Many people would want to trade in cryptocurrency. However, they often neglect their dreams since they cannot find a suitable trading platform. Below is an extract discussing a few tips you should consider when choosing a crypto trading platform.
Check crypto platforms and interview friends that trade crypto to determine the following:
- Is the platform easy to use and access? Typically, it should have a user-friendly interface. Besides, its applications should be compatible with your devices.
- Does the platform have a friendly customer department? Reputable platforms will assign a manager to help out with the trading process.
- Is the platform secure? Avoid platforms that are prone to hacks or those that do not protect the privacy of their users.
- How long does the platform take to remit your funds? What are the accepted modes of payment?
The platform should have adequate security features. For instance, 2-factor authentication will prevent third parties from accessing your account. Some platforms will store your funds in cold storage. It is an arrangement that deposits a percentage of your funds in an offline account. As such, you will not lose all your funds in case the platform gets hacked. Additionally, check whether the platform insures your funds against hacks and bankruptcy.
Type Of Exchange
Assess the type of crypto exchange provided by the platform. Retail exchange is ideal for both beginners and experienced traders. Some retail exchanges allow crypto to fiat exchange while others allow crypto to crypto exchange. Retail exchanges are heavily regulated to ensure the security of your funds. Peer to peer exchanges allow traders to exchange cryptocurrencies directly.
Typically, you will request an exchange through the platform's forum. Interested traders will contact you and make the trade. If possible, use an escrow service to avoid unscrupulous individuals. An instant exchanger allows you to exchange crypto with a wide range of currencies. The platform will conduct the exchange and remit the converted funds into your account.
Critically examine the trading charges. For instance, some platforms will impose a small fee when depositing and withdrawing funds. The assets should be reasonably priced. Compare the trading fees of a few reputable trading platforms. Do not choose a platform because it has low trading fees. Instead, conduct a cost-benefit analysis to determine whether you are ready to forego essential features such as fiat-crypto exchange, advanced security and ease of use.
When choosing a crypto trading platform, check its reputation, security features, available exchanges and the trading charges.