A broker-dealer is a financial entity that acts as both a broker and a dealer in the buying and selling of assets, including cryptocurrencies. As a broker, it facilitates trades between buyers and sellers, earning a commission or fee for its services. This allows clients to access various cryptocurrency markets and execute trades efficiently. As a dealer, it may buy and sell cryptocurrencies for its own account. This involves holding inventory and providing liquidity to the market, which can help stabilize prices and reduce volatility. Broker-dealers in this space must comply with regulations, often requiring registration with financial authorities. They also implement practices to ensure the security of transactions and protect their clients’ assets. Investors often rely on broker-dealers for execution services, research, and market insights, making them a crucial component of cryptocurrency trading.