So you want to trade or invest in cryptocurrencies? Well, good for you! But before you jump into the wild and crazy world of crypto, you need to find a good platform to invest your hard-earned money. There are tons of crypto trading platforms out there, but not all of them are the same. Some are awesome, some are decent, and some are downright shady.Â
How do you know which one to choose? It’s confusing for a beginner to choose between old exchanges like Binance and Coinbase or the upcoming ones like Bitcoin Freedom. Don’t worry, we’ve got you covered. Here are some tips to help you pick/choose the best crypto trading platform for you.
1. Popularity and Reputation
The very first you need to check is the popularity and reputation of an exchange. Do some homework and research the platforms that you are interested in. Check out their online reviews, ratings, forums, blogs, social media, and news sources to see what everyone is saying about them, and what is the public’s opinion on them.Â
You have to find answers to all these questions like, Are they trustworthy and reliable? How long have they been around? How many users and transactions do they have? This will help you choose a platform that has a good reputation and popularity in the crypto community.
2. Global Availability and Accessibility
Next, check the global availability and accessibility of the platform. Global availability refers to the countries and regions where an exchange operates or accepts users. Accessibility refers to the ease and convenience of using an exchange on different devices, platforms, browsers, languages, and payment methods.
You want to choose a platform that has global availability and accessibility, as it offers more options and opportunities for trading and investing in cryptocurrencies.
3. Supported Cryptocurrencies and Trading Pairs
After that, make sure that the platform supports the cryptocurrencies and trading pairs that you want to trade or invest in. Supported cryptocurrencies are the coins that you can buy, sell, or trade on an exchange. Trading pairs are the combinations of two coins that you can exchange with each other.
For example, BTC/USD is a trading pair that allows you to buy or sell Bitcoin with US dollars. You want to choose a platform that offers a wide range of supported cryptocurrencies and trading pairs that match your preferences and goals.
4. Compare the Fees and Commissions
Don’t forget to check the fees and commissions that each platform charges. Fees are the costs of buying and selling cryptocurrencies on an exchange. They can vary depending on the type of transaction, the amount of coins involved, the payment method used, and the platform itself.
Some platforms may charge a flat fee per trade, while others may charge a percentage of the trade value. Some platforms may also have hidden fees or discounts for certain users or activities. You want to choose a platform that offers fair and transparent fees that fit your budget and trading style.
5. Liquidity of the Platform
One more important thing is to pay attention towards the liquidity of the platform. Liquidity is how easily and quickly you can buy or sell cryptocurrencies on an exchange without affecting the market price.
High liquidity means that there are many buyers and sellers available at any given time and that the price difference between them is small. Low liquidity means that there are few buyers and sellers available at any given time and that the price difference between them is large.Â
You want to choose a platform that has high liquidity, as it offers faster transactions, lower fees, and better prices.
Also Read: Understanding Automated Market Makers: A Beginner’s Guide
6. Ease of Use and Interface Design
Compare the ease of use and interface design of the platforms. Ease of use refers to how simple and intuitive it is to navigate and operate an exchange. Interface design refers to how attractive and user-friendly the layout, graphics, colors, fonts, etc. of an exchange are. You want to choose a platform that is easy to use with an interface design that suits your preferences and skills. You also want to choose a platform that offers features and tools that enhance your trading and investing experience, such as charts, indicators, alerts, news, etc.
For example check out how easy it is to use crypto trading platforms like Tesler.software and trade easily.
7. Customer Support and Service
It is extremely crucial to test the customer support and service quality of the platform. Customer support is the help that an exchange provides to its users in case of any issues or questions. Service quality is the overall performance and reliability of an exchange in terms of speed, security, usability, and functionality.
As a beginner, you need a platform that has responsive, friendly, and professional customer support agents who can solve your problems quickly and effectively. You also want to choose a platform that has high service quality standards that ensure smooth and secure operations.
8. Security and Safety Features
The most important part of your DYOR to choose a crypto exchange is to assess the security and safety features of the platform. Security refers to the protection of your personal information, funds, and transactions from unauthorized access or theft. Safety refers to the compliance of an exchange with relevant laws and regulations regarding anti-money laundering (AML), knowing your customer (KYC), taxation, privacy, etc.
You want to choose a platform that has robust security measures such as encryption, authentication, verification, firewalls backups, audits, etc. You also want to choose a platform that has clear and transparent policies and procedures regarding safety issues such as account verification, fund withdrawal, dispute resolution, etc.
9. Availability and Quality of an Inbuilt Wallet
Additionally, consider the availability and quality of an inbuilt wallet on the platform. An inbuilt wallet is a software or hardware device that stores your private keys and allows you to send and receive cryptocurrencies on an exchange. Some platforms may offer an inbuilt wallet as part of their service, while others may require you to use a third-party wallet. To learn more about crypto wallets, check out the article below:
Also Read: Crypto Wallets: All You Need To Know About Their Types
Conclusion:
Picking the best crypto exchange is not a piece of cake, as there are many things to consider and compare. But by following the tips above, you can narrow down your choices and find the platform that meets your needs and expectations. Remember to do your own research and due diligence before signing up for any exchange, and always trade or invest responsibly.
