Hot Features
Premium
Register to chat with like-minded investors on our interactive forums.
Almost everyone is passionate about building wealth and finding new ways to do so. From stocks to real estate, there are a number of traditional investment options on offer. However, in recent years, cryptocurrency has taken the investment market by storm. People who got ahead of the curve and started cryptocurrency trading when it first burst onto the scene, now sitting on a wealth of profit.
People who think that CFD Trader is simple, could not have been more mistaken. The numerous trading platforms available – each one offering something unique – make it extremely difficult to make a decision.
However, some of the factors discussed in this article will help you determine the cryptocurrency platform that is best for you.
1. Fund security:
Fund security is perhaps the first thing you need to assess before choosing an exchange. If you want to make large deposits, you need to ensure that the safety of your money is guaranteed. The last thing you want is for the cryptocurrency exchange to go bankrupt and take all your hard-earned investment with you.
For this reason, it is vital that you take the time to research the safeguard measures that the exchange has in place and decide whether they are a good fit for you. A cryptocurrency platform’s website will usually have such information, and it is essential that you carefully read this information and make an informed decision.
2. The number of available cryptocurrencies:
You would also want to find out the number of cryptocurrencies that a particular exchange deals in.
Several cryptocurrency options are peer to peer, which means that you will not find them on the exchange and, therefore, most cryptocurrency exchanges will only have a small bunch of investment options. So, you need to think about the cryptocurrency choices that are most intriguing for you, and check whether the exchange allows trades for those particular currencies.
3. Trading fee:
Every investor would want to use an exchange with a competitive trading fee. A high fee can take away a significant percentage of your deposit every time you trade a cryptocurrency.
Over time, this transaction fee can accumulate to a sizeable amount, especially for investors who do not hold their assets for a long time and are more interested in short-term trading. These fees can often turn out to be the difference between generating a profit and making a loss on your crypto trades.
4. The complexity of the trading platform:
People who have just stepped into the world of cryptocurrency want a trading platform that is simple to operate. If the platform is too complicated, you might end up making a number of mistakes that you cannot afford. The good news is that many cryptocurrency trading platforms allow new users to benefit from a free trial.
You should utilize these free trials and determine if you will be able to get the hang of the operations and features. It is also a good opportunity to check how many and which currencies the platform has in place.
5. Reputation:
The traditional forms of investment are heavily regulated and monitored in almost every country. In contrast, the cryptocurrency world is a relatively new one and still slightly vulnerable to security breaches.
For this reason, it is vital that you perform your due diligence before choosing a particular exchange. Google, as always, is an excellent source for your research, and a forum where you will be able to find if your chosen exchange has been the target of any thefts, hacks, or other breaches.
To conclude, beginners often find it daunting to determine which crypto exchange is legitimate and safe. We hope that the factors discussed in this article will help you make a sound decision.
