Becoming a Bitcoin broker is one of the easiest ways to make money from the leading cryptocurrency, irrespective of its price. It is unsurprising, then, forex robots
that many are searching for a beginner’s guide on how to become a bitcoin broker.
After all, the global adoption of Bitcoin is still in its infancy. Many individuals who do not know how the cryptocurrency market works would prefer to gain exposure to Bitcoin through a broker instead of a traditional cryptocurrency exchange.
If one could become a bitcoin broker, they would realize massive profits and, at the same time, play a part in this financial revolution. If you are that person, then read on.
Who is A Bitcoin Broker?
Generally, a broker buys and sells financial instruments like gold, shares, etc., on behalf of others. However, a Bitcoin broker is essentially an agent or business that buys or sells bitcoin to its clients. They often do so in exchange for a profit representing a percentage of the trade amount.
For instance, a Bitcoin broker may sell 1 BTC at £13, 700, even though its market value stands at £13, 400. They pocket the excess value as profit minus any amount spent on facilitating the trade. Similarly, they may buy 1 BTC from sellers at £13, 700 even though the market value stands at £13, 900. The excess amount represents their profit when they sell the BTC.
A new BTC broker’s profit margin may be meagre at the business’s initial stage because people would be scared to commit significant funds to an agent with little or no reputation. However, with consistency in providing excellent brokerage services and the continued widespread interest in Bitcoin, you could be making huge profits running into millions of pounds annually.
How to become A Bitcoin Broker
Many think they need a lot of capital before starting a Bitcoin brokerage business. Interestingly, running a standard bitcoin brokerage business does not require much money, as you can always start on a small scale.
As a small-scale brokerage, you are a direct point of contact between clients. You can buy BTC from sellers or sell directly to buyers while earning a small profit (usually a tiny spread) from each trade. However, with a large-scale brokerage, the idea is to have a platform where anyone can buy or sell bitcoin instantly. The latter approach is more automated and requires more capital to set up.
Starting a small Scale Bitcoin Brokerage
This section will provide a step-by-step guide on how you can become a small-scale Bitcoin broker. We understand that not everyone has the financial capacity to run a large Bitcoin brokerage business.
As stated earlier, a BTC broker is responsible for buying and selling the asset on behalf of other people. Starting on a small scale does not make you less of a Bitcoin broker. As a matter of fact, what is required for you is to effectively buy and sell the asset for clients while building your reputation and gathering funds for expansion.
Steps To Starting A small Bitcoin Brokerage
Step 1: Choosing a Business Name
You may not consider this an essential criterion when starting your brokerage business, but it is as vital as every other step.
Your business name or profile name is your customers’ first impression of you. If the business name is compelling, it could lead to increased patronage and vice versa.
You may also be thinking long-term about the business, and you do not want a situation where after you have established a profitable brokerage business that has attracted several clients, you opt to change the business name along the line.
Step 2: Choosing a Location For your Business
After selecting a business name, the next step you should consider is where you plan to operate.
One essential factor you should consider when selecting your business location is the regulatory demands within the jurisdiction. Nobody wants their business to be slammed with regulatory charges at its early stage, which could lead to a premature demise.
If the location you intend to operate in is hostile to cryptocurrencies in general, you should relocate to a friendlier region, which would support your business growth.
Step 3: Obtaining a Legal License (if Applicable)
With the crypto industry gaining traction recently, regulators globally have shown increased interest in its activities. Research any legal requirements for operating a bitcoin brokerage in your business location and obtain any necessary approvals.
Step 4: Source Where to get The Bitcoin
Once you have gotten the license, you need to get into the real deal of bitcoin brokerage service. This is when you start buying and selling the cryptocurrency to others.
You can register and become a broker on established bitcoin brokerage platforms like Binance, LocalBitcoins, eToro, and Paxful, among others. These platforms are peer-to-peer (P2P) Bitcoin brokerage services that bring buyers and sellers together to facilitate trade.