Investing in cryptocurrencies is becoming more and more popular, and therefore many existing
brokers expand their trading offer, adding the possibility of effecting transactions with a new
investment tool, namely digital coins, and there are some new brokers who set up their
cryptocurrency brokerage businesses.
How to become a crypto broker?
Below there are steps you have to take in order to start the business.
If you are thinking of setting yourself as a e.g. Bitcoin broker, you need to raise some capital at first.
You also have to get to know whether you need to obtain a license to start brokerage business. This
depends on the country you’re going to operate in and the place of residence of your customers. You
have to examine whether you legal jurisdiction allows for running a brokerage without any official
permit. The best thing to do is to consult a legal advisor on this matter. However, if you need a
license, keep in mind you will have to adhere to some requirements, for example obtaining personal
data of your customers or maintaining records for some time.
The broker may start the activity through peer-to- peer marketplace services. This option is very
cheap, because there no requirements associated with the minimum capital, and usually only some
balance is required to place adverts. This option is also time-saving, since the broker does have to
look for customers, he can create an ad and wait for clients or respond to already placed ads.
Instead of placing a publicly accessible offer, the broker may negotiate with individual customers he
acquired, and implement “over the counter” sales. This would involve fewer but larger trades,
however the commission will have to be paid to a service provider, who will assist in effecting trades,
and the broker has to search for customers by himself.
It is also possible to buy a turnkey solution – a platform for cryptocurrency trading from a white label
provider. Such a solution also provides access to crypto liquidity for brokers, which allows to buy and
sell high volumes of virtual currency and also to digital wallets and mobile applications.
Starting your own cryptocurrency brokerage involves a lot of preparation and analysis of different
solutions, but it is certainly worth considering, since digital coins enjoy a popularity, which will for