With more than hundreds of active crypto exchanges in the crypto industry and new ones emerging every day, traders, regardless of their trading experience, need to be cautious when picking a crypto trading platform. Most crypto exchanges, although are centralized, are not regulated and don’t provide any refund should you lose your assets. Cryptocurrency is a volatile asset and a risky investment that requires that you are careful when making any decision as it can impact your trade.
While there are several crypto trading platforms, you want to ensure that you choose the right trading platform. You want to consider your trading goals and what you aim to achieve when choosing a crypto trading platform. In that case, you need to pick a trading platform with a high trading volume because it offers price accuracy. Here are a few factors you want to consider;
Engage in Detailed Research
Apart from being convinced that you have found the right crypto trading platform to trade with, it would help if you did detailed research to find out what the crypto trading platform is all about and what other traders say about it (reviews). The reputation of the platform you want to trade matters a lot. Before you proceed to open an account with a brokerage, ensure that you do detailed research, as this will let you know what you are getting yourself into.
You want to ensure that the exchange had no security issues in the past. At the same time, you need to know how the exchange has tried to address any complications with authenticity and security. You need to make your findings so you can be assured. You can only be sure that you have found the right crypto trading platform after you have done detailed research.
Security
One way you can ascertain that you have chosen the right trading platform is their security. While you don’t want to experience difficulties creating an account, you also want to ensure that the crypto trading platform you are considering doesn’t make it seem so easy to generate an account. Their wallets should be safe, and the authentication process is also critical. Not all exchanges offer traders a cold wallet to store their assets, but it is essential that you keep the vast majority of your assets in your cold wallet regardless of the crypto trading platform you choose.
Fees
While you have probably done your research, and it appears that the trading platform is reliable and secure, another way to ensure that you have chosen the right trading platform is the trading fees. You may probably have heard that the most reliable platforms are the ones with high trading fees, but how true is that? High fees do not guarantee high security, nor does it make a crypto trading platform reliable.
The trading fees in most exchanges are determined by the size of your transaction and level of activity. Regardless of the factors that determine the fees, you don’t want to deal with high fees, especially if you are actively trading. You have chosen the right crypto trading platform if the fees aren’t so high that it affects your trading profit.
Cryptocurrency pairs
Another way to ensure that you are on the right trading platform is the cryptocurrency pairs the platform offers. Some exchanges offer a small selection of cryptocurrencies and that leaves traders with few options. So, while you are looking for a secure platform with a unique and easy user interface, you also want to ensure that they offer large cryptocurrency pairs.
Apart from the cryptocurrency pairs, you want to consider the buy and trade options the trading platform offers. This is to ensure your convenience.
Customer service
As a trader, there is no perfect platform compared to a platform with fantastic customer service. So, if you come across an exchange with excellent customer service, that is a good platform. A crypto trading platform with excellent customer service improves your experience and offers a smooth trade.
Availability
Cryptocurrency is an unregulated industry, but you have to ensure that you consider your location when choosing a cryptocurrency trading platform. If you don’t see an exchange in your state right now, keep a watch out because companies are constantly expanding. On the other hand, if you’re utilizing an international exchange, keep in mind that regulatory changes in your country may make it illegal to utilize one. Platforms are supposed to keep you up to date, but rapid changes and bad customer service are typical. As a result, it’s a good idea to keep an eye out for yourself.
Method of purchase
Crypto purchasing differs depending on various platforms. While some of the systems accept bank transfers, there exist systems that solely accept bitcoin for purchases. If you don’t have any coins, platforms that accept fiat currency are critical because it allows you to enter the market with less stress.
Conclusion
While there are lots of things that you should consider that can help you determine if you have chosen the right crypto trading platform, there is no better way to be sure that you have chosen a great trading platform than doing your research. Let your trading goals guide you during your research. Regardless of their trading experience, most traders begin trading to gain profit. While you seek to earn a profit, you need a suitable platform to make trading more convenient and profitable.