Don’t Just Settle For Any Trading Platform, Choose the Best Wisely
Crypto Trading is now a popular choice for many people across the globe. With a low entry investment and the only needed tools being a laptop and secured internet connection, this industry is attracting investors from all over the world. The ease of trading along with the security provided, makes crypto trading a viable option for every trader. However, before you begin trading, it is vital to choose the best platform for the same.
This will make sure that your experience is good and not frustrating. Every platform available has its pros and cons. Listed below are a few platforms that might be worth considering.
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Though this platform is based in Malta, it has branches for providing trading services in many parts of the world. This platform is user-friendly and therefore makes it a popular choice for beginners. Due to the ease of transaction it provides, experts as well use this. It has a very large number (400+) of coin options for trading like Bitcoins, Binance Coins (the exchange's native token), and so on. The trading fees for this platform remain at a flat 0.10% percent, which is very low comparatively speaking. This platform offers credit card brokerage services that make it convenient for traders to make purchases.
For traders who are new to crypto trading, the Coinbase platform is one of the easiest platforms to start with. This platform enables beginners to easily learn and get well-versed with digital currency. It has easy deposit and withdrawal options. It is very popular with Bitcoin traders. It accepts payments through debit and credit cards as well as wire transfers. Though the fees tend to be a bit on the higher side, it still is a good option for beginners who need to earn more intuitive trends in the market.
If quick cash withdrawals are a key feature that you look for in trading platforms, then Kraken will provide you exactly that. This cryptocurrency platform gained popularity by offering quick bank withdrawals. It provides the ease of withdrawing cash in many parts of the world and with very low charging fees. The fees range from 0.00% to 0.26% depending on the type of trading you are conducting as well as the volume. However, keep in mind that they do not offer a bigger selection of coins.
Etoro is a possible choice for you as a trading platform if you are looking for trading in two different worlds: forex and crypto. The platform is user-friendly both on laptop and mobile platforms. Since the time this platform started its operation in 2007, you can read in this review how people all over the world have been trading here. It supports up to 94 cryptocurrency pairs. It also - like most other exchanges - provides its users a crypto wallet app. This app uses multi-authorization as its security measure.
This is a platform for cryptocurrency exchange as well as brokerage services. It enables you to use their services to purchase crypto coins directly from them. This is a preferred platform for traders who do not want to buy coins from other users. It shows prices live in two currencies, i.e., Euros and dollars. It allows the traders to purchase up to 10 different cryptocurrencies. However, it does not have the mobile app option making it harder for people who are on the move to trade on it. Choose this platform if you want to deal with more crypto types than one.
Factors To Consider When Choosing The Ideal Exchange Platform
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The above-mentioned are definitely some of the most popular choices for traders of cryptocurrency in 2021. While the general benefits and features are important for every trader, there are some other factors that every trader should consider before finalizing a platform for trading. This can be country or currency-specific.
Fancy apps or cool graphics are certainly not the factors to consider when you want to register with a platform. Look for an exchange platform that provides you with the highest security. Many times, big names have run into troubles with security putting all the users at a risk. The Gemini platform has experienced a major security breach in the past. Therefore, though it is a platform that provides low trading fees, users are still hesitant to use it.
Vital features like multi authentication, ID verification, data encryption, and so on are some of the key elements to look out for. In most of the platforms, you have to provide sensitive information like your passport details as well as your credit or debit card information. When this information is stolen by hackers, it can lead you to be in a lot of trouble.
The importance of a user-friendly platform cannot be emphasized enough. This is especially important for people who are new to trading and are not well versed with how it works. The user-friendly element of a platform can easily be checked during the sign-up process itself. If the sign-up is complicated and you have any doubts as to what is expected of you then that should be a red flag about the platform. The platform should help you glide smoothly through the processes with clear instructions so you know what is expected and when.
Depending on the jurisdiction, the laws and regulations of trading and the use of cryptocurrency differ. Before selecting a platform, make sure to research properly a platform that is compliant with the law in the country where you reside. Try to look for a platform that is based in your country. If that is not possible, then check with the respective platforms if they operate in your country. This will help you be more prepared when you want to deposit or withdraw your funds. If there is no bank, wire transfers and so on in your country wherein the currency can be withdrawn from, then you will face a bigger problem.
Customer Service And Technical Support
Though they may seem synonymous, they are not. When you use a platform that provides good customer care services, you can easily glide through any problems you might face during sign-up or when you have queries. If you have a problem and the customer service takes days to respond to your email, then you will lose a lot of time. Look for a platform that provides customer service 24/7. The technical support team on the other hand is a team of experts who help you with any problems that need more specific knowledge. With their years of expertise, they can help you solve a problem related to trading within a short period of time.
Types Of Currencies Available
Almost all platforms allow you to trade with Bitcoin and Ethereum. These are the two most basic cryptocurrencies. If you would like to trade with uncommon coins like Dogecoin, and others then you will have to confirm with the platform if they do indeed have those listed on their crypto list. There are certain platforms wherein you can choose to trade from more than 200 types of cryptocurrencies. However, on such platforms, there are two setbacks. One is that with so many currencies available, there is always a risk of security. Secondly, the trading fees could be relatively higher. Some of the uncommon coins that users like to trade-in include Binance coin, Bitcoin, Polkadot, Cardano, Swipe, and rare altcoin
Purchase And Withdrawal Limits
Depending on the amount you would like to invest, you should check the maximum limit that the platform allows you to buy for. Some platforms have a maximum limit in place on the currency that investors can buy. These limits are usually on a higher-end and can be at around 100,000 dollars. These are more targeted towards high-stake investors and traders. At the same time, liquidity is also another factor that you should consider as a trader, especially if you are looking at frequently converting your cryptocurrency into cash withdrawals. The best choice of platform for you then is one that offers high liquidity for quick cash conversions. This is because platforms that have low liquidity will take longer to cash out as the digital assets are not available easily. Make sure that the withdrawals can be done as per your preference as some platforms only let you withdraw with a wire transfer while others help you to receive with bank accounts.
Several deposit and withdrawal options vary from one platform to another. The commission rates differ accordingly along with the payment method. Consider and research all the options available to you so you know how much you will be paying out and what is the final profit you will be making. While some people prefer to choose platforms with the lowest transaction fee, it is not always the only factor to consider.
How To Prepare Yourself Before You Start Trading In Cryptocurrency
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Just like in every kind of profession, being a trader also requires some preparation. While the market allows everyone, be it a novice or an expert to enter easily, you should still put in some effort to prepare. Below are some steps you can take before entering the trade market.
While this one seems like a given, it is an important one. There are foundational courses available online that can help you understand the basics. Another important factor to consider while learning is that you should refrain from using your knowledge on commercial media or hearsay. Concentrate on finding mentors who have been in the market for a long time and do not mislead you. As for following the advice of your friends, what might work for them might not necessarily work for you. So be more alert and don’t get emotional while trading.
Many platforms allow news users to create a demo account. In this account, you can practice trading in a real live trade environment but without actually spending real money. This gives you a chance to build your own plan and strategy on how you want to trade without the risk of losing money. Make notes while you practice to see what trends you followed worked and those that did not. See what changes you can make to improve these patterns. Be consistent with your practice. The cryptocurrency trade market is operational 24/7. Therefore, you too need to be alert at all times to make the best of every trend.
While online platforms bring the ease of working from home to the luxury of choosing your own hours, one must stay alert so you don't fall prey to scams. As you will be putting up case-sensitive data on the platform that you plan to trade from, start by ensuring that this data is safe. A broker platform that does not have clear instructions or the information asked for is unrealistic, that should be a red flag immediately. Also, many platforms allow you to start trading at a very low price. At the same time if the trading fees or any other hidden fees are too high, within a few trading transactions you can lose all your money.
When you are more prepared, you reduce the chances of risking too much. While trading does involve risk, it doesn’t necessarily have to be all that bad. Sometimes by learning and putting in some effort, you can make a profit easily and avoid running into unpleasant situations. Consistency is the key. If you do make a loss in the first few trades, do not be disheartened. Rather take corrective measures and try again.
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