership of digital collectible artworks. 

e) DeFi

Decentralized Finance refers to fintech applications derived from blockchain’s distributed ledger system, which are also used by cryptocurrencies. They eliminate the need for transaction fees charged by centralized financial institutions like banks.

f) Blockchain

Blockchain is the technology powering all cryptocurrencies. 

g) Mining

In the crypto world, mining refers to the process of minting new digital assets.

Which is Better: Crypto Broker or Crypto Exchange?

Traders and crypto enthusiasts prefer reputed crypto brokerage platforms over crypto exchanges for several reasons. The notable ones include:

1. Availability of multiple trading options.
2. Multi-fiat and crypto settlement options. 
3. Better security and liquidity.
4. Access to advanced technical analysis and risk management tools. 

How Do You Become A Crypto Broker?

The growing potential of crypto assets has forced governments to take notice. While many are accusing the leading powers of implementing strict regulations for audit trails, it cannot be denied that crypto scams and hijacking are increasing regularly. Crypto regulations are necessary for maintaining performance and security standards across crypto trading platforms. 

The following aspects should be prioritized for starting a crypto broker platform:

1. Acquire a Crypto License

A crypto license is essential for starting a crypto business. Crypto brokers can also offer additional trading options similar to a stockbroker, including margin trading, leverage trading, and more. It is necessary for crypto brokerage platforms to comply with safety regulations and offer their clients the right trading tools. 

2. Accumulate Safe Altcoin Options for Trading

Brokers need to offer as many crypto options as possible for increasing trade. However, they also need to protect their clients from bad investments and fallout crypto projects. Crypto brokers can add coins to their asset listing through initial coin offerings((ICO), DeFi(Decentralised Finance) platforms, NFTs, crypto derivatives, and more.

3. Build Your Own Crypto Wallet

Crypto wallets are essential for ensuring the secure storage of acquired digital assets. Depending upon their usage, crypto wallets are further classified into hardware, mobile storage wallets, and hot and cold wallets. It is necessary to ensure the right platform standards for sustainable business development. Hot wallets feature a ‘recovery phrase’ for recovering access if lost. Paper wallets offer a combination of public and private keys in the form of character strings, as well as a QR scan code.

4. Promote your Business

In addition to all the things stated above, marketing and promotion are absolutely crucial for a business to thrive. Use digital marketing and follow effective Google crypto marketing policies to build effective marketing techniques.

Wrapping Up

A crypto broker platform allows crypto entrepreneurs to set up a trading business in minutes. Platforms such as PayBito’s white-label crypto broker program adhere to all the crypto regulations and helps willing participants bypass long unnecessary hassles involved in the setup and installation of a crypto trading platform.