Crypto Brokers Explained: Types, Services and How They Work

Crypto brokers act as intermediaries for buying, selling and swapping digital assets. They offer streamlined access to markets, competitive spreads, and tools like portfolio tracking or automated execution. There are two main types: centralized crypto brokers, which hold client funds, aggregate liquidity from exchanges and enforce AML/KYC, and decentralized crypto brokers, where traders retain custody, source liquidity from DeFi pools and trade peer-to-peer. Unlike exchanges that match orders via order books, crypto brokers provide instant quotes, simpler dashboards and may charge wider spreads. They cater to both active traders seeking margin, lending and high-speed execution, and beginners wanting easy entry with stablecoin trading and educational tools. Choosing the right broker depends on priorities: speed, autonomy, regulatory compliance or advanced products. In a fast market, the right crypto broker can improve pricing, execution and access to liquidity.