2019 has been a year full of volatility when it comes to cryptocurrencies, but -despite the bearish seasons that hit bitcoin and other altcoins hard- the overall outlook is more than positive. With the growing enthusiasm of the crypto and blockchain industry at the institutional level, the appearance of grand announcements such as Libra or GRAM and the participation of big players in the “stablecoins” arena, 2020 is full of high expectations. When using cryptocurrencies it is common to use 2 types of platforms: brokers and exchange platforms. But how can we get the most out of them? In this article, we present the top 3 of the best places to buy crypto coins in 2020.
Brokers or exchanges: which way to go to buy crypto coins in 2020?
Exchanges are the traditional platforms for investing in the cryptocurrency market. They offer several advantages, especially for those who want to invest and at the same time get involved in the intrinsic use of crypto coins by using them through the project’s own purses and platforms (e.g. decentralized development with Ethereum or cloud storage with Siacoin). However, from an investor’s point of view, most exchanges have a lot of limitations.
This is where broker platforms come into play. These are investment platforms generally regulated by a financial authority that allows you to invest in various instruments in a more versatile way. In the case of cryptocurrencies, they are mostly offered through financial derivatives, either a futures contract or a contract for difference (CFD). Soon, bitcoin will also enter the options market. In any case, the investor can invest in these derivatives that are based on the price of the underlying asset (in this case, the cryptocurrency).
In addition to the security provided by regulation, another advantage is the extension of the tools available. With these…