It has become apparent that the cryptocurrency mania is not going anywhere. Everyone, from major financial institutions to enterprising millennials, are rushing to learn as much as possible about this new trading instrument and the technology it boasts. More important, they want to know how they can take advantage of this newest trend and cash on it. In order to make it happen, you first have to choose a cryptocurrency trading platform, such as an exchange or broker. As cryptocurrency gains popularity and its adoption becomes widespread, more people will find themselves asking how to buy and sell these assets. When it comes to a trading platform, there are dozens of things to check before you sign up with one.
Here are the top things that should be considered when choosing a cryptocurrency trading platform:
- Security and authenticity
It is essential for you to do your research and ensure that you are choosing a secure and legitimate platform. If you have kept up with the crypto market, then you are aware that some cryptocurrency exchanges have been hacked and there have also been stories about brokerage scams. Therefore, as a prospective cryptocurrency investor, you should always check the security protocol of any platform. Check what security measures are implemented by the platform, such as encryption and firewalls. Moreover, you should also see how they keep funds secure because there have also been cases of misappropriation.
- Method of purchase
The method of buying cryptocurrency can also vary for every platform. Some may require their customers to make deposits via bank transfer, some accept debit and credit cards, some allow e-transfers and there are also those that only allow cryptocurrency for purchases. If you don’t have any cryptocurrency for purchasing, it is best to opt for a platform that accepts other methods of deposit so you can enter the market easily. Likewise, you should also check how long it takes for purchases to be completed. Some platforms have instant deposit options while others may take days or weeks.
- Supported cryptocurrencies
Most cryptocurrency trading platforms support Bitcoin, Ripple, Ethereum etc., but if you have done any research, then you know that this is just the tip of the iceberg. There are tons of cryptocurrencies that you will come across in the market and different platforms are offering a variety of them to trade However, you should be aware that not all of them are stable and some new one might be very risky. While Bitcoin, Litecoin and others are very tempting, they are also quite expensive and not everyone has the budget to start with them right away. When you are looking at trading platforms for cryptocurrency, make sure they provide support for the ones you are interested in.
- Fee structure
The transaction fee and fee structure of every trading platform is different and checking this is critical before you make your decision. Some platforms may even charge discounted fees. You need to compare the fee that’s being charged by different platforms before choosing one. It is essential to ensure that in your aim to keep costs at a minimum, you are not compromising on any features and services that might be helpful.
- User interface and experience
The user interface and the functionalities of the trading platform are one of the most important aspects for any cryptocurrency trader or investor. Whether you are purchasing cryptocurrency for the first time or are a seasoned crypto investor, a good user experience and an intuitive user interface can enable you to trade more efficiently and interact smoothly. While user experience is subjective and people react differently to interfaces, the success of the trading platform can indicate how good it is. Reviews left by existing and previous customers can give you an insight into a trading platform’s performance. For instance, if you check StsRoyal review, you will find out what kind of experience they offer.
- Customer service
Every trading platform is different. They have different policies and unique features. Even if people have traded crypto before, there is a good chance they will have questions or concerns when they sign up with a new trading platform. As far as newbie traders are concerned, they would undoubtedly need assistance at some point. This is where customer service comes in and it is one aspect you shouldn’t ignore. You wouldn’t want to wait for days when you require help, which could be the case of some trading platforms. Take a look at the channels they provide for getting in touch with their representative. Proper contact information should be made available so customers can get in touch easily.
- Tools and features
The cryptocurrency market is a volatile and unpredictable one. You don’t know when movement will occur and how major or minor it will be. Nonetheless, there are numerous tools that have been developed to help traders in minimizing their risks and maximizing their profits. Some of these tools are for risk management while others can be helpful in decision making. Many trading platforms offer these crypto trading tools to their customers to assist them during the trading process. Hence, it is a good idea to look for a platform that gives you access to these tools and features, especially if you are a new trader. Even experienced traders require these tools to make decisions so it shouldn’t be taken lightly.
Along with these factors, you should also opt for a trading platform that provides you multiple ways to trade, such as via desktop, web browser and mobile. This has become extremely important in today’s day and age where people want to trade on the go and don’t wish to be bound. Other than that, they should also have convenient policies for withdrawals and should also provide some trading education. When you choose a crypto trading platform for buying and selling coins in order to make profits, make sure you consider these things in order to make the right decision in the long run.