How to choose a crypto platform: exchange, broker or custodian?

01The 3 types of crypto platform

Not all crypto platforms work the same way. Understanding their model tells you who sets the price of your purchase, and who holds your crypto-assets afterwards.

Exchange: the crypto trading platform

An exchange does not sell you anything itself. It runs an order book: buy offers on one side, sell offers on the other, each with its own price and quantity. Your order is executed against another user's order.

What this changes for you:

• The price comes from the market. You see the gap between the best buy offer and the best sell offer, and you can set your own price with a limit order.
• Fees are displayed: usually a commission on each executed order.
• The interface is technical: charts, order types, a live order book. For a first purchase, it can be disorienting.

In MiCA, this service is called “operation of a trading platform for crypto-assets”. Article 76 of the regulation requires the operator to publish clear operating rules and to make public the price, volume and time of transactions, and it prohibits dealing on own account on the platform it operates. In other words, the operator cannot be your counterparty on its own order book.

Broker: the app that sells you the crypto

A broker sells you the crypto-asset directly, or buys it back from you, at a price it displays. You do not see an order book: you enter an amount in euros, the app shows what you receive, and you confirm.

What this changes for you:

• The price is set by the broker. It is generally slightly above the market price when you buy, and slightly below when you sell.
• Fees are less visible. The broker is paid mainly through this gap with the market price, the spread, rather than through a displayed commission.
• The experience is simplified: one amount, one confirmation screen.

In MiCA, this service corresponds to the “exchange of crypto-assets for funds”. Article 77 of the regulation requires the provider to publish a firm price or its pricing method, and to execute your order at the price displayed when it becomes final. The provider must also tell you from when your order is considered final.

Custodian: the keeper of your crypto-assets

The custodian does not answer the question of price, but the second one: where your crypto-assets are after the purchase. A custody provider holds the keys that allow them to be moved, and keeps them for you.

What this changes for you:

• You have nothing to manage: no recovery phrase to back up, access is through your login credentials.
• You depend on the provider to access your assets and to withdraw them.
• Your assets must remain yours, even if the provider runs into difficulties.

In MiCA, this service is called “providing custody and administration of crypto-assets on behalf of clients”. Article 75 requires in particular a written agreement with each client, a custody policy, a register of each client's positions, and the segregation of clients' assets from the provider's own. In the event of insolvency, the assets held in custody do not form part of the provider's estate. The provider is also liable for the loss of your assets where it results from an incident attributable to it.

When you buy on an exchange or with a broker and leave your crypto-assets on your account, this custody service is what you are using in practice. The platform must therefore be authorised for this service as well.

02Exchange, broker, custodian: the comparison table

03In practice: one app, several roles

Very few providers stick to a single model. One app can offer a “simple” mode that works like a broker, an “advanced” mode with an order book, and hold your crypto-assets between two transactions.

The commercial label therefore matters less than the authorisation. A MiCA authorisation as a crypto-asset service provider (CASP) specifies the list of authorised services: operating a trading platform, exchange for funds, custody, and so on. This information appears in the MiCA register published by ESMA.

04Exchange, broker or custodian: which one for your use?

• You want to buy simply, from time to time: the broker model offers a direct way in.
• You want to control your purchase price or place regular orders: the exchange model gives you more control, with a technical interface.
• You plan to leave your crypto-assets on your account: that is the custodian role of the platform you use.

05Separately: crypto asset managers

The three previous models have one thing in common: you decide what to buy, when and how much. An asset manager works differently. You entrust it with an amount, and it manages the portfolio on your behalf, following a strategy agreed in advance.

What this changes for you:

• You delegate the decisions: choice of crypto-assets, allocation, rebalancing.
• You are assessed before you start: your knowledge, your financial situation and your objectives.

In MiCA, this service is called “portfolio management of crypto-assets”. Article 81 of the regulation requires the provider to check that the service is suitable for you before providing it, and to send you regular statements on the managed portfolio.

An asset manager is therefore not an alternative to an exchange or a broker for buying yourself. It is a different approach, answering a different question: do you want to manage yourself, or delegate?

06Going further

Uncrypt does not rank platforms and does not tell you which one to choose. Our Comparator shows for each one its regulatory status, the authority that authorised it and a link to the official register, so that you can decide on verifiable facts.

• Comparator: authorised platforms side by side, filterable by country.
• Uncrypt Check: the status of a specific platform, at the source.
• Simulator: the real cost of your purchase, spread included.
• Methodology: where our data comes from and how we verify it.