Crypto is the present. More investors are looking to buy and sell cryptocurrencies every day and the market has expanded to service their needs. There are hundreds of crypto exchanges (both centralized and decentralized) that offer cryptocurrency trading networks. A newbie crypto trader might have a hard time finding the right platform to trade, while an experienced trader might want to change their cryptocurrency trading platform, for reasons best known to them. Regardless of the reason, you need to answer a few questions and tick a few boxes before getting into cryptocurrency trading. In this article, we want to show you the various factors you should consider before choosing a cryptocurrency platform.
Factors To Consider When Choosing A Crypto Trading Platform
If a particular crypto exchange has suffered from cyber hacks in the past, you might want to steer clear of it. Centralized exchanges are mostly targets of cyberattacks because of their massive liquidity pool. However, those platforms can employ the best engineers and they often have tight security. Cryptocurrencies are untraceable assets and if they are stolen in a cyberattack, they cannot be recovered. Check that the trading platform has a tight and secure network before you start trading there.
Fees are the means by which crypto platforms make their money. The fees charged per transaction have no standard in the crypto market. Every trading platform has its unique fees in line with its user terms and policies. In some cases, the platform could also charge fees on deposits and withdrawals. As much as possible, you do not want to use all your profit in paying these fees, therefore, if you are hunting for a cryptocurrency trading platform, you might want to opt for the ones with the lowest fees.
You can get to find out the fees for different platforms by reaching out to the platforms. This might be a bit stressful but it is definitely worth the amount you would be saving on transaction fees.
The way you get money into the crypto trading platform also matters. Some exchanges allow you to buy cryptocurrency right there from another user on the platform. This is most known as peer-to-peer (P2P) trading. Most crypto trading platforms allow you to use a debit or credit card to fund your account. Others allow you to transfer from your local bank or online payment systems like PayPal and Cashapp. The best crypto platforms utilize all these funding methods.
One of two of these options may be limited to users who only have one medium or the other to pay. In fact, sometimes, there might be issues with the debit or credit card or issues with the local bank. For platforms that use either of these, the users’ transactions may be on hold which is rather unfavourable. Better still, the best bitcoin trading platform would offer all of these options. Providing its customers with a variety of ways to fund their accounts.
Currently, there are over 1300 listed coins in the cryptocurrency market. You do not want a trading platform where your crypto options are limited. Before you sign up with any trading platform, check that they have a wide range of assets for you to invest in. Most crypto trading platforms list major coins like crypto and Ethereum. However, you want to sign up with a platform that lists a wide range of cryptocurrencies. This means you can easily target new cryptocurrencies and put your money into new projects.
The best crypto trading platforms allow for a smooth user experience. Most top platforms have mobile apps that are easy (or not so easy to navigate). You should choose a trading platform that is outlined for customer convenience and is easy to understand. If the platform is only accessed on the web, the website should be designed for easy navigation. However, the reality is that most cryptocurrency platforms are hard to navigate and beginners will have to do a lot of research before they get used to the process.
Most startup crypto trading platforms are known for terrible customer service. Communicating with them when you have an issue with your account or assets is almost impossible and it can be quite frustrating. Before you put your funds in any account, make sure the platform has responsive customer service. Ideally, you can try calling multiple times customer care multiple inquiries before you pick any trading platform.
If you are looking for the best cryptocurrency trading platform, you can judge and choose using the parameters we outlined above. You will have greater rewards for your efforts and you can trade knowing that you made the best decision.