Cryptocurrency theft has become a common issue in the online trading space, thus making most investors take a step back in their cryptocurrency ventures. While this trading venture continues to skyrocket, hackers are using various means to steal tokens and coins.
The good news is that you can take precautionary measures to protect your assets. One of the best ways to avoid the risk of hacking is trading using a reliable and secure online cryptocurrency broker. So, why trade with an online broker compared to a cryptocurrency exchange? Keep reading to find out.
Benefits of Trading Cryptocurrency With Online Brokers
Most traders prefer trading cryptocurrencies on an exchange because of various benefits, including low trading fees and the availability of other cryptos for portfolio diversification. While you have excellent potential to succeed with an exchange, they aren’t as safe and secure as online brokers. We have witnessed many traders’ accounts hacked and assets stolen, even with a digital wallet or cryptocurrency exchanges getting hacked resulting in the theft of hundreds of millions of dollars.
Note that the cryptocurrency market is not regulated, and the best way to protect your assets is through online brokers. There are plenty of brokers that are not legitimate, and you can get scammed if you do not have a critical eye on your choices. In this regard, consider a cryptocurrency broker that is highly reputable and regulated in your region by world-renowned authorities.
Taking Short-Term Positions
Trading with online brokers also gives you plenty of cryptocurrency investment opportunities. Besides purchasing cryptos of your choice and storing them in a digital wallet, you can take short-term positions like CFDs. CFD trading doesn’t let you take ownership of the underlying asset but only speculate on its price movements. This gives you an opportunity to make profits in the cryptocurrency space while avoiding the risk of getting hacked. Keep in mind that traders have different trading approaches. Therefore, whether you are a day, swing, or scalp trader, you will definitely enjoy your experience.
Purchase Cryptocurrency Stocks
Buying cryptocurrency stocks is the best way to get exposure to the crypto world without taking ownership of the asset. Through regulated online brokers, you get access to the exchanges where your preferred crypto stocks are listed. However, ensure you conduct the necessary due diligence about the stocks you intend to invest in for maximum potential. Fortunately, most online stock brokers will allow you to purchase the shares as fractions, thus allowing all traders to benefit from the market.
As mentioned earlier, there are plenty of cryptocurrency stock brokers to choose from. This makes it even more challenging for traders and investors to make a suitable choice. To help you manage the research procedure, always consider your trading requirements. This can be the security of your funds, costs, and budget, asset availability, platforms offered, etc.
Alternatively, if you are a UK trader, you can find the best recommendations on the TradingGuide website. All in all, cryptocurrency stock investment requires individuals who have long-term goals and want to avoid the risk of hackers stealing their assets.
The best online cryptocurrency broker should be highly encrypted and incorporate best security practices such as a two-factor authentication login procedure. Traders and investors are also advised to create stronger passwords as their service providers suggest to minimize hacking risks.
Additionally, online brokers help you protect your digital wallet and avoid the risk of mobile phishing. The good news is that the best brokers have trading apps that you can use on your mobile devices to securely log into your account and access your assets. Alternatively, take short-term positions or invest in cryptocurrency stocks.