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Cryptocurrency isn’t a new venture in investment. It’s been in the market for a long time, but most of the population was reluctant to adopt it. However, the narrative is different today. A majority of the population has embraced this digital currency, and it’s gaining traction by the day. Hence, many developers are designing crypto trading platforms to handle a large number of investors, resulting in the flooding of these platforms in the market.
How will you settle for the right trading platform as a cryptocurrency trader? This article will assist you in doing this by highlighting the aspects you need to look for in a crypto trading platform.
1. Ease Of Use
The ease of use of your chosen crypto trading platform is crucial. It determines how you’ll experience your trading journey. Trading itself isn’t as easy, but you don’t want a challenging platform to use because doing so will only add to your stress.
An easy-to-use trading platform should first have a menu to provide shortcuts to the tool’s systems. It should hold icons such as the home page, your account, transactions, and the latest trading news. These will give you quick access to what you need. Shrimpy is a great choice if you’re looking for ease of use. Still, several others are out there; thus, do your research and pick one that suits your needs.
The platform should be in an easy-to-understand language. An easy language is simple without unnecessary jargon. It should preferably be in a universal language or has the option to choose your preferred language based on your proficiency.
Additionally, no matter how easy a crypto trading platform is, it should have a tutorial and FAQ section. The tutorial will give you a quick guide on utilizing the platform efficiently. It will also guide you on some of the trading options it offers, such as crypto arbitrage. An FAQ will give a troubleshooting guide to most of the issues traders face on the platform.
2. Transaction Fees
Crypto trading platforms work differently. Most will require a fee for your trading on their platform. Some will require a fixed fee, others a given percentage of your trade, and for others, it will depend on the market prices.
It’s best to choose a trading platform where you’ll pay the least money and one with fixed payments. Fixed fees are convenient because you’ll always know how much you’ll part with each month or trade. You can easily budget and trade to make more to compensate for what you’re paying.
After all, you want to make as much money as possible from your trading. It’s good to note that some platforms have brokers that will hold your private keys, unlike others that require payment for it.
3. Number Of Currencies
Trading in cryptocurrency is a bold move. You can trade with several currencies, simultaneously or independently. Some of these are Bitcoin, Ethereum, Monero, and XRP.
Trading platforms will offer different currencies; some two, whereas others go as far as 10. You want to choose a platform offering as many currencies as possible. However, check the quality of service provision for a platform with many currencies. You don’t want to compromise quality as it will affect your trading.
Likewise, you don’t necessarily have to choose the platform that offers the most trading currencies blindly. Suppose you’re interested in four cryptocurrencies. Choose a platform specializing in these four. There’ll be fewer quality compromises when a developer focuses on a small number in most cases.
Moreover, many currencies give you an avenue for growth. So, you might be proficient in two, but the platform enables you to learn the others. You may also benefit through risk diversification and invest in several currencies instead of one. Thus, if one suffers a loss, you still have the others to fall back on.
4. Security
Crypto trading is a form of investment because your money is involved. Therefore, security is of great essence.
There are various aspects you have to consider regarding security. One is the security of the platform itself. With the rise in cybercrime, you need to cushion yourself against digital theft. Check what built-in security features your chosen platform has. Does it factor in data privacy and protection? Remember, your personal details, including financial information, will be on this platform. So, you need to ensure that no unauthorized party can access your data. Most crypto trading platform developers will divulge this information under the privacy policy of their website. Ensure to check this out before settling for any one of them.
Meanwhile, you need to check the security of your money. One way of vetting this is to check how you access your account. Do you require a password, or once you’ve logged into your account, you can access everything, including your wallets? Although convenient, this isn’t safe. Choose a platform that requires the input of several passwords beyond the log-in process. For your wallet, it could have a two-factor authentication system. You’ll put your password, and then a code is sent to your mobile phone or you may use biometrics. All these measures assure you of the security of your investments.
Conclusion
As discussed in this article, choosing a crypto trading platform is easy. With the proper guidance, you can enjoy a seamless selection process. Therefore, consider adopting the tips here to allow you to choose the right crypto trading platform to suit your needs.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.