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Crypto Exchange vs Brokerage

There are a variety of ways to get cryptocurrency – exchanges, mining and brokers, but all has its own pros and disadvantages. This article will provide a brief overview of the advantages and disadvantages of using a cryptocurrency exchange, as well as your own personalized brokerage. Be aware that not all the advantages and drawbacks discussed will apply to brokerages or exchanges.


Centralised exchanges are the ideal way to purchase or sell crypto, whether as an investment over the long term or to trade.

They are software-based platforms that you can set up an account with, fulfill the Know Your Customer requirement and then have access to an array of cryptocurrency. The sign-up process generally are speedy if you are onboarding in a single person, typically happening within the course of a single day.

The top centralised exchanges are: Binance, Kraken, Coinbase, Huobi, FTX, KuCoin,, Bitfinex and Bitstamp.

Exchange Benefits:

Choice The primary advantages of using one of the exchanges is that it offers a huge range of cryptocurrencies available on a variety of leading platforms. For instance, Binance lists over 500 coins with regular listings taking place. Exchanges typically are quick to announce new tokens, eliminate others and keep track of their offerings. The majority of crypto tokens that are listed on major exchanges typically have greater liquidity than tokens that have been offered on exchanges that are decentralized, such like UniSwap. If you are seeking to get a broad perspective on the market for crypto An exchange might be an ideal place to begin.

Fees: A lot of exchanges provide competitive fees for the buying and selling of crypto. However, these fees are greatly based on the volume of transactions and payment methods, regardless of whether you are you are using the premium edition of their platform, or even when you pay for fees for trading using the platform’s own cryptocurrency token (such as the BNB token used by Binance). Fees can also be divided into ‘taker’ and “maker fees. Taker charges are those that are incurred through drawing liquid from markets, i.e. purchasing, and maker are those that are incurred due to offering liquidity, i.e. selling. The fees for takers and makers generally differ from one another and among different exchanges.

Capabilities for Trading: Centralised exchanges typically have advanced trading capabilities. limit and market orders leverage, derivatives, and other products are available. Limit orders are particularly beneficial because they permit trading in cryptocurrency at predetermined prices that can be established in advance. By setting limit orders it is possible to sell or purchase cryptocurrency while away from their laptop or mobile phone at a set price, which is extremely beneficial since it’s often not feasible to wait for a cryptocurrency to be at a certain value for placing an order.

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Software Capabilities: Many exchanges come with advanced software features like the capability to automate trade. KuCoin is one example. They offers access to what is known as Grid Trading in which pre-defined trading requirements are set by limit orders that allow you to purchase and sell at various levels to generate profits. Another benefit of centralised exchanges is the capacity to utilize API connections. APIs work to act as an information bridge, and are able to be used for automated trading between exchanges and an outside service provider, or exporting transactions to tax software businesses.

Exchange Drawbacks:

Security risks: While some exchanges are equipped with advanced protocols and systems to safeguard against hacking attempts but these incidents have been reported on a few exchanges. Some of the biggest exchanges such as Binance and KuCoin are believed to have been targeted at some moment in time. One of the best methods to minimize the chance of hacking is to manage your private keys on your own and to keep Bitcoin out of exchanges that are stored within Cold Storage using devices like Trezors. Furthermore, exchanges are businesses which means they could not be able pay out in the event of a major hack or other issues arise.

Complexity: Exchanges can be extremely complicated, particularly for new users. On the other hand, being able to use advanced trading software and capabilities is that they could be confusing for novice or new users. Understanding how to make orders, which orders to make, where cryptocurrency that was traded has gone or how to withdraw cryptocurrency and what is the fee structure and even the best crypto to choose could be confusing for many.

Fees: Although exchange charges are often competitive, they can be excessive. CoinBase for instance, reports that they charges 2.49 percent to CoinBase transaction using a credit card. Certain exchanges might also have hidden fees included in the trade spread (bid and request fees). In addition, it could be the case that to cut down on fees, it is necessary to buy and pay for cryptocurrency exchange tokens connected to a platform. The BNB token is an excellent example , but holding other exchange tokens to pay fees can result in losses for the token in the event that the price changes (trading larger volumes and other strategies, could be methods to lower the cost of trading).

Drawing or withdrawing money Exchanges depend heavily on banks to complete transactions. There are several concerns specific to specific (but not always all) exchanges involving banking that clients have to deal with. For instance, customers are often charged when they withdraw funds from the bank accounts of their choice. Another possible issue is the absence of pairing an individual’s or company’s local currency. Binance , for instance, in the moment of this writing does not offer GBP deposit options for corporate entities.

Customer Support and Interaction The biggest exchanges usually offer poor customer service. It could take a long time to figure out how to reach assistance and then contact a person sometimes, and it can take hours to get assistance from a specialist. However, exchanges will not offer similar level of support that you would receive from an organization that provides exceptional personalized assistance.


Another method to buy and sell crypto is to use brokerages. Brokerages are present in all industries and provide a great way to make commerce easier for clients. In the world of crypto it is more difficult for custom-made brokerages to find than exchanges. However, crypto brokerages could offer a unique way to expose you to cryptocurrency.

Brokerage Benefits:

Customer Service and Simplicity One of the greatest advantages of using a brokerage is its simplicity and customer service. To ensure that crypto has a widespread acceptance, people with all technological understanding will need to be properly served.

Brokerages are not likely to have complex dashboards of software with numerous cryptocurrency options and ways to trade. Informing a new or less computer-savvy customer to sign up to an exchange, look through markets, make an order for a limit or market, locate the cryptocurrency, and transfer it to cold storage could not be practical without a thorough study.

Good brokerages aid in solving this issue by offering an easy solution to this issue of complexity. They can assist the user in understanding the ways in which cryptocurrency is traded, as well as where to store it and provide assistance if problems occur. There is a short time frame for people and waiting for customer support to speak to a random individual might not be the ideal solution. Exchange customer support might not be able to remember your previous issue due to the number of requests, or were they the same person or the department that you have been transferred to might not be able to fully comprehend your problem without a different explanation.

Brokerages can establish bespoke relations with their clients in order to answer any specific questions clients might have and offer advice. In the age of complexity, information and advancements in technology, being able to communicate with an expert crypto expert is very beneficial to many customers.

Fees: The costs charged by a broker may differ, they may also be less expensive and more standardized than a traditional exchange. While some brokerages can be more expensive than exchanges however, they do offer more freedom in the rates. The expression ‘You pay for what you pay for’ is possibly more applicable to brokerages.

Security: Depending upon how crypto is stored making use of a brokerage the crypto can be considerably more secure as an exchange. SatoshiDeals is one example. They collaborates with Trezor to provide customers with the best storage standards available in the industry. Storing your money off your exchange on cold storage are among the most secure ways to keep your cryptocurrency.

Deposit and Withdrawal Pros: A reputable brokerage will offer exceptional ability to withdraw and deposit funds. SatoshiDeals is one example. They provides both private and corporate institution-grade banking in GBP and EUR without limitation on withdrawals or deposits. They are two major markets that can be serviced in just a few minutes and with outstanding customer service.

If a problem arises on the customer or at the brokerage end, reliable brokerages with the best customer service are there to assist. In a world where fraud is a major issue and consumers are worried about withdrawing cash from cryptocurrency, having outstanding banking capabilities is essential.

Brokerage Drawbacks:

Brokerages may have disadvantages.

Fees Certain brokerages charge large fees to facilitate transactions, and some are more than exchange. However, it could be worthwhile if the benefits of a brokerage exceed the higher costs you might be being charged.

Choice: Some brokerages might not provide the same range of crypto as exchanges might and this could make finding the various cryptos more challenging. This being said”quality over quantity” is a term that has credibility. SatoshiDeals is a firm believer in quality over quantity but we are able to trade nearly any cryptocurrency that is that is listed through an exchange centralised.

Accessibility: Many customers prefer accessibility over having a broker complete the transaction on their behalf. The ability to hit on a button, make an exchange and then receive the cryptocurrency in exchange wallets is a significant aspect. When you make an exchange the transaction is easier to view in the short-term and brokerages can perform the transaction on your behalf in the background.

Trust: In addition to accessibility, due to what is involved in the sign-up procedure and the transaction one might have to put more trust in an exchange rather than a broker. Scams are a common occurrence in the crypto world which is why sending money to a business that you don’t have a sign-up interface to and which isn’t directly accessible through the platform could require greater confidence.

In the end, having an open platform cannot ensure that the company isn’t an enigma or is able to pay in the event the need arises for a withdrawal. The importance of trust is paramount and this is why it is necessity of choosing an agent with an outstanding reputation and has been authorized to run.


Both brokerages and exchanges offer advantages and disadvantages. It is important to clarify that the majority of the advantages and disadvantages of brokerages and exchanges depend on the nature of the customer in question and their particular needs.

A tech-savvy, knowledgeable user of crypto regularly, may prefer an exchange over an investment broker, however someone who is new or skilled client who would like to talk to someone might prefer a broker.