Today, there are a lot of crypto exchanges in the world. Each of them provide different services and experiences for users. Moreover, exchanges even differ in how they work. Some offer spot trading, some derivative trading, some platforms combine both of these types of trading in a single place. The main goal of each platform is to cover user requirements. Consequently, for users it’s important that a platform is convenient for them and can help make profit when using it.
Obviously, there is no such thing as an “ideal cryptocurrency platform”, because it is a kind of personal criterion since all traders pursue different goals and prefer different trading instruments. Of course, you can consider hundreds of criteria depending on your preferences, but there are a few major points definitely worth paying attention to.
Here is the list of the important things to check before you create an account on the trading platform:
Reputation is always the key point, which defines the brand in general. Search for the user reviews and honest feedback on the trusted sources to find out if the platform is “playing an honest game”.
Security is also a very important thing to consider while identifying the right platform. Everybody wants to know that money and personal data are safe. In the modern crypto world, which is teeming with scammers, using two-factor authorization (2FA) and additional protection methods are a must! Pay attention to the security measures the platform takes — where they store funds (cold/hot wallets), how they handle personal data, whether or not they have Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. If the platform requires such verification - it means they know who their customers are and where they are coming from. In this way the exchange ensures a safe trading environment for all its users.
Fees . Trading on the platform, you’ll face various types of fees — transaction, trading, service fees and so on. What’s the most important there — all fees should be transparent — you need to understand what you pay for the value you get for that price. Lower fees can be a sign of slower service, while higher ones — could get you a higher quality and faster service. Choose the platform according to the kind of trader you are and your expectations from the service. Explore the site of the platform you are thinking to join. Make sure there are no hidden fees or commissions.
Payment Methods — every platform has different methods, make your own analysis, and find out what fits your needs best. The more payment options are available — the more flexibility you have. Also, a variety of fiat payment methods — payment cards, bank transfers — means that the exchange meets the requirements applied to the financial institutions (like KYC/AML policies and procedures) and has strong relations with banks. It’s one more important thing to pay attention to when choosing a trading platform. The availability of the payment methods depend on the country of residence, so check what options you can use there.
Regulation — we already know verification is important for security and availability of payment methods. That’s one thing. Another point is regulation. Check whether the exchange is licensed and registered to provide its services. Regulatory bodies make a careful review of the trading platforms to make sure they conduct their services in compliance with the local and international laws. Regulated exchange means more reliable and trusted.
— check how the exchange provides customer support. Is it available 24/7? Crypt -market is open around the clock and you can trade any time you wish. It’s important to know you can get help whenever you may need it.
There are some more important points to consider. No matter if you are an experienced user or a newcomer — they are crucial in your trading on the platform:
Functionality - is one of the most important things. You should be able to:
Place and modify your trading orders. Open and close your positions fast. Have a variety of order types. Be able to set protection orders at any time and manage the risks. Send and receive transfers in the shortest terms and the like.
So the functionality and flexibility of trading instruments play a significant role in your trading.
Liquidity - whenever a market order is placed on the platform, there needs to be enough liquidity to fulfill it. On a platform with a lot of liquidity, a market order of any size will be executed without a significant change from the price level at which it was placed. In plain language, you won’t be afraid to lose a good deal of your funds just because the liquidity is not enough to execute your order fast.
Spread or the difference between the Ask and the Bid prices of an asset at a specific time. The narrower the spread, the faster the position may become profitable.
A wide selection of cryptocurrencies and currency pairs - the more pairs and currencies are presented on the platform, the more earning potential it offers. But it is important to understand the “quality” of the assets presented on the platform. Some exchanges add tokens of little-known projects, which are illiquid. Hence, it’s barely possible to benefit from trading them as these coins don’t have the demand among the community. Fiat currencies are also an important point to take into account. The ability to trade in pairs with fiat currencies is not an additional plus, but practically a necessity. It’s not a secret that crypto-to-fiat and fiat-to-crypto pairs are in the greatest demand. For example, CEX.IO offers to trade the most popular cryptocurrencies like BTC, ETH, XRP, and more paired with USD, EUR and others.
Additional ways to get income - advanced platforms don’t limit earning opportunities with cryptocurrencies to trading only. On the contrary, they are trying to attract users by adding features like referral programs, сryptocurrency staking, and the like. So you have more than one way to earn on such platforms.
The choice of cryptocurrency exchanges is so wide that it can satisfy the needs of even the most sophisticated market player. Wish you to find a platform that will be a pleasure to work on.