Cryptocurrency Exchange vs Crypto Broker Programs: Which One to Choose, and Why?

Over 300 million crypto owners, 20000 cryptocurrencies, and 508 crypto exchanges exist. In comparison, the total crypto market capitalization stands today at $1.15 trillion. There is potential for institutional investors, enterprises, and entrepreneurs to tap into the crypto trading services segment. Setting up a new crypto exchange is the best way to leverage the aforementioned market opportunity. However, the process is expensive and time-consuming, especially if one decides to deploy a team and build the exchange from scratch. White label crypto exchange software is one viable solution. But, there is a more affordable solution that requires a lower investment or nominal monthly subscription charges. In this article, we will be talking about crypto broker programs.

Crypto Broker Programs: What does a Crypto Broker Do?

A crypto broker acts as an intermediary between a crypto trader(buyer or seller) and the exchange. They facilitate the transaction and earn attractive commissions in a way similar to traditional brokers. However, unlike conventional cases, the potential profit margin is way higher mainly due to crypto market volatility.

Several cryptocurrency brokers offer crypto derivative options to their prospective clients. Interested traders can agree upon contracts speculating the potential valuation of crypto in the future(usually Bitcoin). There are multiple crypto derivative options, including trading Contract For Differences(CFDs), crypto futures and options, crypto CFDs, and more. These are financial contracts where both the parties agree to pay the settlement difference between opening and closing trade. Brokers charge a commission to the users for the services rendered while using the crypto trading platform.

Advantages of a White Label Crypto Broker Program

The crypto broker program offers multiple advantages to institutional investors and enterprises such as:

• Portfolio Diversification

Crypto markets churn countless types of digital assets including tokens, altcoins, and more. Crypto traders may find it a hassle to remain updated with the latest occurrences in the crypto world. Brokers can assist in the diversification of portfolios, curating and identifying crypto assets with the best potential for future growth. Crypto brokers can also provide additional trading options mentioned above.

• Security Features

Registered crypto brokers are mostly affiliated with global cryptocurrency exchanges which are compliant with crypto regulatory frameworks across several nations. The compliance allows these brokerage firms to offer some extent of investor asset protection. Global crypto exchanges implement recommendations from financial regulatory bodies like the SEC. They also feature comprehensive KYC and AML compliance.

• Easy Crypto to Fiat Conversion

Several crypto exchanges facilitate only BTC or ETH transactions making it difficult for traders to convert their assets back into fiat. Meanwhile, crypto brokers offer instant fiat-crypto conversion options and vice versa. Users can retrieve the amount in USD, EUR, or other currencies supported by the broker.

• Comprehensive Service List

In comparison to digital asset exchanges, crypto broker programs offer customized service options to their clients, backed by a comparatively stronger customer support system. Crypto broker programs offer all-in-one crypto services, including several ones outside of crypto trading. Certain crypto-broker programs offer cross-border payment processing services at fractional charges, while others may present inbuilt crypto banking solutions.

White Label Crypto Exchange vs Cryptocurrency Broker

From a business perspective, it is difficult to say which one between a crypto exchange and a crypto broker program is better. Both have their pros and cons. The white label crypto exchange platform allows enterprises to quickly set up crypto trading services. The setup is quick, however, the remuneration charges are usually high.

On the other hand, crypto broker programs allow participants to stay affiliated with a crypto exchange and earn a commission from facilitating transactions between crypto traders and the exchange. This allows crypto brokers to take advantage of the parent exchange’s liquidity for nominal monthly subscription fees. Some exchanges also offer trial versions.

Features to Check out in a Crypto Broker Platform

Investors and enterprises should look out for the following in a crypto broker program:

1. Multi-currency compatibility and multi-signature wallets.
2. SegWit, ERC20, BIP32 and FIX compliance.
3. KYC and AML compliance as per the location.
4. Advanced security features- 3 point Architecture, DDoS Mitigation, 2FA, GEO Fencing, and more,
5. Firewall and Firebase Integration
6. AES 256 DB Encryption, Protection against Ransomware and Withdrawal
7. Liquidity Integration with other exchanges.
8. Matching Engine with Order Book.

PayBito White Label Crypto Broker Program: A Cut Above The Rest

PayBito, a global cryptocurrency exchange, offers the best services in its recently updated global crypto broker program. Selected affiliates enjoy exclusive access to over 400 global crypto markets, and trading features across 20 fiat currencies. To top it all, it offers a unique one-month free trial.

Investors and entrepreneurs can leverage the best business growth opportunities from the rapidly evolving crypto markets using PayBito. Globally acclaimed for blending unmatched performance with service and user experience, the PayBito crypto broker program offers the following in addition to the features mentioned above:

1. Multilingual, round-the-clock customer support.
2. High-volume crypto liquidity integration.
3. Instant Multi-payment Gateway Integration.
4. Bank-grade cybersecurity with anti-phishing features.
5. Cloud Hosting
6. Multi-device and platform compatibility across web browsers, desktop apps, Android, and iOS.
7. Compliance with global regulatory frameworks

In Conclusion

The slow gradual resurgence of Bitcoin valuations following the Russia-Ukraine conflict, global inflation, and regulatory tightening of crypto trading frameworks is once again bringing crypto relevance back into the mainstream. The recent Ethereum Merge will push things further. It may take some time for cryptocurrencies to regain their previous highs, but all signs indicate that they are here to stay for the long run. BlackRock, the world’s largest asset management group with an estimated $10 trillion valuation, has launched a Bitcoin Private Trust. This may serve as an indicator of market tendencies and expectations on the future of crypto. PayBito’s white label crypto broker program is an ideal option for institutional investors, enterprises, and entrepreneurs to jumpstart their ventures in the world of cryptocurrencies.