Exchange vs brokerage

Buying from other users, or buying from the operator

In detail

Crypto can be bought on an exchange, where users trade with each other on an order book, or at a brokerage desk, where the operator sells to you directly. The desk is simpler to use but sets a wide gap between its buy and sell prices. The same purchase leaves you with different value depending on which you use.

Example

If the desk's buy and sell prices differ by 3%, you start 3% down the moment you buy.

Differences by country

Japan — In Japan both run through operators registered with the Financial Services Agency.

South Korea — In Korea both run through operators that have reported to the Korea Financial Intelligence Unit.

Related terms

Read in the app (App Store)

For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.