If you are considering crypto trading, you are likely wondering how you should begin. Well, one of the very first steps is to search for and identify a suitable trading platform. This step is particularly important, as going with an unsuitable platform can cost you your valuable efforts, time, and, of course, money.
So, how will you determine if a crypto-trading platform is right for you? In this blog, we cover several factors that you need to consider during your trading platform hunt.
Factors to Consider When Choosing a Crypto Trading Platform:
1. Reputation:
Despite its immense popularity, crypto investing and trading is still fairly new, and a lot of naïve investors have suffered at the hands of fraudsters and scammers. For this reason, you must analyze a platform's reputation before choosing it to kick-start your crypto trading ventures.
Google is one of the easiest ways to assess a platform's reputation. You can go through reviews and learn what other investors have to say about a particular platform. You could also visit the platform's social media accounts for the same purpose.
2. Insurance funds:
Good crypto-trading platforms or exchanges will always have insurance funds in place. An insurance fund acts as a cushion for investors, protecting them under certain scenarios. With an intact cushion fund, you can feel more confident in your trading activities.
Some exchanges are covered by the FDIC (Federal Deposit Insurance Corporation). If you choose to go with such a platform, you will enjoy protection for at least some proportion of your overall investment.
3. Security features:
Security is, naturally, important for any kind of trading platform. Make sure that your chosen platform has two-factor authentication, which is the acceptable level of security according to modern standards. Any platform that is missing two-factor authentication should not be relied upon.
While having two-factor authentication is essential, it is not sufficient. So, once you have ascertained the presence of two-factor authentication, you must then check if your potential trading platform also offers compatibility with such authentication. Authy, Google Authenticator, and Yubikey are some of the most commonly accepted platforms for two-factor authentication.
Besides that, see if the platform has taken any extra measures to boost its users' security. When it comes to security, remember that more is always better.
4. FIAT exchange:
Crypto investors need an easy mechanism to exchange their FIAT money for tradable units. Similarly, you would also want to ensure that any crypto profits that you generate are easily convertible into regular currency. Enter, FIAT exchange.
Remember that every platform will offer a different kind of FIAT option. Moreover, every FIAT option will only work with some specific banks. For this reason, you must display the prudency of checking the banks that are compatible with your chosen platform's FIAT exchange system, as well as the exchange options that the said platform offers.
5. Fees:
Pretty much every crypto-trading platform charges a nominal fee for every trade that you make. Having said that, it is important to note that these charges are not uniform across platforms, which means that a certain platform might charge less or more than another platform.
Because the platforms charge these fees on the basis of percentage-per-trade, they are a vital factor for any trader. It is likely that you will be performing regular purchases and sales, which means that a high percentage-per-trade will translate to significant costs. Moreover, a few platforms even charge fees at the time of withdrawal.
Final Word:
The tips discussed above can serve as a valuable guide for any new crypto trader looking for an appropriate platform. Ultimately, though, the right platform like Bitcoin Profit TM - The Official & UPDATED Site 2021 is one that will be aligned with your trading goals. Since the crypto industry is still in its infancy, it is recommended that traders approach it with a certain amount of skepticism.
* This is a contributed article and this content does not necessarily represent the views of sciencetimes.com
