Cryptocurrency trading platforms are at the heart of everything that takes place in the burgeoning cryptocurrency market. Right from making it possible to exchange fiat currencies for cryptocurrencies, the platforms also make it possible to trade various crypto pairs, as is the case in the forex market.
Given the widespread adoption of cryptocurrencies, amidst talk of mainstream integration, a number of cryptocurrency exchange platforms have cropped up. One is always sure to be spoilt of choice of which platform to go with.
Here are five things you to consider when choosing a cryptocurrency trading platform.
Security and Authenticity
It is crucial to ensure that all dealings in the nascent cryptocurrency market are done in a legitimate and secure cryptocurrency trading platform. A number of cryptocurrency exchange platforms have gone under and shut down with people’s money. Similarly, a good number of exchanges have suffered security breaches resulting in people losing hard-earned fortunes.
Likewise, it is important to only deal with authentic cryptocurrency trading platforms with a solid track record. The platform should also adhere to the highest industry standards focused on protecting people’s money, interest and personal data.
Trading Fees and Supported Cryptocurrencies
Most cryptocurrency trading platforms allow people to buy and sell major coins of the likes of Bitcoin, Etherium, and Ripple. If you intend to diversify your operations in the burgeoning sector, it is important to trade with a platform that supports a vast pool of altcoins
In addition to supporting major coins, the cryptocurrency exchange platform should also offer support for small and little known cryptocurrencies. This way, you will be able to diversify investments in the burgeoning space.
An ideal cryptocurrency exchange platform should also offer low and competitive trading fees. Fees should be at the bare minimum to avert the risk of charges eating into profits. Low trading fees are especially crucial for high-frequency day traders that open more than a dozen trades a day.
It is also important to check on any withdrawal fees and limits that a cryptocurrency exchange platform might be charging.
Availability and Restrictions
Some cryptocurrency exchange platforms have restrictions on who can access their services. Geographical location and restrictions should be a top consideration, before signing up for a service. Therefore as a trader, you should make sure that the exchange is readily available in most locations. If you are the kind of person who travels a lot, it would be wise to deal with a crypto exchange whose services are available in most countries.
Purchase Options
Cryptocurrency trading platforms offer various options for buying digital assets. While some exchanges offer deposits via bank transfers, others offer credit and debit card support. Some crypto exchange platforms also offer support to various electronic money payments systems such as Skrill and PayPal.
Therefore it is essential to only sign up with a cryptocurrency exchange platform that offers support to a preferred payment system. It is also vital to look for a cryptocurrency exchange that accepts fiat currencies and enables easy conversion to altcoins of choice.
Volume and liquidity
Volume and liquidity are vital aspects when it comes to trading the nascent cryptocurrency market. A cryptocurrency trading platform with high volume is always indicative of descent liquidity levels. High volume and Liquidity makes it possible to enter trades at preferred price points and exit with ease