The cryptocurrency mania has been here for a while, and there are no signs of it going anywhere anytime soon. Everyone from notable names across all industries to enterprising individuals is scrambling for a share in the crypto cake. But most of all, most are looking to know how they can cash in on the crypto buzz.
If you’re one of the people who feel ready to try your luck investing in cryptocurrencies, choosing a crypto trading platform is where you start your journey. This can be overwhelming if you don’t know the first thing about crypto trading platforms. There are numerous trading platforms, each with a different offering.
This article is a simple guide on how to choose the best platform for crypto trading.
Type of Trading Platform
Crypto trading platforms are where buying, selling, and trading of cryptocurrencies takes place. Crypto exchanges are not equal. Although their aim is the same, they vary quite significantly in their features, supported coins, age in the market, and many other things. Luckily, websites like Best Crypto Exchange Australia have simplified this section and others by sampling the best exchanges if you’re in Australia.
There are three main types of trading platforms as follows:
- Brokerage: These are marketplaces that allow you to either buy or sell cryptos directly on the platform. The transactions are instantaneous are most preferred for beginner traders.
- Peer-to-peer (P2P): This is where you trade directly with another trader on the platform, deciding on the price and payment methods autonomously. These platforms offer more privacy, and they also act as escrow for parties and arbitrate in case of disputes.
- Broker: These platforms operate as forex brokers do. The brokers set prices for the supported coins and allow buyers to purchase the coins through their platforms.
Authenticity and Credibility
The crypto market isn’t exactly new. It has been around since 2009. Many trading platforms have come and gone, and more are still coming up. You must conduct proper research to guarantee that you’re choosing a genuine and credible trading platform. There has been news of trading platforms going down with investors’ funds in the past.
Such news serves as a warning that not every trading platform is credible. In fact, one major issue in crypto trading is the rise and fall of the platforms. Choose a platform that’s licensed at the least and one that has a good reputation. Look at its history and see how long it’s been in existence.
Trading platforms that have been in operation for longer assure that the team behind the platform knows what they’re doing. They have the experience and knowledge of how cryptocurrency and how the market work and make good platforms to start your journey. Read reviews and feedback from customers to help you decide if the exchange is the right fit for you.
The Supported Cryptocurrencies
There are more than 7,500 cryptocurrencies as of November 2021. That’s a huge number to think about, and you’ll have to do your homework well before choosing the coins to invest in. However, crypto trading exchanges don’t offer all these coins on their platforms. Most cryptocurrencies are actually not found in trading platforms because they’re P2P.
Most of the trading platforms only support a select few. Once you figure out the coins you’re interested in investing in, you can now look for a platform that supports them. Ensure you pick a platform that supports all the coins you want to buy. You don’t want to be stuck in a platform that doesn’t offer you what you want.
Platform Fees
Different exchanges have different fee structures. You need to understand the structure of the platform you intend to use beforehand. This way, you’ll be aware of how much you’ll pay for the trading you’ll be doing on the platform. It’s also advisable to confirm that a platform has no hidden fees.
There are also those platforms that give discounted rates. But this happens when you’re using the exchange’s own token to complete transactions. In addition, other platforms only charge for sales and allow you to make free coin purchases. Pick a platform that has a flat transaction rate or one with a more flexible fee structure.
Consider Platform Security
Among the top things to consider in a good platform for trading cryptocurrency is security. In the era of rising cases of cyberattacks and fraud on trading platforms, the security of a platform should be on top of your mind. You want to make sure that your investments are safe. Several crypto trading platforms have gone under with investor’s funds.
If you fail to do your research well, you might become part of the statistics of the investors who’ve lost funds to trading platforms. Take time and find out the security measures a platform has in place to find out whether they’ll serve your needs right. You can find security and privacy information from the platform’s website. (2)
User Interface and Experience
Whether you’re new to crypto trading or a seasoned trader, one thing you need to look out for in a crypto trading platform is its ease of operation. A platform with an intuitive user interface makes taking actions straightforward. Trading on a platform that is difficult to operate can lead to many mistakes that may cause you to lose your investment.
The best platforms for trading crypto are also compatible with different devices, allowing you to access your account and conduct trading activities however you want. Particularly, its mobile devices should allow you to trade on the go and not miss out on trading opportunities.
Similarly, it should be in a language that allows you to understand the trading process. Don’t forget to check the FAQs to know the platform’s other features and don’t forget to reach out to their customer service for any more concerns. Remember, the easier it is to get support from the platform, the better.
Conclusion
Choosing the best trading platform for cryptocurrencies requires a balance of various factors. All exchanges approach the features discussed here differently. The best thing is to know what you’re looking for before you start your research. You can use this guide when evaluating the platforms.
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