Cryptocurrency Exchange Vs. Broker – A Comprehensive Comparison

Cryptocurrency Exchange Vs. Broker - A Comprehensive Comparison

A few years back if anyone told you about cryptocurrencies and their potential, would you believe that? Literally a big no. But, today these cryptocurrencies are ruling the digital industry with their immense potential nature. People are showing massive interest in buying, trading, and selling cryptocurrencies. 

While discussing crypto trading, many are very confused about choosing either the cryptocurrency exchange platform or going with a cryptocurrency broker. The cryptocurrency exchange and the crypto broker are both responsible for crypto trading purposes. Both look the same, however, you may wonder what sets them apart. Numerous factors make them unique in their way. 

However, the biggest query of a crypto user is, among the both, which one is a trustable platform for trading cryptocurrencies? If you want to know the answer, this blog is for you. We have shed light on the importance of both platforms and discussed the emerging trends. 

Want to discover more, then scroll down…

What Is a Cryptocurrency Exchange?

Cryptocurrency Exchange is a platform where users can buy, sell or trade cryptocurrencies. The crypto exchange offers a wide range of cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple, etc. Not only these expensive cryptocurrencies but affordable and new crypto tokens are also traded in these crypto exchange platforms. Different types of trading options are there for users. 

As cryptocurrency trading is increasing, many startups and entrepreneurs are developing a cryptocurrency exchange platform with many features. The market size value of the crypto exchanges will reach USD 110.12 billion by 2028. Hence, crypto exchange development has now become a lucrative business idea that reaps millions and gains the attention of potential users. This is because cryptocurrency exchanges are trustable platforms for various crypto purposes. 

Also Read : How to Start Cryptocurrency Exchange Platform

Cryptocurrency exchanges give more priority to the user’s security. They offer SSL Protection, end-to-end encryption, device-enabled security, and optional KYC integration. Other than security protocols, crypto exchanges also provide various perks for traders and users. But, here you may think, 

What is the need to choose a cryptocurrency exchange for trading?  

As they possess various features and a user-friendly interface, they are primarily chosen for trading purposes. Apart from that, there are various advantages associated with this. Let’s see about them in detail. 

Why Choose a Cryptocurrency Exchange Platform for Trading? 

Based on the cryptocurrency exchange types, the advantages can differ. So, we have given you some of the common benefits of using a crypto exchange for crypto purposes. 

Various Range of Cryptocurrencies 

The exchange platform comprises a wide range of crypto coins and tokens. Users can buy or trade any of the cryptocurrencies as per their wish. 

Direct Trading 

Crypto trading is directly done between the buyer and user. The crypto exchange (CEX) follows an escrow system for transaction approval. Through this, the user and the buyer of the cryptocurrencies will undergo direct trading. 

Affordable for Users 

The crypto exchange not only comprises expensive crypto coins, rather it also possesses newly introduced tokens. Users can buy cryptocurrencies for low prices. This is an additional benefit for a crypto beginner. 

Higher Liquidity 

The cryptocurrency exchange platform offers higher trading volume for each cryptocurrency, hence the liquidity is also higher. Within a short span, users can trade or buy crypto tokens instantly. 


As the crypto exchange possesses security protocols, the transaction data, user’s cryptocurrencies (In CEX), it safeguards the user details. The chance for scams and fraudulent activities is zero. 

As mentioned earlier, these are some of the common benefits of using a crypto exchange platform. Based on the different types of cryptocurrency exchanges, the perks can also be different. As we have seen about the exchange, let’s delve to see about the Crypto Broker. 

What Is a Cryptocurrency Broker?

A Cryptocurrency Broker is more or less similar to traditional brokers in the financial market. A crypto broker can either be an individual, a person, or a platform. These cryptocurrency brokers act as an intermediary between the buyer and the crypto exchange platform to facilitate crypto trading. When a user approaches a crypto broker, they need to sign a mutual agreement. 

CFD is nothing but a digital agreement between the broker and the crypto trader. Through this agreement, both the buyer and the broker agree on the difference (Profit or Loss) in the crypto asset between the time of agreement and the final trade. Crypto brokerage is the best option for newbie crypto users who start their journey in the crypto realm. Like crypto exchange, the cryptocurrency brokerage also possesses some user-friendly benefits. 

However, crypto brokers gain various perks, and some are not aware of them. For this reason, we have given a detailed glimpse. 

Reasons to Use Cryptocurrency Broker  

Choosing a crypto broker is suitable for people who don’t have previous experience in the crypto field. We have given some of the important perks of using a Crypto broker. 


Crypto brokers are like traditional brokers, users are convenient enough to trade cryptocurrencies seamlessly. Even experienced traders approach a crypto broker for trading purposes. 

Fiat to Cryptocurrencies 

Users who want to buy cryptocurrencies with fiat currencies can approach a broker. The crypto brokers are responsible for converting those fiat currencies to buy or trade the cryptocurrencies. 


The next big thing to consider for brokers is their security features. They offer high security for holding the user’s crypto assets. The crypto brokers are authorized by higher financial regulations which become an additional protection. 

24/7 Support 

The cryptocurrency brokers offer their users 24/7 support and maintenance. Users can approach at any time to understand about their cryptocurrencies. 

Hassle-Free Trading 

With the help of the Cryptocurrency broker, users can execute their crypto trading without any problems or issues. 

Best Suit for Beginners 

New crypto users who are afraid of market fluctuation will approach the crypto broker. As they know the tricks and techniques in crypto trading, users can trust them. 


Users who want to purchase a small number of cryptocurrencies can go with a crypto broker. Users can buy Even expensive cryptocurrencies in fractions at an affordable price. 

Approaching a crypto broker offers these above-mentioned benefits. From this, it is clear that using a crypto broker for trading purposes is an ideal option. 

Both the crypto exchange and crypto brokerage possess more or less the same, some differences are there in between them. The functionalities, features, and revenue generation are totally different from each other. Even the trading prices also vary. 

Crypto Exchange Vs Broker – The Main Differences

Certain parameters differentiate both the cryptocurrency exchange and the broker. Based on the user’s preferences, choice of cryptocurrencies, and other factors, the mode of trading is chosen. 

Crypto Exchange 
Crypto Broker 
Trading Methods  Users can avail of various trading methods Brokers take full responsibility for trading the cryptocurrencies. 
Liquidity  As much as the cryptocurrencies, the liquidity is also high Like trading, brokers would care about the liquidity of the cryptocurrencies. 
Range of Cryptocurrencies  Users can trade a wide range of cryptocurrencies. Only notable cryptocurrencies can traded. 
Security Protocols  Based on the crypto exchange type, the security protocols differ Follow region-wise financial legal compliance and regulations. 
Cyber Threats Poper KYC and other securities are offered for storing cryptocurrencies. Hence, the cyber threat rate is less. Cryptocurrencies are safely transferred to the user’s wallet, once the trading is completed. 
Registration And Validation Depending on the crypto exchange type, the KYC registration and account sign-up is done. The registration process is quite simple. Without legal validation, you cannot execute your crypto trading. 
Deposits And Withdrawals Depositing and Withdrawing cryptos are made easy and gas fee is paid by the user.  With fiat currencies, crypto assets can be bought. 

Through these, both the crypto exchange and broker are differentiated. From Crypto beginners to experienced traders, cryptocurrency exchanges over the crypto broker. Even though using brokers is safe and secure, crypto exchanges offer additional features and functionalities. Even from a startup’s perception, starting a Cryptocurrency Exchange is the ideal solution to reap profit and success in the crypto realm. 

According to a cryptocurrency report, nearly 60 % of the crypto asset holders are satisfied with their investment in cryptocurrencies. Compared with previous years, this percentage is really high. While people started believing in the crypto investment, there came the role of the Cryptocurrency Exchange. So, if you are thriving to reap more profits in this crypto field, then create your own crypto exchange. 

Final Words

As we have mentioned, cryptocurrency exchange development is an ideal option for a startup business. Then, you may ask, 

Who creates a cryptocurrency exchange with exemplary features? 

We Coinsclone a leading Cryptocurrency Exchange Development Company excel in providing crypto-related projects. Our developer team has worked with top-notch startup companies and has delivered it successfully. Our expert team updates you on the crypto project. With our team, you can either create your exchange from scratch or simply purchase a crypto exchange clone script. 

Apart from exchange services, we also offer crypto wallet development, payment gateway creation, and token development. We also provide ICO, STO scripts, and White-label cryptocurrency exchange scripts. Grab the live demo and utilize the opportunity instantly!