patterncode replies to: Why open an account with a Crypto based Broker?

I have been trading with a few crypto brokers and so far my experience has been nothin less than amazing. But is it just me who feels like this ?
Here is what I see as the potential list of pro’s and con’s of a crypto only broker. I will keep updating this list based on common consensus so both newbies and experienced trades can get some help from it.

POSITIVES:

  1. Anonimity of Account: Minimal or NO KYC regulations
  2. Higher leverage: crypto only brokers are not limited by ESMA or CFTC advisory of leverage
  3. Potentially Lower commissions: since these brokers do not have too much overhead cost, I see they tend to compete on spreads and commissions and make it cheaper overall for the trader
  4. Efficient tax management: you can defer your taxes for as long as you want by keeping your profits in your accounts or moving profits to a crypto exchange
  5. Cheaper to send small payments: For those of us, who send or keep small accounts in forex accounts end up paying significant in transaction fees. Example 30$ per wire for a 1000$ account means 3%, and credit card payments are no different. With cryptos that cost goes down to virtually zero or less than 0.1%
  6. Fast (perhaps fastest): Account Opening and time to fund and put your first trade in market is probably fastest
  7. Possibility to trade over the weekends: since crypto markets are 24/7, you can possibly also trade over the weekend if you are trading in cryptos

NEGATIVES:

  1. Difficult to buy cryptos in size: Especially if you are looking to open large accounts say over 25K or more
  2. Not every bank/country is crypto friendly: so if your bank does not allow you to transfer funds to a crypto exchange, you have limited choices on how to buy cryptos. Bank’s think cryptos are “rat poision” and crypto community thinks bank is that “rat”, so there is a constant mutual belittling there
  3. Complex Process : for newbies who have never traded or purchased cryptos, the who process can be very daunting and cumbersone. We all are just so used to funding our forex accounts with debit cards and bank wires.

It will be great if I can get some feedback from other users of the forum and we can potentially have a list of positive and negatives of a crypto only brokers for everyone’s benefit. To maintain simplicity I will take skepticism out of my analysis and will assume that we are only talking about established or reputed brokers who are genuinely trying to change the forex industry landscape

PLEASE NOTE, THIS IS NOT A BROKER LIST. I dont intend to promote or list any brokers on this post but just have opinions on “why” and “why not” should an investor choose to trade with a crypto only broker. I will keep updating positives and negatives based on my experience with crypto brokers and based on opinions on this thread by its participants. If you dont have opinions, please just reply “Yes” or “No” to indicate weather you support or oppose the idea of crypto only forex brokers. Thanks all for your inputs !

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