6 factors to consider when choosing a crypto trading platform
Finding the right crypto platform is the first step to trading cryptocurrency. However, this can be challenging with the surge in exchange platforms in the market. To help you out, we’ve put together six factors to consider when choosing a suitable crypto trading platform.
1. The transaction fees
Most crypto trading platforms earn most of their profits from the nominal fees you pay when trading. These charges are often not uniform, meaning that a specific exchange site may charge more or less than others. Before using a particular platform, be sure to confirm their transaction charges and other fees to ensure you maximize your profits.
2. The available cryptocurrencies
With tons of different types of cryptocurrencies in the market, including Bitcoin, Ethereum, Dogecoin, Binance coin, Solana, Terra, Polkadot, and Cardano, no platform can provide trading pairs for all of them. This means that only a handful of crypto investment options are on each platform.
Before selecting a particular trading site, take some time to determine the cryptocurrency options you are more interested in. However, it’s advisable to choose a crypto exchange like https://netcoins.ca/buy-algorand-algo/ that offers a wide range of cryptocurrencies.
3. Mode of purchase
Different exchange platforms accept distinct methods of purchasing cryptocurrencies. While some platforms require bank transfers and wires, others may allow PayPal transactions, gift funding, or credit cards. Others restrict the mode of purchase to solely cryptocurrency, so you need to select a platform with a suitable deposit option. For instance, if you are a beginner and do not have any cryptocurrency, you should opt for a platform that allows fiat currency so that you may join the market. Remember to check how long a specific site takes to complete a purchase. While some platforms process transactions instantly, others may take days or even weeks.
4. Ease of use
Whether you are trading cryptocurrency for the first time or a seasoned trader, you should pay more attention to the platform’s user interface and functionalities. Some exchange sites are designed for cryptocurrency beginners, while others have basic and advanced views allowing you to choose your preferred layout. Be sure to select a platform with a favorable interface based on your proficiency level to ensure that your actions on the site are more efficient and informed.
Thanks to the advancements in technology today, there is a rise in platform hacking and theft, so you should determine the level of security a platform guarantees you and your digital money. Most crypto trading platforms display security and precautionary clauses on their websites, so take your time to go through this information before investing your hard-earned money. A platform that offers features such as two-factor authentication, SSL Site Security Certificate, cold storage wallets, and multi-layered verification for withdrawals should be top of your list.
As the cryptocurrency market is relatively new compared to other financial investment options, you should research the reputation of each platform of interest before creating an account. Some exchange sites have been victims of data breaches, scams, theft, and hacks, leading to the loss of millions of money and leaving thousands of users stranded. Performing a background check helps you choose a crypto trading platform that has not experienced security issues before. Be sure to read online reviews to determine the quality of a platform’s customer services based on the opinion of its existing customers.
Choosing the right crypto trading platform is the first step to ensuring your digital money’s safety when trading in cryptocurrency. Consider the above factors to select the best exchange site for you.