March 13, 2022
Crypto Trading Platform 1 scaled 2 scaled - 6 Tips for Choosing the Right Crypto Trading Platform
Source: arabianbusiness.com
Source: arabianbusiness.com

Everyone wants to build wealth and trade in crypto through significant investments. But if you are just starting out, then there is a lot of uncertainty that extends beyond the potential risks in cryptocurrency investment. One of the biggest dilemmas is choosing the right trading platform which offers a secure network, easy transactions, and faster peer-to-peer trading.

There are a lot of factors to look into before choosing the final one for your trading needs. While looking for an exchange platform, you might also want to choose spot exchanges for more flexibility in the trading practices. But before you start worrying about all the options on the internet, we will help you with some tips to choose the right crypto trading website.

1. The Reputability

Source: currency.com
Source: currency.com

Before you begin your hunt for a reliable platform, you should check the reputability of the service provider. It is important because people have been scammed during exchanges and transactions before. You can also type in the name of the platform and look up customer reviews on public forums.

Most of the reputable platforms will be transparent with their exchange policies and give you plenty of room for trading and investing with the flexibility of how you move your crypto assets. Checking the reputation of any website is not difficult if you know to look for customer reviews first.

READ MORE:  How to Protect Your Crypto Wallets?

2. The Security

Source: investmentexecutive.com
Source: investmentexecutive.com

The security feature of any exchange platform is extremely important to keep your crypto assets safe at all times. Typically investors do not recommend storing your acids in a wallet for a long period if you are not planning on making an exchange anytime soon. Using the wallet is preferable because it facilitates easy to exchange without wasting time.

Many times when the transaction is for a larger value, it is more prone to security breaches because hackers target larger exchanges to make a profit. Many platforms recorded student crypto assets from breaches they did not even know of. If you would like more details, just check out bitqs.online.

The security measures and the website safety is important to consider before finalizing the platform. Also, check to see if you have the ability to whitelist only a few IP addresses so that the transaction is only applicable to the person receiving the crypto assets.

3. Compatibility with Fiat Exchange

Source: money.com
Source: money.com

When you are using a trading platform, you want to buy the assets from your fiat currency. All the trading platforms will offer different means of exchanging fiat currency for cryptocurrencies. But there is a catch: it depends on the service provider to select a certain means for trading crypto in the local currency. For instance, a particular platform may only offer a limited means for you to exchange fiat options.

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You need to see if the compatibility of the platform is with your particular bank or not because they only have affiliations with specific banks and not all of them. If you were thinking of making another bank account anyways, it would be easy for you to make the choice of a particular exchange platform. But other times, you cannot keep managing multiple accounts, so try to look into the compatibility.

4. Look at the Asset Prices

Source: medium.com
Source: medium.com

One thing that you need to realize before choosing any platform is that the asset prices will be different across all the options. The asset prices are dependent on the geographical location of the user. After you look through the different options available, you will get a general idea of what the range of the asset prices is supposed to be like.

If you are getting a drastic difference in the asset price at any platform, you will be able to tell if it is prone to low liquidity, which might affect you later. A drastic change in the asset price will also tell you about volume loss.

5. Look at the Fees

Source: blog.eklipse.gg
Source: blog.eklipse.gg

Much like the asset price, you also need to take into consideration the fees being charged for each exchange or transaction. It is very normal to charge a standard fee for each transaction or trade when it comes to crypto wallets or exchange platforms. You can consider it a charge for keeping the transaction safe from any kind of security breach that can make you lose your hard-earned money.

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You can, of course, compare the fees of different platforms to see where you are getting a good deal. Only make a choice after looking at the fee structure as well as the security features offered on the platform. Expect the fees to vary because it is a standard practice that varies from service provider to service.

Typically the fees will be dependent on a percentage per trade rate. This simply means that the bigger the trade will be, the more you will have to pay in terms of fees. This is the margin of the service provider you will have to pay every time so try not to go for a free service because that is more likely to dupe you.

6. The Insurance Fund

Source: fintechadvisor.io
Source: fintechadvisor.io

Not all cryptocurrencies can be insured, but some of them can be insured. Usually, the platform will have the option of an insurance fund, so make sure you take advantage of that. Some of the best exchange platforms will have the option of insurance funds to protect the exchange.

It gives you another buffer to protect your crypto assets in case of a market mishap. But before getting drawn away with the feature of insurance, read the terms and conditions carefully to know the extent of protection of the crypto assets.

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The Takeaway

We hope that these seven tips will help you in choosing the right crypto trading platform. The final decision rests on you but make sure you make ample use of the resources available on the internet to find a platform multiple customers prefer because of their good service. The compatibility of the platform with your interests is of utmost importance.

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