8 Effective Tips for Choosing the Best Cryptocurrency Trading Platform
Updated: Jul 13
The global crypto market size was at USD 754.0 million in 2019. Now, it is projected to reach USD 1,758.0 million by 2027. The massive growth is credited to the rising popularity of Bitcoin and other cryptocurrencies, along with continuous integration and support around it.
More people are turning to cryptocurrency trading as it is considered to be one of the effective ways of making money online. However, there's so much that goes into trading cryptocurrencies than just knowing about it.
With so many cryptocurrency exchanges and trading platforms popping up, it can be challenging to choose a good platform that can maximize the profits and potential of cryptocurrency trading. However, keeping a few things in mind can go a long way in deciding the best crypto trading platform — both for beginners who are just stepping into the cryptocurrency game as well as established traders who are looking forward to maximizing their profit potential.
Here are some of the things that you should look at while choosing a cryptocurrency trading platform.
1. Ensure the platform has a good reputation
This is perhaps one of the most essential parts before you decide to invest.
One of the best ways is to read reviews of these trading platforms online. Platforms such as Reddit have comprehensive reviews of specific trading platforms. By reading the reviews, you could either discover that they are relatively newer and messy to trade on or are well-established. The better the reviews, the more comfortable you should be while opting for that platform on your trading journey.
However, do depend on just one source to read the reviews, as chances are that there might be some fake reviews to build the platform's credibility. Scan more than one site for different points of view from multiple users.
2. Find out how secure the trading platform is
The competition between exchanges is increasing, so identity theft, data breach, and hacking occur frequently.
A good exchange ought to be investing its time and resources in ensuring that the customers and traders on its platform find a secure environment to work on — a trading environment that offers features such as end-to-end encryption, jail login, and two-factor authentication.
You must also avoid platforms that do not respect the Know Your Customer (KYC) procedure and do not follow Anti-Money Laundering (AML) regulations.
3. Check out the payment methods and liquidity options
When you are on a trading platform, you would want the option to withdraw your money whenever you want, and this is where platforms with high liquidity options come in handy.
A popular and trustworthy trading platform would have a massive user base contributing to a high volume of transitions. When transactions on a platform are high, it gets more comfortable for them to settle the money.
Besides, you might also want to look at exchanges that offer more convenient payment methods such as debit card, credit card, or PayPal. The payment gateway that the trading platform uses must also be secure.
Also keep an eye on how long they take to process the amount, as you wouldn't want to wait too long for your funds to be processed.
5. How much do these platforms charge?
Most of the trading platforms out there charge a fee to their users. It's usually a small amount that's deducted with every trade. Some platforms will also charge their users more than others.
There are also some trading platforms that have a withdrawal fee, so you might want to keep these in mind while selecting a trading platform.
Ensure that the platform you choose makes clear the kind of fee they charge and do not have any sort of hidden fee. While some platforms charge less than others, they might also come with fewer features. You may not want to compromise on features even if the fee is slightly higher as you would want to be growing your portfolio in the long run.
6. Is the trading platform insured?
Insurance can be a crucial factor while deciding on the best trading platform out there. When a crypto trading platform has insurance in place, it helps provide a cushion to its investors in certain situations. That way, you remain more protected in market conditions that are often unforeseen.
If something goes wrong on the platform and the exchange is known to be at fault, then users will be provided with compensations that will cover their losses.
7. How usable is the platform?
Trading platforms can be complicated, especially for beginners. So it is helpful if you choose a trading platform and exchange that is easy on the eye and does not overdo the data. A near interface is always welcome.
The information that can be shown on the screen with cluttering it is really limited, so it is best if your preferred trading platform can segment information in tabs and sections. You must also keep in mind that the information you get is real-time.
Having support on smartphones and tablets is another feature that might add to the convenience of real-time trading.
It also helps if there's a user guide for beginners that helps them navigate through the platform with detailed infographics or a live demonstration. When users see the action happening before participating in it, things become much easier later on when they actually start trading.
8. How good is the customer support?
One of the features of the best trading exchanges is that they offer great customer support round the clock. It is really helpful if the support team is equipped to chat or speak in multiple languages, as traders can be from different parts of the world. Having bad customer support negatively affects the platform's reputation.
Go for a platform that offers great support in the form of live chat, email, voice calls, and support tickets, as you never know when you might need some professional help during trading.
The above-mentioned factors can really help you pick the best trading platform in the lot. Remember to spend some time reading the reviews and finding out about user experience so that you do not regret it once you have signed up.
One trading platform tends to differ from the other, and not all of them may have the same characteristics. However, it is best if you go for the one which checks most of these factors.
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