I want to share my experience about cryptobitup broker. My friends worked with this company for a couple of months, so I was sure that was a reliable broker. Unfortunately I faced with verification issues. They asked me to provide so many docs. Moreover, it took them 4 business days to check everything and allow me to trade. I understand that user verification is very important but what did they do during 4 days? I enjoyed trading less than a month. I lost almost everything. When I tried to analyze the situation I noticed several gaps which took place on my ZEC/ETH graph. Fortunately I could withdraw my money. Now I am trading with other broker.
I agree, signing up at a crypto exchange is much more cumbersome than signing up for renowned broker like TDAmeritrade. That being said, having to supply documentation and then having someone actually verify those documents should make you feel better about the broker not worse.
Crypto markets are very thin relative to just about every other market. There isn’t going to be a buyer at every tick and in some cases the bids can dry up altogether. That means if you are in an already illiquid market and price starts moving there may not be any bids at all, or the bids may be way far away and you would have a gigantic bid/ask spread.
Let me suggest a few things. If you want to just buy and hold the coins for months or years, then just do that and liquidity won’t be as big of an issue. If you are wanting to day trade or swing trade crypto, then stick to the most liquid coins, but more importantly learn how to trade. If you are just trading your feels or the news then you will lose. If you want to trade price behavior (aka price action) then you may have a chance at becoming profitable. You are in the right place because babypips has more informational articles and helpful forums than you can shake a stick at. You would be much better served spending your time learning about what you are getting into and how to be successful at it rather than just jumping in head first and giving the markets/your broker all of your money.