Did you know that the crypto market dropped in value by nearly $1 trillion in April 2022? Although this isn’t great news for those who currently have crypto investments, it presents an opportunity for new investors to get involved in the market.
However, you’ll need to use a secure trading platform before you begin trading with cryptocurrencies. Choosing from the available trading platform options might seem overwhelming at first, but it’s easier than you think.
Let’s take a look at everything you need to know about how to select crypto trading platforms.
How Does the Platform Maintain Security?
Any good crypto trading platform will have top-notch security features in place to protect your coins. When you’re looking at a platform, check to see if it has two-factor authentication, cold storage, and SSL encryption.
These features will ensure that your coins are safe from hackers. It’s also important to look for a platform that has a good reputation. You can check out online forums to see what other users have to say about a particular platform.
What Are the Fees?
Every crypto trading platform will charge fees for each transaction. These fees can vary depending on the platform you use, so it’s important to compare fees before you select a platform. Some platforms might also charge monthly or annual fees that can add up over time if you’re unaware of them.
What Currencies Does the Platform Support?
The platform you select should allow you to trade the coins you want to trade. For example, if you want to trade Bitcoin, Ethereum, and Litecoin, make sure the platform supports all three of those currencies. The last thing you want is to go through the process of getting started on a crypto platform only to find you can’t trade the currency you need to.
What Payment Methods Does the Platform Accept?
Your platform should offer a variety of payment methods so that you can deposit and withdraw funds easily. These might include bank transfers, credit/debit cards, or PayPal. Limits on payment methods could make the platform inconvenient to use.
You can check out this page to learn more about how to use an ATM network to deposit and withdraw crypto.
Is Customer Support Available?
If you run into any problems while using the platform, it’s important to have customer support available to help you out. Look for a platform that offers support 24/7. Using a platform without comprehensive customer service will likely require you to figure out problems on your own.
Are There Rewards Available?
Many platforms offer rewards for users who trade frequently.
These rewards might include lower fees, access to exclusive features, or even free coins. These rewards can add up to be substantial in some cases, so they aren’t something that you should neglect. With enough research, you should be able to find a platform that offers the rewards you’re looking for.
Can You Use the Platform For Margin Trading?
If you’re interested in margin trading, make sure the platform you select supports this feature. The benefits of margin trading include the ability to trade with leverage and the ability to short sell. So, keep this in mind when you’re making your selection.
What Order Types Does the Platform Support?
Some platforms only support basic order types, while others offer more advanced options. If you’re a beginner, you might not need anything more than basic order types.
If you’re more experienced, you might want to look for a platform that offers advanced order types. Non-beginner order types include limit orders, stop-limit orders, and market orders.
How Are the Platform’s Past Reviews?
When you’re looking at a platform, be sure to check out its past reviews.
This will give you an idea of how well the platform has performed in the past and whether or not it’s likely to meet your needs. Beware that it’s not uncommon for some platforms to post false reviews in order to improve their reputation. Keep an eye out for any feedback that sounds suspicious or too good to be true.
What Is the Platform’s User Interface Like?
The user interface is important because it will determine how easy it is for you to use the platform. The interface should be intuitive, meaning you should be able to find what you’re looking for in the place where you expect it to be. For example, using an interface that has a search bar at the bottom of a page would feel awkward and clumsy.
What Are the Red Flags That I Should Watch Out For?
There are a few red flags you should be on the lookout for when you’re choosing a crypto trading platform. First, avoid any platform that doesn’t offer two-factor authentication.
You should also beware of platforms that require you to deposit a large amount of money before you can start trading. Finally, be cautious of any platform that has a lot of negative reviews. These reviews could be fake, but they could also be indicative of a platform that’s not worth your time.
What Else Should I Know?
It’s crucial to keep in mind that the crypto market is volatile. The value of your coins can go up or down at any time. Be sure you’re aware of this before you choose to invest a large amount of money. Many new investors get caught up in the hype and end up losing a lot of money during market crashes.
With careful planning and market research, though, investing in crypto can be a great way to exponentially increase your contribution.
Knowing How to Select Crypto Trading Platforms Is Easier Than You Think
Although it might seem complicated at first, the above info will help ensure that you select crypto trading platforms that are best for your situation.
Keep this guide in mind when moving forward so you can avoid unnecessary complications. Looking for other useful articles like this one? Our blog has plenty of information to help you in the future.