Factors To Consider While Selecting A Crypto Trading Platform
Over the past couple of years trading in crypto has become more acceptable as well as attractive. As more and more people are getting acquainted with crypto, it is obvious that trading in it will also see a substantial rise. While Bitcoin still remains one of the most trusted crypto currencies, development of more crypto currency as well as exchanges has certainly widened the horizon.
Further, the fact that one can start trading or investing in crypto with as little as a few dollars is the main reason why it has become so popular with the young adult population which has even started investing their pocket money in the hope of hitting a jackpot. Obviously, when such a phase in the lifetime of an asset or currency arrives, there is a chance of trading in it becoming a style statement.
Add to that, the fact that so many crypto exchanges have come up that it is difficult to identify the one that is genuine and suits your needs. In this post, we look at some of the factors that you must consider while selecting a crypto trading platform so that you can take control of your financial future. Let’s start mining (or shall we say, trading?).
- Fees –
Needless to say, this should be the first factor that you should look at because the higher the fees, the lower will be your trading profit. While all platforms will charge a certain fee for executing your transaction, you need to make sure you select a platform with low fees and efficient processing of orders.
For newbie investors, this factor is most important because of two reasons. First, you have a lot to lose as this is going to define your crypto experience. Second, you might want to go for a platform with the lowest fee but might end up with a platform which is not secure. Be careful.
- Security –
We must make it clear that these factors are not arranged in any order of importance. Each factor is equally crucial and needs to be taken into consideration. For instance, we recommended looking after security even when we talked about fees. This shows how interconnected everything is.
When we talk about security in the crypto trading platforms, we mean that the access to your funds must be secure. The minimum security that a platform must provide is a two factor authentication. Even if a platform has a little higher fees than others but it is secure, you must opt for the former so that you do not lose your life savings.
The best crypto platforms that have a reputation in the market of being genuine have insurance. Thus, always make sure that the platform that you select is covered to at least a certain basic level.
It is important because all good trading exchanges, be it for currency markets or stocks, have themselves protected with adequate insurance. In fact, insurance cover is the hallmark of a good trading platform and crypto trading platforms are no exception to this rule.
- Fiat Exchange –
Most traders will require a fiat exchange which helps them convert their funds locked in crypto into their national currency. For instance, you may have purchased crypto in US dollars from India. At some point, you will want to realize your profits and convert them into Indian rupees. A fiat exchange helps you do so.
While selecting a crypto trading platform, it is imperative to ensure that there is a fiat exchange facility that is also compatible with your country’s banks where you maintain an account.
At the end of the day, it needs to be remembered that like any other asset class, crypto is also volatile and a trader needs to do his due diligence. A crucial part of this due diligence is making an effort to research on the different trading platforms.