Finding the right trading platform for your needs can be difficult with the present avalanche of trading platforms. This is why we’ve gone to the trouble of compiling all you need to know about choosing the right platform for your needs in one spot.
You can buy, sell, and trade cryptocurrencies via cryptocurrency trading platforms. If you don’t have access to a trading platform, you won’t be able to buy or sell digital assets. However, there are a few choices.
This does not, however, imply that every trading platform is perfect. If you ask any seasoned crypto OG or trader about their first Bitcoin purchase, they’ll undoubtedly tell you about wasting a lot of money and time dealing with inept, buggy, or plain overpriced exchanges. It takes time to learn how to separate the wheat from the chaff, but you’ve come to the right spot.
This post will tell you how to choose the finest trading platform for you at once.
What To Look For When Selecting A Cryptocurrency Trading Platform
Before you jump into any random trading platform that someone advised, you should consider a lot of factors. Among the most important factors are exchange security, liquidity, fees, history, markets, and user experience. Finding the best cryptocurrency exchange for you may take some time and work, but it will be well worth it.
Reading professional reviews is also an easy method to use.
It’s also critical to comprehend the distinction between crypto-to-crypto and crypto-to-fiat transactions. Crypto-to-crypto exchanges only feature cryptocurrency pairs, but fiat-to-crypto exchanges let you buy and sell cryptocurrencies with dollars, euros, pounds, yen, and other fiat currencies.
7 Point Guide to Selecting a Trading Platform
When choosing an exchange, keep in mind that your mileage may vary. Look for an exchange that offers specific cryptocurrencies, trading pairs, and other services such as margin trading or over-the-counter (OTC) transactions.
When you’ve discovered an exchange that meets your basic requirements, consider the following factors:
Security
Security is by far the most crucial part of any transaction. If an exchange is unsecure, your funds could be stolen, rendering any other benefits it provides meaningless. No one wants to lose money, so take into consideration the following points.
Technology
- The web address for the exchange should begin with HTTPS. Stay away from HTTP connections. It should employ two-factor authentication for login security (username and password plus a piece of information only you have).
- Customer funds should be kept in “cold storage” elsewhere.
- Additional security guarantees include auditing programs that monitor exchange activities 24 hours a day, as well as SMS and email warnings.
- To ensure optimum security, whitelist your IP address or withdrawal wallet addresses.
Legal Aspects
- It’s best to utilize an exchange that’s based in the same country as you are, as this will make it easy to keep up with regulatory changes. However, other exchanges in other nations can also be used. It’s worth noting that certain exchanges only support a small number of countries.
- Some exchanges may insure their funds, which means you may be reimbursed if they lose yours.
Transparency
- Is the exchange transparent about its owners, headquarters address, and staff members?
- Transparent exchanges also make their cold storage address public or provide other options for users to monitor their reserves, such as audit information.
In any event, don’t leave your funds on any bitcoin exchange for longer than is absolutely required. Only keep the money you’ll need for trade. The majority of exchanges serve as honeypots for hackers. Hackers devise the most sophisticated techniques to steal exchange users’ monies because they must retain a large number of digital assets in one location. As a result, it’s preferable to keep the rest of your bitcoin in your personal wallets.
When learning how to choose a crypto exchange, there are a few other things to think about:
Liquidity
The more liquid a certain exchange is, the larger the trade volume is. Liquidity allows transactions to be completed more quickly, easily, and without having to cope with price volatility. Check to determine if an exchange offers “locked-in” pricing, which assures you the price at the time of your transaction even if it does not settle right away.
Be warned that liquidity for different trading pairs may vary. For example, it can be high for BTC/EUR but low for BTC/GBP. Here you can see which exchanges have the most trading volume.
Fees
- Examine all of the fees that an exchange charges. They’re normally less than 1% each transaction, and they’ll go down as your trade volume grows.
- Examine the withdrawal charges. Some exchanges have a reputation for charging exorbitant withdrawal fees for certain altcoins.
- Examine the deposit fees as well. Many exchanges provide a quick and easy option to acquire cryptocurrencies with a credit or debit card, however such purchases are usually accompanied by a 5% or higher fee.
User Experience
- The user experience If your privacy is important to you, you won’t participate in a transaction that asks you to divulge too much information about yourself;
- Is the user interface on both a desktop and a mobile device basic and easy to use?
- What do other users have to say about the advantages and disadvantages of a particular exchange, the support it provides, and so on? Check out Bitcoin Reddit or Bitcoin Forum for community forums.
Cryptocurrency Exchanges And Brokers That We Recommend
In the aspects listed above, most exchanges differ from one another. Some are built for novice traders, while others are made for advanced traders with a lot of money.
Nonetheless, the following are some of the top cryptocurrency platforms:
Binance: Largest cryptocurrency exchange in the world, offering a diverse range of cryptocurrencies.
eToro: A great place to start if you’re interested in both cryptocurrencies and traditional financial products.
BC Bitcoin: Another good brokerage service for new crypto investors who want to invest higher amounts of money.
Bitfinex: A seasoned and institutional investor-only exchange.
Kraken: A great bitcoin exchange for both newcomers and seasoned investors.
HitBTC: A crypto-to-crypto exchange that offers the widest range of altcoins.
Bitstamp: A fiat-to-crypto exchange where you can acquire cryptocurrencies such as Bitcoin (BTC),
Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Bitcoin Cash (BCH).
Bittrex: A cryptocurrency exchange providing a diverse range of altcoin marketplaces.
KuCoin: A crypto exchange for small-cap currencies and tokens that is user-friendly for beginners.
Poloniex: A user-friendly crypto asset exchange that offers over 60 different assets to trade.
BitMex: A bitcoin futures and perpetual contracts trading platform.
Coinbase: A user-friendly gateway exchange that provides one of the quickest methods for purchasing bitcoins.
Coinbase Pro: For those who want to take their trading to the next level, Coinbase Pro is a more complex version of Coinbase.
It’s worth noting that pricing on different exchanges vary. So, be sure to do your research before making a pick.
Other Alternatives For Buying and Selling Cryptocurrencies
If you can’t open an exchange account or your access to cryptocurrency trading is restricted for whatever reason, you can utilize services like Local Bitcoins to meet individuals in your region and buy Bitcoins or other cryptocurrencies offline.
Using a Bitcoin ATM is another option. At Bitcoinatmmap.com, you can find a map of Bitcoin ATMs.
